Trump is back - what does it mean for your money?

GOP Presidential Candidate Donald Trump Holds Campaign Rally In Wilkes Barre, Pennsylvania

(Image credit: Michael M. Santiago / Staff)

published 6 November 2024

Trump’s comeback comes as no surprise and is one of the greatest political comebacks in history.

The last time a former president returned to the White House after an electoral loss was more than 130 years ago when Grover Cleveland claimed victory in 1892.

But while Trump’s win was widely expected, what does his win mean for your money, how have the markets reacted and does Trump’s win present an opportunity for investors? Which sectors will do well?

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US election: FTSE jumps

As the markets woke up to the news that the Republican Donald Trump was set to become the 47th US president, the FTSE climbed 1.3% - the biggest percentage gain in three months. The FTSE 250 mid-cap also jumped by 1.4%.

But this was not the only rally - global stock markets rocketed. The S&P 500 climbed and the Russell 2000 also jumped.

Even Bitcoin surged past $75,000. Gold too went up, having already reached record highs.

US stocks opened at record high, and some, like Tesla, soared 12% upon the news and shares in Goldman Sachs jumped 10%.

The markets on the whole have not panicked, and despite the renewed threat of high inflation, investors were not worried.

But, there are always winners and losers - here are the sectors that could do well out of the Trump victory.

Which sectors will do well following Trump’s win?

According to experts, some sectors are poised to do better than others under Trumps’ presidency.

Financials

The sector is expected to do well if the regulatory environment improves. Citigroup and JPM have been tipped by IG Group as the winning stocks.

“The Biden administration wanted the largest banks in the US to hold more capital in reserve, to cushion them against potential losses in the event of any setbacks. Those extra capital requirements may not be required under Trump, effectively meaning banks would have fewer constraints and be able to use more cash for lending or share buybacks,” Dan Coatsworth, investment analyst at AJ Bell says.

“When you factor in the potential for looser regulations, lower corporate taxes potentially leading to higher business investment, and the prospect of interest rates staying higher for longer which is good for lenders, it’s easy to see why the outlook for the banking sector is more encouraging under Trump.

Crypto

We’ve already seen the Bitcoin surge and with Trump’s vision to make the US the digital asset centre of the world, stocks like Coinbase and Paypal could do particularly well.

Oil stocks

In the words of Trump - “Drill, baby, drill’! We can expect to see a higher demand for oil stocks. Trump has spoken about increased drilling on federal land and awarding more permits for LNG exports.

Exxon Mobil Corp, ConocoPhillips, Peabody Energy Corp and Nucor Corp are expected to be the winning stocks, experts suggest.

Defense

Republicans have traditionally been good for defense stocks, with stocks such as Boeing Co and Lockheed Martin Corp tipped to be the ones to watch.

Technology

Will Trump help fuel M&A activity and loosen regulatory pressures? If so, this could mean more power for some of the biggest technology firms.

Amazon, Google and Microsoft are tipped as winners with Trump in power.

Which sectors are the losers?

Someone has to lose and according to experts, chipmakers and healthcare insurers may not be on a winning streak under Trump’s Power.

Nvidia’s record run could come to an end if the tariffs Trump is discussing are enacted, creating a negative relationship with China which could impact supplies.

As for healthcare insurers, if Trump appeals ‘Obamacare’, healthcare supplies could also be hit. UnitedHealth Group and HCA Healthcare Inc may not do well.

Kalpana is an award-winning journalist with extensive experience in financial journalism. She is also the author of Invest Now: The Simple Guide to Boosting Your Finances (Heligo) and children's money book Get to Know Money (DK Books).

Her work includes writing for a number of media outlets, from national papers, magazines to books.

She has written for national papers and well-known women’s lifestyle and luxury titles. She was finance editor for Cosmopolitan, Good Housekeeping, Red and Prima.

She started her career at the Financial Times group, covering pensions and investments.

As a money expert, Kalpana is a regular guest on TV and radio – appearances include BBC One’s Morning Live, ITV’s Eat Well, Save Well, Sky News and more. She was also the resident money expert for the BBC Money 101 podcast .

Kalpana writes a monthly money column for Ideal Home and a weekly one for Woman magazine, alongside a monthly 'Ask Kalpana' column for Woman magazine.

Kalpana also often speaks at events. She is passionate about helping people be better with their money; her particular passion is to educate more people about getting started with investing the right way and promoting financial education.