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3 Stocks to Buy and Sell Before the U.S. Election

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Coverage of the 2020 United States Presidential Election has been somewhat muted in the face of this historic pandemic. However, investors should still pay attention to the election coming up in November. Current President Donald Trump will square off against Democrat Joe Biden.

As it stands today, Trump is struggling mightily in national polling and in key battleground states. The President defied the odds in 2016, but he will likely require even more magic to pull off a victory this time around.

Today, I want to look at what stocks could suffer or benefit from a potential transfer of power. Let’s dive in.

U.S. election: Little hope for cannabis

In early February, I’d discussed how the U.S. election could impact some TSX-listed stocks. At the time, Democrat Bernie Sanders appeared to be the front runner. Sanders had one of the most flexible stances on cannabis, calling for federal legalization.

In the weeks that followed, Sanders’ prospects collapsed as Joe Biden consolidated support. Unlike Sanders, Biden has historically been opposed to recreational legalization. Like Trump, Biden has vowed to take a states-rights approach to cannabis.

This is not great news for Canopy Growth. Canadian producers have been reeling as Canada’s domestic performance in this market has disappointed. Many top cannabis companies had hoped that the U.S. election could bring about hope for federal legalization. That dreams appears to be dead, at least in the near term.

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This stock has surged during the COVID-19 pandemic

On July 9, the United States set a one-day worldwide record with more than 60,500 new COVID-19 cases. Many state governors have pulled back on reopening plans until the pandemic gets under control.

President Trump has touted falling death rates in the face of rising cases, but this has done little to dissuade state officials from imposing restrictions again. The COVID-19 pandemic will almost certainly have an impact on the U.S. election.

VieMed Healthcare has been one of the biggest stars in the healthcare space in 2020. In June, I’d explained how demand for ventilators during the COVID-19 pandemic resulted in increased interest in the company’s services.

A COVID-19 vaccine is still many months away, which means hospitals will remain on heightened alert as governments battle the virus. Shares of VieMed have climbed 77% in 2020 so far.

Low interest rates are here to stay

The Obama and Trump administration have both committed to an environment of historically low interest rates in response to economic pressures. President Trump has been more vocal in attempting to influence the Federal Reserve, especially when it comes to rate policy.

If there is a transfer of power, it is unlikely that Biden’s administration will look to influence a more hawkish path forward.

This environment continues to be bullish for Real Matters. Its stock has soared 126% so far in 2020. The company provides technology and network management solutions to mortgage lending and insurance industries in North America.

In Q1 2020, the company reiterated that low interest rates would underpin its strong performance going forward. Moreover, Real Matters also possesses an immaculate balance sheet to help guide it through this crisis.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Viemed Healthcare Inc.

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