Despite expectations of a pro-business agenda under the new administration, many “Trumpiest” stocks are now suffering. These firms were previously seen as beneficiaries of President Trump’s policies due to their strong connections to him or their rapid price surges following his election.
Notable examples include Tesla, owned by billionaire adviser Elon Musk, and the eponymous Trump Media & Technology Group. However, companies such as Palantir, Apollo Global Management, and Capital One are among those seeing significant declines in value.
The reasons behind this downturn are not entirely clear, but it’s possible that investors have misjudged which firms would thrive under the new administration. The shift in market sentiment may be due to various factors, including ongoing challenges such as China’s economic slowdown and rising rent costs.
Meanwhile, other non-American companies may be more ready to return to foreign markets, taking advantage of favorable economic conditions. Nubank, a Brazilian fintech firm, has expanded overseas, capitalizing on its country’s struggling economy.
As the global economy continues to evolve, it’s essential for investors to remain vigilant and adaptable in their assessment of market trends.
Source: https://www.economist.com/finance-and-economics/2025/03/20/even-the-trumpiest-stocks-are-suffering