Business Insider reports that investors are piling into assets associated with Elon Musk, resulting in significant gains since Donald Trump’s election victory. Musk’s companies, including Tesla and X, have seen substantial increases in value, with Tesla up over 40% and X up more than 20%. This phenomenon, known as the “Musk trade,” is outpacing the Trump trade, which saw gains from stocks related to the President.
Industry experts attribute the shift to Musk’s vision for a futuristic transportation system and his emphasis on sustainability. As investors become increasingly environmentally conscious, they are flocking to companies that align with this goal.
While private equity firms have expressed interest in incorporating alternative assets into 401(k) plans, litigation risk remains a significant obstacle. The lack of adoption has raised concerns about the impact on average investors’ retirement plans.
In other news, Meta is taking aim at the black market for Instagram accounts and services, while Big Tech companies are lobbying for data center regulation. The IRS is firing probationary workers amid tax-filing season, and Amazon MGM Studios announced its creative control over the James Bond franchise.
These developments highlight the dynamic nature of the business world, with various players vying for influence and investors seeking opportunities to capitalize on emerging trends.
Source: https://www.businessinsider.com/best-trade-biggest-returns-might-musk-trade-not-trump-2025-2