Donald Trump won and defeated Kamala Harris in the elections in the United States. The Republican will be the 47th American president and will have his second term in the White House. Meanwhile, the financial market celebrated the news and the rates of US Treasury bonds and the dollar in the world rose. In this context, the markets remain expectant and Argentine investors wonder what to do with their Cedears.
In that context, the economist and financial advisor José Ignacio Bano considers that classic oil companies are a good bet for Trump’s victory, with the Energy Select Sector ETF (XLE), which has a strong emphasis on the oil industry. And, if not, ExxonMobil’s Cedears (XOM) or Chebron (CVX), among other oil companies.
On the other hand, he indicates that, “with the victory of donald trump“The most advisable thing in the sector to exit are pharmaceutical companies, because it will make the approvals less bureaucratic so that drugs can be marketed.” And, in this case, think about companies like Johnson and Johnson (JNJ), Amgen (AMGN ), among other laboratories.
Trump is also betting more that help to the people will come through benefits to businessmen, one could say that he believes in the famous ‘spillover law’. “This way it will have a more protectionist economy for the industry, but it also believes in lowering the level of regulations and state intervention in private activity. From that point of view, what is expected is that there will be tariff measures to protect local production,” defines.
Likewise, Bano thinks that Trump’s profile will be very oriented towards the financial side and, in this sense, mentions the Cedears of some companies such as JP Morgan (JPM), West Fargo (WFC) and Citi (C), which “are leaving to benefit from an eventual victory of the Republican”, or the Financial Select Sector ETF (XLF), invested in the financial sector
National assets: which ones to bet on before the US elections
Sergio González, Head of Asset Management at Cohen Aliados Financieros, for his part, focuses on global assets within the US electoral scenario and points out that, “for those who believe that there will be a Trump victory, the instruments of Sovereign debt in dollars would be the most appropriate because it is believed that a victory for this candidate would benefit the country.”
It is worth remembering that there is speculation that Trump’s presidency could help Argentina unlock the international credits that Javier Milei’s Government needs.
Cedears, Argentine bonds and the view of the city
For its part, Elena Alonsomarket analyst, bets on the shares of energy companies at the local level and would combine them with some global bonds, mainly short ones, such as el GD29 and GD30. “Likewise, I think Cedears in the financial, defense and energy sectors are interesting. It could also be a company in the crypto sector, like Coinbase (COIN), or mass consumption companies,” he points out.
For those who invest in Cedears, “we see it as a good time to position yourself in low beta and high dividend assets, especially in sectors such as health care and public services,” he recommended.
Among these companies he mentioned Gilead Sciences (GILD), Pfizer (PFE), United Health Group (UNH), AT&T (T) and Verizon (VZ). At the same time, he recommended avoiding the Cedears of Brazilian companies, due to the high fiscal deficit (10.02% of GDP) and debt (78%/GDP) that the country has, which impacts the interests, which reached 7, 73%. “This situation imposes an exit of investors from Brazil and a certain weakness of the real,” Bianchi told this medium.
“The Cedears, for me, are a long-term variable income. If one did not take a prior position, today I do not think it is a day to make any movement, unless something very relevant is really seen in the market tomorrow. We have to wait to see who wins the US elections and to have more information after the results to decide which sectors to invest in or how to reconfigure portfolios,” economist Elena Alonso told this medium.
Finally, Rafael Di Giorno of Proficio Investments anticipated possible movements according to the different scenarios: “If Donald Trump wins, the market could rise between 1% and 3%, but it also depends on the result of how the Chamber of Deputies and Senators will be integrated. If there is a chamber left for every game, that greatly reduces the volatility of the market.
Source: Ambito
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