Why Rocket Lab Is a Winner No Matter How the Election Turns Out
The list of winners and losers will shift depending on the outcome, but this space-related name looks good with either a Trump or Harris victory.
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Market players are fixated on potential election results on Monday morning, and so far the price action is nicely positive. Breadth is running 6,200 gainers to 2,600 losers, with the Magnificent Seven MAGS leading.
There is a little weakness in pharmaceuticals, and interest rates are spiking back up again, but no major themes. Bitcoin IBIT is bouncing, and cannabis MSOS is down a little, but there isn't enough movement there to suggest anything about voting.
The market will probably be fine with any scenario other than a Democratic sweep, which would be viewed as highly inflationary and less supportive of growth. The Republicans have a near lock on the Senate, so that is unlikely to be an issue.
The list of winners and losers will shift depending on the vote outcome, but it is very tough to forecast if all the policy promises will be passed or not.
One sector I'm watching closely is space-related names. Elon Musk is the biggest player in the space industry with his privately held SpaceX, and the potential for political revenge in case of a Trump loss is highly likely, in my view. If Trump were president, the entire space industry would likely see more funding and support. If Harris wins, then it is likely that some of SpaceX's competitors will benefit.
The main SpaceX competitor that I favor is Rocket Lab USA RKLB. The demand for companies to launch satellites continues to build, and Rocket Lab now has rapid launch capabilities and is the second most frequently launched U.S. orbital rocket. Earlier today Rocket Lab successfully launched its 54th Electron mission, deploying a single satellite to Low Earth Orbit for a confidential commercial customer.
Technically, RKLB stock is trying to break out of a high-level consolidation but could use more volume. Whatever happens in the election, Rocket Lab is likely to be a winner.
At the time of publication, Rev Shark was long RKLB.
