4 Ways Investors Can Adapt To Trump’s Policy Shifts in Tech, Energy and Beyond
Written by
Chris Adam
Edited by
Molly Sullivan
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The start of President Donald Trump’s second term in office has been a bit of a wild ride for investors. The stock market has seen some big ups and downs since Trump took office again.
Adding to the stress and uncertainty for investors are policy shifts concerning key areas such as technology and artificial intelligence, energy sources, regulations and more. As Investor’s Business Daily suggested, now may be a time for investors to be extra defensive.
With that in mind, GOBankingRates spoke with several financial experts for their advice on how investors can start adapting to this new administration. Here are four ways they suggested.
Consider Traditional Energy Companies
One of the areas mentioned most by the experts who talked to GOBankingRates is energy. Specifically, what they see as Trump’s pro-fossil fuel stance and overall energy policies that favor more traditional sectors over renewable energy.
“Investors may consider increasing exposure to traditional energy, domestic semiconductor manufacturers and AI infrastructure,” advised Emmy Sakulrompochai, global head of investment advisory at Arta Finance. “Selective exposure to renewable energy is still possible by focusing on firms that can withstand higher input costs and reduced subsidies.”
Look For Tech Creativity
According to Cache Merrill, founder of Zibtek, policies surrounding deregulation in energy and immigration trade policies in tech have provided potential multifaceted opportunities for investors.
“Investors should monitor shifts in lobbying groups, legislative activities and global trade treaties,” Merrill said. “Investors better anticipate and plan for alterations, as policy-driven sectors need an advanced mindset, putting money on creativity instead of just waiting for changes on policies.”
Be Prepared for Inflation
Per Steven Wang, CEO and founder of dub, as policy priorities likely shift rapidly under the new administration, investors can expect more market-moving headlines over the next four years.
“Having a long-term investment plan can help you avoid emotional reactions to the news and maintain a long-term perspective,” according to Wang. “A trusted advisor may be able to help keep your portfolio aligned with your goals.”
Be Agile
It’s probably not a surprise that all the experts we talked to mentioned the importance of diversification with a new administration and continued uncertainty over policies and what comes next from the White House.
“Looking ahead, investors should track policies affecting AI, software exports and government funding for tech innovation,” said Vishal Shah, a senior tech consultant with WPWeb Infotech. “Diversifying into resilient sectors and companies with strong digital ecosystems can help hedge against regulatory risks. Staying informed and agile is the best way to navigate policy-driven market shifts.”
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