Personal finance expert Sean Bryant recently opined that the 2024 US elections will have a "guaranteed impact" on US stock markets regardless of who wins. The finance guru has formulated a four-step plan he plans to implement if Democratic nominee and current US Vice President Kamala Harris wins the November elections.
Investing In The Renewable Energy Sector
Bryant plans to safeguard his money by investing in renewable energy companies if Harris triumphs over Republican candidate and former US President Donald Trump. He explained that the Biden Administration has prioritised transitioning away from fossil fuel-based projects, and the initiatives will retain momentum if the Democratic party wins the 2024 US elections. Meanwhile, Trump has pledged to increase oil production and undo Biden's $20 million Inflation Reduction Act. According to Bryant, investing in renewable energy firms like Tesla and First Solar could prove beneficial. While First Solar has been facing reduced demand due to elevated interest rates, a Democratic party win could normalise demand levels for the $24 billion company moving forward.
City University of New York economics and finance professor Dennis Shirshikov also believes investing in the renewable energy sector is the correct decision. The head of growth at GoSummer.com highlighted that Harris's win could boost green energy plans via considerable federal incentives to drive higher production and adoption nationwide. "Investing in companies specialising in solar, wind, and other sustainable energy sources could yield considerable returns," he recommended.
Pushing Back Student Loan Repayments
Bryant is planning to refrain from clearing student debt if Harris wins. In recent years, Biden and Harris have focused on student loan forgiveness programs and relief, which will likely remain central to the Democratic party's economic policies of reducing living costs and boosting economic output. Student loan debt was $1.753 trillion in Q1 2024, but debt levels recorded an annual decline for the first time in 2023 to $1.732 trillion. The trend could be attributed to the Biden-Harris Administration's loan forgiveness drive, which topped $168.5 billion for over 4.76 million borrowers as of July 2024.
Meanwhile, Kuderna Financial Group founder Brian Kuderna plans to delay refinancing his student loans if Trump loses the election race. He hopes Harris will introduce more reforms that positively affect federal student loan borrowers. However, the reforms won't affect private student loans.
Invest In Companies Driving Infrastructure Development
Bryant intends to gain exposure to companies involved in infrastructure development if Harris takes Office after the elections. President Biden's Infrastructure Investment and Jobs Act passed in 2021 offered a $1.2 trillion budget for bipartisan legislation to restore US roads, bridges, railways, airports, and utilities as experts remain concerned about US infrastructure lagging economic competitors like China. The initiative will also allocate billions of dollars to upgrading US electrical grids to facilitate internet access expansion and faster adoption of electric vehicles.
Professor Shirshikov believes that a Harris win will translate to higher federal spending on infrastructure investments, including in the renewable energy sector. This would result in higher demand for companies offering engineering and construction services as well as raw materials.
Hedge Potential Volatility With Real Estate
Lastly, Bryant would consider investing in US real estate. This time-tested asset class offers protection against inflationary forces and grows net worth through passive rental income and property value appreciation. Although US property prices reached record highs as mortgage rates jumped due to the US Federal Reserve's aggressive monetary tightening policy, the personal finance expert highlighted that real estate has "always been a good hedge against inflation."
Jay Buys Houses Group founder Venkata Jagadish added that if Harris becomes the next US President, new tax policies, regulatory frameworks, and interest rate shifts could open new opportunities in the real estate market. US 30-year fixed-rate mortgage rates declined to 6.2%, the lowest since early 2023, in tandem with a cooling inflation trend on hopes that the Federal Reserve will trim rates this week. As declining mortgage rates ease the tight housing supply, Harris plans to help more people become property owners with downpayment assistance of $25,000 for first-time homebuyers as part of her economic agenda.
Jagadish plans to grow his rental property portfolio and invest in commercial real estate, specifically properties housing healthcare and logistics businesses, in case a Harris Administration governs the country. These sectors have showcased tremendous growth potential in post-pandemic years.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.
