Wall Street Is Increasingly Bullish on a DeSantis 2024 Run

Wall Street is showing signs of affection Florida Gov. Ron DeSantis’s The 2024 presidential election has such great prospects that the company is already looking at stocks that can benefit as well as those which could drop if he wins.

Strategas Research Partners, an economist and market advisor firm headed by Jason Trennert is one of the firms measuring the market impact of a DeSantis presidency. A client report entitled “DeSantis Winners & Losers Baskets.” 

Fox Business obtained the report and reviewed it. It bases its research primarily on DeSantis’s policy positions as governor of Florida. This is another sign that financial giants are betting on DeSantis running for president in 2024. They believe he can defeat former President Trump in the GOP primaries and then beat Joe Biden during the general election. 

It’s also a sign that Wall Street thinks there will be market implications with a DeSantis victory given his record as Florida governor. According to the report it has already seen stocks it names as DeSantis winners outperforming those it labels as DeSantis losers.

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According to the report, DeSantis is considered a slight favorite to win the Republican primary against Trump. “After DeSantis’ landslide victory in Florida, client interest about a DeSantis candidacy has increased, particularly around company risks and opportunities,” The report stated. “This makes sense, with DeSantis having non-traditional Republican policies.”

“We expect President Biden to announce his candidacy following his State of the Union on February 7th,” According to the report. “Former President Trump was out campaigning this past weekend. Nikki Haley will likely announce her candidacy in two weeks, and Florida Governor Ron DeSantis is indicating he is likely to get in the race.” 

According to Strategas research, financial advisers caution against placing large market bets. DeSantis is still not announcing he will run for the presidency, although he has been open to considering it. In recent weeks he has been meeting with enthusiastic financial industry fundraisers, who believe he can beat Joe Biden or any other Democrat, while Trump can’t. His involvement in the January 6 Riots have left his reputation damaged and he remains embroiled in scandals.

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But as Fox Business has reported, DeSantis has told donors it’s not his preference to get embroiled in a nasty primary battle with Trump for the GOP nomination, raising some doubts he will challenge the former President in a primary. Trump is the only GOP candidate who has formally announced his intentions and has been shaming DeSantis for his well-known vitriol.

Also, financial advisers say some of the report’s conclusions are nebulous. ConocoPhillips, an energy company, is a DeSantis. “winner” because of the Florida governor’s support of drilling of “fossil fuels like natural gas and crude.” DeSantis will likely reduce drilling restrictions. 

Oil company profits have soared despite the restrictions placed by the Biden Administration on the industry, and its embrace Environmental Social Governance investment mandates which are intended to reduce carbon emissions through limiting supply. This has led to a rise in energy prices and profits, as well as soaring stocks of energy-company companies. Since Joe Biden took office in January 2021, shares of ConocoPhillips have more than doubled to $108 per share, far outperforming the Standard and Poor’s 500 index of large company stocks.

Moreover, DeSantis’s market-related policies may not deviate much from Trump who during his four years in office where the former President cut taxes, reduced regulations but also picked fights with big businesses like Amazon founder Jeff Bezos, who owns the Washington Post, and AT&T, which until recently owned the left-leaning CNN cable network. 

DeSantis is well-known for his famously Disney and the feudal heirloom Its attacks on a state law banning sex education for toddlers. Strategas lists Disney among the 19 DeSantis “loser” stocks. 

However, this four-page report shows that Wall Street is increasingly predicting that DeSantis will win the White House in 2024. Clients should start planning their portfolios to take advantage of his policies.

They should also avoid “short” Place a bet on stocks that are likely to face DeSantis-related headwinds or the Strategas included in its “DeSantis loser basket.” These are the companies Strategas believes adhere to “woke,” Corporate policies, such as the one mentioned by Disney. The basket also includes other companies “vaccine makers,” They include those that support so-called Environmental Social Governance, or ESG investment strategies, as well as those with significant operations in China.

Ticker	Security	Last	Change	Change %
DIS	THE WALT DISNEY CO.	111.27	-0.39	-0.35%

Recall how DeSantis took on Disney even though it was one of the state’s largest employers but lost a major tax subsidy because of its opposition to the sex-ed law by removing its favorable tax status in the state. Strategas claims that DeSantis will likely use the Disney template to target companies that follow similar left-wing policies, including embrace of ESG investing or Environmental Social Governance. 

ESG promotes the reduction in the carbon footprint of asset-managers’ portfolio companies and other progressive political stances. GOP elected officials have been slamming these mandates, claiming that it has resulted in higher gas prices and promoted a left-wing political agenda.

As governor Recently, DeSantis targeted BlackRock. the world’s largest asset manager that has been at the forefront of ESG, pulling $2 billion in state money that was being managed by the firm. Strategas hopes that DeSantis will create additional regulations to curtail ESG. ESG investments are more expensive than stock-picking options because they often have higher management fees. BlackRock goes public “loser” These new regulations could lead to lower profits.

Ticker	Security	Last	Change	Change %
BLK	BLACKROCK INC.	734.04	-6.83	-0.92%

Also on the loser list is Amazon and Apple, two corporate whipping boys of the right because they’re seen as woke Silicon Valley enterprises that have stifled conservative speech. Apple, meanwhile, has substantial manufacturing ties to China. Companies with China-related ties They are considered to be “losers” in the Strategas report, given the nation’s geo-political ambitions and its role in the Covid pandemic. 

Ticker	Security	Last	Change	Change %
AMZN	AMAZON.COM INC.	99.82	-2.29	-2.24%
AAPL	APPLE INC.	151.27	-3.38	-2.19%

Meta, the holding company of Facebook, is also on the list for its censorship policies. Moderna and Pfizer, drugmakers, are also DeSantis loser. Strategas views a DeSantis Administration as less severe in terms COVID mandates. These companies will experience falling profit margins. According to the report, his Justice Department may also seek claims that the companies exaggerated their efficacy.

Ticker	Security	Last	Change	Change %
META	META PLATFORMS INC.	184.80	-6.82	-3.56%
PFE	PFIZER INC.	43.90	+0.29	+0.68%
MRNA	MODERNA INC.	165.10	-5.96	-3.48%

Strategas explained that the 19 DeSantis winners include stocks in energy, border security, and defense. “We expect DeSantis to be a strong proponent of fossil fuels, but he is not opposed to renewables,” The report has been updated. “Other areas where DeSantis could be a positive are financial companies that avoid ESG and could benefit from deregulation.”

 JP Morgan CEO Jamie Dimon has publicly criticized ESG. This is why the bank makes it onto the list of stocks that President DeSantis will be able to win. DeSantis’s commitment to increasing the defense budget means that Raytheon Technologies, Lockheed Martin, and Raytheon Technologies are also winners.

Ticker	Security	Last	Change	Change %
JPM	JPMORGAN CHASE AND CO.	143.08	-0.58	-0.40%
LMT	LOCKHEED MARTIN COMMUNITY	469.00	+0.78	+0.17%
RTX	RAYTHEON.TECHNOLOGIES. CORP.	97.38	-0.49	-0.50%
CXW	CORECIVIC INC.	10.14	-0.05	-0.49%
SOFI	SOFI TECHNOLOGIES	7.37	-0.01	-0.14%

A company named CoreCivic Inc., that owns and manages private prisons, could see its business expand dramatically — and its share prices soar — as DeSantis focuses on policies to secure the southern border from migrant surges and the company benefits from government contracting.

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SoFi Technologies Money processing student loans A possible lift to its business, Strategas says, will be the end of President Biden’s student-loan forgiveness program under DeSantis. This will result in higher fees for processing these loans. Strategas predicts also that President Joe Biden would announce his plans for running again in 2024 following tonight’s State of the Union speech.

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