From defense stocks to crypto: the investments you can cash in when The Donald returns to the White House

Markets hate uncertainty, the old saying goes, so there was some relief among investors that American voters had made a clear decision.

Days or weeks of political and legal wrangling over the outcome of the US election would likely have proven hugely turbulent for financial markets – and destabilizing for the global economy and geopolitics.

So while Donald Trump’s return to the White House as president will stir strong feelings among many, investors can start planning for the years ahead with at least some clarity. Chaos is rarely good for investors.

Many Britons are direct investors in the US, with the lucky ones owning some shares in the high-tech giants, such as Apple, Microsoft and Amazon, which have grown enormously in recent years.

Anyone with a private sector pension will have some assets in the US.

The US market accounts for 60 percent of global equities and any balanced portfolio will own some shares there. In addition, the dollar anchors world trade and investments.

U.S. Treasury bonds – debt issued by the U.S. government – ​​are the main asset held as reserves at the world’s central banks.

And of course, the US is not only the largest economy in the world, far behind China, but is also increasing its lead over Europe.

So what happens now?

The assessment of the markets was mixed. US stock markets rose along with the dollar and bitcoin, but European markets fell along with US government bonds, pushing up interest rates and borrowing costs.

These are the so-called “Trump transactions” in action.

Leading up to Election Day, the accepted wisdom was that a Trump victory would be better for US stocks and worse for bonds, while a Kamala Harris presidency would be the opposite.

The argument was that Republicans will be more pro-business than Democrats, and that the tax cuts they have promised will boost economic growth and corporate profits at least in the short term.

The downside is likely higher inflation, leading to higher interest rates and more government debt.

And there are consequences for the global economy – including Britain – not least the threat of a global trade war if Trump carries out his threat to increase tariffs on imports to the US. This fear caused early gains in European benchmarks, including the FTSE 100 stock index, to evaporate.

What should you do?

History suggests that you should put political loyalties aside and continue investing in the stock market – regardless of who is in the White House.

And analysts believe there are plenty of options – but also risks – for those looking to benefit from a Trump victory.

Here are ten investments that experts say are worth looking at, although each carries some risk.

ExxonMobil

Trump has long been seen as a friend of big oil, and any move to favor fossil fuels and deregulate the industry should benefit from this

Exxon Mobil, says Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown.

“Trump’s victory will likely bring regulatory relief to Exxon, including relaxed environmental restrictions and lower corporate taxes, both of which could boost profitability and support greater domestic production,” she says.

JP Morgan Chase

Streeter also believes the financial sector will benefit from Trump’s return to the Oval Office, with JP Morgan Chase, America’s largest bank, as its favorite.

“He is expected to continue to focus on deregulation and lower taxes,” she explains.

“Lighter regulation could reduce compliance costs and stimulate capital markets through favorable policies.”

BAE systems

European defense stocks rose yesterday on expectations of higher military spending on this side of the Atlantic.

Trump has threatened to scale back U.S. military aid to Europe and force NATO members to spend 2 percent or more of their national output on defense, increasing pressure on Britain, Germany, France and others to spend more doing.

BAE systems rose 4.9 percent, or 63p, to 1,343p, and 11 of the 20 analysts following it rate the stock as a ‘buy’, while just one says sell.

Rolls-Royce has also caught the fancy of analysts, with thirteen saying ‘buy’ and just one saying ‘sell’, even with shares at an all-time high after a six-fold rise since ‘Turbo’ Tufan Erginbilgic took over as CEO at the start of this year. last year.

Ashtead group

THE biggest gainer on the FTSE 100 was yesterday Ashtead groupwhich rents equipment under the brand name Sunbelt Rentals, from barriers and fencing to excavators and forklift trucks.

Analysts at broker Peel Hunt say 91 percent of profits in 2025 will come from America, where the country will benefit from “proposed corporate tax cuts that could encourage slightly higher levels of private sector investment.”

Dan Coatsworth, analyst at financial platform AJ Bell, agrees, saying: “The longer-term prospects should improve under Trump.”

Ferrexpo

It was also on the rise in London Ferrexpowhich operates three iron ore mines and an iron ore pellet production plant in Ukraine, and stands to gain if Trump can help end the war with Russia.

Neil Wilson, chief market analyst at financial planner Finalto, says the rise in share prices – up 27.3 per cent, or 17p, to 79.2p – is a “peace play for Ukraine”.

“Given the Ukrainian mine and processing plant, Ferrexpo currently includes the potential of a settlement in Ukraine,” Peel Hunt analysts added.

Trump media technology

Wilson also describes Trump Media Technology – the parent company of the president-elect’s social media platform Truth Social – as “one to watch for obvious reasons.”

Shares rose 6 percent last night, although this paled in comparison to early gains of more than 30 percent, underscoring its volatility.

Trump founded Truth Social in 2021 after being removed from Twitter, and the stock has been closely watching his election prospects.

There is also speculation that X – as Twitter was renamed when it was bought by Trump’s ally Elon Musk – may be planning to buy the company.

Tesla

Speaking of Musk, Wedbush Securities’ Daniel Ives believes Trump’s return could send Tesla shares soaring from nearly $250 before the outcome to more than $300, giving it a value of $1 trillion.

“The biggest positive from a Trump victory would be for Tesla and Musk,” he says.

He also notes that while the end of electric vehicle tax breaks would be bad for the industry as a whole, it could be “a huge positive” for Tesla due to its dominant position.

However, there are concerns that Musk (pictured left during the election campaign) is not spending enough time running Tesla due to distractions including his support for Trump and other business interests including Space X.

Bitcoin

Bitcoin rose to an all-time high above $75,000 as it became clear that Trump was on course to win the presidency.

Crypto experts and enthusiasts believe he will usher in a softer line on regulation for the sector, with Standard Chartered analysts saying this could reach $200,000 next year.

However, skeptics warn that Bitcoin has no intrinsic value and anyone who does invest should be prepared to lose everything.

Artemis VS Lesser Cos

The ‘American First’ initiative is likely to benefit small and mid-cap stocks in the US, which are “currently undervalued compared to mega-caps”, according to Nick Wood, head of fund research at asset manager Quilter Cheviot.

He said Trump’s focus on domestic companies makes the Artemis US Smaller Companies fund attractive, especially given its “strong long-term track record thanks to excellent stock selection.”

British-American tobacco

A change in regulation of nicotine companies could also provide opportunities, says Chris Beckett, head of equity research at Quilter Cheviot.

And a U.S. crackdown on Chinese vape companies would benefit British-American tobaccowhich is the market leader in this field through the Vuse brand.

“Restricting Chinese imports or holding them to the same standards would be a big positive for BAT,” Beckett said.