[Friendly Economy] Trump and Biden, the impact of the Korean economy

<Anchor> We

are with reporter Kwon Ae-ri, a friendly economy.

Reporter Kwon, the day after tomorrow (4th) is the US presidential election.

We continue to look at the global economy and the impact it will have on our economy. Is there an industry that each of these two candidates is more interested in?

<Reporter>

Yes.

Even in our country, whenever there is a big political or economic event, we always talk about'theme master'.

"Some politicians said that this company is promising because they become influential."

Americans talk a lot about it.

In fact, among the two candidates these days, the result of the presidential election is often predicted about which of the two candidates has better grades.

"Money knows in advance."

It would be such a psychology.

You have to open the lid to see if it's really right to see the stock market, but until now, there is a big atmosphere in the US stock market that stocks, which seem to be advantageous if Biden becomes president, are more popular.

In short, a company called Guggenheim Asset Management has selected Biden theme stocks and Trump theme stocks, respectively, together with an external agency, and analyzes and discloses the sexual changes of both these days.

As of January 20th, I've been tracking each change in returns since then. The blue line is the Biden index, and the red line is the Trump index.

After the massive stock market crash in March due to the corona shock, Biden's index has maintained its dominance by widening the gap.

However, as the presidential election came close last week, the gap narrowed again.

On the latest October 29th, the Trump index was slightly ahead of the car.

<Anchor>

Based on what criteria were the stocks that entered the Trump index and Biden index selected?

<Reporter> We

compared the industries and policies that the two candidates each prioritize and selected companies that seem relevant.

First of all, among the 32 Biden's theme stocks that make up the index you've seen, there are several renowned companies related to renewable energy and solar energy.

Candidate Biden is very interested in green.

Since there are so many oil industry workers in the United States after becoming a presidential candidate, I have made it quite clear that the oil industry is a declining industry, although I don't speak as strongly as before.

And when he becomes president, he plans to invest more than 2,200 trillion won, which is four times the amount of Korea's next year's budget, in eco-friendly policies.

In this case, it may become even more important for Korea to do well in the so-called Green New Deal, which we have decided to focus on in the future.

The eco-friendly energy industry and companies should do better in technology development.

We will be in an environment where the business space is rapidly growing and the demand is growing rapidly.

On the other hand, Candidate Biden is reluctant to produce a lot of oil and gas.

There is a possibility that it will deliberately give up its position as the world's largest oil producing country.

As a result, if the world's oil production declines, it could be a factor in the long run.

It is not an immediate problem, and for the first time, when the economic downturn due to corona ends will have a much more impact on oil prices.

However, after an emergency like this one, the Biden administration could act as a factor in the long-term increase in oil prices.

It's time to assume that green energy will be difficult to make a big replacement for oil so quickly.

<Anchor>

I mean that when Biden became president, on the contrary, President Trump is friendly to the oil industry, right?

<Reporter>

Yes.

When President Trump is re-elected, oil policy remains the same.

By the way, President Trump has put a lot of pressure on buying things made in the United States in Korea as well, and building factories in the United States.

Korea imports the largest amount of US crude oil after Canada, and if President Trump is re-elected, there is a possibility that there will be a demand to buy more US oil.

And among the 45 companies in the index that you saw earlier, famous financial companies, consumer goods, and automobile companies stand out, along with oil companies.

President Trump wants to cut taxes.

So they were chosen from the speculation that if President Trump was re-elected, Americans would be more relaxed to manage or spend their money individually.

From our standpoint, Korean goods that are well-selling in the US, home appliances such as TVs and washing machines, our cars, clothing, etc., can indirectly be a boon.

Also, since President Trump strongly pressed Huawei and said that the 5G network will be greatly increased, there may be a big business opportunity for companies like Samsung Electronics.

On the other hand, Candidate Biden will pay more income and corporate taxes and spend more of the money it has to expand the US infrastructure.

It is the one who wants to save the economy through fiscal policy.

It is more predictable than President Trump's daily tweets.

Then, analysts say, it is highly likely that big-handed investors in the United States will increase their investment in emerging markets, including ours.

It will be relatively less surprising, and as the dollar weakens as the US government loosens a lot of money, there is an expectation that investors will put more weight on emerging markets.