Winners and Losers: How Did the Election Results Impact the Market?


The election is over. Donald Trump won. Regardless of who you voted for, everything that needs to be said about the results has already been said.

The world, however, didn’t stop the day after election. Neither did the stock market, which people feared would collapse by the opening bell. In fact, some companies and sectors did relatively well considering the circumstances. Others, however, did not so well, as was expected.

Here are the top winners and losers in today’s market:

Winner: Private prison companies

By Gordon Incorporated [CC BY 2.0], via Wikimedia Commons
By Gordon Incorporated [CC BY 2.0], via Wikimedia Commons
The Geo Group ($GEO), owner of many private prisons, is no longer under threat of closing those prisons now that Trump is in charge. Federal privately owned prisons were in the process of being phased out by the current administration. Thus, Geo increased in price by over 21% today.

Winner: Coal and Oil companies

By National Iranian Oil Company (NIOC) [Public domain], via Wikimedia Commons
By National Iranian Oil Company (NIOC) [Public domain], via Wikimedia Commons
Donald Trump is a big believer in finite energy and much less so in renewables, which is why this sector is doing fairly well today.

Winner: Pharmaceutical companies

By Barbirossa (Own work) [CC BY-SA 3.0], via Wikimedia Commons
By Barbirossa (Own work) [CC BY-SA 3.0], via Wikimedia Commons
If Hillary were president, she would have enacted reforms to curb drug companies’ inane pricing schemes. Since that’s not a possibility, they can continue with business as usual and have no major roadblocks, and investors have more faith in them.

Loser: Renewable energy providers

Flickr/Walmart
Flickr/Walmart

Since there will be more of an emphasis on finite energy sources during this administration, companies like Solar City ($SCTY), which decreased by over 4% today, won’t do as well as they would have if the results were different.

Loser: Weapons stocks

By Parsecboy (I created this photograph.) [Public domain], via Wikimedia Commons
By Parsecboy (I created this photograph.) [Public domain], via Wikimedia Commons
Gun stocks soared for a while when a Hillary presidency seemed much more possible. People feared that she would win and take their guns, which increased demand in guns. Since Trump is in power now, weapons companies have nothing to fear, and demand for their weapons is normalizing. That’s why Smith & Wesson ($SWHC) shares went down by over 15%.

Loser: Anything related to Mexico

winners-losers-trump-6
Flickr/Ivan Hernandez

The value of the peso is down after the election. Car companies making vehicles in Mexico are also down since the chance of them being forced to relocate factories stateside is high now.


Trump isn’t even in power yet, which means he can’t pass laws or reforms that directly impact these companies until next year. The stock market, however, is always looking toward the future and speculating on the worst and best case scenarios based on existing information. The impact these companies and sectors are facing might be temporary, but given Trump’s stated policies and political agenda, they could be much more permanent in the coming months.

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