Sectors that could thrive with Trump as the new President of United States
Here are five such sectors that could thrive with Trump as the new President of America:
1. Pharmaceuticals/Biotech
There is no bigger beneficiary than the pharmaceutical and biotech industries, which have been clobbered as of late on the expectation that Hillary Clinton would become the next president. Clinton had vowed to take a hardline approach with drugmakers. She had previously suggested creating a task force that would monitor for price-gouging. She also advocated for monthly out-of-pocket spending limits for consumers on select drugs, and had proposed shortening the period of patent protection on branded therapies.
While Trump and Clinton both agreed to some extent that there's a problem with how drugmakers in this country price their products, Trump's only specific plan involved allowing Americans to seek out their medicines in overseas markets, such as Canada, where these same medicines could be priced cheaper. It remains to be seen Trump would be able to get such a measure passed in Congress, even with both houses staying Republican.
Stocks: Amgen, Celgene, Biogen
2. Banks
Another sector primed to benefit is banking – specifically large money center banks. In addition to Trump claiming victory, the fact that both houses of Congress remained in the hands of Republicans could prove to be a major catalyst for bank stocks.
Senator Elizabeth Warren had been proposing considerably tougher restrictions on banks. Warren was particularly vocal following the announcement that employees at Wells Fargo (NYSE:WFC) had opened more than 2 million fraudulent accounts over a five-year period and management did seemingly little to remedy the situation. If Warren and Clinton had their way on Election Day, it was possible that major changes were in the offing for the banking industry.
With Trump as president elect and Congress firmly in control of Republicans, it appears unlikely that banks will face the same amount of heat.
Stocks: Bank of America, JP Morgan, Wells Fargo, Berkshire Hathaway
3. Energy
The energy sector should, as a whole, be a substantive beneficiary of Trump winning the White House. While it remains to be seen if he'll be able to work with Congress to get his energy initiatives passed, Trump has proposed an "energy revolution" that includes lifting restrictions on shale production and opening up oil and gas production on federal lands and offshore. Moreover, Trump has vowed to end the "war on coal" and scrap the Obama-Clinton Climate Action Plan and Clean Power Plan. In easier-to-understand terms, Trump is angling for fewer regulations and greater energy independence for America.
Stocks: Exxon Mobil, Chervon Corp
4. Infrastructure
Rebuilding America's aging infrastructure was one of the few things that both presidential candidates agreed upon, though the magnitude of how far each candidate was willing to go differed. Hillary Clinton had called for $275 billion in infrastructure spending over a five-year period to boost the American economy and fix roads, bridges, railroads, and dams. Trump, on the other hand, has proposed spending $1 trillion on a variety of infrastructure projects over the course of 10 years. While it remains to be seen if this pie-in-the-sky number can be reached, the enormity of Trump's spending proposal is bound to get infrastructure investors excited.
Stocks: General Electric, Honeywell, United Technologies, Berkshire Hathaway
5. Defense
Lastly, most defense sector companies are probably thrilled with the election outcome. To be clear, if Clinton had won it's not as if defense spending would have ceased. However, Clinton had taken a more critical view of how she would allocate funds for defense. Trump, on the other hand, has taken the traditional view of Republicans that spending on defense is both good for jobs and the economy, as well as our national safety. As such, defense companies could find themselves thriving under a Trump presidency.
Stocks: Lockheed Martin, Boeing
1. Pharmaceuticals/Biotech
There is no bigger beneficiary than the pharmaceutical and biotech industries, which have been clobbered as of late on the expectation that Hillary Clinton would become the next president. Clinton had vowed to take a hardline approach with drugmakers. She had previously suggested creating a task force that would monitor for price-gouging. She also advocated for monthly out-of-pocket spending limits for consumers on select drugs, and had proposed shortening the period of patent protection on branded therapies.
While Trump and Clinton both agreed to some extent that there's a problem with how drugmakers in this country price their products, Trump's only specific plan involved allowing Americans to seek out their medicines in overseas markets, such as Canada, where these same medicines could be priced cheaper. It remains to be seen Trump would be able to get such a measure passed in Congress, even with both houses staying Republican.
Stocks: Amgen, Celgene, Biogen
2. Banks
Another sector primed to benefit is banking – specifically large money center banks. In addition to Trump claiming victory, the fact that both houses of Congress remained in the hands of Republicans could prove to be a major catalyst for bank stocks.
Senator Elizabeth Warren had been proposing considerably tougher restrictions on banks. Warren was particularly vocal following the announcement that employees at Wells Fargo (NYSE:WFC) had opened more than 2 million fraudulent accounts over a five-year period and management did seemingly little to remedy the situation. If Warren and Clinton had their way on Election Day, it was possible that major changes were in the offing for the banking industry.
With Trump as president elect and Congress firmly in control of Republicans, it appears unlikely that banks will face the same amount of heat.
Stocks: Bank of America, JP Morgan, Wells Fargo, Berkshire Hathaway
3. Energy
The energy sector should, as a whole, be a substantive beneficiary of Trump winning the White House. While it remains to be seen if he'll be able to work with Congress to get his energy initiatives passed, Trump has proposed an "energy revolution" that includes lifting restrictions on shale production and opening up oil and gas production on federal lands and offshore. Moreover, Trump has vowed to end the "war on coal" and scrap the Obama-Clinton Climate Action Plan and Clean Power Plan. In easier-to-understand terms, Trump is angling for fewer regulations and greater energy independence for America.
Stocks: Exxon Mobil, Chervon Corp
4. Infrastructure
Rebuilding America's aging infrastructure was one of the few things that both presidential candidates agreed upon, though the magnitude of how far each candidate was willing to go differed. Hillary Clinton had called for $275 billion in infrastructure spending over a five-year period to boost the American economy and fix roads, bridges, railroads, and dams. Trump, on the other hand, has proposed spending $1 trillion on a variety of infrastructure projects over the course of 10 years. While it remains to be seen if this pie-in-the-sky number can be reached, the enormity of Trump's spending proposal is bound to get infrastructure investors excited.
Stocks: General Electric, Honeywell, United Technologies, Berkshire Hathaway
5. Defense
Lastly, most defense sector companies are probably thrilled with the election outcome. To be clear, if Clinton had won it's not as if defense spending would have ceased. However, Clinton had taken a more critical view of how she would allocate funds for defense. Trump, on the other hand, has taken the traditional view of Republicans that spending on defense is both good for jobs and the economy, as well as our national safety. As such, defense companies could find themselves thriving under a Trump presidency.
Stocks: Lockheed Martin, Boeing
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