Ever since Vice President Kamala Harris entered the 2024 presidential election, her momentum has been undeniable. Her choice of Minnesota Governor Tim Walz has only helped so far, generating consistent positive buzz as voters flock to their swing state rallies. Meanwhile, Donald Trump has been scaling back his campaign events as Harris doubles down on battleground territory. With polls showing that Harris’ lead over Trump is steadily increasing, political betting markets have shifted in her favor as well. Data from political betting markets now shows that presidential election odds are now swinging in Harris’ favor. As Forbes reports:
“According to the tracker Election Betting Odds, which aggregates data from four separate betting markets, Harris now has a 50.9% chance of winning in November compared to Trump’s 47.1%. This is a massive swing in Harris’ favor, as just two weeks ago it gave the former president a more than 30-point lead over his opponent. Harris’ numbers have been climbing as the Democratic party has coalesced around her as its nominee after President Biden dropped out.”
With presidential election predictions starting to strongly favor Harris, investors will be looking for the best stocks to buy for a Democratic victory in November. I’ve discussed this topic before, but now that Harris-Walz mania is sweeping the U.S., it makes sense to dive deeper into the sectors that stand to benefit the most from having them in the White House.
Current Presidential Election Odds Favor These Sectors
Once the votes are counted, many sectors respond extremely well to a Democratic victory. But if presidential election odds are correct to favor Harris, it is worth considering which industries will stand to keep growing throughout their four years in office. Here are the key sectors to watch.
Clean Energy: Undoubtedly, the Biden-Harris administration has prioritized clean energy development during the past four years. If Harris takes the White House, that isn’t likely to change, as Walz is a strong environmental advocate. As governor, he prioritized moving Minnesota towards 100% clean energy by 2040 and received a $200 million grant from the Environmental Protection Agency (EPA) to develop clean energy solutions.
This means that companies creating alternative energy solutions, especially those doing so on U.S. soil, will be in an excellent position during the Harris-Waltz administration. This includes everything from solar and wind energy to fuel cell technology. One headline from Elecktrek recently summed up the stark contrast between Waltz and Trump’s running mate JD Vance: “Dem VP pick Walz is ‘climate champion,’ unlike Musk-backed GOP EV haters.”
Electric Vehicles (EVs): If a further clean energy revolution is coming, EVs will be a key component. The sector saw significant investment from President Biden, who recognized their importance as the U.S. transitions toward a more sustainable future. Now Harris has chosen a running mate who is also a staunch EV advocate. When Minnesota adopted new energy standards in 2021, Walz stated:
“‘You need to skate where the puck is going to be. The puck is going to be in EV vehicles, and that is irrefutable.”
Elon Musk may have endorsed Donald Trump. However, that doesn’t change an important fact: Republicans tend to be firmly anti-EVs, while Democrats often support their adoption. Automakers that build electric vehicles in the U.S. will enjoy significant momentum if the current presidential election odds prove correct.
Two More Winners
Cannabis: Many cannabis stocks have enjoyed an excellent year, but 2024 could be even better. Harris-Walz is the first major ticket to openly support legalizing cannabis. This primes the entire sector, especially companies that grow and distribute products in the U.S., for future growth. Recent data shows that the U.S. cannabis market is “projected to reach approximately $38.19 billion and is expected to grow at a CAGR of 14.6% between 2024 and 2028.” The cannabis industry has made it clear that it is happy with Harris’ VP choice. This makes sense, as Walz is a known cannabis advocate. Their election would likely be a significant catalyst for the entire sector, with the more prominent stocks enjoying long-term growth.
Media: Until election day, the U.S. and many nations beyond will be waiting anxiously for updates. That will probably continue until after the next president is sworn in. For that reason, companies reporting on the pivotal election will benefit from the surging interest in political news. With presidential election odds being what they are, it’s probably best to avoid conservative media stocks like Fox (NASDAQ:FOX). Companies like Nexstar Media Group (NASDAQ:NXST), owner of The Hill and NewsNation and USA Today network owner Gannet (NYSE:GCI) are likely better bets, as their coverage is not politically slanted.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
