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Trump trade: Bitcoin hit record highs and Tesla hits $1 trillion market cap
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How to Use ETFs to Position in Industries and Stocks That Could Benefit Long-Term from Trump's Policies

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Moomoo Research joined discussion · Jul 15 05:43
On the afternoon of the 13th local time, during a campaign rally in Pennsylvania, shots were fired while Trump was speaking. He was immediately escorted off the stage by Secret Service agents. According to a statement from the Secret Service, the shooter is deceased; one rally attendee was killed, and two others were injured.
For investors, if Trump is elected President of the United States, it will bring many new policy changes and investment opportunities. We will outline investment opportunities worth long-term attention based on his main governing philosophies. To facilitate trading, we recommend using ETFs for these positions.
I. Which ETFs Are Worth Long-Term Attention?
Tax Cut Policies
Beneficial Sectors: Corporates overall, especially large multinational companies, small businesses, consumer sectors
Beneficial Logic: Tax cuts directly reduce the tax burden on companies, boosting their profits and cash flow, allowing them more funds for investment, stock buybacks, or dividends, thereby enhancing shareholder returns. At the same time, personal income tax reductions will increase disposable income for consumers, promoting consumption growth.
Relevant ETFs:
Infrastructure Development
Beneficial Sectors: Building materials, construction engineering companies, heavy machinery manufacturers
Beneficial Logic: Promoting large-scale infrastructure development plans, including the construction of roads, bridges, airports, etc., will directly increase the demand for building materials and construction engineering services, driving growth in related industries.
Relevant ETFs:
Energy Policies (Support for Traditional Energy)
Beneficial Sectors: Oil and gas, coal, shale oil
Beneficial Logic: The Trump administration tends to relax regulations on traditional energy industries, supporting the development and use of fossil fuels. This will reduce operating costs for energy companies, increase their profit margins, and promote U.S. energy self-sufficiency and export growth.
Relevant ETFs:
Trade Policies (Protectionism)
Beneficial Sectors: Domestic manufacturing, steel, aluminum
Beneficial Logic: By implementing tariffs and trade barriers, the Trump administration aims to protect U.S. domestic manufacturing from foreign competition. Such policies may benefit domestic manufacturing companies as their products will become more competitive in the domestic market.
Relevant ETFs:
Cryptocurrency
Beneficial Logic:
Trump has expressed a very positive attitude toward cryptocurrencies, stating that he will unveil plans to ensure the United States becomes the "capital of cryptocurrency on Earth." At this year's Bitcoin 2024 conference, Trump made a series of striking promises to the Crypto community, demonstrating his determination to gain support in this field.
Relevant ETFs:
Financial Sector
Deregulation of the financial industry is typically supported by Republicans, which can benefit banks, insurance companies, and other financial institutions. This can lead to higher profitability and growth for financial sector stocks and ETFs like the $Financial Select Sector SPDR Fund (XLF.US)$
Defense and Aerospace
Increased defense spending is a common policy under Republican administrations. Defense contractors and military equipment manufacturers often see increased revenues, making stocks and ETFs in this sector, such as the $Ishares Trust U.S. Aerospace & Defense Etf (ITA.US)$ , $Spdr Series Trust S&P Aerospace & Defense Etf (XAR.US)$ more appealing.
II. What Are Some Good Stock Trading Options for Short-Term Trading?
Additionally, a " $Donald Trump (LIST22962.US)$ " sector can be introduced for investors to focus on and trade. Here are the main concept sectors that could benefit from Trump's election and their logic:
How to Use ETFs to Position in Industries and Stocks That Could Benefit Long-Term from Trump's Policies
Sectors Benefiting from Trump's Election:
Trump linked companies
Logic: These stocks are directly linked to Trump's electoral prospects and exhibits significant volatility.
$Trump Media & Technology (DJT.US)$ is a media and technology company named after Donald Trump. Its initial product rollout is focused on the social media platform Truth Social, which promotes an "open, free, and honest global conversation without discriminating on the basis of political ideology." As of July 15th, 2024, Donald Trump holds a 60.4% stake in DJT.
Financial Companies
Logic: Trump's administration promotes tax cuts and deregulation in the financial sector, benefiting banks and financial institutions.
Benefitting Companies: Banks, asset management companies.
Natural Gas Production Companies
Logic: Trump supports the traditional energy sector by relaxing regulations and encouraging natural gas extraction and use.
Benefitting Companies: Natural gas production companies and related equipment manufacturers.
Insurance Companies
Logic: Changes in financial regulation and healthcare policy under Trump's administration may benefit the insurance industry.
Benefitting Companies: Various insurance companies.
Biopharmaceutical Companies
Logic: Policy adjustments in the pharmaceutical market, including drug price reductions and healthcare system reforms under Trump's administration.
Benefitting Companies: Pharmaceutical companies, medical device manufacturers.
Cryptocurrency Mining Companies
Logic: Some of Trump's policies may affect the cryptocurrency market, especially in the realm of financial regulation.
Benefitting Companies: Cryptocurrency mining companies and related technology companies.
Trade Protection Beneficiaries
Logic: Trump's trade protectionism, including imposing tariffs, aims to protect domestic manufacturing.
Benefitting Companies: Steel, aluminum, and other manufacturing companies protected by trade policies.
Agricultural Equipment Companies
Logic: Trump's agricultural and trade policies may affect the demand for agricultural equipment.
Benefitting Companies: Agricultural equipment manufacturers.
If Trump is elected President of the United States, his policy changes will bring a series of new investment opportunities. We can position ourselves through relevant ETFs, allowing investors to effectively capture these opportunities while diversifying risk. Alternatively, we can use concept stocks to capture investment opportunities in the underlying stocks.
In short, let's "find opportunities in turmoil and wisely position for the future."
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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