Analysts say Biden win will benefit green investors and wider Australian economy
Donald Trump’s prediction that markets would tank if Joe Biden won the US presidential election has been exposed as nonsense. Analysts have revealed four Aussie stocks likely to bounce.
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BIDEN BOUNCE
Donald Trump’s prediction that markets would tank if Joe Biden won last week’s US presidential election has been exposed as nonsense, much like his claims of widespread voting fraud to explain a crushing loss.
Indeed, senior economist Peter Schiff, chief market strategist of Euro Pacific Capital, sounded downright bullish on Tuesday about the prospects of a new occupant in the White House.
“Australia will benefit greatly from President-elect Biden’s victory in the election and the stock market is already showing it,’’ he said.
“The Australian dollar will be stronger, there will be a rise in the prices of commodities and Australia will increase their exports to China.”
Investors will no doubt be reassured by the fact that Biden plans to dial back Trump’s disastrous imposition of tariffs as the linchpin of an ill-considered trade war with China.
There are also growing expectations that Biden’s ambitious domestic agenda will provide investors with huge opportunities, especially in the battle against global warming.
A recent Morgan Stanley survey of investors found just over half believed a Biden win “could be the best thing to happen to climate change investors this year’’.
GREEN POWER
Stockpickers have been quick to look at the industries and companies poised to do well under the new administration.
To that end, the gang at Next Investors on Tuesday released a list of their top 4 ASX stocks likely to benefit from Biden’s policies.
Key among the items on the agenda is a $2 trillion scheme to fight climate change, including the hugely ambitious goal of eliminating carbon emissions from the electricity sector by 2035.
Next Investors identified two firms, Vulcan Energy Resources and Euro Manganese, which are at the forefront of battery development and key to the electric vehicle revolution.
Vulcan claims it has developed the world’s first “zero carbon lithium process’’ for manufacturing batteries.
Euro is a battery metals developer with a manganese production facility in the Czech Republic, strategically close to European auto giants who are ramping up production of more electric cars.
Euro boss Marco Romero believes the Biden policy changes on the lithium-ion battery supply chain will reverberate around the world.
“The incoming Biden administration is expected to invest in the deployment of a vast national network of EV fast-charging stations, to restore full EV purchase tax credits and to tighten fuel consumption standards,’’ Romero told Next Investors.
“This should result in a strong increase in US EV sales in coming years.’’
Brisbane-based operatives in that space, including Tritium and Novonix, have huge opportunities ahead, as well.
Next Investors also identified cybersecurity firm WhiteHawk and manufacturer Alexium, which makes flame-retardant chemical compounds, as poised to do well over the next four years.
THAI MIX UP
Well this is a wee bit awkward.
Brisbane lawyer Nicole Murdoch felt compelled on Tuesday to reassure the world that she is in no way connected to a bunch of crooks in Thailand.
Murdoch, the boss of EAGLEGATE lawyers, sensed there was a risk her firm might somehow get confused with a now-defunct Thai crime syndicate that traded as Eagle Gates Group Co Ltd.
The Bangkok-based outfit ran a Ponzi scam that defrauded 250 victims out of about $10.6m over the past decade after they were lured in via investment seminars, according to police investigators.
Six main defendants were hit with lengthy prison sentences last week, with the top bloke getting 50 years behind bars and the rest copping 20 years each. Another 11 were handed 10 year terms.
Murdoch, who somewhat ironically specialises in trademarks, told us that she “doesn’t need the drama of being confused with the ratbags abroad’’. For sure!
Just for the record, she added that she’s never been to Thailand but does love the cuisine.