How Kamala Makes Me F**K RICH With the 2024 Election

We’ve already experienced 4 years of Joe Biden so we would know what to expect from him. But now that Kamala is the official Democratic nominee, it’s hard to say what effect she will have on the stock market.

In the event Kamala comes out on top, I’m trying to figure out the best place to put my money in 2025. So I researched all of her economic policy positions and found 3 stocks that stand to benefit the most.

On the go? Watch the video HERE.

Housing Construction

Kamala’s first major economic policy position is to address the housing shortage in America.

Harris is calling for the construction of 3 million new housing units over 4 years and plans to promote legislation for tax incentives for home builders to construct starter homes for first-time home buyers.

That first piece of legislation synergizes really well with her $25,000 in potential down payment assistance. She is targeting renters who want to get into their first-time home.

She’s got two pieces of legislation that are both meeting at the starter home level entry point. So the starter homes are going to be hot during Kamala’s presidency if she wins.

And there are two major strategies that I could employ to try to take advantage of this legislation.

The first is to diversify by buying the whole home-building market so that I benefit from the few winners and don’t get hurt as much by the few losers.

There are lots of different choices as far as index funds and ETFs, but the best one that I’ve been able to find is XHB SPDR® S&P Homebuilders ETF with 36 holdings. This is a very balanced ETF where all of the holdings are relatively the same percentage.

The largest holding is DR Horton at 3.8%, and then the 10th holding is at 3.34%. So, this is a very balanced fund. You’re going to benefit from any winners in the sector, and you’re not going to be hurt as badly by the losers in the sector.

Now, the second way to attack this policy is to invest all-in on one company that is going to benefit the most from Harris's policy position on homebuilders, and that’s actually DR Horton.

They are the largest homebuilder in America. But more importantly, they are focused on affordable housing. 68% of DR Horton’s houses are priced under $400,000 which is perfect. 

[SCREENCAPTURE VIDEO TITLED “DR HORTON”]

Not only are they the biggest homebuilder in America, they also fill the niche of starter homes. They are in a perfect position to take advantage of Kamala Harris’s economic policies.

Semiconductor Manufacturing

For Kamala’s second major economic policy position, we’re going into the tech sector. During Biden’s presidency, both he and Kamala were strongly supportive of bringing chip manufacturing on shore.

This is because currently, the US tech giants are highly dependent on the Taiwanese chip manufacturer, TSM. In the age of AI, it is becoming more and more critical to maintain cutting-edge chip manufacturing.

In August of 2022, the Biden administration passed the Chips and Science Act which provides $52.7 billion for American semiconductor research, development, and manufacturing. 

TSM was a large benefactor of this act and received $6.6 billion which TSM plans to build a third fabrication plant in Arizona.

So we have TSM building a presence here in America, but they are also enjoying strong support abroad in Taiwan. This is because Taiwan is dependent on the US for defense from China. If Kamala is elected, we can expect more of the same favorable policies and subsidies for Taiwan and, more importantly, for TSM.

Trump, on the other hand, has been very vocal about his unhappiness with Taiwan. He’s quoted as saying Taiwan did take 100% of this country’s chip business and thus should pay for defense. He also said that the U. S. is no different than an insurance company.

On top of Trump’s directed hostilities, he has also talked about putting a 10% tariff on all imports into the U.S. This would be a major blow to TSM’s profitability because they are responsible for 92% of U.S. high-end chip imports, and the stock market does not like uncertainty.

The moment Kamala wins the election, the Trump uncertainty around Taiwan should disappear, and TSM’s stock price will benefit as well as the companies that buy chips from TSM like Apple and NVIDIA. With a 10% tariff, it’s only going to cost us companies more to buy the same product.

Green Energy

Just like with TSM, many stocks are pushed down because of the risk to the status quo. 

Biden and Kamala have reaffirmed their commitment to green energy while Trump has come out against it. He threatens to roll back much of Bidenomics and ending subsidies for green energy and electric vehicles.

As of August 2023, the US has doubled its renewable energy subsidies from 7 years ago, and solar has gobbled up the majority of those subsidies. If the US is on track for more and more green energy and we’re gonna double the subsidies towards renewables over the next 7 years, it stands to reason that solar will be in a prime position to get the most benefit.

In the lead-up to the 2020 presidential election, this solar ETF 6X’ed from a low of $21 in March 2020 to a high of $126 in January 2021.

I’m looking at ticker TAN (very clever) which is Invesco solar ETF with 46 holdings. Over the last 4 years, it has been dropping steadily, and a major contributing factor to this is the uncertainty around government policy.

As we near the election, I’m expecting more and more attention to be put on green energy since that is a major point of contention between Kamala and Trump.

If Kamala wins the election and draws more attention to green energy, I am expecting positive results from the solar sector. Maybe not 5X or 6X like we saw in the previous election, but I am expecting TAN to outperform the S&P 500 given the big catalysts that are coming up.

So What Now?

The biggest catalyst was Kamala winning the presidency, of course. That being said, the outcome is far from decided. If Trump wins the election, his economic policies will affect the stock market much more differently.

Check out this video HERE to see which stocks are best positioned for a Trump victory. 

Catch you on the flip side.