Investing During Trump's Second Presidency; Trump 2.0

The Market is closed, as we witness the inauguration of President Donald Trump, today, several key developments are poised to influence the stock market and broader economy. Notably, the recent ban on TikTok and the devastating wildfires in California are events that investors should monitor closely.

TikTok Ban and Its Implications

On January 19, 2025, a federal ban on TikTok took effect in the United States, rendering the app temporarily unavailable to approximately 170 million users. This action stemmed from national security concerns regarding ByteDance, TikTok's Chinese parent company, and its handling of American user data.

The Hacker News

In response, President-elect Donald Trump announced plans to issue an executive order extending TikTok's operations in the U.S. by 90 days. This extension aims to facilitate negotiations for a joint venture, potentially involving 50% U.S. ownership of the app. ByteDance has expressed gratitude for this opportunity to seek a more permanent solution.

Investopedia

Impact on the Technology Sector

The ban on TikTok creates a vacuum in the social media landscape, presenting opportunities for competing platforms to capture displaced users. Notable contenders include:

Facebook (META): As the parent company of Facebook and Instagram, Meta Platforms Inc. stands to benefit from increased user engagement on its platforms. Currently, META is trading at $612.77, with an intraday high of $625.53 and a low of $603.94.
Alphabet Inc. (GOOG): Owner of YouTube, Alphabet offers YouTube Shorts, a feature similar to TikTok. GOOG is trading at $197.55, with an intraday high of $198.80 and a low of $194.56.

California Wildfires and Reconstruction Efforts

Starting on January 7, 2025, Southern California has been ravaged by wildfires, exacerbated by strong Santa Ana winds and low humidity. The Palisades Fire and Eaton Fire have collectively destroyed over 12,000 structures and claimed 27 lives.

New York Post

In response, President Joseph R. Biden Jr. approved a Major Disaster Declaration for California on January 8, 2025, enabling federal assistance for recovery efforts.

FEMA

Investment Opportunities in Reconstruction

The anticipated rebuilding efforts in California are expected to significantly impact sectors such as building materials, construction equipment, and transportation. Companies poised to benefit include:

Deere & Co. (DE): A leading manufacturer of heavy machinery, essential for cleanup and construction. DE is trading at $455.44, with an intraday high of $457.09 and a low of $439.11.
Caterpillar Inc. (CAT): Specializes in construction and mining equipment. CAT is trading at $386.02, with an intraday high of $386.66 and a low of $380.90.
Lennar Corp. (LEN): A prominent home builder. LEN is trading at $141.54, with an intraday high of $143.76 and a low of $140.75.
Home Depot, Inc. (HD): Supplies building materials and home improvement products. HD is trading at $409.38, with an intraday high of $414.24 and a low of $408.60.
D.R. Horton Inc. (DHI): Another major home construction company. DHI is trading at $147.65, with an intraday high of $149.23 and a low of $145.39.
PulteGroup Inc. (PHM): Engages in home building and financial services. PHM is trading at $117.03, with an intraday high of $119.05 and a low of $116.44.
Lowe's Cos., Inc. (LOW): A retailer specializing in home improvement. LOW is trading at $261.06, with an intraday high of $262.00 and a low of $258.50.

Cited prices were recorded 1/17/2025

My Thoughts

The United States continues to present robust investment opportunities. Adopting a mixed strategy of swing trading and dividend capture may prove advantageous in the current climate. Staying informed about policy changes, technological shifts, and infrastructural developments is crucial for making sound investment decisions. My views seem to be shared, which will have an impact on demand. Here is a Reddit Post I noticed, "Investing in construction companies in California".

How to Add Beneficiaries on E*TRADE Without Losing Your Mind

“Because your money should go where you want it, not where the probate court thinks it should, I am sharing this information.” Ah, E*TRADE. The place where your money grows, your trades execute (sometimes), and your hopes for financial freedom flutter like a candlestick chart on a volatile Thursday. But what happens if you kick the bucket before you get that Tesla stock to moon? Simple: you assign a beneficiary. Unfortunately, E*TRADE doesn’t make this as intuitive as you might think. This isn’t a “click here and boom, you’re immortal” situation. But fear not, fellow capitalist. I’ve braved the pixelated jungle so you don’t have to. 🛠️ Step-by-Step: Setting a Beneficiary for Your E*TRADE Brokerage Account (aka “How to ensure your money doesn’t end up in your ex’s lap or your neighbor's GoFundMe”) Log in at etrade.com . (Obvious, yes. But worth saying—this isn’t Webkinz, you need the real site.) At the top, click “Accounts” and select your Brokerage Account . (The on...

NJ's Middle-Class Squeeze: Too Much for Help, Not Enough for Comfort

This is a long post — longer than what I usually write — because what I’m talking about here isn’t a small annoyance or a passing frustration. It’s something that has been building for years, and I’m finally putting it all into words. I’m upset, I’m exhausted, and I’m passionate about what follows, because it affects every working person in this state who’s trying to stay afloat. There’s a growing group in New Jersey — people who work full‑time, sometimes more than one job, who earn too much to qualify for assistance but not enough to absorb the constant increases in living costs. These are the people tightening their budgets, lowering their thermostats, cutting back wherever they can, and still watching their bills rise for reasons that have nothing to do with their own usage or behavior. If you’re part of that group, or you know someone who is, then what follows will probably resonate with you. And if you’re not, then I hope this gives you a clearer picture of what the middle class i...

Understanding Treasury Bond Auctions: The Difference Between High Yield and Interest Rate

Treasury bonds are a popular choice for investors looking for a reliable source of income backed by the U.S. government. However, understanding how these bonds are priced at auction can be confusing, especially when comparing the High Yield and the Interest Rate (Coupon Rate) columns. In this post, I'll break it down using a real-world example. A Look at a Recent Treasury Bond Auction Here’s an example of a 20-year Treasury bond that was recently auctioned: Security Term CUSIP Reopening Issue Date Maturity Date High Yield Interest Rate 20-Year 912810UF3 Yes 01/31/2025 11/15/2044 4.900% 4.625% What Do These Numbers Mean? CUSIP : This is a unique identifier for the bond. Reopening : Since it says "Yes," this means the bond was originally issued earlier and is now being reoffered. Issue Date : January 31, 2025—this is when the bond will be offi...

The Signal Amidst the Noise

Search This Blog