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What Does The US Presidential Election Mean For Investors – Part 2

Credit: Hillary for Iowa (Wikipedia)

And so we’re down to two.

Although there is still some time before the nominations can officially be confirmed, the world would most likely be seeing a Hilary Clinton and Donald Trump showdown for the US Presidential Elections held later this year. Clinton’s the nominee for the Democratic Party while Trump’s from the Republican camp.

So, how do the two candidates differ in their views? For investors – even those of us in Singapore – it might be worth thinking how each of their economic policies could impact the global business landscape.

Here are some ideas on where the world’s largest economy might be heading toward depending on who wins the election. It’s a two-part series, so let’s look at some of Clinton’s policies here. For Trump’s, you can check out here.

Tax, tax, tax

Clinton’s focus is on giving tax relief to working families, small businesses, and the middle class. She has also suggested raising the minimum wage and improving safeguards for employee rights.

Growing clean energy and infrastructure projects

She is also pushing for an infrastructure bank that would upgrade infrastructure all over the US. Furthermore, she wants to make the US a clean energy superpower.

What will change

In a similar manner to Trump, Clinton’s tax plan is very much focused on the working class in the country. With higher consumption power through tax breaks without the threat of trade barriers with other countries, exporters to the US might thus benefit.

But, her drive to push for more clean energy might mean that demand for oil & gas could decline in the future, given that the US is one of the largest consumers of the fossil fuels now. This could have an impact on companies in the oil and gas industry.

Investors might want to keep an eye on companies such as Keppel Corporation Limited (SGX: BN4) and SembCorp Marine Ltd (SGX: S51). Both have been greatly impacted by the fall in oil prices over the past two years. What would happen to them if low oil prices are here to stay?

Another example of a stock that may be impacted would be Hutchison Port Holdings Trust (SGX: NS8U). There could be trade growth between the East and West if the spending power of US consumers were to rise. This in turn could benefit container port owners such as Hutchison Port Holdings Trust, which owns container ports in Hong Kong and China.

But all that said, what a politician says can at times be very different from what a politician does. This is something investors might want to keep in mind too.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim owns shares in Keppel Corporation.