Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
The President of the United States has great economic influence — and even control to a certain degree. Some industries anticipate an economic boost if Biden were to be elected, while others are likely to benefit if Trump remains the President. Here, we discuss the top stocks to buy if Trump wins the upcoming November presidential election.
What Stocks Should You Buy if Trump Wins?
For many decades, people have not been as engaged in politics as they are now. Some would even characterize the current political scene as theater, with marginal tweaks here and there. However, Trump’s presidency marks an era of cultural polarization like we have not experienced before.
Consequently, the winner of the presidential elections this time around will influence the rise of some stocks over others. With this in mind, here are the stocks most likely to benefit from President Trump’s re-election, should that be the case.
President Trump is not only a big-business guy, but he is also a big-oil guy. If you recall, Trump’s very first appointment for the Secretary of State was Rex Tillerson, an energy executive heavily involved with Exxon throughout his entire career. Outside of that telling indicator, Trump’s administration removed many regulatory and environmental hurdles hampering the oil and gas industry.
After the coronavirus fallout, when the oil price plunged into the negative due to lockdowns, Trump assured the oil industry it would be back on its feet, despite the sector’s high level of debt. Given the oil and gas industry’s strong support of President Trump, such reciprocation is very likely.
Outside of these considerations, ExxonMobil itself is on strong legs. Thanks to streamlining its shale operations, ExxonMobil managed to reduce its operating expenditures by $23 billion, generating a lean business model with an impressive 8% dividend yield.
Lastly, President Trump is not a firm believer in renewable energy. His tariffs on solar cells and other renewable equipment have diminished the growth of the US solar sector.
While California may try to ban gas-powered vehicles by 2035, this is most likely an unworkable policy from a practical standpoint, and possibly illegal. Even if it came to fruition, the oil and gas industry has many decades ahead to cater to the world’s markets, and ExxonMobil has demonstrated sufficient flexibility to pursue them.
Have you ever wondered why so many call President Trump the Twitterer in Chief? This is not merely because he embraced the modern social media to a high degree. When you compare Trump’s policies to his tweets you would notice a big discrepancy.
A top blue-chip stock like Amazon is the perfect example to illustrate such a discrepancy. As the owner of the Washington Post, Jeff Bezos, Amazon’s CEO, regularly attacks Trump’s presidency. Trump may threaten to retaliate and name-call in return, but no measures were actually taken against Amazon, or are in the works.
Amazon has experienced a great year, with more consumers staying home and turning to e-commerce as opposed to visiting physical stores. Between Biden’s and Trump’s presidency, it is likely that Amazon will continue to benefit regardless of who is president.
Whether or not you like Trump, his administration was a godsend to the entire outrage industry. Never has there been so much social media engagement and online content consumption since Trump took office.
This occurred to such an extent that Trump Derangement Syndrome (TDS) entered our day-to-day vocabulary, which denotes people who are either overly pro or overly against Trump. As the select platform for Trump’s public outpouring, Twitter is the biggest winner of Trump’s presidency.
Alternatives to Twitter emerged, but Trump shows no indication he will move to another social media platform. Entire news cycles spawn from Trump’s tweets, which in turn spurs massive engagement and follow-up content/ad revenue. On the other hand, Biden’s presidency would drastically diminish social media engagement, as he represents a return to the status quo.
What do you think of these top stocks to buy if Trump wins the election next month? Let us know in the comments section below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.