Trump 2.0: The Top Investment Opportunities and Risks Ahead Well, the American people have spoken. Now it’s time shift our focus - and our investments - accordingly. Regardless of personal feelings about the election outcome, at least we can feel some relief that the endless barrage of negative campaign commercials and advertisements are also over. The fact is, no matter how you feel about the election results, the truth is that most of the things we waste time worrying about probably won’t make much difference long term. So, even if the election news wasn’t what you’d hoped, don’t let it make you miss out on good opportunities to grow your wealth. With that in mind, let’s recap a few recent thoughts about the market trends that could put money in your pocket over the next four years, now that the election dust has settled. And for an even deeper dive on this topic, be sure to check out this video from my colleague Charles Sizemore, Chief Investment Officer at our affiliate, The Freeport Society. He covers some interesting risks and opportunities resulting from the election. In fact, there are plenty of promising trends that we can glean from the first Trump administration, that are likely be doubled down on in Trump 2.0. Let’s take a look… The “Trump 2.0” Effect First, let’s talk tax cuts. Donald Trump is a big fan of cutting taxes and cutting government red tape - and his campaign promises on both fronts could lead to potentially profitable investments in certain sectors. 
As shown above, a corporate tax cut from 21% down to 15% should provide a 4% boost to
S&P 500 earnings. Certain sectors stand to gain even more, with Consumer Discretionary, Communications Services, and Financials positioned to see potential EPS boosts of +6.8%, +5.1%, and +4.6%, respectively. Less government regulation is another important theme for the second coming of the Trump administration, with the most highly regulated sectors likely to enjoy a reduction in red tape - boosting the prospects for these stocks. 
In this case, as shown above, the biggest beneficiaries could be Industrials, Consumer Discretionary, and Financials (again). Financial stocks, in particular, have perhaps had the most regulatory scrutiny piled on since the 2008 global financial crisis, with recent high-profile failures among regional banks burying the sector in even more red tape. Interesting to note that the KBW Regional Bank Index ETF (KBW) shot higher by more than 10% Wednesday, outperforming the overall financial sector in the process. Then there’s another opportunity in cryptocurrencies. In the words of my colleague Charles Sizemore, Trump is the most “pro-crypto President we’ve ever had.” The former and future president has recently embraced cryptocurrency, even lending his own name to a business venture in the sector - and you can see the results of his election already in the surge in Bitcoin’s price. 
Here’s where de-regulation and Trump’s fondness for crypto intersect: The current SEC has put a lot of pressure on crypto the past few years, cracking down on exchanges and delaying the introduction of Bitcoin-based ETFs. But under the incoming Trump administration, a new SEC chair is likely to take a more hands-off approach to crypto regulation – which could be particularly bullish for crypto exchanges like Coinbase (COIN). As for the risks, perhaps the biggest - as Charles echoes in his recent video - is the possibility of tariffs, which could reignite inflation. As Charles puts it, tariffs have been a “go-to theme” throughout the first Trump presidency and a foundation of his recent campaign. I discussed this in more detail in a recent column, published just before Election Day. Suffice it to say, however, broadly raising tariffs could backfire by driving up import costs, which could lead to higher producer and consumer prices. In other words, Trump 2.0 could lead to Inflation 2.0 as well. Mike Burnick’s Bottom Line: Trump 2.0 should deliver a range of investment opportunities, as well as potential risks to your wealth that should be closely monitored. The reality is that it will take time for the new administration’s policies to fully play out - since the former and future president doesn’t take office for another two months. In the meantime, watch as emerging trends in financial markets unfold to give you valuable clues about what’s to come. Good investing,  Mike Burnick
Senior Analyst, TradeSmith P.S. As we await the full impact of the new administration policies, one thing is clear: Trump’s return could trigger a second wave of growth across key sectors, particularly in Financials, Industrials, cryptocurrency, and more. This aligns with trends we've been following, especially in the booming AI industry. Trump’s policies could remove barriers and accelerate technological progress, potentially sparking a new boom in AI stocks. Investment expert Louis Navellier, one of the Senior Analysts at our corporate partner InvestorPlace, is already calling it: Trump’s second term could ignite another massive surge in AI. Louis has identified six AI stocks that stand to benefit from these changes. Want to know why he believes Trump’s re-election will trigger this boom? Click here to find out which stocks are on his radar and how you can position yourself to profit from the next big wave in AI. | 
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