How Will Stocks Perform Under A Trump Presidency? (01/20/2025)

Current market buzz:

In honor of Martin Luther King Jr. Day, the stock markets are closed – but investor sentiment never rests, as political catalysts are poised to move stocks this week. Today is, of course, Donald Trump’s second inauguration, as the Biden administration comes to its 4-year close. The S&P 500 has had an unstable ride YTD, with an initial selloff, but full recovery over the past two weeks. Earnings reports have moved stocks the most over that time period, but the market’s focus is beginning to shift toward the Trump administration, and what this transition of power will mean for investors.

Analysts everywhere are calling Trump an economic wild card, evidently backed by his unpredictability that keeps the market guessing. His unforeseeable actions paired with his tendency to pick favorites makes the stock market a bit of a slippery slope, but fruitful if you keep your eyes peeled. Take Tesla for example…

How will stocks fare under the Trump administration? Who’s to say. The stock market is much more complex than a black and white answer of “good” or “bad” – my prediction would be a fair share of both. But partnering a Republican administration with positive individual earnings data and economic management could lead to another strong year for the S&P 500. I’d be willing to bet that a strong year would be led by a handful of select winners, and I wouldn’t be surprised if a majority of that handful happened to make donations to the Trump campaign – that’s how politics works kids.

What’s going on in crypto?

At each new crypto launch, it sends a pang through my investing soul to even think about it, so I’ll be brief. If you play stupid games, you will win stupid prizes. Too often do I see people put life-changing money into “the next big thing” in the crypto market, and subsequently lose it all. My crypto portfolio is 95% Bitcoin, and is probably smaller than your little sister’s crypto portfolio, but I couldn’t care less. You are buying an asset with zero underlying value, zero backbone, zero demand, that was created by a child, and you have the audacity to get upset when it goes down? Throw a hundred bucks into Fartcoin (which has a $1.3 billion market cap…) if you so desire, but you need to understand that it quite literally has negative intrinsic value. A select few actually do have innate value, but that short list does not include Hawk Tua Coin.

Bitcoin and the like are a completely different story, and should be recognized as small positions in a typical investment portfolio. Here to talk about the defensible cryptocurrency market, is Anthem from CryptoCurated …

Anthem:

“The cryptocurrency market represents a new frontier in the evolution of finance, built on decentralized networks that prioritize transparency, security, and efficiency. Unlike traditional stock markets tied to corporate performance and government policies, cryptocurrencies operate on blockchain technology, enabling peer-to-peer transactions without intermediaries. Bitcoin, often called “digital gold,” introduced this concept in 2009, and since then, the market has expanded to include thousands of digital assets with diverse use cases—ranging from decentralized finance (DeFi) platforms to digital collectibles and supply chain solutions. While the market is known for its volatility, it also offers unparalleled opportunities for innovation and growth, making it a compelling alternative asset class for investors seeking diversification.

A Few Favorites:

Among the many cryptocurrencies, a few stand out due to their innovative ecosystems and growth potential. Bitcoin (BTC) remains the cornerstone, valued for its scarcity and role as a hedge against inflation. Ethereum (ETH), on the other hand, is the backbone of decentralized applications, powering everything from smart contracts to NFTs. For DeFi enthusiasts, THORChain (RUNE) is a standout, enabling seamless cross-chain swaps without the need for centralized exchanges. Solana (SOL) is another favorite, known for its high-speed transactions and scalability, making it a top choice for developers building decentralized apps. These projects not only highlight the diversity of the crypto space but also its potential to reshape how we think about money, finance, and technology."