With the presidential election less than a week away, investors hedge their bets for a former President Donald Trump win, sending bitcoin (BTC-USD) and gold (GC=F) higher. The Wealth Alliance president and managing director Eric Diton joins Catalyst Hosts Seana Smith and Josh Schafer to discuss what parts of the market could benefit from Trump or Vice President Kamala Harris in the White House.
Diton says he thinks “gold, probably bitcoin as well, have further to go because we just don’t have a plan as a country to deal with this $35 trillion in debt and growing. And we’re listening to both candidates, and I haven’t heard any talk about any kind of reduction in spending there. There is no plan.”
“Forget about the stock market. The smart money is in the bond market,” Diton says, noting that after the Federal Reserve announced the 50 basis point cut in September, the ten-year treasury yield rose. “That’s telling you that the bond market, that’s the smart money, that’s institutional money, is concerned. It’s not buying in.”
The portfolio manager says that if Trump wins next week, “Domestic retailers look good. I think fossil fuels, traditional energy, will breathe a sigh of relief… And then, of course, the traditional gun stocks, prison stocks, et cetera. But definitely, the more economically sensitive companies stand to benefit from things like corporate tax cuts.”
On the other hand, Diton says, “The best play on a Harris presidency is healthcare. Harris really wants to greatly expand Medicaid [and] Medicare benefits.”
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This post was written by Naomi Buchanan.
