Kanye West launched his campaign tour for the United States presidential election last weekend. ASX investors may ask themselves why this relevant to their stock portfolios. I believe that there are two main reasons:
- US presidential election years always have a big impact on the stock market, both in the US and abroad. This is true both in the lead up to the election and also in the following years, as either side seeks to implement their philosophies and policies.
- Kanye West may or may not be who you think should be president, but his commercial success (and that of his wife Kim Kardashian-West) is undeniable. Two keys to Kanye’s success have been his marketing prowess and his ability to form strategic partnerships.
2 ASX shares for Kanye West’s US presidential campaign
I have selected the first ASX share because I believe that it could likely see increased volatility during the US presidential election. This could present a nice entry point for patient investors to acquire this quality ETF at a discount. The second share is a great example of how businesses can use partnerships and a strong brand to rapidly grow both locally and internationally.
Betashares NASDAQ 100 ETF (ASX: NDQ) – US tech behemoths
Betashares NDQ aims to track the performance of the NASDAQ-100 Index (before fees and expenses). The NASDAQ-100 comprises 100 of the largest, non-financial companies listed on the NASDAQ market, and includes many companies that are at the forefront of the new economy.
Surprisingly, given the current circumstances, the NASDAQ is actually up nearly 22% for the year, driven higher by the surging FAANG stocks. With prices and some valuations higher than before COVID-19, news coming out of the US presidential election could cause this ETF to be more volatile than normal. That could present buying opportunities for long-term investors.
Afterpay Ltd (ASX: APT) – Partner now, profit later
Afterpay is a true Australian success story. The buy now, pay later company has been one of the top performing ASX shares of recent years, surging from $2.95 in June 2017 to $72.42 at the time of writing. That is an incredible 25 fold increase in the Afterpay share price and the company now boasts a market capitalisation of over $20 billion!
Similar to Kanye West’s partnership with Adidas, this ASX share has had a lot of success partnering with bigger, more established networks recently. The company initially targeted larger Australian and then international retail brands, which has proven a successful strategy. Now, as Afterpay gains popularity and looks to broaden its reach, it has reached agreements with the likes of Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOG) and Visa (NYSE: V). Although these partners may have considerable negotiating leverage, they also vastly increase Afterpay’s reach and potential upside.
Foolish bottom line
As an investor in ASX shares, it is worth paying attention to significant international news like the US presidential election. Both Afterpay and Betashares NASDAQ 100 ETF could be impacted by the election and news such as Kanye West commencing his campaign.
These 3 stocks could be the next big movers in 2020
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Lloyd Prout has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (C shares), Apple, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Alphabet (C shares), Apple, and BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.