Where to Invest After Trump Wins Election

Paul Dykewicz

Sectors ripe for investors to harvest for profits after real estate mogul and reality television show host Donald Trump became president-elect in the United States include infrastructure, financial, defense, pharmaceuticals and biotechnology stocks.

Fears that a Trump victory would push the markets downward proved unfounded, as investors sent the U.S. markets rising for two straight days after the election. One of the priorities that Trump has vowed to support once he takes office in January is to lead the rebuilding of America’s infrastructure, which includes crumbling roads and deteriorating bridges.

Despite an initial plunge of 800 points in Dow Jones futures trading the night after polls closed following the Nov. 8 election, the markets began rising the next morning with the prospect he and a Republican-led Congress would adopt fiscal stimulus, tax cuts and reduced regulations.

“The pure heart of capitalism took over and stocks traded higher out of the gate,” said Bryan Perry, editor of the Cash Machine investment newsletter. “Money has a way of cutting through the chase and moving quickly where it will be best served.”

Perry, who focuses on income-oriented investments, is championing the outlook for shares of “infrastructure, banking and big pharma and biotech stocks.”

In contrast, the election results likely will pressure stocks dependent on emerging markets, as well as multinational companies that do business in places where unfavorable trade deals exist for U.S. workers that Trump may want to re-negotiate.

“Trump was clear on his agenda if he won and the market is reacting accordingly,” Perry said.

The market’s rise shows that the media misled the public by predicting a bearish turn in the market if Trump won, Perry said.

Exclusive  Thinking Outside the Proverbial Box

“Quite frankly, the notion of lower corporate taxes, American-favored trade deals, commitment to infrastructure spending, a reset of spiraling health care costs, legal immigration, a stronger military and de-regulation… is music to the ears of those that have skin in the game; skin being the stock market,” Perry said.

Upon reflection, the “silent majority” expressed their views at voting places throughout the country on Nov. 8, Perry said. The “elites and status quo” in Washington got taken to the woodshed, he added.

Nicholas Vardy, the editor of the Alpha Investor Letter, highlighted the strong likelihood that Trump could win the election in a column a full week before the Nov. 8 vote.

Vardy, a London-based American, predicted the markets would stabilize quickly just as they did after the June 23 vote in which U.K. citizens chose to leave the European Union. Global stock markets sold off sharply after the surprise U.K. vote but recovered strongly over the following days and weeks.

Vardy sent a special alert to his paid subscribers before the market opened on Nov. 9 advising that they should remove all stop prices until the markets settled. He restored them on the morning of Nov. 10.

One way to profit from a Trump Victory, in Vardy’s view, is to buy the ProShares UltraShort MSCI Mexico (SMK), an exchange-traded fund (ETF) that offers a double-leveraged bet that returns twice the inverse of the MSCI Mexico Index. Both the Mexican stock market and the Mexican peso have been closely (and inversely) correlated to Donald Trump’s election prospects during this election cycle.

A drop of 5% in the Mexican market, would be magnified to 10% using this ETF. Add in a 25% fall in the Mexican peso, as predicted by the Brookings Institution, and it would produce quick 50% gains in the days after Nov. 8. A big caveat is that this tiny ETF has just $1.25 million in assets, so liquidity and bid-ask spreads could be a serious issue.

Exclusive  Candy Keynes Is Making Us Sick! Here’s My Remedy

“As a rules-based investor, a Trump victory has not changed my investment bias,” said Mike Turner, editor of the Quick Hit Trader and Signal Investor services. “Coming into Election Day, the odds-on favorite to win the presidency was Clinton. The odds-makers, along with most major media outlets, were categorically wrong.”

Turner said that the analytical models he uses already had anticipated how to invest in the market, regardless of who might win the presidency.

The market has been trending lower since mid-August of this year. In early November, the market fell into the Neutral Zone, which is the trigger that Turner said lets him know to “move to cash.”

“My advice to my subscribers has been, and continues to be, to get small, take profits and wait until the market moves out of the Neutral Zone before committing capital either to the long or the short side,” Turner said. “A Trump presidency was unexpected by the pundits, but it was not unexpected by the stock market if you know how to interpret and act on the trends. The key, going forward, is to ignore the talking heads, pundits and so-called expert analysts; and, instead focus on what the market is clearly telling us. The market is telling us to raise cash and take a wait-and-see attitude on whether the market moves back above the Neutral Zone or falls below it.”

The “Neutral Zone” indicates a 200-day moving average of all five major U.S. indexes, the S&P 500, S&P 400, Nasdaq, Russell 2000 and Dow Jones Industrial Average, plus or minus one standard deviation of normal volatility. As long as the market is inside the Neutral Zone, which occurred on Nov. 4, Turner’s game-plan is to raise cash, take profits and wait to see if the market recovers and moves up.

Exclusive  10 Punk Rock Rules for Success

If any market rise becomes a trend and moves above the Neutral Zone, Turner said he will buy fundamentally strong, ascending stocks. If the market falls below the Neutral Zone, Turner indicated he would hold cash and put money to work in inverse exchange-traded funds (ETFs).

To profit in the market consistently, it does not matter what President Trump will or will not do in the future, Turner said. What matters is how the market trends one way or the other and how investors react to it, he added.

“It is far more important to know where the market is than where you or anyone can guess where the market might be in the future,” Turner said. “Being a successful investor is all about the math and not about guessing.”


Paul Dykewicz is the editorial director of Eagle Financial Publications, editor of Eagle Daily Investor, a columnist for Townhall and Townhall Finance, a commentator and the author of an inspirational book,Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a Foreword by legendary football coach Lou Holtz. Visit Paul’s website at www.holysmokesbook.com and follow him on Twitter @PaulDykewicz.

share on:

Like This Article?
Now Get a FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops