No one can predict the future with perfect certainty. As a result, no one can say what will happen with the U.S. stock market for sure. However, while some people might be spooked by the thought of what could happen under a Biden presidency, there is reason to believe that their fears are excessive. For starters, the general direction of the U.S. stock market is up. There have been dips from time to time. However, the trend has been very consistent in the long run. On top of this, it should be mentioned that while the Republicans have a lingering reputation for being better on economic matters. As such, it is possible that we could see a bullish U.S. stock market under the Biden presidency in spite of the COVID-19 crisis as well as other serious issues that must be resolved.
What Are Five Stocks to Look Into in This Scenario?
Perhaps unsurprisingly, there are a lot of medical stocks that are expected to benefit in the times to come. However, Becton Dickinson stands out because it is a manufacturer of medical instruments and medical suppliers rather than, say, a manufacturer of vaccines. However, it makes syringes, which is rather important considering the sheer number of them that will have to be used for such a comprehensive vaccination program. This is particularly true if some of the fears about COVID-19 vaccines losing their effectiveness prove to be right, which could result in the need for multiple rounds of vaccinations. In any case, even if those fears prove false, well, suffice to say that Becton Dickinson is a dividend aristocrat. That might not sound very exciting, but a consistent history of increasing dividends over time makes for a very solid investing option for a wide range of investors.
Caterpillar makes machines. To be exact, it makes machines for construction, machines for mining, plus some other products such as engines and locomotives. Thanks to this, Caterpillar is influenced a great deal by the number of construction projects, which in turn, is closely tied to the state of the economy. There has been some rumblings about increased investment in infrastructure in the United States. Something that is much needed. Should that go through, Caterpillar stands to benefit. However, as the economies of other countries recover in the times to come, it seems safe to say that will help out the company as well. After all, its brand is quite well-known throughout much of the world.
Mastercard is a payment facilitator that operates on an international scale. As such, it benefits from not just good economic times in the U.S. economy but also good economic times in the world economy, which can be very profitable to say the least. Granted, Mastercard takes hits when the economy enters into a recession. However, it is cushioned from such effects to some extent because it hasn’t gotten involved in lending in the same way as American Express, meaning that it doesn’t need to worry about credit delinquencies. In this, Mastercard is similar to Visa, which is also a “safe” payment facilitator for interested individuals. In any case, it is expected that both the Biden presidency and the U.S. Federal Reserve will be encouraging people to spend in the times to come as a way of bolstering the economy. Something that could mean good times for Mastercard as well as other payment facilitators.
Electric utility companies tend not to be very interesting. Suffice to say that the sector isn’t known for sudden growth, meaning that interested individuals might want to stay away if they are looking for faster gains. However, electric utility companies do offer consistency, which can be very attractive as well. Regardless, NextEra Energy has one characteristic that enables it to stand out, which is that it is putting more effort into renewable energy than its counterparts. Better still, the benefits of this forward-thinking policy are not hypothetical, seeing as how it has been seeing double-digit growth in a sector that tends to see low, single-digit growth. On top of this, climate change isn’t going away as an issue anytime soon. If anything, it is likely to become more and more important as the evidence for it becomes more and more undeniable.
REITs took a hit under the Trump administration. In short, this was because of the tax cuts for corporations from 35 percent to 21 percent, which made them more attractive when compared to REITs’ special tax status. The Biden presidency has made it clear that it wants to bring the corporate tax rate back up again, which would presumably make REITs more attractive in that comparison again. Of course, some REITs make for better choices than others. For instance, if people want a reliable option, they could do much worse than Realty Income. Yes, it specializes in retail real estate properties, which haven’t exactly fared the best in recent times. However, much of Realty Income’s portfolio is made up of pharmacies, dollar stores, and other retail businesses that are more recession-proof than most, meaning that it has managed to escape the worst of the hammering. On top of that, if the economy picks up in the wake of the COVID-19 crisis, it is in a position to benefit, particularly when the Biden presidency chooses to provide an encouraging nudge to consumers.
On a final note, interested individuals should make sure to look into these as well as other companies on their own. They should have a clear idea of what they want from their investment portfolio, which in turn, should help them figure out whether these stocks are well-suited for them or not. Investing can mean significant changes in value, so it is a good idea to put some serious effort into it to say the least.