3 Stocks That Want Donald Trump to Win

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Donald Trump - 3 Stocks That Want Donald Trump to Win

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With Donald Trump emerging as the GOP candidate, many are questioning what will happen if the reality TV mogul turned politician makes it to the White House.

Donald Trump

Some worry a recession would be imminent, while others say he’d “make America great again.”

Whatever happens, it’s unclear exactly what kind of impact the Donald would have on the U.S. economy. However, there are a few stock-buying opportunities that will protect your portfolio should he make it in office.

Here are three stocks that would benefit from a Trump presidency.

Stocks That Want Donald Trump to Win: Apple Inc. (AAPL)

Stocks That Want Donald Trump to Win: Apple Inc. (AAPL)

Although Apple Inc. (AAPL) CEO Tim Cook recently attended a hush-hush meeting alongside some of his peers and members of congress, at which they discussed ways to keep Donald Trump from the White House, things may not be all bad for the company if he did become President.

The main reason AAPL investors would benefit from Donald Trump is his tax plan. He is calling for new corporate tax laws that cap business’ tax rates at just 15%. He also plans to allow companies to bring their foreign earnings back to the U.S. via a one-time tax holiday that will charge them just 10% on their earnings abroad.

Such a tax plan would be huge for AAPL, which holds almost 90% of its cash abroad. Current legislation makes bringing that cash back to the States overly expensive, so instead, AAPL has just been sitting on it and waiting for an opportunity to bring it overseas.

This would also be a benefit for those with AAPL in their portfolio, as it would free up even more cash that the firm could return to shareholders.

Stocks That Want Donald Trump to Win: Smith & Wesson Holding Corp (SWHC)

Stocks That Want Donald Trump to Win: Smith & Wesson Holding Corp (SWHC)

Another platform Donald Trump has taken on is doing away with President Barack Obama’s gun control efforts. Trump has promised not to infringe on Americans’ right to bear arms and even said he will reverse some of Obama’s gun control policies.

For gunmakers like Smith & Wesson Holding Corp (SWHC), that kind of rhetoric is music to their ears.

SWHC would be a good long-term position should Trump take office as the company won’t have to work around tighter restrictions that would keep many people from buying firearms; however, the gunmaker might also see temporary gains if Democratic candidate Hillary Clinton wins in November.

The Democrats’ call for tighter gun regulation have spurred on SWHC’s sales this year, as Americans who wish to bear arms rush out to buy guns before the rules change. If Clinton takes office, that trend could continue.

Stocks That Want Donald Trump to Win: Church & Dwight Co. Inc. (CHD)

Stocks That Want Donald Trump to Win: Church & Dwight Co. Inc. (CHD)

While the other two stocks on this list are celebrating Donald Trump’s policies, Church & Dwight Co., Inc. (CHD) is a good buy for naysayers who believe that the country is headed for a recession if Trump takes over.

CHD is a good option for investors who are wary of November’s elections because the company is in a strong position financially and its products are practically recession proof.

Regardless of the country’s economic position, people will still have to buy things like diapers and soap. CHD is also relatively insulated from currency headwinds, as the majority of the firm’s sales are within the U.S.

As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities.

Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.


Article printed from InvestorPlace Media, https://investorplace.com/2016/05/3-stocks-donald-trump-aapl-chd-swhc/.

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