Investors have been scrambling to invest in companies that will gain in the upcoming era of President-elect Donald Trump. Internet forums and analyst reports are abuzz with discussions on what stocks can skyrocket in the years to come.
Last month, someone with $200,000 in an inherited IRA asked for ‘Trump-friendly’ stock recommendations on r/Investing – a discussion board on Reddit with 2.6 million members. The questioner wanted to put $100,000 in individual stocks of the total inherited amount.
“Looking to put about half in a Trump-Friendly portfolio. Companies that will likely do very well under his administration. Is anybody doing the same? More context: $100k is currently in S&P, the other $100k I would like to invest very aggressively with companies run by Trump’s friends/businesses that align with his economic policies,” he said.
The investor, 31, said he inherited this money six months ago. The inherited IRA account must be closed and taxes related to it must be paid within 10 years.
“It had been earning 5% up until the election, now I’m looking to ride the Trump train and with an aggressive portfolio I believe a fair expectation/hope is to get this $200k to $500k by the end of Trump’s four years,” he added.
While the Redditor asked the r/investing community for suggestions, he had a few ideas for which he sought constructive criticism and feedback.
First, let’s examine the recommendations he received from other Redditors and then see what stocks he was considering investing in.
The Redditor looking for stock recommendations for the Trump era was suggested more than once to put his money into a broader market fund like the S&P 500 ETF (SPY).
“IMO, you should just put the other $100k into the S&P 500 fund too and forget about it for the next 10 years,” a Redditor said.
A few Redditors during the discussion said the Trump rally he was hoping to ride is already priced in the market.
“You already missed the massive gap up on speculative stocks for Trump win, no? your bets now would be ‘do I think the market is mispricing the things that fell/jumped on trump win,’ not just ‘what will do well,'” a Redditor commented.
Technology Select Sector SPDR Fund
A Redditor recommended the Technology Select Sector Fund (XLK), saying technology stocks are in for a good time in the coming Trump era.
“Putting an end to censorship ought to be good for social media. I think the whole tech industry should thrive,” he suggested.
Technology Select Sector is up 27% this year through December 12. The fund’s biggest holdings include Apple, Nvidia, Broadcom, Microsoft and Salesforce.
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Lockheed Martin Corp
A comment urged the Redditor with $100,000 to invest in individual stocks to just put his money into broader market funds. However, it said Lockheed Martin Corp (NYSE:LMT) could be an option to invest in if he insists on buying individual stocks.
“I personally wouldn’t do this strategy, but if you insist on it, then maybe something like LMT too. Just remember that regardless of what you do, there is no guarantee the stock market will go up, especially on such a short timeline of about four years. IMO, you should just put the other $100k into the S&P 500 fund too and forget about it for the next 10 years,” the comment read.
So far this year, Lockheed shares are up about 8%.
Investors have been watching defense stocks ever since Donald Trump won the election. Last month, Bernstein analyst Douglas Harned said in a note that investors can feel positive about defense stocks:
“We expect Trump to seek a strong defense as he did in his first term, even if he seeks to avoid involvement in overseas conflicts,” Harned wrote. “Trump has been vocal about the need for strong nuclear deterrence, missile defense and expansion of space capabilities.”
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Redditor With $100K to Invest Mulls Buying These Stocks
Tesla
Tesla Inc. (NASDAQ:TSLA) was among the stocks the Redditor said he was considering investing in to ride the Trump train. Tesla shares have gained about 67% so far this year. Earlier this month, Roth MKM upgraded Tesla to Buy from Neutral. The firm said Elon Musk’s support for President-elect Donald Trump likely boosted the company’s demand trajectory.
TKO Group Holdings
The Redditor who is looking to invest $100,000 in Trump-friendly stocks said he feels companies related to UFC and WWE could be suitable picks. Someone in the comments section of his post reminded him that TKO Group Holdings Inc. (NYSE:TKO) is the stock he might be interested in. TKO owns UFC and WWE. The stock is up 78% so far this year.
Stellantis
The Redditor planning to invest $100,000 in the stock market to ride the Trump wave said Stellantis NV (NYSE:STLA) could make a “nice comeback.” So far this year, the automaker’s shares have lost 40% in value. Stellantis CEO Carlos Tavares recently resigned amid falling U.S. sales and declining profits.
Nvidia
NVIDIA Corp (NASDAQ:NVDA) is another big name the Redditor listed among the stocks he was interested in for the Trump era. Nvidia shares are up 185% so far this year. Mizuho Securities said in a recent note that Nvidia could benefit from the rise of modular data centers.
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This article 31-Year-Old Inherits $200K, Asks Redditors for ‘Trump-Friendly’ Stock Ideas to Invest – Top 7 Stocks He Likes and Recommendations originally appeared on Benzinga.com
