As a former Wells Fargo financial advisor, the managing trustee of a private real estate trust and general counsel and head of finance of the LLC Attorney firm, Jonathan Feniak has earned sizeable salaries that allowed him to invest his way into a seven-figure net worth.
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He uses the financial acumen he has honed during his career to assess how legislation, policies and politicians might impact the markets and the money he invests in them in the pursuit of gains.
“As a multimillionaire investor and seasoned attorney, I have ventured into a broad range of investments considering all potential political scenarios,” Feniak said.
So, what would his advice be to investors if Donald Trump emerges victorious from the November rematch with Joe Biden as the first president since Grover Cleveland to win two non-consecutive terms?
“If Donald Trump wins the upcoming election, focusing on policy-friendly sectors would be a prudent move,” Feniak said.
See what other moves experts will make if Trump wins.
Traditional Energy Stocks and Funds
Trump has been a vocal proponent of increasing and deregulating domestic energy production as a solution for major American financial crises, including a looming Social Security shortfall that will leave the SSA unable to pay promised benefits in full in roughly 10 years.
But if you bet big on energy in the wake of a Trump victory, make sure it’s the “drill, baby, drill” kind — not the wind, solar and green kind.
“Firstly, I foresee a strong performance in the oil and gas sector, given Trump’s pro-energy stance,” Feniak said. “Therefore, investing in ETFs tied to these industries would be smart.”
According to Barchart and Nasdaq, the following are some of the best energy ETFs to consider:
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Energy Select Sector SPDR Fund (XLE)
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Vanguard Energy ETF (VDE)
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VanEck Oil Services ETF (OIH)
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SPDR Oil & Gas Exploration & Production ETF (XOP)
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Global X MLP Energy & Infrastructure Fund (MLPX)
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Defense Sector Securities
According to Defense News, “Former President Donald Trump regards increased defense spending as one of his signature achievements. If reelected, he might look to reprise that record.”
Trump’s record on defense spending and its effect on military readiness is hotly debated, but perception can steer market performance — and if he’s reelected, companies with large military contracts could get a boost.
“Defense stocks could see growth with Trump’s emphasis on military spending, with companies like Lockheed Martin, Northrop Grumman and Raytheon Technology leading the pack of favorites,” Feniak said.
Many investment professionals and financial advisors caution against trying to pick individual stocks and instead recommend spreading out your eggs among many baskets by choosing a low-cost fund that tracks an index or follows a sector.
According to the Motley Fool, the following ETFs are top defense industry funds to consider for 2024, many of which contain some or all of the companies that Feniak mentioned:
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iShares U.S. Aerospace & Defense ETF (ITA)
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Invesco Aerospace & Defense ETF (PPA)
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SPDR S&P Aerospace & Defense ETF (XAR)
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ARK Space Exploration & Innovation ETF (ARKX)
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Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN)
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SPDR S&P Kensho Future Security ETF (FITE)
Construction and Infrastructure Investments
Like military spending, Trump’s commitment to and record on infrastructure are controversial, but here, too, public perception could shape market performance.
In June 2020, Trump signed an executive order “to expedite the federal permitting process for infrastructure projects, including new mines, highways, pipelines and other projects, as a means to boost the economy,” according to the National Organization of Counties.
He has campaigned heavily on rebuilding American infrastructure in 2024, so associated stocks and funds could benefit if he wins.
Feniak affirmed: “Lastly, construction and infrastructure companies would also be beneficiaries, as Trump has repeatedly highlighted his commitment to infrastructure renewal.”
According to U.S. News Money, the following ETFs are some of the top picks for anyone placing bets on infrastructure and construction in 2024:
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iShares US Infrastructure ETF (IFRA)
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ProShares DJ Brookfield Global Infrastructure ETF (TOLZ)
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SPDR S&P Global Infrastructure ETF (GII)
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Global X US Infrastructure Dev ETF (PAVE)
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FlexShares STOXX Global Broad Infrastructure ETF (NFRA)
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iShares Global Infrastructure ETF (IGF)
Anticipating Market Behavior Is Risky Business
Most investment advisors recommend long-term buy-and-hold strategies that involve picking stocks and funds with solid fundamentals and contributing to them regularly without regard to market performance or contributing factors like global events, politics and the economy.
If Trump wins, infrastructure, military and energy stocks could get a boost, but many other factors will influence their performance and any hypothetical Trump bump could be temporary.
“In my experience,” Feniak said, “it’s vital to remember that all investments involve risks and a multitude of factors, including, but not limited to, the political climate.”
Always talk to a financial advisor or investment professional before adjusting your portfolio.
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This article originally appeared on GOBankingRates.com: I’m a Millionaire Investor: 3 Smartest Investing Moves If Trump Wins Election
