Donald Trump is the 45th President of the United States. The markets took a nosedive on the announcement. The unprecedented election is over, and Wall Street had prepared for a Hillary Clinton presidency.
Dow Jones Industrial Average futures are down in the triple-digit range on Wednesday, as investors brace for uncertainty in the White House.
The markets are poised to be volatile in the coming months as Trump’s policies are laid out and put into action.
Sectors that may benefit from Trump being president are:
1. Energy
Trump is a climate change denier, and that is good for the energy sector. Trump proposed an energy revolution during his campaign that would allow shale production restrictions to be lifted, and the ability to drill for oil and gas on federal lands.
Trump has stated that he will bring coal back into the spotlight, too.
Coal companies will benefit the most from a resurgence in coal production.
2. Banking
The banking sector may get a huge boost from a Trump presidency. The House and Senate are controlled by Republicans, too, which could benefit big banks. Democrats proposed restrictions on banks following fraudulent activity at Wells Fargo (WFC).
The changes in the banking sector are anyone’s guess this early into a Trump presidency, but with Democrats backing off stricter regulations, banks can breathe a sigh of relief for now.
3. Pharmaceuticals
Big Pharma companies are in the spotlight recently. Rising medical costs have caused companies, such as Mylan (MYL) which is facing an antitrust probe, to face harsh criticism following rising EpiPen costs.
Jazz Pharmaceuticals (JAZZ), a company that raised their narcolepsy drug price by 840% over a seven-year period, is a stock to watch.
Trump is less likely to put a pricing reform in place than Hillary Clinton, and this should result in pharma and biotech companies rallying as a result.
