The impact of a Trump election on the stock market is a topic of much interest. Historically, the stock market has performed well during election years, with the S&P 500 averaging an annual return of 12.2% since 1928 ¹. However, volatility typically spikes as the election approaches ¹. During Trump's previous term, the S&P 500 increased by 69.59%, driven by policies such as corporate tax cuts and deregulation ². The top-performing sectors under Trump were Financials, Technology, and Consumer Discretionary ². On the other hand, under Biden, the S&P 500 has risen by 41.87%, supported by substantial fiscal stimulus and infrastructure spending ². If Trump wins the 2024 election, his administration's focus on deregulation and tax cuts could stimulate short-term market gains ². However, these policies might also increase the federal budget deficit ². Trump's approach to trade, including potential tariff increases, could affect international markets and supply chains ². Sectors That Could Benefit from a Trump Win: - Energy: Trump's support for fossil fuels could favor integrated large-cap energy stocks like Exxon Mobil (XOM) ¹. - Domestic Manufacturing: Trump's policies could benefit domestic industrial companies and manufacturers ¹. - Cryptocurrency: Trump's favorable stance toward the cryptocurrency industry could allow related companies like Coinbase Global (COIN) to enjoy a less stringent regulatory environment ¹. Sectors That Could Struggle from a Trump Win: - Multinational Firms: Retaliatory tariffs could disadvantage multinational firms ¹. - Healthcare: Trump's policies could tighten margins for insurers and drugmakers ¹.