Stocks to watch if Trump wins the US election

Defence industry outlook

The defence industry could see significant changes depending on the outcome of the 2024 US presidential election. Companies like Lockheed Martin and Raytheon Technologies may benefit if Donald Trump is re-elected. This is primarily due to the expectation of strong defence spending under a Trump administration.

Trump's previous term saw increased military budgets and a focus on modernising the US armed forces. If re-elected, he may continue this trend, potentially boosting defence contractors' revenues and stock prices. However, it's important to note that defence spending can be influenced by various factors, including geopolitical events and congressional budget negotiations.

Investors interested in the defence sector should carefully monitor campaign promises and policy proposals from all candidates. It's also crucial to consider the long-term nature of defence contracts, which can span multiple administrations, potentially mitigating some election-related volatility.

For those considering investing in this sector, it's worth exploring shares of defence companies or related exchange-traded funds (ETFs) to gain exposure to the industry.

Oil and gas sector prospects

The oil and gas sector could see significant impacts from the 2024 election results. Companies like Exxon Mobil and Chevron may benefit if Trump secures a second term, given his historically pro-oil and pro-gas policies.

During his previous administration, Trump rolled back numerous environmental regulations and promoted domestic energy production. A return to these policies could potentially boost profitability for oil and gas companies. This could lead to increased drilling activity, higher production volumes, and potentially, higher stock prices for companies in this sector.

However, it's important to consider the broader context of the global energy market. Factors such as international oil prices, renewable energy trends, and climate change policies can all influence the performance of oil and gas stocks, regardless of who occupies the White House.

Investors interested in this sector might consider commodities trading or investing in energy sector funds. It's crucial to conduct thorough research and consider the long-term implications of energy policies and market trends.

Infrastructure sector opportunities

The infrastructure sector could see significant growth if Trump wins and follows through on his promises of increased infrastructure investment. Companies like Caterpillar Inc. and Vulcan Materials Company might benefit from such initiatives.

Infrastructure spending has been a key talking point in recent elections, with both major parties recognising the need for improvements to roads, bridges, and other public works. However, the scale and focus of such investments can vary greatly depending on the administration.

If substantial infrastructure bills are passed, it could lead to increased demand for construction equipment, materials, and services. This could potentially boost revenues and stock prices for companies in the sector.

Investors interested in this area might consider stocks of construction companies, materials suppliers, or infrastructure-focused funds. As always, it's important to diversify investments and consider the long-term prospects of the sector beyond short-term political developments.

Trump-related stocks

One company that could see significant movement based on the election outcome is Trump Media & Technology Group Corp. This company, closely associated with the former president, could potentially see substantial growth if Trump wins re-election.

The reasoning behind this potential growth is multifaceted. A Trump victory could lead to increased attention and investment in his associated businesses. Additionally, his return to the presidency might be seen as validation of his business acumen, potentially boosting investor confidence in Trump-related enterprises.

However, it's crucial to approach such investments with caution. Political connections can be a double-edged sword, potentially leading to increased scrutiny or regulatory challenges. Additionally, the performance of any company should be evaluated based on its financial fundamentals and growth prospects, not just its political associations.

Investors considering this or similar politically-linked stocks should conduct thorough research and consider the potential risks as well as rewards. It may be prudent to use tools like a demo account to practice trading strategies before committing real capital.

Additional stocks to watch

Beyond the sectors already mentioned, there are other individual stocks that analysts believe could benefit from a Trump victory. Two companies frequently mentioned are Blackstone and Airbnb.

The rationale behind these predictions varies. For Blackstone, a major private equity firm, the expectation is that a Trump presidency might lead to more business deals and long-term investments. This could potentially increase Blackstone's deal flow and profitability.

Airbnb, on the other hand, might benefit from increased travel, which some analysts predict could occur under a second Trump term. Additionally, both companies are noted for their current profitability, high margins, and operational efficiency, which could position them well regardless of the election outcome.

It's important to note that these are speculative predictions and that many factors beyond the presidential election can influence a company's stock performance. Investors should always conduct their own research and consider their risk tolerance before making investment decisions.

Those interested in these or similar stocks might want to explore online trading options to access a wide range of markets.

Broader economic considerations

While individual stocks and sectors may see specific impacts, it's also important to consider the broader economic effects that could result from the election outcome. Some analysts predict that a Trump victory could lead to several macroeconomic changes.

One potential effect is increased travel, which could benefit not just companies like Airbnb, but also airlines, hotels, and other businesses in the tourism sector. Another prediction is an increase in business deals and long-term investments, which could have wide-ranging impacts across various industries.

Some economists also suggest that a Trump presidency might lead to a stronger US dollar. This could increase purchasing power for both individuals and companies, potentially boosting consumer spending and corporate profits. However, a strong dollar can also have downsides, such as making US exports more expensive on the global market.

It's crucial to remember that economic predictions are inherently uncertain, and many factors beyond the presidency influence economic outcomes. Investors should consider a wide range of economic indicators and global trends when making investment decisions.

For those looking to navigate these potential economic shifts, learning about forex trading could be beneficial, as currency markets often reflect broader economic trends.