If I may dip a little bit into the political arena, I believe the American people did not have an adequately robust choice for president in the 2020 electoral circus act. On one hand, the incumbent President Donald Trump, while incredibly energetic, appeared to channel his vigor in very unproductive ways, to put it diplomatically. On the other hand, we had former Vice President Joe Biden. I think that says it all.
It’s not that I’m being dismissive of the current president of the United States. However, I think it’s very fair to say that Joe Biden did not inspire people in that evocative manner for which Donald Trump is most famous (and notorious). Instead, the former running mate to Barack Obama bumbled through the usual talking points.
Indeed, evidence indicates that voters voted against Trump rather than for Biden. That’s according to research from Monmouth University, which revealed that a “third of the country is ‘happy’ that Donald Trump lost the election – which is slightly more than the one-quarter who feels the same about Joe Biden winning.”
Like him or not, Trump appealed to roughly half of Americans. Though the media portrays the U.S. as being cosmopolitan and leaning toward progressive ideals, that’s really not the case. A good chunk of middle America is conservative – some a little bit too conservative if you know what I mean – and likely, a majority want to be left alone. And this will perhaps cause a conflict which may impact which stocks to buy.
I may be speaking for many folks on the left and right that the Biden administration lacks vision and a backbone, which may be contributing to the present weakness in the market. Nevertheless, Biden does have some changes he wants to implement for America, meaning you may want to consider these stocks to buy.
- Sturm Ruger (NYSE:RGR)
- Olin Corporation (NYSE:OLN)
- Walmart (NYSE:WMT)
- 3M (NYSE:MMM)
- Brookfield Renewable Partners (NYSE:BEP)
- Innovative Industrial Properties (NYSE:IIPR)
- Canopy Growth (NASDAQ:CGC)
- Netflix (NASDAQ:NFLX)
- Wheaton Precious Metals (NYSE:WPM)
Because of the aforementioned volatility, you may not necessarily want to buy these shares right away. If you do, keep the powder keg dry because more discounts may be on the way. So, without further ado, here are the stocks to buy to protect yourself from President Joe Biden.
Sturm Ruger (RGR)
There’s one thing you can say about the firearms industry: it never lets a good crisis go to waste. I’m almost certain that at least 99.9% of gun owners voted for President Trump. Fundamentally, Joe Biden is terrible for gun freedoms.
But Biden wasn’t the biggest fear. Rather, it was his running mate Kamala Harris. According to conspiracy theories, Joe Biden will either step down from office or he will age out, to put it nicely. And then Harris will become POTUS and presumably she will have the ability to push her gun control agenda. If so, it’d be good to have shares of Sturm Ruger.
Of course, I don’t believe in such conspiracy theories. However, I do believe in RGR stock. While virtually all gun owners wanted Trump, I’m not sure if firearms business owners felt the same. It’s cynical but the industry does well when Democrats are in office.
After RGR stock settles down, you may want to consider a position. It’s an obvious play but historically, it works.
Olin Corporation (OLN)
Primarily known as a global manufacturer of chemical products, Olin Corporation has been one of the stocks to buy this year. Despite recent volatility, OLN stock is up 22% since the January opener (though this could change by the time you read this).
Should Biden implement initiatives that get the economy back on its feet, I’d expect OLN stock to rise higher. Its underlying chemicals business has myriad applications for the consumer and various industries.
But if not, you should still include Olin as one of the stocks to buy to protect yourself from the current administration. That’s because the company is also known for its ammunition business under its Winchester brand. As the Houston Chronicle reported, it appears that ammo has become the new toilet paper, with people lining up like its Black Friday every day.
Personally, I don’t think you can ask for a better long-term buy signal, especially once the choppiness fades away.
Prior to the election, Trump and conservative organizations blasted then-candidate Biden for his alleged ties to Beijing. Since there’s plenty of material out there for you to research, you can make up your own mind. However, if the allegations were true, they would bode well for Walmart as one of the stocks to buy.
After all, the U.S.-China trade war put many blue chips on edge. Just as relations started to warm, the Chinese novel coronavirus from China (as Trump would say) put a monkey wrench on that alternate universe. Presumably, then, a reset in relations should help lift WMT stock.
To be 100% transparent, AP has reported that this thesis is so far not translating to a thawing of the ice. As you can tell from the WMT stock price, it’s not doing so well. That said, I think our addiction to cheap Chinese products is too powerful to overcome, especially in this shaky economy.
Again, whether you like Trump or not, you got to give him credit for his positive attributes. Here, I’ll disagree with many left-leaning pundits. People are not totally good or totally out of their minds. Case in point, Trump brought some biting humor to the table.
I remember when during the debates, Trump declared that Biden wears the biggest mask he’s ever seen. Now, I’m not sure if he watched Biden’s inauguration – probably not because that wouldn’t jive with his public persona. But if he did, he might have said Joe Biden swears on the biggest Bible I’ve ever seen.
That got me thinking though. With our current president supporting a mask mandate, that ought to support 3M and MMM stock.
As you know, 3M manufactures N95 respirator masks. After some governmental flip-flopping, we later learned that N95s and masks in general are effective in preventing the spread of Covid-19. After a lengthy period of Biden stressing the importance of masks, this could help sustain the slow-and-steady rise of MMM stock.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners is a tricky case so let me be clear. While I understand that this is a list of equities to consider for protecting yourself against the leadership of President Joe Biden, you probably don’t want to buy Brookfield Renewable Partners at this moment.
First, the equities market is looking very shaky and it’s taking down many names including BEP stock. Second, the Texas cold snap devastated the immediate sentiment for renewable energy stocks to buy. Yes, I understand that frozen wind turbines did not lead to the storm’s tragic human cost.
But here’s the deal – humans are emotional and the market reflects collective emotions. It’s just not a great environment for BEP stock.
However, if you give this some time, I believe Brookfield will recover. With Democrats presently controlling Congress, they have a small window of opportunity to push their green agenda. That bodes well for BEP but please wait for the volatility to die down first.
Innovative Industrial Properties (IIPR)
During last year’s campaign trail, Biden and Harris pledged to decriminalize marijuana. While this falls a bit short of full federal legalization, it’s certainly a step in the right direction for botanical liberties. Presumably, with Democrats having control of the executive and legislative branches of government, legalization dreams may not be too far away.
To play it relatively conservatively, you may want to consider Innovative Industrial Properties as part of your stocks to buy. What I like about IIPR stock is that the underlying company is a real estate investment trust focusing on the medical-use cannabis segment. Therefore, Innovative steers away from some of the controversial elements of the “green” sector.
Furthermore, IIPR stock has a history of steady gains – even when the rest of the sector is printing red ink. Unfortunately, shares have been caught under the volatile storm recently so you want to be careful. Nevertheless, once the selling pressure dies off, IIPR is a name to pick up.
Canopy Growth (CGC)
If you want a more direct exposure to the cannabis industry, you should consider one of the segment leaders, Canopy Growth. Like Innovative Industrial shares, CGC stock has also succumbed to the volatility. Therefore, I wouldn’t pick up shares right now.
Given the turmoil and the context of what’s driving the selling pressure, I’m looking at CGC stock possibly declining to its present 200-day moving average, which is just under $23. Unfortunately, we saw some problematic technical damage occur in late February/early March, which resulted in shares declining significantly below its 50 DMA ($34.74).
However, I like Canopy Growth as a long-term rebound opportunity if we see such a severe discount. That’s because the economic recovery is not moving as smoothly as most people would like. And that means Biden will be under pressure to create jobs. Guess what? Cannabis is an excellent job creator.
Whether you’re a Democrat, a Republican or somewhere in between, I think I speak for all of us that we’re tired of this pandemic. Further, there are growing questions about whether the “cure” for the coronavirus – lockdown mandates – is worse than the disease. Ultimately, that’s up to elected officials to decide.
Regarding your portfolio, however, you might want to consider Netflix. While I’m trying my best to be optimistic about the recovery of the movie theater industry, I’m getting discouraged. You see, it can take close to a year for a person’s behavior to change. We’ve been at this lockdown thing for roughly a year, which means another year to break out of this new normal culture.
Will it happen? I hope so, but I’m not sure if the movie theaters can last that long. That’s why you’ve got to consider NFLX stock in case societal reopening doesn’t engender the results we’re all praying for.
Besides, streaming has really made an impact irrespective of the pandemic. And because the mental recovery process could take longer than a potential economic recovery, NFLX stock seems like a safer bet in the entertainment landscape.
Wheaton Precious Metals (WPM)
While the slight majority of Americans may be happy that Donald Trump is no longer in office, I’m going to confess something to you: I don’t exactly have the greatest confidence in President Joe Biden.
True, I appreciate Biden’s underdog story. This is a case of a man who kept trying to reach his ultimate goal of becoming POTUS and each time fell short. About the closest he came was being VP under President Barack Obama. Just when you thought the lights were off for good, he’s the leader of the free world.
Good for him. But is that necessarily good for the country? Deservedly, many questions exist. And that’s why investors ought to consider Wheaton Precious Metals and WPM stock.
Like many of the other stocks to buy, you do not want to buy shares of WPM right now. I don’t think we’re quite done with the present sell-off. Sadly, there’s too much negativity for me to be comfortable, even for a precious metals play.
Still, the metals complex does have a historical basis for providing safe cover during troubled times. Once the selling dies off, you’ll want to pick up the discount in WPM stock.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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.