Where to Put Your Money in the
Stock Market Today
Investing in the stock market immediately after Donald Trump's election is KEY in setting up a successful 2025 for financial gains.
Historically, a new presidential term, especially one under a business-oriented president like Trump, can create certain short-term market dynamics that may benefit investors who take action in the initial 90-100 days.
Market Confidence and Potential Economic Growth
Trump's platform typically emphasizes business-friendly policies, including tax cuts and deregulation aimed at stimulating economic growth. This approach can foster investor confidence and may lead to a short-term rally in stocks, as markets often react positively to perceived business support. Markets may rise on expectations of stronger economic performance, particularly in sectors tied to infrastructure, defense, and energy, where Trump’s policies might bring new spending and favorable regulations.
Sector-Specific Opportunities
Energy and Manufacturing: Trump's emphasis on energy independence and domestic manufacturing could lead to immediate investment in companies in these sectors.
Defense: Trump’s stance on bolstering national defense and increasing military spending may benefit defense contractors and related industries.
Finance and Banking: Expected rollbacks on certain regulations may increase profitability in the finance sector, which tends to thrive under looser regulatory constraints.
Tax Cuts and Corporate Benefits
Trump has supported lowering corporate taxes, which can boost companies' profits by allowing them to keep more earnings. This often leads to higher stock prices as investors anticipate stronger earnings.
Additionally, repatriation policies allowing companies to bring back overseas profits with minimal taxation could lead to stock buybacks, potentially increasing share values in the short term.
Increased Volatility and Buying Opportunities
A new administration often brings volatility due to policy announcements and investor speculation. For beginners or early investors, this market environment can present "buying dips," where stocks momentarily drop but may recover as policies take shape. This volatility can be a strategic entry point.
Sector rotation (moving investments from one industry to another based on policy shifts) could provide short-term opportunities, especially if you invest in industries favored by Trump's policies.
A Short-Term Window Before Full Policy Effects Settle
The first 90-100 days of a presidency often focus on rapid policy announcements before implementation begins, creating a "honeymoon phase" for the stock market. During this time, markets may be optimistic and respond positively to executive orders or legislative agendas even before long-term effects are realized.
Investment Tips for the Initial 90-100 Days:
Diversify but Consider Key Sectors: Allocate a portion of your portfolio to sectors like energy, defense, and finance, while maintaining diversification to manage risk.
Monitor Market Reactions to Announcements: Pay attention to major announcements on tax cuts or deregulation, as these can create short-term price movements.
Consider ETFs for Sector Exposure: Exchange-Traded Funds (ETFs) focused on industries benefiting from Trump’s policies can be a practical way to gain exposure without picking individual stock.
Investing in this period allows you to leverage potential market optimism and strategic policy changes. While it’s essential to keep a long-term view, these first few months can offer a unique window of opportunity.
Stocks and ETFs Currently Recommended
Stocks or ETF — (Ticker)
SPDR S&P 500 ETF Trust — (SPY)
Vanguard 500 Index Fund — (VOO)
Vanguard S&P 500 Value Index Fund — (VOOV)
SPDR Dow Jones Industrial Avg. ETF Trust — (DIA)
Global X FDS Dow 30 Covered Call ETF — (DJIA)
Tesla — (TSLA)
Discover Financial Services — (DFS)
Synchrony Financial — (SYF)
Capital One Financial — (COF)
Wells Fargo — (WFC)
Tab Below to Listen to My Clubhouse Recording to Clue You In
^ Tap the graph above to see the ETF and go back to 11/6 to see the spike that you missed. ^
One of my good friends and investor mentors experienced an almost $25k increase in his stock portfolio on Wednesday morning. —>
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