“Renewable energy and infrastructure sectors will benefit from Biden being elected”
Gat Megiddo, Psagot Investment House chief investment officer, and Ilan Paz, Israel Country Head at Barclays, discuss the financial ramifications of the upcoming U.S. Presidential Elections
"Sectors that could benefit from Biden being elected are infrastructure and renewable energy - which is a sector that is currently blossoming due to expectations of new budgets. On the other hand, should Trump be elected, that would benefit more traditional industries," claimed Psagot Investment House chief investment officer Gat Megiddo during Calcalist's conference on the U.S. Presidential Elections and its economic ramifications.
According to Megiddo, "even though Biden is threatening to raise taxes, I don't see him doing it in his first year in office under the current circumstances. What will move the markets in the short term is a decision one way or another regarding the planned fiscal stimulus. This decision is expected to be made immediately after the elections."
Megiddo added that Covid-19 accelerated processes in the tech sector from decades to years. "An investor has to think of the long-term trend. Technology is no longer just a sector but is part of all industries," she explained.
Ilan Paz, Israel Country Head and Head of Banking at Barclays, agreed with Megiddo and claimed that a long-term positive approach towards tech sectors is significant. "Covid-19 has highlighted that the world is heading towards a more technological future," he explained. "We are seeing this in the IPO market which is hotter than it has been in years. But you need to pay attention to why it is so hot."