3 No-Brainer Stocks to Buy If Kamala Harris and Democrats Sweep in November

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Vice President Kamala Harris has a slight edge in becoming the next president, according to Decision Desk HQ's model. The Democratic Party could have a tougher time gaining control of Congress, though. Decision Desk HQ estimates that the GOP has a 54% probability of holding onto its majority in the House and a 71% chance of recapturing a majority in the Senate.

Still, it's possible that momentum could swing toward the Democrats in the final weeks of the campaign. How might investors take advantage of such a scenario? Here are three no-brainer stocks to buy if Harris and Democrats sweep in November.

Kamala Harris standing in front of flags.
Vice President Kamala Harris. Image source: Official White House Photo by Cameron Smith.

1. D.R. Horton

D.R. Horton (NYSE: DHI) would likely be among the biggest winners if Harris wins and Democrats control Congress in the upcoming elections. The company has been the largest U.S. homebuilder by volume since 2002. It operates in 121 markets across 33 states.

Harris has proposed a plan that she says will promote the construction of 3 million new homes over the next four years. She wants to give $25,000 to first-time homebuyers to help them with down payments. The Democratic presidential nominee also seeks to provide a tax incentive for homebuilders who sell homes to first-time homebuyers. Both proposals would almost certainly boost D.R. Horton's revenue.

Another key reason many D.R. Horton shareholders might cheer a Democratic sweep is inflation. A survey of nearly 40 top U.S. economists by the Financial Times and the University of Chicago found that 70% believed Harris' policies would lead to lower inflation than those proposed by former President Donald Trump. Lower inflation translates to lower interest rates -- an important ingredient to D.R. Horton's success.

Regardless of which party is in control after the elections, though, D.R. Horton should be in great shape over the long run. The U.S. continues to face a housing shortage. And there's only one practical solution to the problem: Building more homes.

2. Brookfield Renewable

Democrats have been vocal supporters of renewable energy for years. Harris is no exception. She promises to "invest in building the energy industries of the future." The Vice President also wants to cut red tape to allow clean energy projects to be completed quickly. Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) could be a beneficiary of these policies.

Harris seeks to protect the energy security of the U.S. and keep the country from having to rely on foreign oil. While domestic production of oil and natural gas will be needed to achieve this goal, renewable power will be increasingly important.