Unless President Trump won – and won bigly – he was always bound to contest the election results. Remember, this is the man who tweeted that he “won the popular vote if you deduct the millions of people who voted illegally” following the 2016 presidential election. Therefore, you can imagine his outrage at losing a contest outright. Naturally, this presents enormous difficulties in deciphering stocks to buy during a rocky transition.
For one thing, the Trump administration is holding onto the argument that the 2020 edition is invalid due to voter fraud. Indeed, in a startling and unprecedented interview, the President sat down with Fox Business host Maria Bartiromo. During the discussion, Trump pushed several allegations that the electoral process was rigged.
That wasn’t too surprising. What did catch me – and Bartiromo, based on her expression – was that Trump blamed the FBI and the Department of Justice as being involved in a conspiracy against the incumbent. Awkwardly, Attorney General William Barr recently stated that authorities had “uncovered no evidence of widespread voter fraud that could change the outcome of the 2020 election.”
You can see why finding stocks to buy during a rocky transition is no easy matter. Clearly, President Trump is desperate to hold onto power. Otherwise, why put up such a fiasco? Still, desperate people do desperate things, which is what makes this period so troubling.
At this point, perhaps the only road for Trump to win a second term is via faithless electors. For this to occur would probably require Democrats to flip their vote for Trump – an almost impossible circumstance. But it’s not so much what the President will do but rather, his legions of ardent supporters. That places renewed emphasis on these stocks to buy.
- Costco (NASDAQ:COST)
- Procter & Gamble (NYSE:PG)
- Abbott Laboratories (NYSE:ABT)
- Novavax (NASDAQ:NVAX)
- International Paper (NYSE:IP)
- Olin Corporation (NYSE:OLN)
- Vista Outdoor (NYSE:VSTO)
- Ammo Inc (NASDAQ:POWW)
- Wheaton Precious Metals (NYSE:WPM)
Also remember that while our world is focused on present events, people have a long memory. If this charade of unsubstantiated accusations keeps up, Republicans risk losing credibility. The panic of conservatives losing power amid the chaos of the novel coronavirus pandemic provides cynical fuel for these stocks to buy during a rocky transition.
Back during the initial onslaught of the novel coronavirus, many rushed to their local Costco warehouses like it was Black Friday. It’s not hard to see why; this was existential shopping at its “finest,” if you will. But with the real Black Friday having just recently passed, the narrative for COST stock remains as strong as ever.
As you can probably guess, many consumers were incentivized to shop online for their holiday gifting purchases. However, according to CouponFollow.com, for in-person plans, Costco and Dollar General (NYSE:DG) reigned supreme, garnering 47% and 45% of consumers, respectively, who stated they will only shop at physical locations on Black Friday. Logically, this is a big plus for COST stock.
But when you factor in the resurgent Covid-19 outbreak, Costco becomes a no-brainer among stocks to buy during a rocky transition. No matter where your political allegiances lie, everybody needs their share of food, water, and 800 gallons of mayonnaise.
Procter & Gamble (PG)
In almost every circumstance, Procter & Gamble hardly appeals to anybody, not even the retiree for whom this investment is targeting. As a blue-chip giant, PG stock isn’t going to make you rich, not unless you’re trading an ungodly amount of shares. Plus, its underlying business of household goods doesn’t necessarily scream a compelling buy. That is of course until it does.
Back during the initial wave of Covid-19, PG stock experienced a surge of momentum following March’s market doldrums. Suddenly, it didn’t matter what brand you were wearing; instead, everyday items – particularly toilet paper – became precious commodities. I think the matter really took the cake when little kids, instead of setting up lemonade stands, instead sold TP by the roll.
That’s great American capitalism and also profoundly disturbing at the same time!
Still, this is great news for Procter & Gamble, making it one of the safer stocks to buy during a rocky transition. Because no matter which way the Electoral College rolls, you got to wipe down there.
Abbott Laboratories (ABT)
Besides the apparent electoral victory of former Vice President Joe Biden, the most significant event over the past several weeks has been the announcement of encouraging results from Covid-19 vaccine developers Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA). On paper, that makes these two companies viable stocks to buy during a rocky transition. However, you don’t want to ignore Abbott Laboratories when crafting an electorally insulated portfolio.
As one of the leaders in testing kits, Abbott has been an indelible force in the battle against the coronavirus. However, the presence of potentially greenlit vaccines won’t end the importance of ABT stock. Rather, I see shares moving higher because the underlying business would become even more relevant. Like Abbott states on its website, implementing a robust and convenient testing infrastructure will improve societal confidence.
Plus, let’s be real – not everyone will take a vaccine. While 2020 is the year of the coronavirus, it’s also the year of conspiracy theories. Because of this dynamic, ABT stock will continue to enjoy steady demand.
Speaking of conspiracy theories, one that has more than a semblance of truth is the idea of forced vaccinations. From what I understand, federal, state and corporate agencies have the ability to make you comply with vaccination mandates or suffer the consequences; these may include service denial and loss of income. It’s under this draconian, apocalyptic scenario where Novavax and NVAX stock may turn out to be underappreciated Covid winners.
Interestingly, death row inmates in some states may choose their method of execution. That’s part of the dignity we extend to the condemned. Well, I would hope that Democrats will provide such dignity for – oh, I don’t know, law-abiding U.S. citizens – and allow us the choice of method of vaccination. In that case, you’re going to want to elect Novavax.
Why? Its underlying vaccine candidate utilizes a proven subunit approach, whereas Pfizer and Moderna are utilizing experimental messenger-RNA-based platforms. When forced, most people will probably choose Novavax, which is bullish for NVAX stock.
International Paper (IP)
At first glance, International Paper sounds like a strange candidate for stocks to buy during a rocky transition. Obviously, we live in the digital age, so the narrative for IP stock should be limited. However, not everything has gone digital. Indeed, as more of our commerce shifts to online marketplaces, the thesis for International Paper counterintuitively improves.
That’s because the products that we buy don’t typically arrive at our doorstep in their natural form. Instead, the products have their own packaging, while the boxes they’re shipped in have a common denominator: they require paper to manufacture. So put down the green revolution propaganda: the shift to digital won’t make paper obsolete.
But just as importantly for the present circumstances, paper can become crucial in our new normal. Most likely, the leading vaccine candidates will require two injections. Clearly, this will be a logistical nightmare. Therefore, I imagine a ton of paperwork driving the case forward for IP stock.
Also, vaccination certificates may become our new passport. Again, that requires paper, which supports IP stock.
Olin Corporation (OLN)
As a chemicals business, Olin Corporation usually doesn’t get much attention from the investment community. Don’t get me wrong – this is a critical business. However, I can’t imagine too many traders getting enthusiastic about it. That all changed when the coronavirus came strolling into town. It was then that many realized OLN stock was levered to another industry – ammunition.
As I’ve detailed many times throughout this pandemic, gun sales hit record numbers. Really, it’s not hard to see why. First, you have the panic as gun buyers imagine (rightfully, in some cases) that other people will go nuts. Second, you have the racial stigmatization problem that typically accompanies crisis events. Third, reasonable fears exist that Democrats will enact draconian gun control measures.
Frankly, American ideologically leans more to the right than many imagine. Therefore, Olin is one of the better stocks to buy during a rocky transition.
But the most fundamental reason to consider OLN stock? Guns are useless without ammo.
Vista Outdoor (VSTO)
When Vista Outdoor sold its firearms brands, I thought it was a curious move. In the U.S., we have more guns than people. Try as they might, the Democrats will not be taking guns away from the American people. If they do attempt anything crazy, they will suffer a short and ignominious time in power.
Later, when the Covid-19 crisis dramatically jumped sales of firearms, I really thought that Vista made a mistake. Fortunately, I was wrong. VSTO stock has been among the top coronavirus plays this year thanks to its underlying ammo business. Further, shares have been resilient even as the market value of firearms manufacturers experienced many fluctuations.
Primarily, this is due to ammo having the largest consumer base within the firearms market. A gun owner doesn’t necessarily need to buy another gun. However, he/she cannot go for long without ammo replenishment. Further, I imagine that it’s much easier to produce ammo than it is to manufacture guns. This makes VSTO stock one of the strongest contrarian bets among stocks to buy during a rocky transition.
Ammo Inc (POWW)
One of very few direct plays on the firearms industry, Ammo Inc may enjoy some firepower in 2021. Assuming that Biden is officially declared the next President of the United States, he will certainly eyeball gun control legislation. This becomes a much more pressing topic if the Democrats take control of the Senate.
If that happens, POWW stock can earn its ticker name in a hurry. This has the potential to be one of the underappreciated stocks to buy during a difficult transition.
In some ways, it’s better to consider Ammo over publicly traded firearms companies. Here’s the reality – if you haven’t bought a gun already, it may be a long wait to secure one. Moreover, gun makers may question the wisdom of manufacturing so-called black rifles like AR-15s.
Yes, places like Texas or Alabama will be all over such “sporter” rifles. But Democrats will wish to lay the hammer on states like California – all while forcing Americans to be vaccinated. Naturally, this will crimp sales.
But as I said before, every gun owner needs ammo. Therefore, I like POWW stock, even though my reasoning is terribly cynical.
Wheaton Precious Metals (WPM)
For stocks to buy during a rocky transition, nothing shines brighter than gold. Or at least so I thought. Despite the uncertainty of a Biden administration gold prices have been ugly. Has this market fallen under the treasonous hands of globalist bankers?
Hey, never say never, especially in 2020. But the more rational explanation for the precious metal’s underperformance is enthusiasm for Covid-19 vaccines. The development strongly implies that we’re on the last leg of this terrible journey. Therefore, we can return to normal, which on paper doesn’t necessarily bode well for Wheaton Precious Metals.
However, I don’t think gold bugs need to worry. No matter what the market is feeling on any particular day, the overwhelming factor is that the federal budget deficit has ballooned to a record high of $3.1 trillion. That total expenditure is not just going away without some serious fiscal pain, which does bode well for WPM stock.
The “easy” fix, if you can even call it that, would be to deploy inflationary monetary policies. But that may trigger some unforeseen consequences, resulting in economic chaos. From there, social breakdown isn’t too far behind, which is “great” news for WPM stock.
On the date of publication, Josh Enomoto held a long position in gold.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.