Prof G Markets: Winners and Losers Under Trump’s Second Term

Defense Spending

Under Trump's administration, defense spending is expected to rise, benefiting military contractors like Palantir. Scott Galloway and Ed Mylett discuss how Palantir's revenue from U.S. government contracts surpassed its total under Obama's second term, highlighting the company's reliance on government revenue, which constitutes 64% of its overall income 1. Despite Trump's isolationist foreign policy rhetoric, the market anticipates increased military spending, which could positively impact Palantir's stock 1.

I can't see Trump...resulting in him ever cutting spending on the military.

--- Scott Galloway

This expectation aligns with Trump's affinity for showcasing military strength, suggesting that defense spending will likely remain robust 1.

   

Clean Energy

Clean energy sectors face significant challenges under Trump's administration, as Ed Mylett notes the decline in solar and wind energy stocks following Trump's election 2. His plans to exit the Paris Climate Agreement and repeal the Inflation Reduction Act threaten renewable energy projects, benefiting fossil fuel companies like Exxon Mobil and natural gas firms 2.

Clean energy is getting a little bit taken to the woodshed right now.

--- Ed Mylett

This shift in policy underscores the administration's focus on traditional energy sources, posing a setback for the clean energy industry 2.