Stocks to buy and sell now that Trump is elected

Some plays seem obvious. President Trump has traditionally been viewed as a positive figure for banks and fossil fuel companies, but a disaster for areas such as renewable energy. Wednesday morning trading showed the outlook was largely unchanged.

But ahead of the election, several analysts said: luck The story may not be that simple. Other potential impacts of a second Trump administration are also expected to grow, from tariffs to tax policy. Below, we’ve rounded up stocks that could continue to rise or plummet ahead of Trump’s second inauguration.

Stocks to buy after Trump is elected

Banks are central to Trump’s dealings. Jay Hatfield, CEO of Infrastructure Capital Advisors, isn’t a fan of stock picking based on presidential elections. Nonetheless, he was willing to say that a second Trump term would be good for the financial sector, perhaps due to deregulation. stock Goldman Sachs It was up 12% on Wednesday morning. Morgan Stanley, JP Morgan Chaseand Citigroup It’s not far.

This can also be true for private equity firms and other asset managers who have had to endure difficult times to get deals done. Stocks of alternative assets giant companies KKRwhich is expected to benefit from an increase in both IPOs and M&A, rose 9% on Wednesday to a record high above $150.

But no sector is likely to celebrate Trump’s victory more than the cryptocurrency world, which he and the Republican Party fully embraced over the summer. The result has been significant financial support from an industry that has been dissatisfied with the Biden administration’s more restrictive policies.

Stocks on cryptocurrency exchanges coinbase By Wednesday morning, it had surged nearly 25%. micro strategy, The largest public company holder of Bitcoin saw its stock price rise more than 10% as the world’s largest cryptocurrency hit a new all-time high.

Finally, energy is widely recognized as Trump’s play, thanks to the former president’s promise to “drill, baby, drill.” Sam Stovall, chief investment strategist at CFRA Research, believes the supply and demand story may be a bit more complicated. He said significantly increasing oil production would reduce the cost of oil.

“That could hurt the upstream companies that are drilling companies. [as well as] “It’s an exploration and production company,” he said, “but it will help downstream.” The latter includes the following refinements: Valero Energy Natural gas transportation giant kinder morganShares rose more than 4% and 6%, respectively, on Wednesday.

Meanwhile, energy giants include: ExxonMobil and rivals chevron These are so-called integrated companies that operate both upstream and downstream. Share prices of both companies rose slightly despite lower oil prices due to the stronger dollar.

Sell ​​stocks ahead of Trump’s inauguration

It’s worth noting that Hatfield is skeptical of the upstream slowdown story. He also believes the gloom about the future of renewable energy under Trump is irrational and said it is unlikely that Republicans will follow through on their demands to repeal or significantly overhaul inflation reduction laws that encourage investment in manufacturing and clean energy.

But investors on Wednesday did not share the same optimism. Stocks of solar panel manufacturers First Solar While down more than 10% on Wednesday morning, housing providers Sunrun and Sunova Stock prices plummeted 30% and 45%, respectively.

danish company Orstedthe world’s largest offshore wind developer, has drawn the ire of Republicans, especially in recent years. The stock was down 15% Wednesday morning.

Meanwhile, retailers could suffer if President Trump follows through on his promise to significantly increase tariffs. As part of his call for “America First,” President Trump proposed imposing a tariff of at least 10% on all American imports and a tariff of at least 60% on all Chinese products.

This is especially bad news for Germany’s auto giants, which export more cars to the United States than to any other country. stock BMW and VolkswagenFor example, they fell 8% and 6% respectively.

Mainstream economists emphasize that higher prices for imported goods will be passed on to American consumers, hurting many domestic businesses. Major importers of the same cheap products dollar plain It could be a huge blow, Stovall said. The company’s shares were down 5% on Wednesday morning.

Meanwhile, retaliatory tariffs and trade wars could have a chilling effect on global trade, resulting in a slowdown for freight and logistics companies. Investors flocked to Danish shares in the world’s largest shipping company on Wednesday morning. AP Moller-Musk and in germany DHL decreased by 8% and 6%, respectively.

“The less trade you have, the less money you can make,” Stovall said.

In short, this could be the beginning of a shipment sell-off.

Follow the results and understand the impact. Read all of our US election coverage here.