How to protect your portfolio against risks tied to President-elect Trump's tariff agenda

Published On Nov 16, 2024, 11:00 AM

John Davi, CEO of Astoria Portfolio Advisors, is advising investors to be cautious due to potential inflationary effects stemming from President-elect Trump's tariff plan. He suggests focusing on small-cap industrial stocks as they are likely to benefit from a pro-growth policy agenda. Davi also emphasizes an overweight position in U.S. investments while advising against bonds due to rising treasury yields and the growing budget deficit. Since the election, small-cap stocks, as tracked by the Russell 2000 index, have seen modest gains of around 4%.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

IWM View IWM chart on TradingView

Positive

Invest in small-cap industrials as these firms are expected to thrive under Trump's pro-growth policies. The demand for these stocks should increase as the domestic market expands due to tariffs favoring local production.

TLT View TLT chart on TradingView

Negative

Avoid bonds due to rising yields and potential inflationary pressures from the tariff agenda. The increasing budget deficit may further indicate a negative trend for fixed income investments.

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