Last month, someone with $200,000 in an inherited IRA asked for ‘Trump-friendly’ stock recommendations on r/Investing — a discussion board on Reddit with 2.6 million members. The questioner wanted to put $100,000 into individual stocks of the total inheritance amount.
“Want to put about half in a Trump-friendly portfolio. Companies that will likely do very well under his administration. Anyone doing this? More context: $100k currently in S&P, other $100k I Would like to invest a lot. Aggressively with companies run by Trump’s friends/businesses that align with his economic policies,” he said.
The investor, 31, said he inherited the money six months ago. An inherited IRA account must be closed and related taxes paid within 10 years.
“Up until the election it was making 5%, now I’m trying to ride the Trump train and with an aggressive portfolio I believe it’s a fair shot of $200k to $500k by the end of Trump’s four years. Hope/Hopefully,” he added.
While the Redditor solicited suggestions from the r/investing community, he had a few ideas for which he sought constructive criticism and feedback.
First, let’s examine the recommendations he received from other Redditors and then see which stocks he was considering investing in.
Redditors looking for stock recommendations for the Trump era were suggested more than once to put their money in a broad market fund like the S&P 500 ETF ( SPY ).
“IMO, you should also put another $100k into an S&P 500 fund and forget about it for the next 10 years,” said one Redditor.
During the discussion, some Redditors said that the market had already priced in the Trump rally he was hoping to ride.
“You’ve already lost the big gap on stocks betting on a Trump win, haven’t you? Now your bet will be ‘Do I think the market is mispricing the things that fell/jumped on a Trump win?’ have been, not ‘what would be nice,'” commented one Redditor.
Technology Select Sector SPDR Fund
One Redditor recommended the Technology Select Sector Fund (XLK), saying technology stocks are in for a good time in the coming Trump era.
“Ending censorship should be good for social media. I think the whole tech industry should grow,” he suggested.
The technology select sector has gained 27% this year till December 12. The fund’s largest holdings include Apple, Nvidia, Broadcom, Microsoft and Salesforce.
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Lockheed Martin Corporation
One comment urged the Redditor to invest in individual stocks with $100,000 so he could put his money into broader market funds. However, this Lockheed Martin Corporation (NYSE:LMT) may be an option to invest in if he insists on buying individual stocks.
“I personally wouldn’t do this strategy, but if you insist on it, maybe something like LMT. Just remember that whatever you do, there’s no guarantee that The stock market will rise, especially on such a short timeline. About four years IMO, you should put another $100k in an S&P 500 fund and forget about it for the next 10 years,” the comment reads. .
So far this year, Lockheed shares are up nearly 8%.
Investors have been eyeing defense stocks since Donald Trump won the election. Last month, Bernstein analyst Douglas Harned said in a note that investors can feel positive about defense stocks:
“We expect Trump to seek a stronger defense as he did in his first term, even as he tries to avoid involvement in foreign conflicts,” Harned wrote. “Trump is talking about the need for a stronger nuclear deterrent, missile defense and expanding space capabilities.”
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Redditor with $100K to invest values buying these stocks
Tesla
Tesla Inc. (NASDAQ:TSLA) was one of the stocks the Redditor said he was considering investing in to ride the Trump train. Tesla shares are up nearly 67% so far this year. Earlier this month, Roth MKM upgraded Tesla to buy from neutral. Elon Musk’s support for President-elect Donald Trump has boosted demand for the company, the firm said.
TKO Group Holdings
The Redditor who is looking to invest $100,000 in Trump-friendly stocks said he feels UFC and WWE-related companies could be suitable choices. Someone in the comments section of his post reminded him that TKO Group Holdings Inc. (NYSE:TKO) is the stock in which he may be interested. TKO owns the UFC and WWE. The stock is up 78% so far this year.
Stellantis
Redditor plans to invest $100,000 in stock market to ride Trump wave Stellantis NV (NYSE:STLA) can make a “good return”. So far this year, the automaker’s share price has fallen 40%. Stellantis CEO Carlos Tavares recently resigned amid falling US sales and falling profits.
nvidia
NVIDIA Corporation (NASDAQ:NVDA) is another big name Redditor listed among the stocks he was interested in for the Trump era. Shares of Nvidia are up 185% so far this year. Mizuho Securities said in a recent note that Nvidia could benefit from the rise of modular data centers.
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This article 31-year-old inherits $200K, asks Redditors for ‘Trump-friendly’ stock ideas to invest in – Top 7 stocks he likes and recommends Appeared on the original Benzinga.com
