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5 Stocks To AVOID After Trump Win
Stock market gains have continued since Donald Trump was announced as the 47th president of the United States. In just the past two days, my portfolios have increased by $20,000 in value.
However, not all stocks are set to benefit.
In today's update, I want to share 5 stocks that have the potential to decline or be negatively impacted during a Trump presidency.
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The Key Story
5 Stocks To AVOID After Trump Win
Stock #1: Rivian Automotive (RIVN) - Rivian and other unprofitable electric vehicle makers like Lucid and NIO are facing challenges. Rivian is losing significant money on every vehicle sold and is unlikely to reach profitability soon. The potential removal of EV tax credits under Trump's policies could increase costs for consumers, making it harder for unprofitable EV makers to compete.
Stock #2: NextEra Energy (NEE) - NextEra Energy and other green energy companies that heavily rely on government subsidies and tax credits might be negatively affected if policies shift away from renewable energy incentives. While NEE has been a solid performer, changes in government support could impact future growth rates.
Stock #3: Some Pharmaceutical Companies - There may be increased scrutiny on big pharmaceutical companies from RFK JR, leading to uncertainty in the sector. Companies like GlaxoSmithKline (GSK), Pfizer (PFE), and Sanofi (SNY) might face challenges. However, many of these companies already lack growth, making them less attractive investments regardless of political changes.
Stock #4: Government Contractors - Lockheed Martin (LMT), Boeing (BA), etc - While defense spending will likely remain strong, there could be shifts in how government contracts are awarded, leading to increased competition and potential budget cuts. This introduces uncertainty for quality defense contractors like Lockheed Martin (LMT). Especially for the bad performing ones like Boeing (BA)
Stock #5: Processed Food Companies Companies like Coca-Cola (KO), PepsiCo (PEP), Kraft Heinz (KHC), and General Mills (GIS) might face challenges if RFK JR changes regulations affecting processed foods. While these companies have strong brands, they may need to adapt their product formulations, potentially impacting profits in the short term.
In conclusion, while the market is reacting positively overall, it's crucial to remain vigilant and not let politics overly influence investment decisions.
Focus on investing in strong businesses with solid fundamentals. Remember, we have more control over our financial futures than any government policy.
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— Zach
Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter