What’s your proposed mechanism here? Maybe data center buildout risk, but that seems mostly local policy?
1. The AI race has been essentially been a nation cold war arms race with China - so that would be the government backing the race. 2. The previous Biden administration was going to put a lock down on all things AI (remember: The 10²⁶ FLOPs Rule) 3. The populist anger about data centers will have a strong political arm to investigate and shut down efforts (at all levels). 4. Energy buildout will be intentionally slow down through various mechanisms controlled by dems. 5. Financial regulatory bodies will have strong teeth.
FWIW this isn't meant to be political but more a state of play looking at the real factors of Dems getting power and the impact to the market place.
Why? Democrats still care about electrification because of climate change. If anything I think energy buildout will accelerate.
The rest is balanced on a knife edge.
For the rest of us, that also means the S&P 500 free lunch* will soon be over.
American zillennials are going to get their free healthcare and free higher education, and they'll do it in a way that makes France look like a well-managed, investor-friendly country.
*Unless you own real estate in Copenhagen, one of the biggest sources of wealth creation in Denmark since 2015 has been our pension funds and their exposure to US stocks.