Snowflakes. Soy guys. And other pejoratives, many of which cannot be repeated in polite company. These are some of the lesser abuses Liberals suffered during the four years of the Trump administration. Barring any unlikely and bizarre circumstances, President-elect Joe Biden will take over the White House, which will lead to much joy among the left. In this exuberance, it is tempting to configure your long-term stocks to be bought based on election results.
However, this would not be the wisest course of action. Don’t get me wrong – the transition to Democrats taking control of the executive office is of tremendous importance. As reported by CNN, Biden plans to take executive action that will reverse the policies of outgoing President Trump. Among them, controversial issues like immigration reform will be high on the list. With such promised big changes, this will of course affect long-term stocks.
However, it’s important not to get myopic. While you may want to align your long-term stocks with companies that benefit largely from Democratic rule and avoid those that do better under Republican leadership, Biden likely won’t have full control over the government. Even if he did, the Democrats cannot afford to alienate Americans who did not vote for the former vice president. InvestorPlace – Stock market news, stock advice and trading tips
To do justice to Trump’s uninterrupted allegations of electoral fraud, the election race was tight. Despite the federal government’s poor handling of the novel coronavirus pandemic, Trump still won over several million voters in all population groups, mainly due to his economic strengths.
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So don’t buy only politically motivated stories. Instead, when making strategic portfolio allocation, consider companies that are doing well regardless of their tenure. Because of major world trends, these long-term buying stocks should have an expanded path to profitability.
Amazon (NASDAQ: AMZN)
Disney (NYSE: DIS)
Costco (NASDAQ: COST)
PayPal (NASDAQ: PYPL)
Ford (NYSE: F)
Nvidia (NASDAQ: NVDA)
Brookfield Renewable Partners (NYSE: BEP)
Finally, a piece of advice that is not financially related. Nothing is as bad as it seems, and it’s not as great as it seems either. If Biden wants to stay in the White House for more than four years, he’ll have to compromise. So, approach these long-term stocks to buy agnostically.
Long-term stocks to buy: Amazon (AMZN)
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Under normal circumstances, the concept that Amazon is a leading candidate among long-term stocks to buy is almost inviolable. For one, you can look at the incredible resilience of AMZN stock over the years. Despite lots of bumps and bruises, the e-commerce giant has continued to advance despite allegations of antitrust behavior. It’s the disruptor that is often the bane of small businesses, but it’s our disruptor.
More recently, Amazon has been getting hot water because of its status as the pinnacle of capitalist success. Sure, the company’s CEO Jeff Bezos could have run into President Trump. It’s no secret who Bezos supports. Just because Biden is in office doesn’t mean that AMZN shares have a clear sky ahead of them. No, Biden has to answer the Democrats. Traditionally, the left has advocated workers’ causes, including union formation, which is not favorable to Amazon.com.
So does that mean investors should cross Amazon off their list of long-term stocks to buy? Not at all. Indeed, Amazon plays a crucial role in considering the growing importance of e-commerce. No matter who is in charge, AMZN remains a force to be reckoned with.
While the cruise and airliner industries are arguably the face of the novel coronavirus, Disney has been one of the hardest hit names among long-term stocks. After all, people from all over the world travel to visit the huge theme park empire. In addition, the Hollywood disruption severely hurt Disney’s pocket and made DIS stock a questionable investment.
So it’s not surprising that the encouraging developments from Pfizer (NYSE: PFE) and Novavax (NASDAQ: NVAX) in the coronavirus vaccine space have given the Magic Kingdom a much-needed boost. Should a vaccine be a viable solution, high-contact companies could thrive again, especially due to pent-up demand. Additionally, the return of theme parks will be critical to many local economies as Disney has been forced to lay off tens of thousands of employees.
However, should the coronavirus worsen – or it gets even more frightening if another pandemic breaks out in the near future – Disney has unlocked the key to its potential success. The Mandalorian was derived from the company’s Star Wars franchise, which was a runaway success. But not many amateur watchers know that the production team shot half of the scenes in a sophisticated semicircular LED-based studio that enables real-time visualization that is far superior to green screen technology.
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In addition to the benefit of the actors, this LED system enables Disney to film in its own cocoon, which is protected from the outside world. That means the company can produce content even during a major pandemic, which is a big catalyst for DIS stocks.
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During the coronavirus pandemic outbreak, millions of Americans rushed to their local Costco stores to focus on the essentials. Cynically, on the one hand, the demand for the warehouse operator was high, as the company saw crowds like Black Friday every day. Of course, not all Costco members followed the mitigation protocols, which made an interesting ad on social media.
Now the US is making headlines again on Covid-19 for all the wrong reasons. Recently, data from the Centers for Disease Control and Prevention showed that new daily infections hit nearly 133,000 cases as of November 6. At the time of writing, the seven day moving average has passed the 100,000 case mark. That’s just wild, which suggests we might see greater demand for COST stock.
I’m not just interested in Costco as a game against the pandemic, however. While the numbers look bad, there is an argument that people are getting used to the crisis. Also, with Biden in the White House, it is possible for more people to take the health crisis seriously.
No, my interest in COST stocks is that the underlying company cares about the wealthy. When we have a K-shaped rebound, this is one of the names to include on your list of long-term stocks to buy.
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PayPal, another company among long-term stocks directly affected by the Covid-19 pandemic, saw its profile spike as people added another reason to avoid cash: potentially, physical money handling could become a higher one Risk of coronavirus transmission. To be clear, we don’t know exactly how long the coronavirus will stick to surfaces like paper money.
However, this is more of a sensible approach. Cash is germ-friendly. So if we’re not Scrooge McDuck, we shouldn’t deal with it too often. However, this is only a one-dimensional factor for PYPL stocks.
I say this because, whether it’s a pandemic or not, society is becoming increasingly cashless. Sure, there are some cash-only businesses that are still profitable, such as your neighborhood pizzeria. However, there are several contactless payment options associated with digitization. At some point, you can imagine that if they don’t adapt, such business people will eventually go out of business.
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Additionally, PYPL stock is a compelling opportunity as the underlying company appeals to the no bank and no bank communities. The lack of access to the financial system has a detrimental effect on our networked ecosystem. So PayPal makes a social contribution by helping to level the playing field.
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Before the election, when opinion polls showed Biden was a constant lead over President Trump, many investors had the same idea of buying long-term stocks: turning to companies that have a strong impact on clean energy. For many, that meant getting involved with the electric vehicle maker Tesla (NASDAQ: TSLA). Of course, TSLA has absolutely dominated the markets. But in my opinion, this dominance also leaves the door open to Ford.
True, American auto companies have suffered for years. However, Ford made a big push on electric vehicles with the Mustang Mach-E. Admittedly, automobile enthusiasts were not interested in an SUV with the legendary Mustang emblem. However, demographic trends and consumer trends suggested that two-door pony cars were on their last legs. For F-Share, the electric SUV only made business sense.
In the long term, I believe that Tesla will allow Ford to gain significant market share. After all, Ford is a car company first. You have been in business for a long time and understand what motivates the automotive market. Additionally, Ford dealerships and service centers have a vast empire, offering customers world-class support. If you love contrary thinking, then F-Shares should look good.
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Nvidia is one of the most straightforward investments among long-term stocks and offers extensive exposure to relevant markets. First and foremost, the company is known for its advanced graphics processors that support some of the most groundbreaking video game systems.
For those unfamiliar with the industry, video games have gone from being a niche consumer segment to being a mainstream giant. As the coronavirus disruption has shown, games are no longer just for entertainment purposes. Racing simulators help Formula 1 drivers, for example, to get used to tracks with which they are not familiar. This was even more important this year due to the global shutdown of live sporting events.
In addition, Nvidia is driving the future through various artificial intelligence and deep learning technologies. One area that is becoming increasingly competitive is autonomous driving. With so many players, it’s hard to know which one will come out on top. The underlying platforms, however, require advanced processors, which should drive demand for NVDA stocks.
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Finally, connectivity solutions will pave the way for smart city infrastructures. Again, Nvidia is one of the market leaders in this area, a market that is only likely to grow in importance. So if you’re not concerned about the daily fluctuations in price, keep NVDA inventory in your drawer.
Brookfield Renewable Partners (BEP)
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Joe Biden is hardly what you would call a perfect candidate. Although he has shown himself to be mentally fit, cobwebs inevitably developed at his old age. And they come out at inappropriate times. For example, President Trump hit him hard during the second and final presidential debate because of his confused stance on fracking and other environmental issues.
Even so, as I mentioned earlier, Biden has to answer the Democrats. The party has consistently pushed forward issues such as combating climate change. As a result, Brookfield Renewable Partners is one of the most logical long-term stocks to buy. Obviously, Biden would not be popular in his own party if he broke the rank and decided to transfer all fossil fuels to everyone.
Unsurprisingly, BEP stock has delivered tremendous performance this year, up nearly 58% since the start of the year. In addition, the raging forest fires we’ve suffered this year add to the importance of sustainability, which Brookfield should empower.
However, I don’t see BEP stock as a catalyst solely used for Democrats. The reality is that younger people are very interested in the environment. Hence, the next generation of Republican leaders cannot afford to alienate entire sections of the electorate. Ultimately, this is great news for Brookfield and other sustainability-minded companies.
At the time of publication, Josh Enomoto was long in F shares.
Josh Enomoto, former senior business analyst at Sony Electronics, has helped broker large business deals with Fortune Global 500 companies. Over the past several years, he has provided unique, critical insights for the investment markets as well as various other industries including law, construction management and healthcare.
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The long-term post-7 stocks to be bought with the election behind us first appeared on InvestorPlace.