Stock Market: Trump Victory Expected: Key Investment Sectors Set to Rise

As market analysts increasingly predict a Donald Trump victory in the upcoming US presidential election, investors are closely watching three sectors that they expect will thrive under the influence of his potential administration’s policies.

Nigel Green, CEO and founder of deVere Group – one of the world’s leading independent financial advisory and asset management organisations – sheds light on these sectors. His analysis comes after Saturday’s incident at a Trump campaign rally appeared to boost his re-election chances.

If Trump wins back the White House, expect aggressive trade policies, softer regulations, a softer approach to climate change and further tax cuts for corporations and individuals.

Of course, if it wins, there will be clear winners and losers for investors,” Green says. Here are three sectors that are likely to benefit:

1. Energy.
The Trump administration has historically prioritized energy independence and economic growth over strict environmental regulations. Previous actions, such as rolling back Obama-era climate policies and withdrawing from the Paris Agreement, signal that this trend will continue, particularly benefiting the fossil fuel sector.

“If Trump wins, we can expect a similar approach to benefit the energy sector, particularly fossil fuels,” Green said. Easing regulations could lower operating costs for coal, oil and gas companies. In addition, domestic energy production is likely to increase, boosting the profitability of companies involved in extraction, production and distribution. Trump’s focus on rebuilding infrastructure could also boost energy demand.

2. Financial
The Trump administration, which has historically championed deregulation, has sought to reduce the regulatory burden on financial institutions. Fewer regulations could lead to lower compliance costs and higher profit margins, as well as facilitate more lending activity, which would boost revenues for financial services firms.
Market confidence in the financial sector is already rising as investors predict a more business-friendly environment following a Republican victory.

3. Production.
Trump’s “America First” policies emphasize domestic manufacturing, with the goal of reducing reliance on imports. A revival of those policies could include tariffs on foreign goods and incentives for American companies to bring production home.

Protection from foreign competition through hawkish trade policies can boost the market share and profitability of domestic producers. Incentives to repatriate manufacturing jobs can also boost U.S. employment and production, which would have a positive impact on the manufacturing sector.

Extending corporate tax cuts would further benefit manufacturers by reducing their tax liabilities and freeing up capital for investment and expansion.
Investors are positioning to benefit from these expected changes as markets begin to price in a Trump victory.

저작권자 © Korea IT Times 재단전재및 재배포 금지