If Donald Trump secures a victory in the upcoming election and resumes his role in the Oval Office in January, significant implications for U.S. businesses and the economy are expected. This development may also affect the stock portfolios of individual Americans. Consequently, investors are advised to review their holdings and consider which sectors might benefit or face challenges under a potential second Trump administration.
Historically, Trump is perceived as beneficial for banks and fossil fuel companies, yet possibly detrimental to sectors like renewables. However, several analysts suggest the situation might be more complex. From tariffs to tax policy, the potential economic impacts of another Trump presidency could be considerable.
Considering these factors, there are stocks that could either increase in value or decline if Trump emerges victorious on November 5:
### Stocks to Consider Buying
Financial institutions might be well-positioned during a Trump presidency. Jay Hatfield, CEO of Infrastructure Capital Advisors, believes financials could thrive due to anticipated lighter regulations, benefiting large banks such as JPMorgan Chase. This positive outlook might also apply to private equity firms and other asset managers, which could see advantages from increased IPOs and mergers and acquisitions. For instance, KKR, a prominent alternative asset manager, might experience growth in this environment.
The cryptocurrency sector might also anticipate a more favorable regulatory landscape under Trump compared to the current situation under SEC Chair Gary Gensler. The Republican nominee has expressed support for the crypto industry, potentially benefiting companies like Coinbase and MicroStrategy, the largest public holder of Bitcoin.
In the energy sector, Trump is associated with policies favoring increased oil production, which may support refiners such as Valero Energy and companies like Kinder Morgan. However, as per Sam Stovall, chief investment strategist for CFRA Research, the situation for drillers and exploration companies might be nuanced due to the reduction in oil prices from increased production.
### Stocks to Consider Selling
On the other hand, major drillers like HF Sinclair and Helmerich and Payne might not gain from the anticipated energy boom under Trump. Jay Hatfield argues that the negative outlook on renewables may be exaggerated, suggesting that significant changes to initiatives like the Inflation Reduction Act, which supports clean energy investments, are unlikely.
The issue of tariffs remains a central concern for retailers. Trump’s proposed tariffs could increase prices for consumers, affecting major importers such as Walmart and Dollar General significantly. Furthermore, potential retaliatory tariffs could disrupt global trade, impacting logistics companies like DHL.
In summary, if Trump wins the election, certain stocks may be vulnerable to sell-offs. Investors should remain vigilant and consider how these potential outcomes could influence their investment strategies.
