So… in preparation for a Trump presidency, what are you investing in?

[leftyjace]

With the news that rates will be going up this and next year, I’m curious what people are going to start doing with their investments and why?

Obviously bond funds, while safe, aren’t going to provide the best return in the short term…

[hnoseguard]

Immediately after Trump won, short sighted investors began dumping utilities.  I’ve topped off some positions in SO and DUK as a result.

[Tony (admin)]

Moved to politics category.

[leftyjace]

Since my objective was primarily to discuss investments and not the politics themselves, I figured Misc was the right category. But I understand you moving it.

I didn’t want to get into politics. Just wanted to discuss investing given the results of the election.

[Tony (admin)]

Sure, but once I saw the word Trump….

[AZswayze]

I’m diverting a large percentage of my portfolio to Privatized Prison firms, Exxon Mobile, Russia 4-Year Bonds, and Fiji Water.

[Anonymous]

My equity portfolio is up 16% since the January 2016 correction bottom. Had good runs on some oil majors plus refiner Valero. Rails have done well for me as have industrials such as Cummins.

Stay away from bonds.

My alternative investments are targeting distressed Euro Assets.

[PlainsUte]

Banks.  Especially small regional banks.  The group has already run up but any weakness now is a good buy, especially for small banks with price to book less than 1.4 or so, they could be candidates for consolidation and bring in 2x book.

Has more to do with interest rates going up, but the punishment of the big banks with additional regulation has hurt the small banks and they might get some relief.

[Anonymous]

Good luck with the bank investment. It would be highly dependent on reversal of Dodd Frank and resultant elevated capital requirements. Currently, most banks are lucky to see high single digit ROEs. I just might know a little about this as it’s my job.

[leftyjace]

Yes on the banks thing.
I bought some Wells Fargo about a month before the whole fake accounts thing broke. Not only has it recovered, but it’s done so nicely – I’m up about 8% since late April.
Hadn’t thought about buying more, but not a bad idea with the interest rates increases.

[PlainsUte]

Also, something that no one follows is fertilizer prices.   After being very lethargic they are now picking up.  Not sure if it has anything to do with Trump, but Chinese imports are way off due to their costs.

There is a US fertilizer production company, LSB Industries, that has been beaten down because of low prices and some issues they had in the past 2 quarters with production.  Shorts loaded up and beat-down the price, now shorting 30% of float.  Plants are bank online and the company is also exploring possibilities of sale or merger.  Shorts may need to cover one day, perhaps soon.  NYSE symbol is LXU.

[Author]

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