If Trump wins the 2024 election, it could trigger a policy shift and favor specific sectors such as energy, finance and manufacturing.

Energy

Energy companies may see a more relaxed policy environment under a Trump administration, with oil and gas likely to return to the forefront of policy, rather than emphasizing renewable energy as it did under the Biden administration.

Companies like ExxonMobil and EQT Corp. could benefit from this, especially if the moratorium on LNG export permits is lifted. Even coal producers like Peabody Energy are receiving positive attention from the market in anticipation of increased domestic production.

Trump's energy policy tends to favor fossil fuels, but at the same time he has become somewhat ambiguous about electric vehicles (EVs). While he has criticized federal subsidies for EVs, he has maintained a close relationship with Tesla founder Elon Musk.

Some analysts believe that even if mandatory regulations for EVs are reduced, Tesla may still be able to thrive with its size and ability to adapt to the market without having to rely on large subsidies. In addition, higher tariffs on Chinese imports could provide Tesla with an umbrella of low-cost competitors in the U.S. market.

Finance

The Trump administration could have a significant impact in the financial services sector. Based on his past performance, he is expected to push for the de-regulation of the financial sector, which is good for banks and M&A-focused companies.

Regional banks in particular are likely to benefit from looser capital requirements and be more responsive to market conditions. Stocks like Lazard, Moelis & Company and Evercore could benefit from increased M&A activity.

Additionally, Trump may make adjustments to the policies of the Federal Trade Commission (FTC) and the Department of Justice's antitrust division, paving the way for more pro-business policies. This shift may provide a boost to companies like Live Nation and may even drive the privatization of government-backed mortgage giants Fannie Mae and Freddie Mac.

Cryptocurrencies

The Trump administration could also provide a boost to bitcoin and cryptocurrency stocks.

Shares of major cryptocurrency-related companies such as Riot Platforms and Coinbase have soared since Trump announced that he was accepting bitcoin donations as a Republican candidate. In addition, Trump's vice presidential candidate, JD Vance, holds a pro-bitcoin stance, implying that the Trump administration will be more open to the cryptocurrency market.

Investors who are betting on a Trump victory should keep a close eye on these trends. While a policy shift cannot be guaranteed, its impact on market sentiment cannot be ignored. For those investors looking to profit from the Trump trade, now may be the best time to lay out their bets.