As the June 27th presidential debate approaches, the associated volatility is expected to shake the markets, potentially positioning some stocks as riskier bets. Historically, political events like debates can introduce uncertainty that affects stock prices, making it crucial to identify potential stocks to sell to mitigate risks.
In this climate, stocks in sectors directly impacted by presidential policies could face heightened scrutiny and volatility. For instance, energy companies, particularly those involved in non-renewable sectors, might become less favorable if the debate rhetoric strongly supports aggressive climate action policies. Similarly, healthcare stocks could also dip if there is significant discussion about major reforms that could disrupt profit models.
Investors might consider reducing exposure to these and other potentially vulnerable stocks ahead of the debate to protect their portfolios from sudden drops. Selling or shorting stocks that might decline due to policy changes discussed during the debate could be a strategic move to guard against potential losses.
GoodRx (GDRX)
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Reproductive health remains a central issue in national discourse, especially as telehealth services have risen in popularity post-pandemic, with patients favoring consultations from home. This backdrop positions GoodRx (NASDAQ:GDRX) among stocks to sell before the debate. Notably, FDA regulatory adjustments now allow health services firms like GoodRx to facilitate access and cheapen the costs of abortion pills, offering alternative access to traditional in-person services.
Medication-based abortions, which constitute over half of all abortion procedures, have become a focal point in national discussions. The spike in interest in telehealth following the Roe v. Wade memo leak could bring undue attention toward GoodRx, putting both its operational and financial standings at risk — if not from a regulatory perspective, then possibly public backlash.
GoodRx stock is on a run this year, perhaps partly due to its abortive offerings, and shares have climbed 56% since January. Still, the company’s never turned a profit and the general election uncertainty makes it among stocks to sell today.
ChargePoint Holdings (CHPT)
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Expect President Biden’s disastrous electric charging initiatives, in which Secretary of Transportation Buttigieg spent $7.5 billion to build eight whole charging stations, to weigh on ChargePoint (NASDAQ:CHPT) as we approach the debate. I personally like ChargePoint long-term, but expect further volatility moving forward.
Though we’ve already seen the Biden administration offer a slew of tax benefits to EV owners, the net industry outcome remains in the air. On the other hand, Trump and the team’s promise to gut EV initiatives could make manufacturers like ChargePoint less liable to create new charging stations and EV peripherals, making existing infrastructure all the more valuable and in demand — or sink its prospects.
Investors began avoiding ChargePoint and sister companies like the plague throughout 2023, sending shares plummeting due to high capital expenditure needs and higher debt costs. ChargePoint’s saving grace may end up being rate cuts if projections hold. If we see a slew of cuts before 2025, ChargePoint could rapidly expand its current network cheaply and effectively in the coming months. That expansion could even precede the 2024 presidential election, even if it won’t be in time for the debate.
JinkoSolar (JKS)
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Last year, solar stock JinkoSolar (NYSE:JKS) was specifically mentioned in a report for its significant reliance on materials allegedly produced with forced labor. This positions it among stocks to sell in its own right but also captures climate change skepticism, positioning it at a bearish intersection where both candidates’ perspectives could weigh on the stock. While the company operates manufacturing facilities in the United States and other East Asian countries, including Vietnam, its supply chain is still heavily dependent on raw materials sourced from concerned regions.
This dependency has drawn government attention, as evidenced by a raid on a U.S.-based JinkoSolar factory and sales office last year due to alleged violations of import bans. JinkoSolar has denied any wrongdoing, asserting its commitment to ethical operations and compliance with local laws and regulations.
Amid these challenges, JinkoSolar’s decreased by 30% since January and 41% over the past year, making it an easy call among stocks to sell.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
