The 3 Election Winners That Most Investors Are Ignoring

The stock market is surging dramatically this morning, celebrating the U.S. election and an announcement by Pfizer that its COVID-19 vaccine is 90% effective.

But I don’t envy Joe Biden.

More Americans voted against him than against any other presidential candidate in American history.

Millions will question his legitimacy for years to come.

And he’s about to inherit the most serious national crisis since Harry Truman took the White House in the final months of World War II.

Because of this crisis, we see three unchallenged election winners, and most investors are ignoring them.

The first winner is COVID-19, a terrifying surge that will land in Biden’s lap on day one.

Just yesterday, the total number of cases blew past 10 million, as hospitalizations have nearly doubled since mid-September.

So, I can’t even imagine the dire state of the pandemic on Jan. 20, smack in the middle of a cold winter, with vaccines not widely available until much later in the year.

My forecast: Despite stiff opposition from at least half the nation, and despite the Pfizer vaccine news, Biden will push for at least a partial nationwide lockdown.

That’s bad news for the economy, but electrifying news for pharmas like Pfizer and tech companies leading the great digital transformation that Weiss Ratings tech analyst Jon Markman has been forecasting for so many years. 

The second big election winner is cannabis.

Our colleague Sean Brodrick reminds us that, even during the spring lockdowns, legal cannabis was one of the few consumer products deemed “essential.”

And buried far beneath the election headlines of the past few days is the news that, on Nov. 3, cannabis legalization measures passed in five states:

• Arizona: Proposition 207 passed with almost 60% of the vote, legalizing cannabis use for adults age 21 and older.

• Mississippi: Voters chose the broader Initiative 65, which allows cannabis use for 22 different medical conditions.

• Montana: Initiative 190 won, legalizing cannabis use for adults over the age of 21, while imposing a 20% sales tax on marijuana sales.

• New Jersey: Voters overwhelmingly approved Public Question 1, which asked if they supported marijuana legalization.

• Meanwhile, South Dakota made history as the first state to approve both medical and recreational cannabis measures at the same time.

And not to be left behind, Gov. Andrew Cuomo declared “THIS is the year” that marijuana will finally get legalized in New York State.

Cannabis stocks went ballistic.

TerrAscend Corp. (OTCPink: TRSSF), with cannabis operations in California, Pennsylvania and New Jersey, shot up 29% from Oct. 30 through Friday.

Tilray, Inc. (Nasdaq: TLRY), a cannabis research and tech company, surged 69%.

InMed Pharmaceuticals, Inc. (TSX: In.To), a company focused on rare cannabinoids to treat several diseases with high unmet medical needs, exploded 105% higher.

Even ETFMG Alternative Harvest (NYSE: MJ), a diversified ETF of cannabis stocks that typically moves relatively slowly, jumped by 27% in just five days.

The third election victor is Bitcoin.

Weiss Ratings crypto expert Juan Villaverde puts it this way:

The news networks seem to have decided that Democrats will take the White House and Republicans will keep the Senate. And this is creating a lot of venom and vitriol on both sides. But Bitcoin (BTC, Weiss Tech/Adoption Grade “A-”) loves them both.

Sounds strange, I know. Yet, it’s true, and the reasons should be obvious: Both have continually supported massive government stimulus. Neither side seems to give a damn about the $4-trillion deficit it’s created. And neither has any qualms about the Fed’s $4-trillion money-printing operations to finance it.

So, when it comes to the three most important policies that will drive crypto markets, they’re like Tweedle Dee and Tweedle Dum.

No wonder Bitcoin, a prime beneficiary of out-of-control deficits and money printing, surged past $15,000 last week and is now trading near $15,600!

And no wonder other cryptocurrencies are following suit!

So, stand by. We will soon give you more specifics on each of these big election winners and more.

Good luck and God bless!

Martin