Today marks the beginning of the presidential administration of Joe Biden. But it doesn’t mark the beginning of the stock market’s run in anticipation of the transition in power. That arguably began after Election Day. Since Nov. 3, 2020, the S&P 500 index has jumped by a double-digit percentage.
Many stocks have delivered solid gains over the last couple of months. Some, though, are in a better position than others to outperform the overall market over the next few years. Here are three unbeatable stocks for a Biden bull market.
Last year, then-candidate Biden stated, “I know that climate change is the challenge that’s going to define our American future.” Unsurprisingly, addressing climate change ranks as one of the top priorities for the Biden administration. High among the goals to rise to this challenge is to transition to carbon-free power production by 2035. That aspiration is great news for Brookfield Renewable (NYSE:BEP) (NYSE:BEPC). The company operates hydroelectric, wind, and solar power facilities across four continents.
Brookfield Renewable has been a great stock to own for quite a while now. Over the last two decades, it’s delivered an average annual total return of over 18%. Last year, the renewable energy stock soared 74%.
Even if the Biden White House didn’t prioritize renewable energy, Brookfield Renewable would be on track to keep up its momentum. Many other countries as well as several big U.S. states have set ambitious carbon-reduction goals. Perhaps even more important, wind and solar are now the lowest-cost sources of energy production.
The company anticipates that it will be able to generate long-term returns of close to 15% annually. With a development pipeline that nearly doubles its current production capacity, that seems quite attainable.
It’s true that Biden hasn’t been a big fan of marijuana legalization. But the prospects of federal decriminalization of marijuana and major banking reform to help the U.S. cannabis industry appear to be greater than ever with Biden as president and his fellow Democrats in control of both the Senate and the House of Representatives. Multistate cannabis operator Cresco Labs (OTC:CRLBF) should be one of the key beneficiaries if cannabis reform is indeed on the way.
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