The election of Donald Trump is turning into a trader’s playground. Money that was on the sidelines is being put back into the market as traders look for the next big thing.
However, even long-term investors usually have some speculative cash waiting for opportunities. And elections create opportunities.
The problem is we don’t know exactly what those policies are going to be.
You see, candidates say a lot of things. They make for easily understandable (if not always accurate) sound bites.
But, typically, the reality is different.
Trump has promised to be aggressive with his use of tariffs and that has some economists fearing he will impose universal tariffs, which would devastate the dollar and likely lead to a recession.
That’s why the reality is likely to be a policy that is far more targeted. So if you’re thinking about stocks that will benefit from tariffs, it’s best to think like a trader.
Look at what happened to renewable energy stocks after Joe Biden's election. They shot higher on the hope that the incoming administration would be friendly to renewable energy companies.
It was, but inflation and rising interest rates got in the way.
And it wasn’t just renewable energy stocks. Think about all the companies that came to market as special purpose acquisition companies (SPACs) in the meme stock craze.
Some significant profits were made. But only for those traders who knew when to get out of a trade.
That brings us back to the Trump tariff policy and what it means to you as an investor. In this special presentation, we’re looking at seven stocks that are likely to rally due to the incoming administration’s tariff policies.
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