On Dec. 17, we noted, “With Joe Biden heading to the White House, green stocks could be some of the top winners of New Year 2021.”
· iShares Global Clean Energy (ICLN), which ran from $25.50 to $32
· Plug Power (PLUG), which ran from $27 to $36.40
· SunPower (SPWR), which ran from $23 to $31.26
From here, all could run to higher highs with Biden in the White House, and Democrats in control of the Senate and the House.
“A Biden administration will mean more regulatory scrutiny for financial and energy stocks and probably higher taxes across the board,” says Rodney Johnson, president of economic research firm HS Dent Publishing, as quoted by Kiplinger. “But there will be opportunities. Infrastructure spending, green energy and health care are all Democratic priorities and should do well under a Biden presidency.”
In addition, Biden has said the U.S. will rejoin the Paris Climate Accord. And three, Biden mentioned a $2 trillion clean energy plan, with hopes for net zero emissions by 2050.
Other Big Winners on the Democrat Win
Some other top sectors rallying on the win are cannabis and lithium with the EV boom.
Cannabis stocks like Canopy Growth (CGC). Tilray Inc. (TLRY), Aphria Inc. (APHA), and Aurora Cannabis (ACB) are all picking up a good deal of momentum. According to analysts at Cowen, as quoted by Seeking Alpha, “A Democratic sweep makes Chuck Schumer the majority leader. That means there will be a vote on legalization.”
Lithium stocks like Albemarle (ALB), Lithium Americas (LAC), and Livent (LTHM) are running on the Democrat win, too. For one, Joe Biden and Democrats are positive catalysts for EV and lithium growth.
Two, with the electric vehicle boom well under way, companies will need as much lithium as they can get their hands on. “It is anticipated demand for vehicle battery metal will increase sharply over the next several years as automakers abandon internal combustion engines for EVs,” as noted by Resource World.