ASX Shares: US Election Winners & Losers

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Post on Nov 07, 2024

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ASX Shares: Who Wins (and Loses) When America Votes?

The US election is a big deal, not just for Americans, but for investors around the world, including those on the ASX. The outcome of the US election can have a big impact on the Aussie share market, so it's worth thinking about how different sectors might be affected.

Let's dive into some of the potential winners and losers on the ASX based on the US election results.

Who's Feeling Bullish?

Tech Titans: If a Democrat wins, expect the tech giants on the ASX to see some love. Democrats are often viewed as more friendly to regulation in the tech space, which could create a more stable playing field for big players. Think companies like **WiseTech Global (WTC) ** and Xero (XRO).

Renewable Energy: A Democratic victory is likely to see renewed focus on climate change initiatives, leading to a potential boost for ASX-listed renewable energy companies. Keep an eye on AGL Energy (AGL) and Origin Energy (ORG).

Healthcare: Increased government spending on healthcare programs under a Democratic administration could lead to a surge in demand for healthcare services, which could be good news for ASX-listed healthcare companies like CSL (CSL) and Ramsay Health Care (RHC).

Who's Feeling Bearish?

Fossil Fuel Companies: A Democrat in the White House could mean a tighter grip on emissions regulations, potentially hitting the profits of fossil fuel companies like Woodside Energy (WDS) and Santos (STO).

Defense Stocks: While a Democrat is generally seen as less likely to engage in military action, a hawkish foreign policy could still lead to increased defense spending. This could impact Australian defense companies like Boeing (BOA) and Lockheed Martin (LMT).

Financial Services: A Democrat's agenda often includes stricter financial regulations. While not necessarily bad, these could impact the profitability of ASX-listed financial services companies like Commonwealth Bank (CBA) and Westpac (WBC).

Remember: It's important to remember that these are just predictions. The actual impact on the ASX will depend on a range of factors, including the specific policies of the winning party, global economic conditions, and market sentiment.

It's always a good idea to consult with a financial advisor before making any investment decisions based on political events.

Don't get caught off guard by the US election. Stay informed and adjust your portfolio accordingly!