Things You Can Invest In: The Trump Economy

Donald Trump

Donald Trump, the 45th President of the United States, has been president for 39 days and counting. Since he took office Regardless of where you stand on his political views and actions, one thing is certain: we are not witnessing a complete and total collapse of the world economy and the stock market. In fact, we’re seeing the opposite.

Invest in index funds.

Market indexes like the Dow, Nasdaq, and S&P 500 are skyrocketing right now. The Dow alone recently hit 21,000 points, a new all-time record. While markets can’t always be on the uptick, they historically increase over time. If you wanted to invest in these indexes, which are one of the least risky investments you could make, you’d want to invest in index funds like $SPY, $VOO, and $DIA. (For more information on indexes and index funds, read our guide here.)

Invest in oil.

Right now, Trump and his cabinet are rolling back environmental protections and restrictions on oil. All previously disputed pipelines will be built. While clean energy will still be a thing, oil companies will have the chance to drill more, build more refineries, and deal with less restrictions than the last administration. If you wanted to follow these trends, you could invest in oil companies like Exxon Mobile ($XOM) or oil-based ETFs.

Invest in anything Trump tweets about.

Before he took office, Trump has praised Ford ($F), Intel ($INTC), SoftBank ($9984), and countless other companies who pledged to create/add more jobs in America. These companies’ stocks have seen nice increases thanks to Trump’s promotion and the fact that they’ll likely benefit from subsidies and tax breaks. If you want to make a short-term trade or invest in the long term, keep an eye on Trump’s Twitter feed for company mentions.

Put money in a savings or money market account.

There’s the school of thought that the Trump presidency will lead to a continued four-to-eight-year bull run on Wall Street. Then there’s the idea that the market could crash any minute and Trump’s presidency won’t last for a full term. If either of these are true, you could simply save your money by putting it in a savings account. While you’ll make almost nothing in terms of interest due to rock-bottom rates, you won’t lose anything (if that’s your biggest concern).

Should you invest in a Trump economy? You should always invest, regardless of the political climate. Investing in index funds is your safest bet. Investing in individual companies and oil is slightly riskier. If your index funds or investments in multi-billion-dollar industry leaders go down, don’t fret. Chances are they’ll go back up again in the near future.