As we look ahead to a second Trump administration, many investors are considering how the changing political and economic landscape will affect different sectors of the U.S. economy.

Although the Trump era has been marked by deregulation, tax cuts and the “America First” agenda, it is likely that these themes will continue to shape the economy in the years to come.

For investors, understanding which sectors will benefit is critical to making informed decisions.

In this article, we’ll explore the sectors most likely to thrive under President Trump’s policies, from booming energy markets to the resurgence of American manufacturing to the rise of currencies digital.

We will also highlight sectors that could struggle under an administration that favors deregulation, tariffs and local production over reliance on imports. Whether you’re a seasoned investor or new to the market, knowing where to look and where to avoid could help you position your portfolio for success in the years to come.

Let’s look at some of the key sectors that could prosper, as well as those that could face headwinds from the Trump trade.

1. Oil and gas: “Green” channels are removed; more deregulation and drilling will bring more investment and revenue to the energy sector, particularly liquefied natural gas.Many deals that were not negotiated under a Democratic administration will be rushed through over the next four years. Can the Keystone Pipeline Come Back? What about gas pipelines in the New England states? With a friendlier Environment Agency, more deals will gain regulatory approval.

2. Defense: Trump will emphasize a more robust military, thereby increasing defense spending. Defense spending is also crucial to boosting the local economy and putting many Americans back to work. See the Department of Defense investing more in new sectors like Space Force, AI, drones and lasers than in traditional tanks and aircraft carriers.

3. Mining: not just traditional coal mining, but more selective mining of rare earth minerals, iron ore and uranium, as well as vanilla gold and platinum. More local manufacturing means greater demand for raw materials. A US-first posture means that imports of critical materials like uranium from Russia will be seen as an import substitution opportunity.

4. Crypto and digital currency: Trump is the first crypto-friendly president. Crypto will be lightly regulated, allowing this sector to thrive and focus on public service projects. Again, a crypto industry-friendly SEC will see Spot ETFs and other crypto derivatives allowed even in retirement accounts.

5. Manufacturing: America first, this may mean tariffs; ultimately, more manufactured goods come back to America. Tariffs eliminate the benefit of offshoring manufacturing. What would happen to the Louisiana or Wisconsin economy if Foxconn decided to open a factory in America to assemble iPhones? He envisions that many foreign manufacturing companies would open factories in America to avoid tariffs.

6. Banking and Finance: Once again, the lightness of regulation in banking means that less costs and more risk-taking will be encouraged. Regional banks and smaller banks will do well. Mergers and acquisitions will increase as a more receptive FCC, SEC, and Trade Commission authorize larger transactions. Wall Street will see more deals and more advisory revenue

7. Airlines, transportation and logistics: If America extracts more oil and the price of a barrel falls, airlines and logistics companies will see their highest costs fall, jet fuel and diesel respectively. This drop in fuel prices will boost air and sea transport.

 8. Nuclear energy: The Trump administration will also need more clean energy and will seek to license smaller nuclear plants, like those recently approved to power large data centers. Expect nuclear to take a considerable share of the coal market.

9. Law and order: Trump, as Law and Order president, will favor companies involved in running private prisons, providing personal protective services, and supporting ICE and private security. The administration will also seek to reduce costs by outsourcing security to private companies.

What professions should you avoid?

Anything related to government subsidies. So clean energy, solar and wind, which are only profitable thanks to government subsidies, will not be a good choice. Keep in mind that there is a place for profitable businesses without government subsidies.

This negative sentiment toward companies receiving subsidies will extend to all companies whose models depend on subsidies to provide medical care under the Affordable Care Act or administer student loan forgiveness.

Any activity based solely on imports from China, Mexico, etc.

Imports will not be encouraged under Trump, who favors a stronger dollar and local production.

Overall, the U.S. economy will remain the largest in the world. If you are unsure about certain sectors, consult your advisor and look to gain exposure to the US market by investing in low-cost index funds or ETFs that invest in the US market.

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