Three sectors set to benefit from new Trump administration: DeVere

New analysis from global financial advisory firm, deVere Group, has suggested the top three sectors that are set to benefit from a new US presidential administration under Donald Trump if he were to be elected later this year.

Chief executive, Nigel Green, identified the three key areas of interest for investors would be energy, financials and manufacturing.

“Trump’s likely potential return to the White House brings with it expectations of a hawkish trade policy, less regulation, looser climate change regulations, and the extension of corporate and personal tax cuts,” he said.

“Of course, should he win, there will be clear winners and losers for investors.”

Green said history points to Trump’s administration prioritising energy independence and economic growth over environmental considerations and regulations.

​“His past actions, such as rolling back Obama-era climate policies and exiting the Paris Agreement, reflect a preference for less stringent environmental oversight. Should Trump win the presidency again, a similar approach is expected, which would benefit the energy sector, particularly fossil fuels. Looser regulations would likely lower operational costs for energy companies, particularly those in the coal, oil, and natural gas industries.

“Also, a Trump White House could push for increased domestic energy production, boosting the profitability of companies involved in extraction, production, and distribution. In addition, Trump’s focus on rebuilding America’s infrastructure could lead to increased demand for energy, benefiting energy providers and related industries.”

Green also signalled Trump’s business background as reason behind the rise of financials as a popular sector to invest that has already begun to gain traction as the election looms.

​“Trump’s administration has historically favoured deregulation, aiming to reduce the regulatory burden on financial institutions. “With less stringent regulations, banks and financial institutions can expect reduced compliance costs and increased profit margins. “Deregulation could also facilitate increased lending activities, boosting the revenues of financial services companies. “The anticipation of a Republican victory has already started to boost market confidence in the financial sector, with investors expecting a more business-friendly environment.”

Green also said Trump’s previous ‘America First’ policy was concentrated on domestic manufacturing and limited the country’s dependence on foreign imports.

​“A return to this policy is likely to include tariffs on foreign goods and incentives for American companies to bring manufacturing back to the US.

​”[Hawkish trade policies could protect domestic manufacturers from foreign competition and allow them to increase their market share and profitability, [as well as provide incentives] for companies to repatriate manufacturing jobs [which] could boost employment and production within the US. Extension of corporate tax cuts would directly benefit manufacturers by reducing their tax liabilities and increasing available capital for investment and expansion. Investors are already positioning themselves to capitalize on the expected policy shifts as markets begin to price in a Trump victory.

“Moving in early now and working with an experienced advisor is likely to best position them to mitigate risks and seize the inevitable opportunities that will be presented in the race for the White House.”