To The Moon

Biden did drop out, but chose her vice president, Kamala Harris, as the 2024 presidential nominee over younger "lesser" candidates such as California Governor Gavin Newsom and Michigan Governor Gretchen Whitmer.

The reason is:

1. They were originally positioned for a 2028 presidential run, and now that they are improvising, the time is clearly not right;

2. If they lose this time, it will definitely be a demerit for future campaigns; if they lose worse, the odds are that they won't even have a chance to run next time around

Previously it was also rumored to be Obama's wife Michelle, but she's still some cites away from the political scene.It had to be Kamala Harris, of whom some prominent legislators have endorsed her.

Her stance is probably going to be a reference factor influencing the market as well.

Most notably the healthcare sector

Kamala has a strong background in healthcare, and when she first joined the U.S. Senate in 2017, she supported Senator Bernie Sanders' Medicare-for-all proposal and took clear positions on drug pricing and Medicare reform.

Her policies could have a significant impact on pharmaceutical companies, insurers, and healthcare providers.For example, drug pricing negotiations and Medicare expansion could depress drug prices and affect pharmaceutical company profits.

While serving as California's Attorney General, Kamala joined 11 other state attorneys general in suing a proposed merger between $THE CIGNA GROUP(CI)$ and $Elevance Health(ELV)$ The deal eventually fell apart.

And under the vice presidency, Kamala and Biden signed two key pieces of legislation affecting drug pricing, making the $35 per month out-of-pocket insulin cap for Medicare enrollees (especially for insulin products such as $Eli Lilly(LLY)$ $Novo-Nordisk A/S(NVO)$ etc.) and other Medicare drug pricing negotiations.

Next is the tech sector

The tech sector could be under double pressure.On the one hand, Harris' policies could include increased regulation of large tech companies $Meta Platforms, Inc.(META)$ $Alphabet(GOOG)$ $Microsoft(MSFT)$ $Apple(AAPL)$ $Amazon.com(AMZN)$ increasing compliance costs and legal risks.

On the other hand, market expectations of a possible re-election of Trump have declined, which could affect tech companies' expectations on trade and tax policies.

Financials.

The financial sector could be impacted by Harris' policies, especially if she pushes for stricter financial regulation.Harris' stance in favor of consumer protection and financial regulation during her time in the Senate could put pressure on banks and financial services companies. $JPMorgan Chase(JPM)$

Energy.

Harris's environmental stance could have a negative impact on the traditional energy sector (e.g., oil and natural gas), while it could be a boon for the renewable energy sector (e.g., solar and wind).She could push for stricter environmental regulations and higher carbon emission standards, prompting capital to flow to clean energy projects.

USD and safe-haven assets

The U.S. dollar could benefit from a rise in safe-haven demand due to increased political uncertainty.Harris' policy stance and its potential impact on the economy will be the focus of market attention.Risk aversion could push the US dollar stronger and could also affect the performance of precious metals and other safe-haven assets. $USD ETF-PowerShares DB (UUP)$ $ S&P 500 Volatility Index (VIX)$

Summary

Harris' policy positions are more aggressive than Biden's, particularly on healthcare, technology and financial regulation.Her policies could impact companies in these industries to varying degrees, increasing compliance costs and regulatory pressure.However, her support for clean energy and women's health could open up new opportunities for related industries.Investors need to pay close attention to Harris' policy moves in order to adjust their investment strategies to market changes.

$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $ProShares UltraPro QQQ(TQQQ)$