Investment Guide Post-Trump Victory: Seizing ETF and Thematic Stock Opportunities from Policy Changes | Moomoo Research

In the early hours of November 6, Eastern Time, former U.S. President and Republican candidate Donald Trump announced his victory in the 2024 presidential election.

For investors, Trump's return to the White House will trigger a series of policy changes, creating abundant investment opportunities. Based on Trump's core governance principles, we have carefully selected a range of long-term investment opportunities. We recommend positioning through exchange-traded funds (ETFs) and related thematic sectors, allowing investors to efficiently and conveniently participate in the market gains brought about by this policy transformation.

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:

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:

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:

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:

Logic: Trump's administration promotes tax cuts and deregulation in the financial sector, benefiting banks and financial institutions.

Benefitting Companies: Banks, asset management 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.

Logic: Changes in financial regulation and healthcare policy under Trump's administration may benefit the insurance industry.

Benefitting Companies: Various insurance 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.

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.

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.

Logic: Trump's agricultural and trade policies may affect the demand for agricultural equipment.

Benefitting Companies: Agricultural equipment manufacturers.

With Trump's reelection as President of the United States, his policy changes will create a series of new investment opportunities.

Investors can effectively capture these opportunities and diversify their risks by investing in related ETFs, or they can focus on thematic stocks to take advantage of specific investment prospects.