Moomoo CA wrote a post · Nov 1 05:00

At the crossroads of uncertainty, what ETFs you would bet on?

Hey mooers!

The eagerly awaited U.S. presidential election is set to commence on November 5, likely ushering in a turbulent market period. As the date approaches, investors are preparing for increased volatility. What are the potential effects and strategies you should consider?

Additionally, as October progressed, Harris's lead in polls diminished, particularly in crucial swing states, leading to a rise in bets on a Trump win on platforms like Polymarket.

Since late September, $Trump Media & Technology (DJT.US)$, a key stock in the "Trump trade," has experienced a significant rebound, with its stock price soaring from under $12 to nearly $55, an increase of over 360%.

So, what's your take on this?

For detailed learning of how to strategize your trade, check this piece!

If Trump is re-elected as President, his administration's new policies could open up various investment opportunities. We will highlight key investment areas based on his primary governance philosophies and recommend using ETFs for these investments.

Key ETFs to consider for long-term investment based on Trump's tax cut policies include:

– For large multinational companies and consumer sectors that benefit from corporate tax reductions and increased consumer spending: $SPDR S&P 500 ETF (SPY.US)$ and $Invesco QQQ Trust (QQQ.US)$.

– For small businesses that will gain from lower tax burdens, enabling growth and higher returns: $iShares Russell 2000 ETF (IWM.US)$ and $Vanguard Small-Cap ETF (VB.US)$.

To assist you better find and select related ETFs mentioned above, click here to read and try ETF functions like "Index ETF" and "Thematic ETF">>

- Cryptocurrency:

Trump has shown strong support for cryptocurrencies, pledging to make the U.S. the global hub for cryptocurrency. At the Bitcoin 2024 conference, he promised significant backing for the crypto sector.

Key ETFs to consider:

– $iShares Bitcoin Trust (IBIT.US)$

– $Fidelity Wise Origin Bitcoin Fund (FBTC.US)$

– $Bitwise Bitcoin ETF (BITB.US)$

– $GraniteShares 2x Long COIN Daily ETF (CONL.US)$

For more detailed analysis, you can read this further>>

If you don't hold confidence in Trump, Mag 7 and semiconductors are the ones that you need to eye on. Despite the recent ups and downs and uncertainties, there are still opportunities in Mag 7 and semiconductors if Trump is not the one.

The Magnificent Seven stocks, outperforming the S&P 500 with a 51.04% gain, highlight their critical role in the investment landscape, particularly for those focused on technological advancements.

As companies like $Alphabet-C (GOOG.US)$, $Microsoft (MSFT.US)$, and $Apple (AAPL.US)$ start earnings week, their move towards designing their own chips could lessen their reliance on traditional chipmakers.

This shift might either negatively impact their stocks if chipmakers falter or boost their stocks if they successfully rival traditional chipmakers with their in-house developments. Read more>>

At the crossroads of uncertainty, what ETFs you would bet on?

Does the election matter?

Fundamentals such as earnings, cash flows, and valuations are key drivers of financial asset performance, with the impact of politics often being unpredictable and exaggerated. Historical data from Schwab indicates that the $S&P 500 Index (.SPX.US)$ has only declined during four presidential election years since 1928, due to major crises rather than elections.

J.P. Morgan Chase notes that post-election, the $S&P 500 typically rises as uncertainty diminishes, suggesting that investing in related ETFs could be beneficial.

Prominent ETFs like the $Vanguard S&P 500 ETF (VOO.US)$ and $SPDR S&P 500 ETF (SPY.US)$ are notable for their liquidity and low costs, with VOO surpassing $1 trillion and SPY over $500 billion in assets.

Key index ETFs to watch:

- $Invesco QQQ Trust (QQQ.US)$

- $ProShares UltraPro QQQ ETF (TQQQ.US)$

- $ProShares UltraPro Short QQQ ETF (SQQQ.US)$

- $VANGUARD S&P 500 INDEX ETF TR UNIT (VFV.CA)$