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The midterm elections are coming up, and everyone is talking about who will win- Republicans or Democrats-but you can actually win yourself if you understand how these elections will affect the economy and the stock market. What do I mean? Our economy is driven by spending, and you want to invest money where there is capital movement. The biggest consumer in our economy is not you or me, not Nvidia or SpaceX, but the United States government. Last year, the US government spent about $7.5 trillion. If Republicans win, they will invest in certain industries. This could mean increased spending on defense or industrial production. If Democrats win, it could mean more money for other sectors, like clean
energy or health care, to expand the universal health care system. So in this video, I want to talk about the midterm elections from a non-political perspective. There are already enough people on the Internet who do this. I want to talk from a financial perspective so that you can benefit from the election, whether you're a Democrat, a Republican, or someone else, because my goal is to show how these political changes can create new investment opportunities. Stay with me until the end of this video, and while I will talk about specific investment ideas, I'm not going to tell you what to invest in. And yes, always verify everything I say because I'm just a regular YouTuber.
Investing carries risks. You never have any guarantees of profit when you invest, so use AI. That's the thing. AI is only as good as how well you use it. It's like having a professional Wall Street analyst at your fingertips, but only if you know how to use him properly. Unfortunately, many people are doing it wrong, so for the first time on November 17th, I will be hosting a free live stream where I will show how my analysts and I use AI to research stocks, find opportunities, and select assets. This is a free stream. I will be hosting it twice on November 17th: in the morning at 10:30 AM Eastern Time and in the evening at 8:00 PM Eastern Time. And when you register for the live stream and join on November 17th, you'll also receive a free gift-my
AI tips pack. You will receive a list of 10 AI prompts that my team and I use. You can simply copy and paste them into ChatGPT, Claude, or any other tool to get better responses. So, you need to be present on November 17th, but the number of seats for the live broadcast is limited. This will be a very popular broadcast. The number of people who can join the broadcast is limited. So if you're interested, the link is in the description below. The structure of the video will be as follows: first, I will explain where the money could go if the Republicans win and retain control of Congress, which will create investment opportunities. Then I'll talk about where the funds could go if the Democrats win the midterm elections, we'll look at three areas. Again
, I'm not telling you what to invest in. I will look at specific examples. My goal is to show you how to start thinking like an investor and give you ideas for investments, not just say "buy this" because I'm just a random guy on YouTube. So, let's start with point number one on the Republican side. The first is manufacturing, as President Trump has made it clear that he wants to bring manufacturing and jobs back to the United States. Listen. During World War II, we were first in the world. We built one ship a day. Can you believe this? And today we hardly build ships.
Yes, he's talking about cargo ships, and there 's a huge gap between the United States and China. The United States currently produces about three cargo ships per year, while China produces about 1,000. We have already seen billions of dollars invested in this industry, and if the Republicans win, we could see even more investment in the US manufacturing sector as they are able to implement President Trump's plans. If that happens, here are a few ETFs to consider to gain a share of this manufacturing industry. Again, I'm not telling you what to invest in. I just want to show you how to think like an investor. The first ETF is M A D E (MADE).
This is an ETF from iShares that gives access to about 112 US manufacturing companies, most of which specialize in capital goods. These are the machines and equipment that large factories rely on. So, this is the broadest basket of manufacturing companies. The second option is W E L D, WELD. This is an ETF that provides access to the US manufacturing sector and manufacturing reshoring. He invests in only 22 companies that manufacture products in the United States. This gives you access to reshoring opportunities-the idea of manufacturing coming back to the US. And the third-XLI.
This is an ETF from State Street that provides exposure to a selected industrial sector This fund invests in about 83 of the largest US industrial companies, providing access to leaders in American manufacturing. The second industry that could benefit from a Republican victory in the midterm elections is energy, particularly natural gas and oil, as Republicans generally support these industries. But that's not all. It is expected that if the Republicans win, we will see more energy bills and investments in fossil fuels. It is also known that Democrats generally do not support fossil fuels; In 2024, when President Biden suspended projects in this area, 150 Republican congressmen wrote
him a letter, calling the decision " economically and strategically dangerous and unnecessary." If you want to invest in this sector, here are a few ETFs that provide this opportunity. The first is FCG. FCG is an ETF from First Trust that specializes in natural gas. It invests in 41 companies, whose activities are focused primarily on natural gas. Or you can look at XLE. XLE is an ETF from State Street that provides exposure to the energy sector. He invests in 21 of the largest energy companies in the United States.
These are companies like Exxon and Chevron. So, this is an ETF that gives access to the entire oil and gas industry. You can also consider MLPX. This is an ETF from Global X that invests in 29 companies that own pipelines to transport oil and gas to consumption points. So when oil and gas production and pumping increase, these companies make a profit. Next, number three is banks and financial companies, because we know that Republicans generally favor fewer regulations and restrictions, which means it's easier for companies to make loans and for banks to make loans.
Such conditions contribute to increasing bank profitability. Yes, this can create risks for the economy. We've seen this in the past, but at least in the short term, it allows financial institutions to earn more. Let me give you an example. In 2018, during President Trump's first term, there was a law that required regulators to closely monitor banks with assets of $50 billion or more. President Trump changed this limit from $50 billion to $250 billion or more. This meant that banks with assets of less than $250 billion were no longer subject to such strict controls, allowing them to operate more freely, with fewer regulations and oversight. So, if you believe that fewer
regulations and rules mean banks will lend more and make more money, here are some ETFs that will give you exposure to this sector. The first example is KBE. This is an ETF that gives access to a bank fund from State Street. It invests in approximately 107 different companies, focusing primarily on banking stocks. So it's kind of a broad banking basket. Compare that to something like KRE, which gives you access to regional bank ETFs from State Street. It invests in 167 regional banks. So, into smaller banks. Or if you want to focus specifically on large banks, then KBWB might be something to look at.
KBWB is an ETF that provides access to the Invesco KBW Bank ETF. It provides access to 26 of the largest banks in the United States. These are giants like Wells Fargo, JP Morgan, and Goldman Sachs. I want to emphasize this once again. I'm not telling you where to invest. I just want to help you start your own research. Use AI to make this process easier. And if you haven't registered for my live stream yet, link in the description, join us on November 17th, because we'll be discussing in detail how to find investment opportunities and vet them using AI. And the fourth change that is worth paying attention to if the Republicans win the midterm elections is the defense sector. These are defense companies
because President Trump has made it clear that he wants America to have the strongest military in the world, and he wants to invest more money in the military. In 2027, President Trump is going to invest a record one and a half trillion. Yes, one and a half trillion dollars for defense. These are military companies. This is tax money that goes to purchase tanks, missiles, artillery, and everything else. These defense companies receive money from the United States government, and if President Trump allocates more funds to this, then it shows that the situation is likely to continue at least for the duration of his term. And if Republicans win in Congress, it
will be easier for President Trump to push for even larger defense budgets in the future. At least, that's what we think, especially given the rise in geopolitical concerns. If tensions between the United States and the Middle East increase, if the United States conducts more military operations-we've heard about Greenland and other things-that could create a greater need for defense. If we see more problems with Russia and Ukraine or China, you will understand how that creates an additional need for defense. I'm not saying that's good. I'm just trying to speak from a financial perspective, because things like this change the direction of money. These defense companies are private, and people can buy
shares in them on the stock market. So, let me give you a few examples of ETFs and remind you how you should approach your investments. The first example is ITA. This is an ETF created by iShares that provides access to approximately 50 US aerospace and defense companies. This gives you broad coverage of the defense industry. Compare this to XAR. This is an ETF that also provides exposure to the aerospace and defense industries. Also 50 companies, but here they have almost equal weight in the fund, while in ITA big players like Lockheed Martin make up a significant portion of the fund's capital. So, XAR is more evenly weighted, while ITA is focused on specific large
companies. Compare this to SHLD, Shield. This is an ETF created by Global X that provides access to investments in defense technology. He invests in 50 companies specializing in defense technologies. This is for those who want to focus more on the technological side of defense, rather than traditional contractors who only produce weapons and ammunition. Now I want to remind you about your investments: a successful investment must be appropriate from three points of view. It has to be financially viable so that you believe in making a profit. It must be legally feasible, that is, legal and feasible. And third, it must be morally appropriate. I am not here to be your moral compass or judge of your morality.
My goal is to be a teacher and show how finance and money work, because unfortunately, we were never taught this. Talking about things like oil or defense may seem strange and unpleasant because no one wants to make money from war. War is nonsense. I don't care what political spectrum you adhere to. It's never good, fun, or enjoyable. But I want you to understand: if it doesn't fit your moral compass, that's okay. That's up to you. I want you to understand how money works . I want you to understand how investing works, because no one teaches you this, and only then evaluate it yourself using your own moral compass. Fair? Perfectly. Now let's talk about what happens if the Democrats win the midterm
elections. Democrats are generally more supportive of things like, let's put it very tentatively, universal health insurance. Why do I say that? Because it's already clear: if the Democrats win, they will vote to restore the health care tax breaks. The main idea is that they want to see more tax revenue going directly to healthcare. So, where does this money go in healthcare? They go to hospitals. So if this happens, we could see a benefit for hospitals and related companies. So, if the Democrats win, what will these ETFs look like? Look. Example number one-IHF. This is an ETF that provides access to the iShares U.S. Healthcare Providers ETF. It invests in approximately 61 American companies that provide medical services and finance
healthcare. These include, for example, insurance companies and medical institutions. So, if you want broad exposure to the healthcare industry, IHF is one ETF that can provide you with that. Example number two-XHS. This fund provides access to the State Street Healthcare Services ETF. It provides access to 61 companies providing healthcare services, but the key feature is that the investments are distributed relatively evenly. That is, all of these 61 companies receive approximately an equal share of your investment. Compare that to something like XHV. This is an ETF, also created by State Street, that gives exposure to healthcare companies. He also invests in 61 of the largest healthcare
companies in the United States. The difference is that now suppliers and insurance companies take a large share. So, it's less of an evenly weighted fund like XHS, and more of a fund focused on specific industries. The next topic is quite interesting, as we see support from both Democrats and Republicans-it's a weight loss drug. This became popular under Democrats, but President Trump has supported this momentum, because 2 years ago, three out of 100 American adults were using weight loss drugs such as GLP-1. Today, about 11 out of 100 adults take such drugs. But that's not all. In 2024, President Biden talked about including these weight loss drugs in Medicare and Medicaid programs.
President Trump has decided not to implement coverage of weight loss drugs under Medicare and Medicaid plans. Instead, President Trump created a new plan to help people cover the costs of weight loss drugs. But it's similar to the health care situation: if Democrats win, they will likely seek funding through taxes or other sources to make these drugs easier to access. So, how do you access this market? If you consider this an opportunity in case the Democrats win. The first example-OZM, Ozempic . This is a fund from Roundhill that provides access to companies that produce GLP-1 and weight loss drugs. This ETF invests specifically in drug manufacturers and companies that supply weight loss drugs. You can compare it to something like
IHE. This is an ETF that provides access to the iShares Pharmaceuticals ETF. He invests in 53 US pharmaceutical companies. So, these are companies that produce a wide range of drugs. One of their big parts is, of course, weight loss drugs. And finally , PPH. This is an ETF created by Van Eck that also gives exposure to the pharmaceutical industry. It focuses on only the 25 largest pharmaceutical companies in the world. So, if you need a narrower approach to pharmaceutical companies, PPH will provide you with that access. And option number three, if the Democrats win the midterm elections, is clean energy. We know there is an energy problem. We know that energy costs have increased, period.
Democrats and Republicans have different approaches to solving this problem. We know that Republicans are more focused on things like fossil fuels. Democrats favor clean energy. And they want to invest in different areas. So, how does it work? We now know that there are significant tax breaks for wind and solar energy, but they end if the Democrats win. We may see attempts to expand these tax breaks to encourage investment in clean energy. If Republicans win, these benefits could be abolished, and funding for such industries would decrease. Again, as an investor, you want to know where the
money is going because that's where you want to invest. President Biden has made it clear during his term that he is committed to the development of clean energy. Listen. Every part of America. This bill is the biggest step forward in the fight against climate change. Most. So, if you believe that if the Democrats win, clean energy development will continue and money will be directed there, here are some ETFs to consider. The first example is ICLN. This is an ETF created by iShares. It provides access to a global clean energy ETF. It invests in 103 clean energy companies around the world. About 35% are American, but there are also Chinese and
Brazilian companies. This gives you access to clean energy companies on a global scale. Next, you can pay attention to TAN, T A N. This is an ETF that provides access to the Invesco Solar ETF. It focuses on 36 specific solar companies. So, if you think this is a possibility, here is an ETF for investing in solar energy. And there is also QCLN. This is an ETF from First Trust that gives access to the Nasdaq Clean Edge Green Energy ETF. This fund invests in 57 companies related to clean energy: fuel cells, electric vehicles, and chips. And now, if you're stuck with me, I'll
tell you about another bonus opportunity to balance the list to four, which I've been saving for those who've watched the video up to this point. So, let's move on to number four. Number four is infrastructure, because we know that Democrats like to invest more money in infrastructure to make it better. We saw President Biden invest huge amounts of tax dollars into these infrastructure bills. Republicans didn't always like them, because how do we fund these bills if we don't have enough tax revenue? Overall, both Republicans and Democrats approve of infrastructure investment, but Democrats are more likely to be willing to spend
more, even if it causes inflation. So, if you believe that America will continue to invest in infrastructure and energy grids, this is an opportunity for you to invest. Here are a few ETFs that will give you exposure to these sectors. The first example is PAVE, P-A-V-E. This is an ETF from Global X that covers 98 American companies that build and supply infrastructure in the United States. The second example is GRID, G-R-I-D. This is an ETF from First Trust that gives access to the energy grid. There are about 122 companies focused on building and modernizing power grids in the United States. We know that we have a serious energy
problem, which I have already mentioned. Well, to help solve this energy problem, we also need to invest in our grid. Or the third option-IFRA, an ETF from iShares that covers 161 American infrastructure companies. These are utility, industrial, and raw materials companies. So, this gives you the widest access to the industrial sector. So when the midterm elections come around, we know the money will start moving. Why? Because the largest taxpayer in our economy is none other than the United States government. And if the Republicans win, we may see money moving in one direction. If the Democrats win, we could see money move in a completely different direction. The reason you should pay attention to this is because
as an investor, you want to invest where the money is going, not where it was. These are important midterm elections, so you should keep an eye on what might happen next. Investing money is difficult, and on this channel I teach you how you can start investing on your own. But for some of you, working with a financial advisor, a professional, will be a better option because it's less hassle and a professional will manage your money. That's why I started working with my sponsor, Money Pickle. I like Money Pickle because they first learn about you and your needs, then match you with a trusted financial advisor who is the best fit for you, and then provide you with a free consultation.
This way, you can understand whether this financial advisor is right for you or not. This way, you won't have to go through an aggressive sales process with someone who may not be a good fit for you at all. If you're interested in learning more and have over $100,000 in assets, the process is pretty simple. All you need to do is fill out a short form. I left this link for you in the video description. It only takes a few minutes, and once you do, Money Pickle will review your answers and match you with a vetted financial advisor who they think is the best fit for you. This is a completely free process. This initial consultation, again, is free. And then, if you decide to move forward, you can discuss your
rates and terms of cooperation directly with this consultant. So, if you need help managing your money and want to work with a trusted financial advisor, my sponsor Money Pickle will help you find one at no extra cost. So, if you want to learn more, the link is waiting for you in the description. So, we discussed where the money might go if the Republicans win? We talked about investing in manufacturing or energy, particularly oil and fossil fuels, banking in the event of financial sector deregulation, or defense, as we know that President Trump is keen to continue investing in the military. If the Democrats win, we may see a different approach. We may see more money in healthcare because we know that Democrats are looking to
raise taxes, which will bring more money into the industry, supporting hospitals and healthcare providers. We may also see increased investment in weight loss drugs, as President Biden has in the past shown interest in funding suppliers of such drugs, which could be beneficial to pharmaceutical or specialty companies. We also talked about clean energy, because we know that Democrats are generally inclined to invest more money in this sector where there are corresponding opportunities. And then, of course, infrastructure, which, again, both Democrats and Republicans like a little bit, but we know that in general Democrats are more inclined to spend money that we may not even have on the infrastructure sector
. If this video was useful to you, the best thank you is a recommendation. So please share this video with a friend, family member, colleague, or other investor. And now I want to hear your thoughts. Who do you think will win? Republicans, Democrats, and where does the greatest opportunity lie? Let us know in the comments. I can't wait to read what you have to say. Time magazine just asked President Trump, "What's your plan after the midterms to get us out of this $40 trillion national debt? Because right now our national debt is growing faster than the economy." He said, "Let the common man pay for it through a hidden tax called inflation."
Check it out. You know, inflation, certain levels of inflation will
