Generally, when it comes to the stock market, the president can have a big impact on its ups and downs. However, this position of power is not the only factor, as consumer behavior, the Federal Reserve and global trade all have a strong influence over how your investments will perform. President Trump’s floundering and at times confusing tariff announcements do seem to have at least temporarily affected stocks negatively, but this is not necessarily a reason to panic as most investing experts still maintain that you should play the long game.
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To better understand how some of Trump’s policies could affect investment opportunities throughout the rest of 2025, GOBankingRates spoke with some financial experts for their predictions about what to expect in the months ahead.
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Energy Winners and Losers
Samita Malik, head of insurance, tax and estate planning at Arta Finance, said the energy sector is one particularly worth watching now that Trump is back in the White House.
“The energy sector, including fossil fuels, is poised to grow from favorable regulatory policies under the Trump administration, given recent indications from the Department of Energy about natural gas production,” Malik said.
However, according to Malik, proposed reductions in federal support for renewable energy, including the elimination of green subsidies and the expansion of tariffs on imports like Chinese solar panels, could slow the growth of the renewable sector.
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Technology Sector
For investors interested in tech, Malik said it’s still too early to tell which, if any, parts of the sector will benefit disproportionately and sustainably under the current administration.
“On the one hand, imposing tariffs on tech components may disrupt global supply chains, leading to increased production costs and potential delays,” Malik said. “On the other hand, proposed tax reforms, including possible reductions in corporate tax rates, could increase profitability for tech companies.”
Artificial Intelligence
Analysts are going to be watching how moves and policies by Trump impact the abilities of businesses to harness the power of artificial intelligence (AI).
“AI has, and will continue to, have a profound impact across industries, and investment management is no exception,” Malik said. “AI is transforming the investment landscape by offering deeper insights, reducing human bias, and enabling faster decision-making — all at a fraction of the cost of traditional human-dependent models.”
The expert added AI-driven models are powerful, but they should be used alongside human expertise and market intuition to maximize their effectiveness. Per Malik, retail investors should first focus on the basics: Start investing early, be consistent and diversify the portfolio.
Diversification
Another question on the minds of many investors with the new president in place is how to recalibrate portfolios to capitalize on tax and trade policy shifts.
“It is still unclear which tax and trade policy shifts will be approved and implemented under the current administration,” Malik said. “For non-institutional investors, that is, people like you and me, investing shouldn’t be based on short-term policy or political changes, but on proven, core investing principles, one of which is diversifying investments across sectors and geographies.”
Global Markets
According to Zach Shepard, principal at Braddock Investment Group Inc., Trump’s trade policies and ongoing negotiations with China are the cause of anxiety for businesses and investors. Shepard pointed to the imposition of duties on a vast range of merchandise and the countermeasures with other nations.
“This has led to the investing community to take pause over a very uncertain environment, particularly deciding on whether or not to reroute their investments, and, thus, the direction of the national economy,” Shepard said.
Caitlyn Moorhead contributed to the reporting for this article.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 5 Ways Trump’s Policies Could Reshape Investment Opportunities
