The House passes $1.75 Trillion Bill. Which stocks affected?

The House of Representatives on Friday passed the largest expansion of the social safety net in decades, a $1.75 trillion bill that funds universal pre-K, Medicare expansion, renewable energy credits, affordable housing, a year of expanded Child Tax Credits and major Obamacare subsidies.

Now that it has cleared the House, President Joe Bidens Build Back Better Act goes to the Senate, where it is likely to be revised in the coming weeks. Senate Majority Leader Chuck Schumer said he aims to have the chamber pass the bill before Christmas. 

The big question is, which stocks will be benefit from this bill?

-Manufacturing and Industrial companies will benefit greatly. Company like $Berkshire Hathaway(BRK.B)$who is widely into producing industrial products will profit from the infrastruture upgrade of the country, where the goverment will spend on upgrading the transporation system, water and power systems, roads and buildings. With a better infrastruture also means more safety for the country, which indirectly lead to lower insurance claims. This will also benefit berkshire's insurance operation. 

-Healthcare companies like $Johnson & Johnson(JNJ)$will profit greatly when this new bill is passed. J&J produces medical equipments and also prescription drugs, both are greatly demanded and also included in the health-care element of Bidens plan. Biden is providing and expansion of Medicare benefit for seniors who need hearing benefit and also subsidy of prescription drugs incliding Insulin, which will boost sales of this big pharma company who manufactures them. 

-The last company I believe will benefit greatly are EV & EVTOL companies like $Tesla Motors(TSLA)$and $Joby Aviation, Inc.(JOBY)$. Biden Build Back Bill has dedicated $500 Billion to fight climate change, but offering clean energy tax credits. This is the largest ever investment by the federal goverment into clean energy. This tax credits will be able to profit companies like Joby and Tesla because they are able to sell their tax credits to other non-EV companies. Joby has plans to sell the tax credits to airplane companies, while Tesla will be able to sell the tax credits to other gas-powered car companies. 

BOTTOM LINE:

The $1.75 Trillion Bill will accelrate the US economy and increased corporate America's profits overall. The more the goverment spends, the more corporate America Earns. 

With that being said, always stay invested in American Equities. The returns are phenomenal. Stay bullish and happy investing!