Donald Trump Presidency – 4 Indutries to Trade

Donald Trump Presidency – Introduction

In November 4, the United States residents will go to the polls to elect the 45th president. The race to win the seat has seen two fierce competitors join the race. Donald Trump will carry the Republican flag while Hillary Clinton will carry the Democratic flag. The two competitors are unique in their own ways. Clinton is the first woman to be the presidential candidate of a major party in the country. Donald Trump on the other hand is the first non-political leader to be the contender of a major political party in the country. In the election, Trump will definitely be the underdog. This is because of a number of reasons. One, Hillary has the support of the wealthiest people. A recent piece by Wall Street Journal indicated that Trump has raised only $19,000 from top hedge funds while Hillary Clinton has raised more than $48 million. Also, traditional Republican donors such as the Koch brothers have ignored Trump. The network headed by the Koch brothers who spent $400 million in the 2012 election have vowed not to support Trump which is a major blow to the Republican candidate. Trump is also an underdog because he has never held any public office. He is a self-made billionaire who has spent his life building the Donald Trump Organization. However, polls now show that Trump has the opportunity to win the race. Here are the five key industries to trade with a Trump presidency.

#1 – Defense

I have followed Trump’s campaign for a while and one of his key selling point is that of being the law and order president. He has vowed to fight ISIS and win it. He has also vowed to support the second amendment that allows residents to own guns. Trump has also been critical about the current immigration rules and vowed to ban people from select regions from entering the United States. He has also claimed that the police and the armed forces are ill-equipped to deal with crime. Therefore, if Trump wins the presidential campaign, it is expected that defense companies will do well with increased orders. Some of the companies to look at are: Lockheed Martin (LMT), Raytheon (RTN), and Northrop Grumman Corporation (NOC). The chart below compares the three companies performances.

#2 – Infrastructure

One of the Donald Trump’s selling point is on the wall separating United States and Mexico. He has promised to build a wall between the two countries to reduce the influx of Mexican migrants in the country. Trump has also compared the American infrastructure to that of a third world country. He has claimed that the country’s airports and highways have become a shame to the country. Therefore, if he becomes president, it is assumed that infrastructure will be improved. Therefore, a number of companies will stand a chance to benefit in this. Some of them are: Cemex (CX), LafargeHolcim, AECOM (ACM), General Electric (GE), and Emerson Electric (EMR).

#3 – AECOM – Oil and Gas

Donald Trump has argued that global warming and climate change are not factual. In the Obama’s presidency, the theme of climate change has been vocal. Obama has invested billions of dollars to renewable energy. He even rejected the Keystone Pipeline project which promised to deliver 800,000 barrel of oil per day across 6 states. Under Trump, such project would not be rejected. Obama has also been on the record for opposing fracking and new technologies dealing with oil mining. In addition, Donald Trump has been advocating for United States control of oil in war torn countries such as Libya. Therefore, this will be an added advantage to the oil and gas companies such as Exxon Mobil, Pioneer Resources, and Baker Hughes.

#4 – Insurance

Obamacare has been a posterchild of Obama’s presidency. The goal of this plan was to provide poor uninsured Americans a chance to get insurance cover. This was achieved by introducing taxes to the rich people. However, to many people, the new plan has not been good to them and to the insurance companies. Insurance companies such as Metlife have threatened to pull out of Obamacare. Donald Trump has vowed to repeal the policy and replace it with something better. Therefore, a win for Donald Trump will mean better times for insurance companies such as Metlife and AOL.

Donald Trump Presidency – Useful Links

  • Find the latest news about Donald Trump Presidency on BBC
  • Discover the most recent news on Donald Trump Presidency on CNN Politics