Introduction to thematic investments
The recent victory of Donald Trump and the passage of the Senate in the hands of the Republicans have raised concerns and expectations regarding thematic investments in the United States. In this article, we’ll look at how these policy changes could affect various sectors, including energy, water, mobility, and healthcare
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Energy sector: opportunities and challenges
The energy sector is one of the most affected by political dynamics. If the Senate and House remain divided, it will be difficult to make significant changes to the Inflation Reduction Act (IRA) and to investments in renewable energy. According to BloombergNEF, most of the investments in renewable energy were allocated to Republican-oriented states. However, there is likely to be greater support for fossil fuels and a reduction in environmental regulations. Despite this, many States could continue to promote climate policies and investments in renewable energy, demonstrating that political orientation is not the only determining factor for the development of the sector
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Investments in the water sector
The water industry in the United States is funded by a combination of federal, private, and state funds. Even though the Republican victory could affect federal funding and regulations, private funding is unlikely to be significantly impacted. Investments in water infrastructure are typically managed locally, based on regional needs. However, the global reforms envisaged by the IRA could be hampered, leading to a slowdown in investment in water-related initiatives
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Mobility and electric vehicles
The electric vehicle market is affected by regulations that could change with the Trump administration. The EPA has introduced new standards to reduce greenhouse gas emissions, and the IRA provides subsidies to encourage the adoption of electric vehicles. However, it is possible that a republican administration will eliminate subsidies for the purchase of electric vehicles, despite the importance of these investments for the creation of jobs in republican states. The IRA’s strategic direction, which aims to decarbonize the transportation industry, may align with Trump’s policies, but uncertainties remain
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Healthcare sector: future prospects
The U.S. healthcare market plays a crucial role in the industry’s global profitability. With Trump’s victory, the expansion of Medicaid could be reversed, with negative consequences for hospitals and managed care companies. In addition, the IRA introduced significant drug price cuts in Medicare, but a Republican administration could restrict price negotiations, favoring some large pharmaceutical companies. Even though the Affordable Care Act (ACA) may remain intact, regulatory changes could negatively affect drug use and, as a result, the healthcare industry
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