If Trump Wins, Buy These Three Stocks
Trump may be lagging in the polls, but that does not automatically count him out…
Incumbents are notoriously hard to beat. And as the election is decided by the electoral college, Trump could still pull out a victory without a majority of the voters supporting him.
That is what happened in 2016. So, if he wins, you will want to have your wish list ready.
There are three stock themes that will work during a Trump presidency: guns, gold and energy.
These three sectors should explode. Let me explain why.
Stocks to Buy if Trump Wins
Guns
You can expect civil unrest to ramp up, as those opposed to Trump and those who are for him will clash more frequently. Those clashes will result in the general population fearing for their safety, despite any empirical data.
Smith & Wesson Brands (Nasdaq: SWBI) is our top pick in this sector. Firearms, accessories and ammunition sales are all moving higher. And that trend will continue during a second Trump administration and possibly even a Biden administration – although expectations are for increased firearms regulations.
For those of you in the “Biden will repeal the Second Amendment” camp, be sure you read up on how difficult (almost impossible) it is to repeal a constitutional amendment regardless of how easy pundits make it sound!
Gold
Deficit spending has soared under Trump, more than in most previous administrations. In fact, the national debt now exceeds our annual GDP for the first time since World War II. There is no reason to believe that this trend will reverse.
The president is not shy about sharing his love for debt, and Congress is not exactly made up of fiscal hawks. The U.S. dollar will suffer, albeit not as quickly as many think.
The entire world is printing money right along with the U.S. But each new dollar printed means the last dollar printed is worth just a little bit less – it’s all about supply.
The best way to counter this trend is with an asset that moves higher when the dollar moves lower, and that asset is gold. Look to gold stocks like Kirkland Lake Gold (NYSE: KL) for exposure to gold from a company that has strong management and even stronger growth prospects.
Energy
This is the lowest-hanging fruit if the current administration stays in power. It will further push the fossil fuel agenda by reducing emission standards and promoting energy self-sufficiency.
That bodes well for the energy sector, which has been decimated by global oversupply and dwindling demand because of COVID-19. This sector is harder to play, so you must stick to an ETF like the Energy Select SectorSPDR Fund (NYSE: XLE).
Action Plan: So there you have it… stocks to buy if Trump wins the election.
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