Trump Stocks to Buy in 2017

Since his inauguration, President Donald Trump has implemented numerous policies that have greatly impacted the stock market. From corporate tax cuts to deregulation efforts, his administration’s actions have led to significant shifts in various industries. As a result, many investors are curious about which stocks to consider buying in 2017 to take advantage of these developments. In this blog post, we will explore some sectors and specific companies that have fared well under the Trump administration, providing you with insights into potential investment opportunities.

Table of Contents

1. Tax Cuts

The passing of the Tax Cuts and Jobs Act in late 2017 was one of the most significant accomplishments of the Trump administration. This legislation significantly reduced corporate tax rates, leading to increased profits for many companies. As a result, investors started flocking to stocks of businesses set to benefit from these tax cuts.

Some of the sectors that thrived under the new tax law included financial institutions, energy companies, and industrials. For instance, banks, such as JPMorgan Chase and Bank of America, experienced substantial gains from the lower tax rates.

Additionally, oil and gas companies, such as ExxonMobil and Chevron, saw improved profitability due to reduced tax burdens. These tax benefits allowed businesses in the industrial sector, like General Electric, to invest in expansion and innovation, which have the potential to drive future growth.

Company Symbol Sector
JPMorgan Chase JPM Financials
Bank of America BAC Financials
ExxonMobil XOM Energy
Chevron CVX Energy
General Electric GE Industrials

These stocks represent only a handful of the many companies that benefited from the favorable tax environment in 2017. However, it is important to note that conditions can change, and it is always prudent to conduct thorough research or consult a financial advisor before making any investment decisions.

2. Infrastructure

One of President Trump’s major campaign promises was to revitalize the nation’s infrastructure. Consequently, the anticipation of increased government spending on infrastructure projects led to considerable growth in stocks from relevant sectors.

Companies involved in construction, engineering, and materials benefitted greatly from the expectation of substantial infrastructure investments. For example, Caterpillar Inc., a leading manufacturer of construction equipment, experienced a surge in demand as the government’s infrastructure plans took shape.

Notably, Vulcan Materials, a supplier of construction aggregates, also saw significant gains since their products form the foundation of any infrastructure project. These companies positioned themselves to benefit from an increase in government projects and continue to be potential investments to consider in the infrastructure space.

3. Defense

Defense stocks have traditionally performed well during Republican administrations, and the Trump presidency has been no exception. As President Trump promised to increase military spending, defense companies experienced notable growth.

Lockheed Martin, a leading defense contractor, saw its stock price rise substantially due to increased defense budgets, both domestically and internationally. Similarly, Northrop Grumman and Raytheon, known for their advanced defense technologies, also flourished.

The Trump administration’s focus on enhancing military capabilities, along with geopolitical tensions, suggests that defense companies may continue to be lucrative investments. However, investors should remain mindful of changes in government policies and evolving geopolitical dynamics to make well-informed decisions.

4. Healthcare

Healthcare stocks experienced significant volatility during the Trump administration. While the president vowed to repeal and replace the Affordable Care Act (ACA), legislative efforts faced challenges, leading to uncertainty in the healthcare market.

Nevertheless, certain healthcare industries, such as pharmaceuticals and biotechnology, showed resilience and performed well. Companies like Pfizer and Johnson & Johnson, with diverse product portfolios, weathered policy uncertainties effectively.

Moreover, healthcare IT companies, such as Cerner and McKesson, benefited from increased reliance on technology in the sector. As the healthcare industry evolves, companies focusing on digital healthcare solutions may present intriguing investment opportunities.

5. Renewable Energy

Despite President Trump’s emphasis on promoting traditional energy sources, the renewable energy sector continued to thrive. Falling costs, technological advancements, and growing public awareness about sustainability have contributed to this growth.

Companies like First Solar, a leading manufacturer of solar panels, and NextEra Energy, a clean energy producer, have experienced significant stock price appreciation. As renewable energy gains momentum globally, businesses operating in this sector may present long-term investment prospects.

It is essential to note that investing in stocks involves risks, and past performance is not indicative of future results. Additionally, while considering investment opportunities, it is crucial to conduct thorough research and seek advice from financial professionals.

In conclusion, the Trump administration’s policies have influenced various sectors, creating potential investment opportunities in 2017. The tax cuts, infrastructure plans, defense spending, healthcare reforms, and developments in renewable energy have all impacted the stock market. By staying informed and carefully analyzing each opportunity, investors can better navigate the evolving economic landscape and potentially capitalize on these changes.

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