Friday, November 11, 2016

3 Sectors Poised to Rise Under a Trump Presidency

Well, the election has come and gone and we've all had time to digest the results. Regardless of your political stance, Donald Trump will be the 45th president of the United States. My job is not to argue whether I think this is a positive or negative, but rather to show you where I see potential opportunities with Donald Trump now entering the White House.
Financial: The financial sector was going through major regulation during the Obama administration and perhaps it's only shinning light was going to be the eventual rise in interest rates. Upon finding out Trump was going to be our next president the financial sector has taken off with no plans of looking back. Why is this some may ask? We assume, given his prior statements and stances, that regulation on the financial industry will be loosened under President Trump. Pair that assumption with a rise in interest rates and you have a recipe for growth. That being said, look to the banking industry and other financial organizations to do particularly well with Trump in the White House.
Biotech/Pharmaceutical: Next we'll take a look at the biotech/pharmaceutical industry. Perhaps no industry feared a Hillary Clinton win more than biotech/pharmaceutical. In fact, many of the stocks in this sector had already began pricing in a Hillary presidency. Clinton had every intention of attacking drug makers going as far as saying she would appoint a task force that would monitor price-gouging. Trump didn't lay out any specifics in regard to his plan, he did make mention however of giving Americans the ability to buy their drugs in other countries such as Canada where they could find them cheaper. Trump doesn't have nearly as strong of a stance on this industry as Clinton did, leading me to believe they'll do far better with him in the oval. 
Defense: There was no possible way I could write this without including the defense industry. I'm not arguing Clinton would have decreased defense spending drastically but I am saying that Donald Trump has made it his prerogative to enhance our military and enforce our second amendment rights. Trump has taken the traditional republican stance that defense is not only good for the economy and jobs but for national safety as well. Meaning investors in defense contractor companies such as; Lockheed Martin, Boeing, Northrup Grummam and others appear to be bullish under a Trump presidency.  
The views expressed are not necessarily the opinion of Woodbury Financial Services, Inc., and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary. Investing is subject to risks including loss of principal invested. No strategy can assure a profit against loss.

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