Kamala Harris-Donald Trump debate will be loaded with economic implications for investors

Kamala Harris, Donald Trump. Image via AP.

Many issues will be in the spotlight when Vice President Kamala Harris and former President Donald Trump square off in what might be their only debate. But financial implications will be top of mind for many investors tuning in.

The deVere Group, one of the world’s largest investment firms, is advising investors to look for clues or tidbits from the debate that could impact their portfolios. That future impact could come from policy cues the candidates focus on.

“The U.S. election will have far-reaching implications on sectors such as renewable energy, electric vehicles (EVs), defense, and traditional energy,” said deVere CEO Nigel Green. “Investors must be prepared for a Harris victory, which would push clean energy, housing support, and cannabis stocks into the spotlight, or a Trump win, which would benefit sectors like oil, defense, and cryptocurrency.”

Many of those elements would directly impact Florida investors, with Amendment 3 on the ballot in the Nov. 5 election in Florida. While the Sunshine State already legalized medical marijuana in 2016, this year’s ballot initiative would legalize the drug across the board for recreational use if 60% of the electorate supports the measure.

Housing issues are a growing concern in Florida as more and more metropolitan markets are running out of affordable shelter. Oil markets also impact everyone, while defense remains a prominent factor as the state is home to several key military bases and operations.

Should Trump secure victory in the November election, it’s likely that the energy sector will see a shift.

“Trump’s commitment to rolling back regulations on oil production and exploration would likely benefit companies like Exxon and Chevron,” Green said. “On the other hand, clean energy and EV companies, which have seen a favorable policy environment under the (Joe) Biden-Harris administration, could face headwinds. Companies in these sectors may experience market volatility if Trump repeals existing tax credits for EV buyers.”

Meanwhile, if Harris is elected, that would impact international trade if she lives up to her proposed policies. Her stance on China trade relations is another critical element for investors.

“While the US-China relationship has been fraught with tensions in recent years, a Harris administration is expected to take a more measured approach, hopefully avoiding the escalatory rhetoric seen under Trump,” Green said. “This could be a positive sign for companies with large Chinese exposure, like Tesla and Apple, as well as chipmakers such as Nvidia and Qualcomm.”

Ultimately, Green advises investors to remain agile with their portfolios with a promise of economic change whoever wins the election. But clear clues on how to proceed with an investment portfolio will emerge from Tuesday’s faceoff in Philadelphia.

“There will be clear winners and losers — and these will become more evident from the outcome of this evening’s debate,” Green said, adding diversifying portfolios across industries can help mitigate risk and capture gains, no matter who wins.