Predicted Winners and Losers as the Trump Sun Rises With Trump being the next president elect, the stock market has been churning. Here’s an analysis.
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In online stock trading, you need to remember the scientific theory which states that any action has an equal and opposite reaction. And it’s quite true when you think of the stock market. The biggest action that has happened now, and what everyone is talking about, is Donald Trump being elected the 45th president of the United States. The reaction hasn’t quite been gauged fully since Trump won’t begin his tenure until January though some stocks have been dealt a blow merely on the news of Trump’s elections victory. This period, when Barack Obama heads to his final month in office, and Trump prepares for his ascendancy, are when speculations get thrown around based on hints Trump gave during his campaigning. And it seems that the winners and losers of Trump’s presidency have already been determined. The Predicted Winning Side Bank stocks are put in the winners’ side. Trump has been in favor of lighter regulation, particularly for the banking industry. His criticism of the Dodd-Frank regulation is well known, which he considers harsh for smaller banks. As a result, the expectations of lesser regulation and higher interest have seen bank stocks rise. It’s great overall for the manufacturing sector, since Trump wants to revive manufacturing in the United States which is why he has so much angst directed against China. That gave stocks of metal companies a boost. Companies in the construction industry will also stand to benefit, since Trump has major plans to spend on domestic infrastructure. Trucking stocks have been benefited as a result. The mining industry seems to have a bright future with Trump supporting coal in this age of renewable energy sources such as wind and solar energy. A rise in military spending is also predicted, which has caused defense stocks to rally. Pharmaceutical stocks looked up as there was now a lesser chance of restrictions being placed on drug prices, which is a strategy advocated by the Democrats. The Predicted Losing Side When it comes to the other side of the equation, the industries that could lose, you have the technology giants in Silicon Valley that could struggle with Trump’s idea of tighter immigration and trade restrictions. Everyone knows that most technology giants rely on highly skilled and intelligent immigrants to not only get the job done, but to also lead them ahead. They also depend on outsourcing, and much of these companies’ revenue comes from abroad. Healthcare stocks fell too on fears that Trump would do away with the Affordable Care Act or Obamacare and the Medicaid coverage expansion. Hospitals, healthcare services providers and insurance companies have been benefited from these provisions introduced by Obama. But Trump’s ascendancy has cast doubts on whether these are still going to be around. Trump has also been a vehement supporter of trade protectionism. Industries connected to import and export had their stocks slide. Among these were automobile, shipping and rail manufacturing stocks. For those of you trading stocks online, it is important to watch the market closely in the days and weeks to come. But the stock market is expecting fireworks when Trump actually begins his White House stay.
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