Bidenomics Divulged: ETFs in Focus
President Joe Biden's re-election campaign, popularly known as Bidenomics, is starting with an effort to explain his economic strategy to voters. The strategy continues to address issues related to climate change, labor market and inflation.
Inside Bidenomics
Bidenomics is an inclusive economic strategy meant to address the crisis in the America’s blue-collar job market due to outsourcing to emerging economies. Steps have been taken to bring back manufacturing to the United States, backing companies that hire organized labor.
Bet on Renewable Energy Stocks
Biden had made it clear in the first term itself that he plans to prioritize the fight against climate change. One of the key concerns of Bidenomics is the slow capitalist response to climate change, as quoted on a Yahoo Finance article. To address this, the Inflation Reduction Act was signed to provide incentives for power producers and consumers to shift to green energy.
Biden plans to leverage regulatory bodies like the Environmental Protection Agency and the Securities and Exchange Commission to position the economy toward working-class Americans and promote renewable energy.
Invesco Solar ETF TAN and Goldman Sachs Bloomberg Clean Energy Equity ETF GCLN are some of the ETFs likely to win, if Biden wins again.
Industrial Redesigning: The 2022 CHIPS Act and the 2021 Infrastructure Law
The 2022 CHIPS Act and the 2021 Infrastructure Law can act as winning examples of Biden's strategic industrial reforms. These look to regenerate high-end semiconductor manufacturing in the United States and enhance the scalability of the country's infrastructure.
Chips ETFs like VanEck Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, Invesco PHLX Semiconductor ETF (SOXQ) gain attention due to such talks (read: Chip ETFs on Track for Their Best First Half on Record).
During his first term, Biden was able to push through the $1 trillion bipartisan infrastructure law, which could create significant investment opportunities in infrastructure-related stocks. iShares U.S. Infrastructure ETF IFRA, Invesco Dynamic Building & Construction ETF PKB and First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF GRID should also be in focus.
A Manufacturing Supercycle in the Cards?
A manufacturing supercycle may be looming in due to the stimulus provided by Bidenomics. This could potentially result in significant benefits for middle-income Americans, despite potential inefficiencies and risks. Such a move, if materialized, can benefits ETFs like American Reshoring ETF RSHO and First Trust RBA American Industrial Renaissance ETF AIRR (read: Play New ETF RSHO to Bet on American Reshoring (Revised)).
Cannabis Stocks to Remain on a High?
Cannabis stocks should be in focus due to the reintroduction of the Secure and Fair Enforcement (SAFE) Banking Act. President Biden has already indicated his commitment to marijuana reform by supporting that no one should face incarceration for using or possessing the substance.
In October, his administration issued a pardon for all prior federal offenses related to simple cannabis possession and encouraged state governors to take similar action for state offenses. Plus, in December, President Biden signed the Medical Marijuana and Cannabidiol Research Expansion Act. AdvisorShares Pure US Cannabis ETF MSOS and ETFMG Alternative Harvest ETF (MJ) will thus be under focus on Bidenomics.
Any Challenges?
Despite the transformative potential of Bidenomics, public approval remains low. Biden's challenge now is to send the proper message about the benefits and need of his economic strategy to the citizens.
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VanEck Semiconductor ETF (SMH): ETF Research Reports
Invesco Solar ETF (TAN): ETF Research Reports
iShares Semiconductor ETF (SOXX): ETF Research Reports
Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports
First Trust RBA American Industrial Renaissance ETF (AIRR): ETF Research Reports
First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID): ETF Research Reports
iShares U.S. Infrastructure ETF (IFRA): ETF Research Reports
AdvisorShares Pure US Cannabis ETF (MSOS): ETF Research Reports
Goldman Sachs Bloomberg Clean Energy Equity ETF (GCLN): ETF Research Reports
Tema American Reshoring ETF (RSHO): ETF Research Reports
