On January 20, 2017 President elect Donald Trump will be sworn in as the 45th President of the United States of America. Once he takes office you can expect some major changes to take place in the economy almost immediately. And while some promises will without a doubt be broken once Trump takes office, based on what he said on the campaign trail here are 3 industries you should invest in now.
If there is one thing the Republican Party hangs it hat on its military strength. And with some of the things Trump has said, you can expect him to be very aggressive when it comes to protecting America. According to Ian Bremmer, the president of Eurasia Group, when it comes to going after terrorists from the air, Trump will more than likely take that to a whole new level.
Because unlike President Obama, Trump is not risk averse. He is therefore more likely to take action without giving it much thought. This of course would mean high tech defense and aerospace manufacturers will profit big time.
The top 4 defense stocks you should buy are Boeing, Northrop Grumman, Lockheed Martin and Raytheon.
If you drive you know the nation’s roads are in need of serious upgrades. In a Debate back in December of 2015 Trump made it very clear he would spend billions to upgrade the nation’s airports, roads and bridges.
Trump has more experience with building that any other President in history and you can expect him to put it to good use. Add that to the fact one of his biggest campaign promises was to build a 50 foot wall along the Mexico border and you see why infrastructure can prove to be a very smart investment.
It will cost anywhere between $15 billion and $25 billion to build a wall of this nature. It would also cost an additional $750 million just to maintain it.
3 of the top infrastructure stocks you should invest in now are Jacobs Engineering, Fluor and Caterpillar.
Small Cap Stocks
Because of Trumps protectionist message multinationals who are directly involved in international trade will take a big hit. Smaller companies however, especially those who operate mainly in the United States, won’t be as affected.
Because of this small cap stocks will more than likely outperform stocks from larger companies. A good small cap investment would be Vanguard’s Russell 2000 ETF.