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

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:

Stocks to buy after a Trump victory

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.

Meanwhile, energy giants like ExxonMobil and rival Chevron are so-called integrated companies that operate both upstream and downstream. Shares of both companies rose slightly even as a stronger dollar pushed oil prices lower.

Stocks will be sold ahead of Trump's inauguration

It's worth nothing that Hatfield is skeptical of the story of a slowdown upstream. 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.

However, investors were not so optimistic on Wednesday. Shares of the solar module manufacturer First solar fell over 10% on Wednesday morning, while residential real estate providers Sunrun And Sunnova saw their stocks plunge by around 30% and 45% respectively.

Danish company Orstedthe world's largest offshore wind developer, has drawn particular ire from Republicans in recent years. The stock fell 15% on Wednesday morning.

Retailers, meanwhile, could be in trouble if Trump follows through on his promises to sharply increase tariffs. As part of his calls 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.

This is particularly bad news for the German auto giants, which ship more cars to the US than any other country. Shares of BMW And Volkswagenfor example, fell by 8% and 6% respectively.

Mainstream economists emphasize that the resulting price increases in imports will be passed on to American consumers, but hurt many domestic companies. A large importer of cheap goods like Dollar General could be hit hard, Stovall said. The company's shares fell 5% on Wednesday morning.

Meanwhile, retaliatory tariffs and trade wars could have a chilling effect on global trade and spell a downturn for freight and logistics companies. Investors flocked to the world's shipping giants on Wednesday morning and bought shares in Denmark AP Moller-Maersk and Germany DHL decreased by 8% and 6% respectively.

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

In short, this could be just the beginning of the shipping sell-off.

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