The main beneficiaries in the stock market from a possible Trump victory
Events that have occurred over the past month have become more frequent options that Donald Trump already had to win the US elections which will take place in November. The possibility of the tycoon’s return to the White House has increased efforts by arms manufacturers and private prison operators. Bitcoin has also benefited.
His victory in the presidential debates against President Joe Biden, the assassination attempt on him and the withdrawal of the Democratic candidate Kamala Harris’ presidential bid moves Trump closer to a second term.
Axa IM managers believe that “the likelihood of Trump returning to office is the most likely,” although they acknowledge that “Harris’s arrival makes this less likely.”
From Bitcoin to Regional Banks
One of the assets that would benefit most from a hypothetical Republican victory is Bitcoin. The most important cryptocurrency in the world has revalued by 13.2% since July 15 last year.when the attack on Trump took place.
“The Republican presidential candidate was is widely regarded as forbidden in this campaign Despite his past skepticism, even accepting donations in cryptocurrencies such as Bitcoin and Ethereum“This is a first for a major political party in the US,” eToro experts emphasize.
That same Saturday, Trump took part in Bitcoin Conference 2024 is being held in Nashville, Tennessee, as part of a Republican strategy to attract cryptocurrency investors ahead of the election. The party has promised easier regulation of cryptocurrencies, while the tycoon recently criticized Democrats’ attempts to regulate the sector.
The former president has made it clear that he would like to see an expansion of Bitcoin mining by American companies, although In 2021, he called the digital asset a “scam.”
Trump’s change of heart has sent Bitcoin prices soaring to above $69,000 for the first time since mid-June, and several quotes related to the universe crypto.
Microstrategya software company with a significant Bitcoin portfolio, has soared 25.5% over the past ten sessions. During the same period, cryptocurrency exchange Kinbeis grew by 11.4%, and crypto miners Marathon Digital And Rebellious platforms They increased in price by 3.9% and 14.3% respectively.
Other companies that stand to gain the most from a potential Trump victory include: American arms manufacturers.
Actions Smith and Wessonthe country’s largest pistol maker, has risen nearly 15% since the attack on the former president. Sturm Rugerproducing automatic rifles and pistols, revolvers and silencers, rose in price by 9.2%.
Smith & Wesson booth at a police conference in Chicago, Illinois.
Reuters
The same thing happens with the manager of a private prison. CoreCivicShares of the company, which operates more than 93 correctional and jail facilities across the United States, have risen 9.6% over the past two weeks. GEO Groupanother of the country’s largest private prison operators, lost 1.6 percent of its value.
Despite this, analysts at Wedbush Securities believe that both GEO Group and CoreCivic could benefit from a second Trump term, as the former president seeks to bolster resources tied to border security and Immigration and Customs Enforcement detention facilities.
On the other side, bolt, a Canadian-born video platform that American conservatives see as a haven from censorship and culture awokeincreased by 13.6%.
Small regional banks and energy companies in the US They also rose in the stock market, helped by Trump’s rise in popularity. The former, as measured by the KBW index, is up 6%, while the latter is up about 1.8%.
Analysts believe that regional entities could benefit from a Trump victory, as it would lead to looser regulations and policies that promote economic growth. They also note that a Trump administration would be more willing to pursue bank mergers and acquisitions.
At the same time, they emphasize that the Republican government, as a rule, enjoys the favor of oil, gas and electricity companies.
Trump Media
Trump Media and Technology Group, Shares in the parent company of Truth Social, the platform promoted by the mogul, soared more than 61% in a day on July 15. However, ten trading sessions later, the remainder has been reduced to below 2%.
The company began trading on the Nasdaq under the symbol DJT on March 26 after completing a merger with a special purpose acquisition company (SPAC). Acquiring the digital world. Starting price: $70 per share.
An archived photo of a mobile phone showing Donald Trump’s Truth Social social network.
Efe
In the first sessions after its debut on the stock market, it rose to $80. However, it is now trading at around $31 per share. Over the year as a whole, the revaluation has approached 79.7%.
Thus, since joining Digital World Acquisition accumulates a 37% decline.