Trump Stocks: What to Buy If Trump Wins Tuesday

By Jason Simpkins / October 30, 2020 / www.outsiderclub.com / Article Link

Yesterday, Jimmy Mengel told you where to go looking for 'buys' if Joe Biden wins the presidency on Tuesday night.

Today, I'm here to follow up by telling you what sectors and companies will most benefit from a Trump victory.

To be honest, this isn't my first rodeo.

I wrote a similar story back in 2016, and several of the stocks I listed have done very well for themselves.

Chief among them are the big banks - Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and JP Morgan (NYSE: JPM).

JP Morgan and Morgan Stanley have done especially well, climbing 41% and 47%, respectively, while Goldman has lagged behind with a mere 7.5% gain.

The reason for the climb is simple: Donald Trump packed his cabinet with Wall Street insiders, defanged the SEC, deregulated the industry, and passed a massive tax cut.

This is a trend that will undoubtedly continue if Trump were to be re-elected. He personally favors the industry, and while his cabinet has experienced a high rate of turnover, Treasury Secretary Steve Mnuchin (a former partner at Goldman Sachs and former hedge fund manager) and Commerce Secretary Wilbur Ross (a billionaire vulture capitalist) continue to serve uninterrupted.

Make no mistake, Wall Street wins in a Trump presidency.

Another sector that Trump favors is the defense sector.

In fact, two of the country's biggest defense contractors, Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC), are up 48% and 30% since the 2016 election.

This is because President Trump drastically increased the defense budget, ramping it up to a peak of $738 billion for FY2020.

It's also because Trump has put a lot of pressure on U.S. allies to increase their defense spending as well. He's even gone so far as to instruct diplomats to act as traveling salesmen for the defense industry, culminating in a $12.5 billion arms deal with Saudi Arabia in 2018.

Furthermore, with Trump's laser-like focus on domestic security, CACI International (NYSE: CACI), which provides IT and network solutions to customers in the areas of defense, intelligence, and homeland security, has doubled in value since the 2016 election.

It would likely continue to find success in Trump's second term, as well.

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