20 Election Trades Citi is Watching

As the 2024 U.S. Presidential election approaches, financial institutions like Citi are closely monitoring potential market impacts and identifying trading opportunities. With the race between Vice President Kamala Harris and former President Donald Trump tightening, investors are eager to understand how the election outcome may influence specific sectors and industries. In this article, we will explore the 20 election trades Citi is watching, focusing on sectors likely to be impacted by policy changes and market dynamics.


1. **Healthcare**: With Harris' focus on expanding healthcare access, companies like CVS Health (CVS) and UnitedHealth Group (UNH) could benefit from increased demand and potential regulatory changes. A Harris victory may lead to more government spending on healthcare, driving up demand for services and pharmaceuticals.
2. **Energy**: Trump's pro-fossil fuel stance could boost stocks like ExxonMobil (XOM) and Chevron (CVX), while Harris' focus on renewable energy may benefit companies like NextEra Energy (NEE) and Enphase Energy (ENPH). The energy sector is expected to be significantly impacted by the election outcome, with potential shifts in policy affecting energy prices and corporate profits.
3. **Financials**: Banks like JPMorgan Chase (JPM) and Wells Fargo (WFC) could benefit from Trump's pro-business policies, while Harris' focus on consumer protection may impact financial services companies like PayPal (PYPL) and Visa (V). The financial sector's performance is closely tied to economic growth and regulatory environments, making it a key area to watch during the election.
4. **Technology**: Trump's stance on data privacy and Harris' focus on tech regulation could impact companies like Facebook (META) and Alphabet (GOOGL). Citi is watching companies like Microsoft (MSFT) and Apple (AAPL) for potential opportunities, as the tech sector faces increased scrutiny and potential regulatory changes.
5. **Industrials**: Trump's trade policies and Harris' focus on infrastructure could impact companies like Boeing (BA) and Caterpillar (CAT). Citi is also watching companies like Union Pacific (UNP) and Norfolk Southern (NSC) for potential opportunities, as the industrials sector is expected to be influenced by changes in trade policies and infrastructure spending.


Citi's strategists emphasize that while these companies may be impacted by election outcomes, their fundamental performance remains crucial. Investors should consider the long-term prospects of these companies and not solely rely on election-related movements. As the election approaches, Citi is hedging against election-induced volatility, such as buying protective puts on stocks in sectors favored by the winning candidate.

In conclusion, the 2024 U.S. Presidential election is expected to have significant impacts on specific sectors and industries, with potential trading opportunities for investors. Citi's strategists are closely monitoring the election and have identified 20 election trades to watch, focusing on healthcare, energy, financials, technology, and industrials. As the election approaches, investors should pay close attention to these sectors and consider the long-term prospects of the companies within them.