These stocks will soar during a second Clinton Presidency


Super Tuesday is now behind us, and each political party has a presumptive nominee. Barring something catastrophic, the Democratic nominee will be Hillary Clinton, and barring the cessation of something catastrophic, the Republican nominee will be Donald Trump.

It is still anyone’s guess who will actually win the White House, though a great many pundits—on both sides—believe the winner to be inevitable. If your own political insight leads you to believe that Hillary Clinton is going to win this one, you might consider investing in the following stocks before the rest of the country figures it out as well.

Some companies have top executives, or even corporate cultures that have supported Clinton for years, while others are almost certain to be beneficiaries of her almost certain policy leanings. Only one is, somewhat cynically, just a really, really big donor, and we’ll get that one out of the way first. As always, remember to consider these ideas to be just that, ideas, and do your own research before investing your own money.

Citigroup (C)

There’s nothing big banks love so much as the status quo, and Clinton seems to be exactly the sort of lukewarm candidate they can live with. To the left of Clinton there is Sanders, who wants to revive the Glass-Steagall provisions of the 1933 and 1935 Banking Acts. That would theoretically break up all the big US banks, since it demands that banking companies not also be investment-banking companies. If such a thing could somehow be enforced, it would create chaos, and more people would suffer, at least in the short term, than the bankers themselves.

Across the aisle, of course, is Trump. On paper, he looks good for big banks, in that he wants to repeal Dodd-Frank, which would free up a lot of capital, and free the bankers from all that annoying scrutiny. Hillary wants to strengthen Dodd-Frank, which seems like it would be off-putting to big banks, but the banks don’t seem to take the pledge very seriously. Some bankers, longing for a return of the “anything goes” days, might support Trump on these grounds—he already has the support of hedge-fund manager and serial-tweeter Carl Icahn—but most will probably shy away. Hillary Clinton is a known entity; she can be planned for, negotiated with, given large sacks of cash for speaking engagements, etc., but Trump is a political unknown, and an evident loose cannon.

Citigroup has given Secretary Clinton $883K in campaign contributions over the years, which means she’s probably in the habit of picking up the phone when they call.


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Disney (DIS)

Disney’s CEO, Bob Iger, is a frequent contributor to the war chests of Hillary Clinton and the Democratic party, and the majority of the company’s employees, as well as the company itself, tend toward progressive values. The right-wing blogosphere sees a sinister Clinton-Disney alliance, perhaps in which Clinton tells Iger which of America’s values she would like for ABC to undermine, as part of her long-term strategy.

Of course, the fact that a thing is sometimes over-stated and over-dramatized does not prove that there is no thing. Iger has been there for Clinton for years. He has every reason to expect that she’ll be there for him too, and he has every reason to expect that when the time comes for ESPN to launch its live streaming service, there will be no sudden misunderstandings with the FCC.


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Tesla (TSLA)

Should you ever want to drive a $90K luxury car and pick up a little hippie street cred at the same time, Tesla somehow makes that possible. Very soon, however, Tesla will be unveiling its $35K Model III, bringing the electric car to the masses at last, or that’s the plan anyway. TSLA shares have been climbing wildly for the past few weeks, and this is largely due to the growing consensus by analysts that Tesla will have the capacity in place to sell as many Model IIIs as it can.

This is the dawn of the era of the electric car, and that will be a huge free present to whoever the president is. The lowering of pollution, noise, greenhouse gas emissions—any president would want to be closely associated with such a transition. And so, despite the fact that Elon Musk will be the one doing all the work, Clinton will likely do what she can for Tesla. She could throw her support behind Tesla in its turf battle with the car-dealership cartels, which would only be fair, since the cartels are backed by (and give generously to) state and local politicians.


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 NRG Energy (NRG)

A few years back, NRG Energy began making a real effort to transition away from fossil fuel. Money was spent, and in time, solar and wind power plants came online. The company has strongly branded itself as being on the forefront of the clear energy revolution, so there’s probably no going back to fossil fuels. They can’t go back, in fact, because they never left. Here’s the breakdown of NRG Energy’s North American power generation: 30% coal, 46% natural gas, 11% oil, 6% wind, 3% solar and 2% nuclear. So that’s 11% zero-emissions, and 9% renewable.

Here’s why NRG is well placed: as the government imposes more and more penalties on the heaviest polluters, every energy company is going to have to go green (well, green-er), and for most of them, it will be crisis. For NRG Energy, it will be business as usual.


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Health Care Select Sector SPDR ETF (XLV)

This is an ETF, which means its price is dependent on the performance of a basket of many stocks, healthcare stocks in this case.

Should secretary Clinton be elected, it is certain that the main provisions of the Patient Protection and Affordable Care Act will remain in place, even if the law as written gets a thorough overhaul. The law was designed to, among other things, ensure that everyone in the country had medical insurance. If we continue to make progress, even slow progress, towards that goal, it will mean millions of brand new customers for doctors and hospitals across the country.

The result, from an investment standpoint, is that healthcare stocks have been doing very well as a result of Obamacare, and they are likely to continue to do well as more and more Americans become insured. Those who find themselves sick, destitute, and uninsured often become trapped. They may be too sick to make money and too poor to afford the treatment that could make them well. They also feel isolated, as if the whole world just wants them to go away and die as cheaply as possible. Most eventually do just that. But with insurance, comes treatment, and with treatment comes health, and with health comes the ability to work productively.

Thus, a healthy society is prosperous society, but if you don’t buy that, don’t worry about it. We can all agree that a newly insured society is a society in which there will be a huge surge in healthcare spending.


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Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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