Top 10 Most Actionable Policies if Kamala Harris wins the Presidential Election - Jefferies Strategists Predictions
In a recent note to clients, Jefferies strategists have outlined the top 10 most actionable policies that could come into effect if Kamala Harris wins the presidential election. These policies are based on the 2024 Democratic Platform and Harris' recent statements, focusing on Tax, Regulations, Industrial Policy, Trade, and Energy Transition.
1) Restore top individual income tax rate to 39.6% on income above $400,000 for single filers and $450,000 for joint filers: This policy aims to impact high-income earners, with potential positive implications for mortgage companies like Guild Holdings (GHLD) and LoanDepot (LDI), while luxury retailers may face challenges.
2) Set new rules and penalties to prohibit food and grocery companies from expanding profit margins more than warranted: This policy targets inflation and price gouging in the food sector, potentially affecting companies like Costco, Target, and Walmart.
3) Continue antitrust enforcement and reduce hidden fees: Antitrust enforcement is expected to intensify, affecting companies like Amazon, Adobe, Alphabet, Meta, and Pfizer, potentially influencing their M&A activities.
4) Lower drug costs by requiring pricing transparency from Pharmacy Benefit Managers (PBMs): This initiative could benefit generic drug manufacturers but negatively impact large PBMs like CVS Health.
5) Develop AI guidelines via the AI Safety Institute: The establishment of AI guidelines is expected to regulate AI use, potentially benefiting cybersecurity firms.
6) Use American-made products for federally-funded infrastructure projects: This policy aims to boost domestic manufacturing, benefiting companies like Nucor and Steel Dynamics.
7) Reshore supply chains for critical materials and technologies against China: Efforts to reduce reliance on China could favor companies involved in domestic production.
8) Limit exports of advanced technologies to China: Restrictions on technology exports could impact companies like Nvidia but benefit cybersecurity firms.
9) Electrify federal fleet and heavy-duty vehicles: The push towards electrification could drive demand for companies supplying lithium for batteries.
10) Require low-carbon materials and clean power in new federal buildings by 2030: This policy is expected to boost demand for low-carbon materials, benefiting companies in the industry.
In summary, if Kamala Harris wins the presidential election, these policies could significantly impact various industries and companies, creating both challenges and opportunities for investors. It is important for investors to stay informed and adapt their investment strategies accordingly to navigate the potential changes in the market landscape.