Stocks to buy – and sell – now that Trump has won the election

Donald Trump returns to the White House. Investors believe this is much better news for some sectors of the U.S. economy than others — and the same is true for different parts of individual Americans' stock portfolios.

Some pieces seem obvious. Trump is traditionally seen as a positive for banks and fossil fuel companies but a scourge for sectors such as renewable energy. Wednesday morning trading suggests the view is largely unchanged.

However, before the election, several analysts said Assets The story may not be that simple. From tariffs to tax policy, other potential impacts of a second Trump administration are also significant. Below we've rounded up stocks that could continue to rise or fall before Trump's second inauguration:

Banks are at the center of the Trump trade. Jay Hatfield, the CEO of Infrastructure Capital Advisors, is not a fan of stock picking based on the presidential race. Nonetheless, he is willing to say that financial stocks are likely to benefit from a second Trump term, as regulations are likely to be less stringent. Shares of Goldman Sachs rose 12% on Wednesday morning, with levels similar to Morgan Stanley, JPMorgan ChaseAnd Citigroup not far behind.

This could also apply to private equity firms and other asset managers that have endured a difficult period of deal-making. Shares of the alternative asset giant KKRwhich is expected to benefit from a rise in both initial public offerings and mergers and acquisitions, rose 9% to an all-time high above $150 on Wednesday.

However, perhaps no sector celebrates a Trump victory as much as the world of cryptocurrencies, which he and the Republican Party fully embraced over the summer. This led to massive financial support from the industry, which had been angered by the Biden administration's more restrictive policies.

Crypto exchange stocks Coinbase rose nearly 25% on Wednesday morning. microstrategy, The largest public company to hold Bitcoin saw its shares rise over 10% as the world's largest cryptocurrency hit record highs.

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 Morganwhose shares rose over 4% and 6%, respectively, on Wednesday.

The story continues