Capitalizing on Trump’s Victory:
Since the unexpected victory of business magnate and reality television star Donald J. Trump in the 2016 US Presidential Election, investors have been scrambling to find opportunities to capitalize on his administration’s policies. A Trump trade, also known as a ‘Trump bump’, refers to investment strategies that aim to profit from the anticipated economic changes under President Trump. Here are some expert-recommended investments and Trump trades that have been gaining attention:
Infrastructure
President Trump’s ambitious $1 trillion infrastructure plan, which includes funding for roads, bridges, airports, and water systems, is expected to create numerous opportunities in the construction industry. Companies specializing in heavy machinery, engineering services, and building materials may see a significant boost as a result.
Key players:
Caterpillar Inc., which manufactures heavy construction equipment, and Fluor Corporation, an engineering and construction firm, are some of the companies that could potentially benefit from this sector’s growth.
Energy
Donald Trump’s administration has expressed its intention to revive the US coal industry, which could lead to increased demand for coal mining and energy companies. In addition, President Trump’s stance on deregulation may benefit oil and gas producers.
Key players:
Peabody Energy Corporation, the largest coal company in the world, and ExxonMobil Corporation, one of the biggest oil and gas companies, are potential investments for those looking to capitalize on Trump’s energy policies.
Financial Services
The prospect of deregulation and tax cuts under the Trump administration has generated excitement in the financial services sector. Banking, insurance, and investment firms are likely to experience growth as a result of these policies.
Key players:
JPMorgan Chase & Co., the largest bank in the United States, and Berkshire Hathaway Inc., led by the renowned investor Warren Buffett, are some of the companies that could potentially benefit from this sector’s growth.