This week, Iād looked at three TSX stocks that could benefit from a Joe Biden presidency in 2021. Current polls suggest that Biden enjoys a wide national lead on his opponent, current U.S. president Donald Trump. His lead has remained strong in battleground states as well. There are those that continue to draw on Trumpās 2016 upset. However, national polls proved accurate and leading up to the election Trump was in the margin of error in battleground states. That is not the case in 2020. It will take more than a miracle for Trump to pull off a second straight upset in November.
That said, it does not hurt to cover hypotheticals. Today, I want to look at three TSX stocks that are worth selling if Trump holds onto the office. Letās dive in.
Donald Trumpās trade spats could hurt this TSX stock
Back in August, Iād discussed whether some TSX stocks could take a hit after Trump unveiled a surprise round of aluminum tariffs on Canada. Donald Trump has consistently hung his hat on his aggressive trade policy. In the event of a Trump win, he will undoubtedly look to push these issues going forward.
This could be bad news for stocks like Exco Technologies. Exco is the largest independent designer and manufacturer for dies for aluminum extrusions in the Americas. Its shares have dropped 4.9% in 2020 as of close on October 8. Beyond this political threat, Exco boasts an excellent balance sheet. The stock last had a favourable price-to-earnings ratio of 12 and a price-to-book value of 0.8.
A setback for renewables?
The Donald Trump administration has been accused of being, at best, ambivalent on the climate change question. In my article on Bidenās chances, Iād explained his aims to boost the green energy space. That said, renewables stocks have still performed well in recent years.
Brookfield Renewable Partners owns a portfolio of renewable power-generation facilities around the world. Its shares have increased 46% so far this year. Shares have dropped 5.3% over the past week. Moreover, its impressive momentum means that it does not offer the hefty dividend that it did for investors who got in early. In any case, this TSX stock looks overvalued in this market.
Donald Trump: Will cannabis TSX stocks have hope?
Donald Trump has opted for neutrality on the cannabis questions in the United States, preferring to punt to individual states. Although Trump does not have the hostile history that Biden possesses towards cannabis, he is not great friend. This means Canopy Growth and other top TSX stocks in the cannabis space will still look unattractive in the event of a Trump upset.
The prospects for cannabis are dim going forward regardless of who sits in the White House in 2021. That means investors should look elsewhere for growth as we approach the final months of this momentous year.
