What Happens To The Stock Market If Bernie Sanders Becomes President
Doing this article, I’ll just be transparent with readers and say I am not a fan of Bernie Sanders. In terms of the 2016 election, Bernie Sanders & Donald Trump were probably the two people I opposed the most who ran out of everyone. I supported Hillary Clinton pretty heavily over Trump asking any friends who were in swing states for vote for her, but if it was Trump v Bernie, I’d have probably voted for Donald Trump and asked others to do the same. The reason for this wasn’t Bernie’s integrity, resume or any points on character. Hell, of any candidate in the 2016 election minus Governor Gary Johnson, I’d argue Bernie Sanders was the most honest one. He was also more qualified over most of the GOP field, arguably Hillary Clinton and others. Even on the issues, I actually back a lot of things such as vouchers for lower income to buy healthcare, student loan bailouts and more that his fans would like. That being said, I looked at him and just said sadly it will not work. The biggest reason just being sadly that I could see him being elected and the market tanking overnight.
Writing this, I’d also just like to explain this article isn’t a why, but more of a piece on the actual impact. I don’t want to talk about why I feel Bernie’s views on the minimum wage, taxes, healthcare and many other things would hurt the economy and market, but just assume it will. Hell, when he ran in 2016, I addressed that he’d probably kill the stock market overnight if he won and some friends of mine who were his supporters just responded “Good”. With that though, I intend on writing this recognizing a fact Bernie Sanders could realistically be the 46th president of the United States. Now instead of actually speculating on the politics or the policies, I plan to just list the stocks most positively and negatively impacted by a Sanders administration. So gear up and let’s dive in.
To begin, let’s actually just look at Donald Trump winning which was something I guessed would be a doomsday for the market. This was something I guessed would be a collapse and was just wrong on. The markets rose when I thought electing an anti-trade candidate would kill stocks. It didn’t. Instead, what seemed to have happened with the win of Trump was not so much the big firms on Wall Street being happy, but individuals with smaller personal savings being happy and certain companies in fields being happy. These companies being coal, big tobacco, American made steel and most businesses that felt some benefit from Trump. This resulted into individual companies spiking which did save the whole thing from falling.
For Bernie, I sadly don’t see that luck holding, but diving in let’s handle this in three parts. First part will be stocks, investments and companies that I actually think benefit under a President Sanders. The second part will be investments that I think could short term after his election. The final part being me just writing some final thoughts on where it’d all go.
Part One-Who Benefits
Number One-Marijuana Stocks
This is just probably the simplest one I could name. If you are heavily invested in marijuana, you want a Bernie Sanders administration over a Donald Trump one. If a president who openly backs legalization wins in 2020 regardless of who or what party he/she is on, the market booms for cannabis. This is just a fact and I think anyone with over $100 invested in cannabis would be happy to get this deal done.
Number Two-Bitcoin & Crypto
This one isn’t really a positive on Bernie, but more of just a fact for people who want to hide money. Bernie Sanders in the 70s wrote articles advocating for a 100% tax rate. Bernie Sanders tax plan while not being written clearly would involve for higher income people a minimum of an 80% increase and lower income people probably a 40% increase. This is just gonna make more people want to hide money and bitcoin is a great place to do it. For that, yes buy crypto.
The greatest thing a Democrat president can do is allow conservative and libertarian leaders to put on commercials saying a depression is coming and they need to put all their assets into gold. Under a Sanders administration, a lot of people will just go and buy gold coins, bricks and whatever to counter what they’ll view as the coming commie wave.
Number Four-Solar Stocks
This is a pretty simple one. Democrats support solar subsidies and support a lot of regulations on fossil fuels and nuclear. There’s not much to say here, but buy solar I’d Bernie were to win.
Number Five-Canadian Pharma Company Stocks
Bernie Sanders is rightfully for allowing people to buy drugs from Canada to create more competition with American pharmaceutical companies. If he wins, I’d guess all of their stocks begin to go up pretty well moments after the day he’s elected. This is a safe return and one harder to find a good one, but likely to at least get some decent return.
And that ends the positives. If the readers can’t tell, I’m not really so positive on a Sanders economy and don’t think many companies turn out that well. With that though, here’s just basic ideas on where I believe people should place their money. Now for the negatives.
Number One-Any Company In American Healthcare
Be it Berkshire Hathaway. Be it a pharma company. Be it an insurance company. Be it a company that makes nurses uniforms and doctors scrubs. A Bernie Sanders economy will at least in the short term announcement of him winning lead to some massive declines for those stocks. This isn’t something I think would be debated and am pretty sure his fans would be proud of it.
Number Two-Coal & Fossil Fuels
Donald Trump is the coal president. Bernie Sanders is not the president who is anti coal. If Sanders were to win, any company connected with fossil fuels will likely take a big pain. It’s again something I don’t see his supporters actually denying or being upset on, but just a fact to realize.
Now this is a stock where both Trump & Bernie could sink it. Neither are fond of the company and have bashed them publicly for years. If Sanders were to win, it’d be this looming thing until he announces an antitrust suit against Amazon. It’d be the air before war arrives. A President Sanders would likely make it happen and the stock in Amazon will likely get hurt.
This is a company that probably won’t get that hurt by Bernie, but short term will have pains. Bernie Sanders has now spoken at several events bashing the Disney company for labor conditions at theme parks. Be it right or be it wrong, if he is president, a public company being publicly bashed in events by him will not reflect well on stocks.
Number Five-Literally Everything Else
Be it McDonald’s, Apple or whatever, Bernie Sanders will just lead to a lot of pains after he would win a presidential race. This would be a person winning on promising a $15 minimum wage, borderline doubling tax rates, massive hikes on capital gains taxes for stocks and a President who labeled himself as the anti market president. For this, a lot of investors will get nervous and I’d bet pretty easily it’d be the biggest single day market drop event of anything since 08 if he were to win.
Doing this, it’s hard to leave politics aside. I’m a person who doesn’t support either Trump or Sanders. I’m a guy who would probably vote for a person such as Michael Bloomberg over Trump, but can’t see myself ever voting for the visibly anti market Democrats such as Liz Warren and Bernie Sanders. This path isn’t one I really can recommend they go down even though some good things for everyone exist on it. Finishing this all up though, I’ll gladly just say that this article is just a taste of what the market could be like 24 hours post a Bernie win and I hope everyone is prepped.