What Harris' policies mean for investors: Crypto, energy, and more
After Joe Biden exiting the 2024 election race, Vice President Kamala Harris has quickly taken center stage. Her candidacy has introduced greater uncertainty into election against Donald Trump, which is likely to impact financial market expectations. Here, we are going to explore why Harris is so popular, and what her economic policies mean for investors.
Why Harris is so popular
Harris raised $81 million, setting a new single-day fundraising record for the 2024 election. According to ActBlue, over 888,000 donors donated amounts up to $200 each. This surge of support shows Harris' wide appeal and strong grassroots backing. Her popularity can be attributed to several factors. Firstly, her identity as a woman and her ethnicity—being the daughter of an Indian mother and a Jamaican father—helps her connect with a diverse voter base. This representation is crucial in US with a rich mix of cultures and communities. Additionally, her background as a prosecutor might also attract centrist and conservative voters.
Harris' political stance
Kamala Harris has a history of progressive political stances. She has been vocal about social justice issues, criminal justice reform, and women's rights. Her experience as a prosecutor and her commitment to fighting crime have earned her respect across the political spectrum.
On US-China relations, Harris believes that US needs to counter China's influence. She is likely to maintain Biden's China policy, confronting China when necessary while also seeking areas for cooperation.
Harris' economic stance and potential market impact
Trade policies
In contrast to Trump's protectionist stance, Harris advocates for increased American exports instead of increasing tariffs. She has criticized Trump's tariffs policy for raising consumer costs. Harris' support for free trade could benefit large multinational corporation, as these companies often rely on global markets for growth.
Traditional and Clean Energy
Harris is a strong supporter of clean energy, aligning with Biden's climate policies. She supported the Inflation Reduction Act, which aims to significantly reduce greenhouse gas emissions by 2030. Harris has also called for a $20 billion investment in the EPA's greenhouse gas reduction fund. She also emphasizes stronger regulation of oil companies and other polluting industries. She has filed lawsuits against several fossil fuel companies, including suing a pipeline company over oil spills and investigating ExxonMobil for misleading the public on climate change. Her policy on energy could further pressure traditional energy companies while increase the investment opportunity of clean energy sector.
Housing
Harris has proposed the Rent Relief Act in 2018, which offers tax credits to renters earning less than $100,000. Joe Biden has taken some measures during its term to address the housing shortage, but these measures are considered to have only partially addressed the problem. Addressing housing demand issues remains an important issue for the Democratic. If Harris continues to focus on addressing housing shortages, it could significantly boost the real estate sector by increasing both affordability and demand for housing.
Crypto
Although it is uncertain that Harris will immediately pivot the Democratic to support crypto, her attitude towards crypto seems to be more friendly than Joe Biden. Entrepreneur Mark Cuban told Politico that Harris will be far more open to AI and crypto. To further solidify her tech-friendly stance and avoid losing pro-crypto voters against Donald Trump, Harris is very likely to support crypto.
Marijuana
Kamala Harris has significantly changed her stance on marijuana over the years. In 2010, She opposed California initiative to legalize marijuana. In 2015, she advocated for an end the federal ban on medical marijuana. In 2019, she publicly supported marijuana legalization and mentioned she has smoked marijuana in college in an interview. In March 2024, she called on the federal government to change the way it officially classifies marijuana. Moreover, many of the potential running mates for Harris also support marijuana legalization. This could potentially further benefit cannabis stocks.
Tax policies
Harris proposes tax cuts for middle and low-income groups while increasing taxes for the wealthy and corporations. Her LIFT the Middle Class Act aims to provide financial relief to middle and working-class families through a tax credit system, which could boost consumer spending, benefiting sectors like consumer discretionary and small-cap consumer sector. Her plan to raise inheritance taxes to fund teacher pay raises may have mixed reactions in the market.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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