5 Must-Own Trends for a Biden Bull Market in 2021

In three days, change officially comes to Washington, D.C. Following the November election, Democrat Joe Biden will be inaugurated as the 46th President of the United States.

When Biden takes office on Jan. 20, he’ll be stepping into a unique situation. He’ll be attempting to mitigate the economic damage caused by the coronavirus disease 2019 (COVID-19) pandemic, but will also have the potential to lead one of the most ferocious economic recoveries in history. The Federal Reserve’s ongoing quantitative easing measures and dovish monetary policy, coupled with Biden’s pledge for additional fiscal stimulus, could light a match under the U.S. economy and usher in a Biden bull market for equities in 2021.

The big question, as always, is where to invest your money. 

Perhaps the easiest answer is to focus on high-growth, surefire trends, rather than getting too caught up in specific companies. The following five trends should be considered must-own in a Biden bull market.

Image source: Getty Images.

Digital or cashless payments

The war on cash is very real, which means digital and cashless payments are on track to thrive during a Biden presidency.

According to a report from ResearchandMarkets.com, digital payment growth is expected to average nearly 24% annually between 2020 and 2025. This will be fueled by an aversion to physical cash tied to COVID-19, more income in the hands of millennials and Generation Z (who favor digital payments), and governments that are willing to push cashless transactions to maintain money trails and dissuade fraud. 

Though it’s a pricey company in the short-term, Square (NYSE:SQ) is the perfect example of a business that’s benefiting from this digital revolution. Its peer-to-peer payment platform, Cash App, has seen its monthly active user count more than quadruple since the end of 2017, and its revenue has skyrocketed due to a huge increase in investment activity and bitcoin exchange.

Square also has its seller ecosystem, which predominantly supplies small businesses with the tools they need to process transactions and grow their business. Square has the look of a company that could one day be worth $1 trillion.

Image source: Getty Images.

Telehealth

Don’t be fooled into thinking that the U.S. healthcare system will revert to its old ways once the coronavirus pandemic ends. Telehealth has shone brightly during this crisis, and will continue to do so long after COVID-19.

Telehealth is a win-win-win situation for all involved. It’s more convenient for patients and allows physicians to fit more patients into their busy schedules. Health insurers are usually billed less for virtual visits, so they’ll probably push for increased telehealth use. 

Between the beginning of April and the end of September, Teladoc Health (NYSE:TDOC), the…