10 Stocks to Buy (and 10 to Sell) with Trump’s second term

Donald Trump is about to return to the White House and it’s time to ask yourself which stocks to buy - or sell - with Trump as president of the United States.

Be careful: when harmonizing your investment portfolio today, the biggest mistake we can make is to convince ourselves that the Trump administration’s actions will proceed in a linear and predictable way. From foreign trade to fiscal policy, there are several factors that could determine new scenarios.

Here are the stocks that could benefit or, on the contrary, suffer losses under Trump’s second term.

Analyzing the recent reaction of the markets and the response of investors in the last few hours, one aspect seems very certain: we are faced with a complex panorama that will be interesting to observe in the coming months.

10 stocks to buy with Trump as president of the USA

The banking sector is one of the main beneficiaries of a second Trump presidency. US finance could benefit from a more permissive approach on the regulatory front. Stocks like Goldman Sachs rose 12% during the vote count in the US elections. Morgan Stanley, JPMorgan Chase and Citigroup also performed well.

The private equity and asset management sectors could also see a recovery. KKR shares, a leader in the alternative asset market, rose 9% to new highs, thanks to expectations of a wave of new IPOs, mergers and acquisitions.

But it is the cryptocurrency sector, long supported by the Republican entourage, that could be the real winner under Donald Trump. The support of the magnate has been supporting the momentum of the cryptocurrency industry for months now, tired of the overly rigid regulations introduced by the Biden administration. Coinbase shares are up 25%, while MicroStrategy, one of the largest investors in Bitcoin, is up more than 10% as the crypto king hits new all-time highs.

The energy sector is also enjoying a strong tailwind, buoyed by Trump’s promise to ramp up US oil production, benefiting companies like Exxon Mobil.

But beware: A surge in production could lower the oil price, hurting companies that focus solely on drilling and exploration. But that would be a positive scenario for refiners, such as Valero Energy and Kinder Morgan, whose shares are up 4% and 6%, respectively.

10 Stocks to Sell with Trump as US President

While not everyone is expecting a bearish impact on the renewable energy sector under Trump’s second presidency, the market has spoken clearly so far: First Solar shares are down 10%, while residential photovoltaic panel suppliers Sunrun and Sunnova have suffered a real neck in the last session, down 30% and 45%, respectively. Shares of First Solar, the largest solar panel manufacturer in the United States, are also suffering.

Orsted, a world leader in offshore wind energy, has also been under pressure on the market, falling 15%, as it has been the target of harsh criticism from Republicans in recent years.

But that’s not all. Many other companies could be penalized by the tariffs announced by Trump. The proposed introduction of a minimum 10% tariff on all imports, increased to 60% on goods imported from China, poses a threat to German automakers, whose shares, like BMW and Volkswagen, fell 8% and 6%, respectively.

Economists warn that higher import costs could cost consumers dearly, hurting companies that capitalize on the bulk sale of low-cost goods. Dollar General, for example, fell 5% on Wednesday. Target shares could also suffer.

Global trade is also set to slow sharply due to new tariffs and potential trade wars, hurting logistics giants. AP Moller-Maersk and DHL, major players in the sector, fell 8% and 6%, respectively.

Original article published on Money.it Italy 2024-11-07 09:55:48. Original title: 10 azioni da comprare (e 10 da vendere) con la vittoria di Trump