5 Sectors Which Benefited From Trump’s Win
By Czarina Ara Lasco
Nov 10, 2016 06:00 AM EST
Nov 10, 2016 06:00 AM EST
The victory of Donald Trump as the 47th President of the United States of America has left some investors with doubts and confusion as Wall Street had been predicting for a Clinton presidency from the beginning of the campaign. With neither political nor military experience, Trump's domination in the White House has placed uncertainties especially to investors. However, there sectors that has been shown with clear opportunities of having benefits from the administration on Trump.
Below are the five sectors that are believed could grow in Trump's 4-year presidency:
Perhaps, there are no other sectors that could benefit immensely than the pharmaceutical and biotech industries. During the campaign for this year's election, it can be recalled that Trump's opponent, Hillary Clinton, had promised to take a rigid approach with the drugmakers.
It can also be remembered that both Trump and Clinton had agreed that the scheme on how drugmakers in the country price their products is one of the problems of the industry. However, one of Trump's platform involved the consent to be given to the Americans who want to look for their medicines in other countries such as Canada where medicines are priced cheaper compared to what US has to offer. After his victory, it can be expected that Trump can produce such a plan in the Congress even both houses are dominated by the Republicans.
Money center banks
Among the sectors expected to benefit from Trump's administration is banking - especially large money central banks. The reign of the Republicans in Congress' both houses could attest to be a principal compound for bank stocks.
While a Democrat sits in the White House, several members of the party including Senator Elizabeth Warren (D-MA) had been recommending for significantly harder restrictions on banks.
If both Warren and Clinton had been declared victors during the Election Day, it was probable that foremost changes were to be placed for the banking industry.
Now, after the election was concluded with a Democrat as the president and the Republicans in control of the entire Congress, it seems that money center banks would unlikely face the dilemma it had been threatened with during the campaign.
With Trump getting his seat in the White House, the energy sector might as well be a substantive beneficiary. An "energy revolution" has been proposed by Trump which includes the revocation of the restrictions on shale production and founding up the production of oil and gas on federal lands and offshore. More so, President-elect Trump has also promised to finish the "war on coal" and disregard the Climate Plan and Clean Power Plan of Obama and Clinton. In other words, Trump pushes for lesser regulations leading to America's greater energy independence.
Although both presidential candidates had agreed on rebuilding the aging infrastructure of the United States, the possibility of how far each candidate would go differed. Republican's Clinton proposed for $275 billion budget for infrastructure alone aimed to fix roads, bridges, railroads and dams. Meanwhile, Trump has called for a $1 trillion spending on several projects on infrastructures.
While the sector benefits, the commodity-based stocks could also benefit since the projects related to infrastructure require a lot of raw materials such as steel.
With the outcome of the election, companies under the defense sector are most likely thrilled. While Hillary Clinton took a more significant view of how she would distribute funds for the defense sector, President-elect Trump has taken the usual view of Republicans which provides that the allocation of funds on defense with be beneficial for both jobs and the economy, and the national safety, as well. With that being said, the Trump administration could make defense companies prosper.
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