These companies do most of their business at home and stand to benefit from the Trump administration’s initiatives.
Since president Donald Trump’s surprise victory in November, Wall Street has been scrambling to identify businesses that have the most to gain under the new administration. The stock market’s broad advance to record highs suggests that investors saw winners almost everywhere they looked. But as Trump’s “America First” themes translate into actual policies, it should become clearer which companies could be the biggest beneficiaries.
We went hunting for potential America First stocks, using several criteria. To start, we wanted companies that derive the vast majority of their sales domestically and stand to do well if Trump makes good on his promise to sharply boost U.S. economic growth.
Then we looked for businesses that would benefit from specific Trump themes—for example, ramping up job creation and stoking wage growth, which could spur consumer spending; increasing outlays for infrastructure projects; and promoting U.S. exports. Other considerations included Trump’s pledge to cut corporate tax rates and his vow to eliminate what he considers excessive business regulation.
We came up with seven companies that we think qualify as great America First investment ideas. Three major caveats: First, there’s no guarantee that Trump’s policies will emerge as promised. Second, even if they do, there’s no assurance that they will work as touted—unintended consequences could turn some likely business winners into stunned losers. Third, record high stock prices may already reflect much of any bump in the profitability of America First companies.
That said, here are our seven picks (share prices are as of February 28; for more data, see the table on page 60).
This story is from the May 2017 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 2017 edition of Kiplinger's Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
A SOLID YEAR FOR THE KIPLINGER 25
All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.
YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”