Investors have been scrambling to invest in companies that will see gains in the coming era of President-elect Donald Trump. Internet forums and analyst reports are buzzing with discussions about which stocks could skyrocket in the coming years.
Last month, someone with $200,000 in an inherited IRA asked for “Trump-friendly” stock recommendations on r/Investing — a Reddit discussion board with 2.6 million members. The questioner wanted to put $100,000 of the total inherited amount into individual shares.
“I want to put about half in a Trump-friendly portfolio. Companies that are likely to do very well under his administration. Is there anyone doing the same? More context: $100,000 is currently in S&P, the remaining $100,000 I would very much would like to invest.” aggressively towards companies run by Trump’s friends/companies and aligned with his economic policies,” he said.
The investor, 31, said he inherited this money six months ago. The inherited IRA account must be closed and associated taxes paid within ten years.
“Up until the election it was making 5%, now I want to ride the Trump train and with an aggressive portfolio I believe it is reasonable to get this $200,000 to $500,000 by the end of Trump’s four years. ”, he added.
While the Redditor asked the r/investing community for suggestions, he had a few ideas for which he was seeking constructive criticism and feedback.
Let’s first look at the recommendations he’s received from other Redditors and then see which stocks he’s considering investing in.
The Redditor looking for stock recommendations for the Trump era was suggested more than once to put his money into a broader market fund like the S&P 500 ETF (SPY).
“IMO, you should just put the remaining $100,000 in the S&P 500 fund and forget about it for the next decade,” said one Redditor.
A few Redditors said during the discussion that the Trump rally he was hoping to ride is already priced into the market.
“You already missed the huge gap in speculative stocks before Trump’s victory, no? Your guess now would be “do I think the market is misestimating the things that fell/jumped with Trump’s win”, not just “what will it do well”? ‘, said one Redditor.
Technology Select Sector SPDR Fund
One Redditor recommended the Technology Select Sector Fund (XLK) and said tech stocks are set to have a good time in the coming Trump era.
“Ending censorship should be good for social media. I think the entire technology industry should flourish,” he suggested.
Technology Select Sector is up 27% this year through December 12. The fund’s largest holdings include Apple, Nvidia, Broadcom, Microsoft and Salesforce.
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Lockheed Martin Corp
One comment urged the Redditor to invest $100,000 in individual stocks so he could simply put his money into broader market funds. However, it is said that Lockheed Martin Corp (NYSE:LMT) could be an option to invest in if it insists on buying individual stocks.
“Personally I wouldn’t follow this strategy, but if you insist, maybe something like LMT. Just remember that no matter what you do, there is no guarantee that the stock market will rise, especially on such a short timeline. of about four years, IMO you should just put the remaining $100,000 in the S&P 500 fund and forget about it for the next ten years,” the comment read.
So far this year, Lockheed shares are up about 8%.
Investors have been eyeing defense stocks since Donald Trump won the election. Last month, Bernstein analyst Douglas Harned said in a note that investors can be bullish on defense stocks:
“We expect Trump will seek a strong defense, as he did during his first term, even as he seeks to avoid involvement in overseas conflicts,” Harned wrote. “Trump has spoken out about the need for strong nuclear deterrence, missile defense and expanding space capabilities.”
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Redditor with $100,000 to invest Mulls buys these shares
Tesla
Tesla Inc. (NASDAQ:TSLA) was one of the stocks the Redditor said he was considering investing in to ride the Trump train. Tesla shares are up about 67% so far this year. Earlier this month, Roth MKM upgraded Tesla to Buy from Neutral. The company said Elon Musk’s support for newly elected President Donald Trump likely boosted the company’s demand trajectory.
TKO Group Holdings
The Redditor, who wants to invest $100,000 in Trump-friendly stocks, said he thinks companies related to UFC and WWE could be suitable choices. Someone in the comments section of his post reminded him that TKO Group Holdings Inc. (NYSE:TKO) is the stock he might be interested in. TKO owns UFC and WWE. The stock is up 78% so far this year.
Stellantis
The Redditor who plans to invest $100,000 in the stock market to ride the Trump wave said Stellantis NV (NYSE:STLA) could make a “nice comeback.” So far this year, the automaker’s shares are down 40% in value. Stellantis CEO Carlos Tavares recently resigned due to declining U.S. sales and declining profits.
Nvidia
NVIDIA Corp (NASDAQ:NVDA) is another big name that the Redditor mentioned as one of the stocks he was interested in for the Trump era. Nvidia shares are up 185% so far this year. Mizuho Securities said in a recent note that Nvidia could benefit from the rise of modular data centers.
Check it out:
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This article, 31-Year-Old Inherits $200,000, Asks Redditors for ‘Trump-Friendly’ Stock Ideas for Investing – Top 7 Stocks He Likes and Recommendations originally appeared on Benzinga.com
