Stock markets will awaken to leadership under Trump starting today. Trump has plans to sign many executive officers. This will require investors to parse through them all, to assess the impact on their portfolio.
Immigration and energy are at the top of the list. Orders that increase domestic energy production would benefit big energy firms. This includes Exxon Mobil (XOM), ConocoPhillips (COP), and Chevron (CVX).
Tough immigration orders could potentially hurt retail firms. With less consumer spending, the consumer economy might lag. Discount retailers like Dollar General (DG) and Dollar Tree (DLTR) will continue to underperform. Conversely, Costco (COST) and Walmart (WMT) should continue to gain market share. Both firms have strong demand momentum, regardless of immigration.
The farming and construction industry may have higher volatility. Restrictive border initiatives would increase the cost of workers. This will hurt the profit margins of construction companies. Still, companies like Caterpillar (CAT) and Deere (DE) bounced back. Investors are betting that demand for farming machinery will not weaken.
Expect the cryptocurrency market to thrive in the next four years. Trump’s policies will loosen regulations for Bitcoin (BTC) and Ethereum (ETH). The chances are good that BTC prices will have strong support at $100,000.
