5 Tips for Investing in the Trump Presidency
With Trump back in office, expectations are high the bull market will continue. Here's how investors can prepare.


Donald J. Trump was sworn in as the 47th president of the United States earlier today. Trump was one of the best presidents for the stock market in his first term, with the S&P 500 averaging a 13.6% annual return over his four years in office.
This, alongside expectations Trump and a Republican-controlled Congress will pass business-friendly and pro-growth policies, have many folks optimistic that the bull market will continue. Some analyst expect the S&P 500 to be above 7,000 by year's end.
With this in mind, we look at five ways to invest in the new Trump presidency.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Bitcoin
Trump warmed up to bitcoin throughout his 2024 campaign – marking an about-face from his previous stance toward digital currencies.
While bitcoin has come off its mid-December peak above $100,000 amid some profit-taking, Wall Street anticipates another leg higher in 2025.
"[S]peculation surrounding the incoming Trump administration's potential establishment of a U.S. bitcoin reserve – an initiative analysts estimate has a 60% likelihood – could help the cryptocurrency reclaim" the key $100,000 level, says Matt Mena, crypto research strategist at 21Shares.
Investors wanting to capitalize on potential upside while limiting risk should consider these bitcoin and crypto ETFs.
2. Stay domestic
Recent reports have indicated the Trump administration may do a gradual rollout of tariffs vs a blanket increase on Day 1. While this could have a more muted impact on inflation, higher tariffs have the potential to weigh on profits of American companies with strong sales.
Kiplinger contributor James K. Glassman says one way investors can hedge against tariffs is to focus on domestic companies with little to no international exposure. His top stock picks include insurance giant Allstate (ALL) and credit card company Capital One Financial (COF).
3. Buy dividend stocks
Trump's proposed policies – including on tariffs and immigration – have the potential to reignite inflation and put the Federal Reserve's rate-cutting plans on ice. The stock market has shown that it is quick to react to such scenarios. Indeed, the S&P 500 spiraled nearly 3% back on December 18 after the Fed projected higher inflation and fewer rate cuts for 2025.
Including some of the best dividend stocks for dependable dividend growth in your portfolio can help mitigate some of this risk.
4. For-profit prison stocks are expected to rise
The Trump administration's mass deportation efforts are not only expected to lift inflation but also the share price of for-profit prison stocks such as GEO Group (GEO). "The company designs and delivers support services for prisons, immigration processing centers and community reentry centers," writes Kiplinger contributor Will Ashworth in his feature "5 Stocks to Buy for a Trump Presidency."
With Trump back in office, this creates "a more clear positive for the company, in our view, both from an investor sentiment perspective and from the belief that Trump would look to increase detention utilization," says Wedbush analyst Brian Violino.
5. Stay the course
As we learned during Trump's first term, the stock market can be quick to react to the president's policies, comments and posts. However, investing is a marathon and not a sprint and the most reliable gains occur over long time frames. Indeed, the S&P 500 has averaged an annual return of 10% over the past 20 years.
Investors who have trouble stomaching the daily ups and downs of the market should take a closer look at low-volatility ETFs, which tend to have a lower risk profile that the typical index fund.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff Noise
Markets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.
-
Amtrak Joins Prime Day With Deals on Fares — But You’ll Have to Act Fast
Prime members can score 20% off midweek fares — what travelers should know before booking.
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff Noise
Markets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.
-
Dividend Increases: 7 Stocks With Rising Payouts
While dividend growth has been slowing, certain stocks have raised their dividend payouts. These are some selections.
-
Key to Financial Peace of Mind: Think 'What's Next?' Rather Than 'What If?'
Even if you've hit your magic number for retirement, it's hard to stop worrying about money. Giving it a clear purpose is one way to reduce financial anxiety.
-
Three Estate Planning Documents a Business Owner Can't Afford to Skip
A business owner's estate plan should protect the company and its employees as well as the entrepreneur's heirs. These three documents are critical.
-
Stock Market Today: Trump's Copper Comments Cause a Stir
Markets remain resilient and monetary policy makers stand fast against a rising tide of new terms of trade, including around copper.
-
Opportunity Zones: An Expert Guide to the Changes in the One Big Beautiful Bill
The law makes opportunity zones permanent, creates enhanced tax benefits for rural investments and opens up new strategies for investors to combine community development with significant tax advantages.
-
Five Ways Retirees Can Keep Perspective Through Market Jitters
Market volatility is a recurring event with historical precedents (the dot-com bubble, global financial crisis and pandemic), each followed by recovery. Here's how people who are near or in retirement can navigate economic uncertainty.
-
Stock Market Today: Trump Reextends His Tariff Deadline
When it comes to this president, his trade war, the economy, financial markets and uncertainty, "known unknowns" are better than "unknown unknowns."