U.S. Elections: 3 Stocks That Will Surge Regardless of Who Wins

The U.S. election will have an impact on several Canadian stocks. However, robust growth stars like Shopify Inc. (TSX:SHOP)(NYSE:SHOP) should sail through unperturbed.

The United States presidential election is just days away. In fact, over one-third of the electorate has already voted early via mail. Millions more will vote on November 3rd. The outcome could have a drastic impact on stocks listed in Canada and exposed to the economy south of the border. 

There are likely to be clear winners and losers from the upcoming election. Canada’s energy and private equity firms, for example, would be boosted by a second term for the Trump administration. Meanwhile, renewable and export stocks will surge if Biden wins. However, in this article I want to take a closer look at three stocks that will surge regardless of who wins. 

Election winner 1

U.S. real estate is undervalued and that fact doesn’t change after the election. While Biden is likely to focus on housing affordability, Trump is likely to focus on tax cuts and incentives for home buyers. Both scenarios are good for Tricon Residential Inc. (TSX:TCN) which owns and operates rental properties in the U.S.

While the real estate investment trust lost some value in March, it has quickly recovered since then. Now, the stock is up 4% year-to-date and offers a reasonable 2.55% dividend yield. However, the fact that American real estate is undervalued at the moment allows Tricon to scoop up more properties at bargain valuations. 

Expanding the portfolio will allow the REIT to generate more cash flows in 2021 and beyond. Since both Trump and Biden are likely to implement fiscal stimulus measures to keep families afloat during the pandemic, Tricon’s rental income shouldn’t suffer much. 

I believe this is a great bet for long-term investors. 

Election winner 2

I own Barrick Gold (TSX:ABX)(NYSE:GOLD) for one simple reason: it’s an undervalued gold miner in an era of surging gold prices. Regardless of who wins the election, the U.S. (much like Canada) has a hefty debt burden to deal with. The U.S. Fed has already declared its intention to aim for higher inflation to reduce this debt burden over time. 

That means the U.S. dollar is expected to lose value. This, in turn, makes gold more valuable. Barrick Gold is probably best positioned for such a surge. The world’s second largest gold miner has economies of scale to lower its cost of gold production. As the market value of gold rises, Barrick stock should follow along. 

This trend is beyond politics, which means gold will continue to rise regardless of who wins the upcoming elections. That’s the reason Warren Buffett himself has a position in this company. 

Election winner 3

Shopify is my final pick for an election-proof winner. Online shopping is a long-term trend that will sustain regardless of who takes office. The convenience and efficiency of shopping from the comfort of home is simply too compelling. Shopify’s growth is likely to go on for years. 

That’s why it’s the perfect bet for investors who’re looking for a safe bet on election night. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani owns shares of Barrick Gold. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify, Shopify, and Tricon Capital.

More on Investing

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »

chart reflected in eyeglass lenses
Investing

How Should a Beginner Invest in Stocks? Start With This Index Fund

This Vanguard index fund is the perfect way to start a Canadian investment portfolio.

Read more »

analyze data
Bank Stocks

Is BMO Stock a Buy for its 4.7% Dividend Yield?

Bank of Montreal is up 20% since late August. Are more gains on the way?

Read more »