It’s a fascinating time in the world of investments. Prior to the U.S. election, it was largely predicted that, first, Donald Trump would lose to Hillary Clinton and, second, if Trump somehow won in November, the stock market would abruptly plunge 1,000 points. As it turns out, the popular opinion was wrong on two counts. Trump did in fact win the presidency, and instead of the market plunging, it skyrocketed 1,200 points in the four weeks since his victory.
The strength of the stock market is a response to President-elect Trump’s promises, many of which seem business-friendly, such as lower taxes, fewer regulations and the general goal of job growth. Since the election, the Dow Jones Industrial Average has even come close to topping the 20,000 mark.
So as an investor in 2017 – whether you’re a veteran or new to the game – what does all this news mean for you? In a nutshell, there’s still a lot of uncertainty about whether these increases are a sign of growing momentum in the U.S. or if the economy will fluctuate as the Trump administration settles into the White House. All that said, there are some industries that you should consider investing in now that the new year has arrived. Let’s take a look at three industries that could be good investments in 2017.
Note: Before you decide to invest, make sure you do your own research and speak with a financial advisor.
Trump has plans to rebuild the nation’s infrastructure. This isn’t a new idea, as the Obama administration promised a $787 billion stimulus measure, some of which was allocated to bridges and roads. It caused some positive waves in construction and engineering stocks for a period of time and then settled back down once the legislation was actually signed.
According to online investment resource Motif, Trump’s plans will likely cause at least an immediate boost in infrastructure-related industries, such as energy, construction and manufacturing. But depending on how the legislation actually pans out, these gains may lose steam.
With many medical advances being made – such as Alzheimer treatments and cardiovascular preventive drugs – 2017 may see a rise in health care stocks. With a faster FDA drug approval process and ever-moving technological advancements, drugs and treatments are getting better, as well as easier to produce. In addition, with the Baby Boomer generation transitioning into their 70s, there’s sure to be a greater focus on health care.
From a political perspective, there are still a few pieces up in the air. Given that President-elect Trump is promising to get rid of Obamacare, the outlook on this one is still hazy.
Between artificial intelligence (AI), big data and the Internet of things, technology is an ever-accelerating force that could be a great investment decision for you in 2017. Self-driving cars, which were previously thought to be over 10 or even 20 years away from being available to the general public, are now predicted to be just five years away. Ford has even said it plans to build its own self-driving cars for a ride-sharing service starting in 2021.
As for AI, companies like Facebook, Microsoft and Apple are investing heavily in improving their technology, which means Siri and Alexa may be getting upgrades in the next few years.
With regard to the upcoming presidential administration, there is thought to be a $1.6 trillion opportunity in this area within Trump’s infrastructure plan.
Stocks in 2017
With such rapid changes in the world of politics, it can be difficult to make an accurate prediction of what’s coming in 2017. But use this information to give yourself a foundation of facts to make your investment decisions. And if you’re looking for some specific stocks to buy before Trump takes office, check out this stock buying guide from our friends at the Motley Fool.
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