5 stocks to buy if Trump wins – and 5 to sell

Some pieces seem obvious. Trump is traditionally seen as positive for banks and fossil fuel companies, but is seen as a scourge on sectors such as renewable energy. several analysts said AssetsHowever, the story may not be that simple. From tariffs to tax policy, other potential impacts of a second Trump administration are also significant.

All in all, here are stocks that could rise or fall if Trump emerges victorious on November 5:

What to buy

Banks could be at the core of the Trump deal. Jay Hatfield, the CEO of Infrastructure Capital Advisors, is not a fan of stock picking based on the presidential race. Still, he's willing to say financial stocks would benefit from a Trump presidency (regardless of whether Republicans win control of Congress) because regulations are likely to be less stringent. JPMorgan ChaseAmerica's largest bank could see its bottom line rise.

This could also apply to private equity firms and other asset managers that have endured a difficult period of deal-making. A company like a giant for alternative investments KKR would benefit from an increase in both IPOs and mergers and acquisitions.

Crypto will almost certainly be set for a friendlier regulatory environment under Kamala Harris or Trump, at least compared to the status quo under current SEC Chairman Gary Gensler. However, the Republican candidate has been outspoken in support of the industry this election cycle, and many crypto bulls are expecting a Trump victory. Crypto exchange Coinbase and software company microstrategy, The largest public Bitcoin holder would benefit from a post-election surge.

Finally, energy is widely seen as a Trump play, as the former president has promised to “drill, baby, drill.” Sam Stovall, chief investment strategist at CFRA Research, believes the supply and demand story may be a little more complicated. A significant increase in oil production would reduce oil costs, he said.

“That would hurt the upstream drilling companies and the exploration and production companies,” he said, “but it would be helpful to the downstream companies.” The latter includes refineries like Valero Energy and natural gas transportation giant Children Morgan.

See also: 5 stocks to buy if Harris wins – and 5 to sell

What is for sale

However, according to this logic, prominent drillers like HF Sinclair (famous for its dinosaur logo) and Helmerich and Payne could not benefit from a supposed Trump energy boom.

It is worth nothing that Hatfield is skeptical about such a story. He also believes the gloom about the future of renewable energy under Trump is irrational and says it is unlikely that Republicans will meet their calls for a repeal or significant overhaul of the Inflation Reduction Act, which regulates investments in manufacturing and promotes clean energy.

Regardless, the issue of tariffs is likely to play the biggest role for retailers. As part of his campaign promise to put “America first,” Trump has proposed a tax of at least 10% on all U.S. imports and a tariff of at least 60% on all Chinese goods.

Mainstream economists emphasize that the resulting price increases will be passed on to American consumers. This could affect large importers Walmart And Dollar General hard, Stovall said.

Meanwhile, retaliatory tariffs and trade wars could have a chilling effect on global trade. Freight and logistics companies like the German shipping giant DHL are about to lose.

“If there is less trade,” Stovall said, then there is less money to be made.”

So don't be surprised if a Trump victory causes these stocks to sell off.

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