The stock market thinks Joe Biden is going to beat Donald Trump [View all]

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https://www.cnn.com/2020/09/02/investing/joe-biden-stock-market-donald-trump/index.html

New York (CNN Business)The presidential election is only two months away and the stock market is soaring.

In theory, that should bode well for President Trump since a bull market has historically benefited the incumbent. But Trump is trailing Democratic challenger Joe Biden in many head-to-head national polls.

Although the market's sharp rebound since March could be viewed as a sign that investors expect the coronavirus-induced recession to be brief, you need to dig deeper and look at how the recovery is unfolding.

It turns out a basket of stocks that could fare well in a Biden presidency have been outperforming the overall market — as well as a portfolio of stocks that might benefit from a second Trump term.

Blue stocks vs red

According to data from Strategas that was shared with CNN Business, a group of infrastructure, renewable energy, pro-globalization, health care and cannabis stocks are up more than 10% since early June.

This so-called Biden or blue list includes companies like Granite Construction (GVA), Tesla (TSLA), First Solar (FSLR), chip giant Broadcom (AVGO) and the iShares MSCI Germany ETF (EWG), which owns several top German stocks.

The bet is that these companies might thrive if Biden wins and pushes for the United States to rebuild highways and bridges, wean America off oil and restore fractured trade relations with China, Japan, Europe and other global economic leaders.

Republicans are good for tax cuts to help "job creators". Democrats are good for creating actual jobs. Hoping enough voters in enough economically disadvantaged swing states have wised up to this by now.