Will Trump win re-election in 2020? The stocks in our new Pro-Trump Stocks strategy might be poised to rise in that environment. It holds stocks such as aluminum company Alcoa (AA) and Steel company U.S. Steel (X), which Trump intended to benefit by placing tariffs on imports. Trump also intended to benefit the solar panel companies when he imposed tariffs on imported solar panels, so perhaps the Pro-Trump strategy will benefit from the inclusion of Solar City (FSLR).
Will a Democrat take Trump’s place? The green energy and infrastructure stocks in our new Anti-Trump Stocks strategy might get a boost if so. The chipmaker stocks in the Anti-Trump strategy might see a lift if a Democrat reverses Trump-imposed tariffs.
From his tweets to his geopolitics, President Trump impacts individual stocks and sometimes entire industries on a regular basis. He’s even taken credit for the recent strength of the stock market.
When we searched, we couldn’t find any ETFs that sought to take advantage of the political environment under Trump. There’s a MAGA ETF, but it only invests in companies that have donated to Republicans. To buy each of the stocks individually that might be impacted by Trump would be much more expensive than $5. So we created our own investment strategies.
Now with iBillionaire, investors can invest in two “Trump” strategies: Pro-Trump and Anti-Trump. Each consists of 20 stocks (equal-weighted), the majority of which are in the S&P 500 and are large-cap, well-established companies. Because iBillionaire uses fractional shares, investors can invest in strategies such as Pro-Trump and Anti-Trump, as well as individual stocks and ETFs with just $5. Our investment platform iBillionaire has a website and an app where investors can buy a stock or strategy on a one-time or recurring basis, or start an auto-saving plan with just $5.
Other iBillionaire strategies include Space Exploration, FAANGs, Blockchain, Green Energy Stocks, eCommerce Stocks, and Marijuana Stocks, to name a few. These strategies, like the Trump Strategies, are bundles of individual stocks that are sometimes based off of ETF holdings, but we use fractional shares instead of ETFs. By using fractional shares we don’t have to pass on extra fees to our investors.
The Pro-Trump Strategy
Based on our research, people – or Trump himself – anticipate that the policies the U.S. President has or will enact will benefit select industries. The Pro-Trump strategy invests in 20 stocks in such industries, including those that might benefit from the recent Dodd-Frank rollback, the offshore drilling ban lift, the tariffs he has imposed or threatened, and Trump’s anti-immigration agenda, for example. These and more Trump-created, market-impacting catalysts are likely to continue to reverberate in the stock market. Policy change is possible, and the strategy will re-balance as needed.
The Anti-Trump Strategy
The Anti-Trump strategy invests in stocks of companies whose leaders have voiced opposition to Trump or his policies, as well as stocks that might be insulated from Trump’s tariffs, and those that might benefit from a democrat taking his place.
Identifying Trump Stocks
Politics impact certain industries and companies, especially in the Trump administration. There is a lot of information available on the administration’s potential effects on segments of the market.
When creating these strategies, we researched financial news to determine a general consensus view: will this stock or industry perform well under Trump? Is this a company whose leadership is vocally pro or anti Trump? We did not consider whether these were stocks that supporters or non-supporters would like. Nor is a stock’s presence in either strategy a statement about the organization or the political stance of its employees.
Trump supporters may have divergent views of the Second Amendment and immigration, for example, but that is not why they are included. They are included because private prison stocks of companies that work with ICE are in a position to perform well under Trump. And although firearms makers typically outperform when Democrats take office, the credit for their success goes to increased gun purchases in anticipation of their being taken away. If they were taken away, firearms makers would suffer in the longer term. At iBillionaire, we believe in investing for the long-term.
We will be keeping an eye on the Trade War and President Trump’s policy moves. Look for updates on how politics is impacting certain companies and industries on the iBillionaire blog.
Which strategy’s performance will prevail: Pro-Trump Stocks or Anti-Trump Stocks’ performance? Think about which strategy will post better returns one year from today! What about four years from today, after the 2020 election?
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