Monday, May 25th, 2020

Are There Any Trump Proof Stocks to Buy?

 

Globalism is out and protectionism is in as Trump assumes the presidency. The Trump bump stock rally started to taper off and now the market is falling as Trump looks to undo trade deals and up tariffs. Are there any Trump proof stocks to buy these days? CBS News offers a few suggestions.

The hoopla over Donald Trump’s coming to power may be starting to subside, but investor anxiety is on the rise over the incoming president’s still-unclear goals and policies. And judging from his unpredictability and predilection for surprises and often-blistering Twitter messages, it’s understandable why investors are on edge – despite Mr. Trump’s assurances that the nation under his stewardship will be greater than ever before.

Investors are taking profits, holding cash and looking for stocks that even Trump and his erratic policy tweets cannot hurt. Here are the seven that CBS News suggests.

FedEx: FDX

Netflix: NFLX

Walt Disney: DIS

JPMorgan Chase: JPM

Caterpillar: CAT

Facebook: FB

Twitter: TWTR

FedEx, Disney and Netflix are not going to build any factories offshore for the purpose of importing to the USA. The same is true of JPMorgan.

Caterpillar is a great choice if Trump stimulates the US economy and does not kill the global economy. But CAT would do badly if Trump’s trade wars go really bad. We do not think that CAT is a Trump proof stock.

Facebook and Twitter also do not build offshore factories but as vehicles of public expression content from either of these could become offensive to Trump and make the company a target of his rage. In that regard these are tossups as Trump proof stocks. But no one is going to quit using these platforms if the world goes into another Great Depression so that could make them Trump proof.

Will Protectionism Help?

The market is not so hot on protectionism. Reuters notes that stocks slide on Trump’s protectionist stance.

The U.S. dollar fell to a seven-week low against a basket of key world currencies on Monday and global stock markets declined amid investor concerns over protectionist rhetoric by U.S. President Donald Trump.

U.S. Treasury yields dipped and gold rallied as demand for safe-haven assets was boosted by Trump’s stance on trade.

On Monday, Trump told U.S. manufacturing executives he would impose a hefty border tax on firms that import products into the United States after moving American factories overseas.

He also plans to sign an executive order to renegotiate the free trade agreement between the U.S., Canada and Mexico, NBC News reported.

Fears of a protectionist White House, and scant details on proposed tax cuts, infrastructure spending and deregulation, have prompted some investors to reassess the level of possible future government stimulus to bolster the U.S. economy.

What investors wanted to see first were tax cuts, infrastructure spending and repatriation of offshore corporate cash. Instead we have pulling out or renegotiating trade deals and the threat of a protectionist-inspired global recession.

What investors wanted to see first were tax cuts, infrastructure spending and repatriation of offshore corporate cash. Instead we have pulling out or renegotiating trade deals and the threat of a protectionist-inspired global recession. Stock up on any Trump proof stocks that you can find and fasten your seat belt while you buy puts on every stock that you own.!

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