Why Tesla, crypto and prisons are Trump trade winners

Published On Nov 12, 2024, 1:53 PM

Following Donald Trump's recent victory in the US presidential election, financial markets experienced a significant rally, with notable rises in Tesla stocks (up over 40%), cryptocurrencies like Bitcoin (up over 25%), and shares of major banks and private prison operators. Investors are optimistic about potential deregulation and policy changes under Trump, which may benefit these sectors. Tesla is expected to thrive despite anticipated reductions in government support for electric vehicles, while cryptocurrency markets are reacting positively due to expectations of a more favorable regulatory environment. Additionally, banks are expected to gain from lighter regulations, and private prison firms are predicted to see increased business opportunities as Trump's administration returns to stricter immigration policies. The dollar has also strengthened, reflecting confidence in the economy, though it may create pressure on inflation.