Going “Green”

Finally, it is election day! Even though the final vote count won’t come out until a few days later, at least we are getting close to an outcome in a year that feels so different than any other year in history. I guess most Americans feel the same way. 100M early voters really highlight the significance of this election.

There are major policy differences between the republican party and the democratic party. If republican wins, we will likely to continue on the current path of “red” investment theme. But if Biden and the democratic party wins, we will see a few changes along the “green” investment theme.

“Green” Tech: Shift more from traditional energy stocks such as Energy Select Sector SPDR Fund (XLE) into cleantech stocks such as Invesco Solar ETF (TAN) or iShares Global Clean Energy ETF (ICLN). Cleantech energy stocks like NextEra Energy (NEE), “Green” auto Stocks like Tesla (TSLA) or Workhorse Group (WKHS) should do well too. If you are a mutual fund investor, Fidelity Select Environment and Alternative Energy Portfolio (FXLEX) that might be worthwhile to take a look at. You can also check out New Alternatives Fund Class A (NALFX). Just be careful though, cleantech stocks have gone up a lot this year, so the margin of error needs to be managed.

“Green” REIT: Shift REIT away from certain prison-related REIT such as GEO Group (GEO) into clean tech REIT such as Brookfield Renewable Partners LP (BEP).

“Green” Products like marijuana: Canada has already legalized marijuana and I guess we will see it coming to the US if Biden wins. Alternative Harvest ETF (MJ) or stocks such as Stocks like Canopy Growth (CGC) can be the theme to play here.

As a last thought, we are not sure that the market understands the risk levels right now, so if you want to play it safe, you can revisit our previous discussions on managing uncertainty and portfolio protection. Let’s pray for US democracy and the values we hold true and dear…

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