3 Sectors Poised to Rise as Trump Win Chances Grow

Market analysts are increasingly pricing in the likelihood of Donald Trump winning the US presidential election, with investors focusing on three specific sectors that are likely to benefit from his administration’s policies.

Saturday’s shooting at a campaign rally for former US President Donald Trump increases his chances of retaking the White House in November, and betting on him to win will become increasingly common.

His likely return to the White House brings with it expectations of a more aggressive trade policy, less regulation, softer climate change rules and an extension of corporate and individual tax cuts.

Of course, if it wins, investors will have clear winners and losers.

Under the new Trump administration, there are three sectors that have the potential to thrive.

1. Energy

The Trump Administration has always prioritized energy independence and economic growth over environmental regulation.

His past actions, such as rolling back Obama-era climate policies and withdrawing from the Paris Agreement, reflect a preference for less stringent environmental oversight.

If Trump wins re-election, we can expect a similar approach that will benefit the energy sector, particularly fossil fuels.

Less stringent regulations would likely lower operating costs for energy companies, especially those in the coal, oil and gas industries.

Additionally, the Trump White House could push for more domestic energy production, boosting the profitability of companies involved in extraction, production and distribution.

Additionally, Trump’s focus on rebuilding America’s infrastructure could lead to increased demand for energy, benefiting energy suppliers and related industries.

2. Financial

The Trump Administration has always advocated for deregulation with the goal of reducing the regulatory burden on financial institutions.

With less stringent regulations, banks and financial institutions can expect lower compliance costs and higher profit margins.

Deregulation could also facilitate increased lending, which would translate into increased revenues for financial services companies.

Anticipation of a Republican victory has already begun to boost market confidence in the financial sector as investors anticipate a more business-friendly environment.

3. Production

Trump’s signature “America First” policy emphasizes the importance of domestic manufacturing and reducing reliance on foreign imports.

A return to this policy will likely involve tariffs on foreign goods and incentives for American companies to move production back to the United States.

Hawkish trade policies could protect domestic producers from foreign competition, allowing them to increase market share and profitability; combined with incentives for companies to bring jobs to the U.S., this could increase U.S. employment and production, which would positively impact the manufacturing sector.

Extending corporate tax cuts would directly benefit manufacturers by reducing their tax liability and increasing available capital for investment and expansion.

Investors are already taking positions to benefit from expected policy changes as markets begin to price in a Trump victory.

Taking action now and working with experienced counsel will likely best position them to limit risk and seize the inevitable opportunities that will arise in the race for the White House.

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Born in London Nigel Green is the founder and CEO of deVere Group. Following in his father’s footsteps, he entered the financial services industry as a young adult. After working in the sector for 15 years in London, he spent several years operating internationally before founding deVere in 2002 with a single office in Hong Kong. Today, deVere is one of the largest independent financial advisory organisations in the world, operating in 100 countries and with over $12 billion in advisory. It specialises in global financial solutions for international, local mass affluent and high net worth clients. In early 2017, it was announced that deVere would be launching its own private bank. In addition, deVere also confirmed that it had been granted its own investment banking licence.