How We're Positioning Natural Resources for a Potential "Blue Wave"

With two weeks remaining until the November 3 election, national polls show that former Vice President Joe Biden maintains a lead over President Donald Trump.

You would be excused for not putting any faith in such polls, as they only misled voters four years ago. What’s more, even though Trump has a historically low approval rating heading into the election, the odds are stacked against Biden. Since 1900, only five incumbents (Taft, Hoover, Ford, Carter and H. W. Bush) have lost to their presidential challengers.

And yet, it may be time to face the real possibility that Biden will be sworn in come this January. We could also see a so-called “blue wave,” whereby the Democrats pick up control of not just the White House but also both chambers of Congress.

This development would surely have a huge impact on markets, and I expect there to be some rotation out of Republican-friendly industries (fossil fuels, for instance) and into those poised to benefit from potential policies enacted by a President Biden and Democratic-controlled Congress.

Before continuing, I should point out that here at U.S. Global Investors, we’re politically agnostic and have no explicit preference as to which party is in power. It’s the policies that matter above all else, and we choose to see opportunities where other firms and investors may see only roadblocks.