As Donald Trump prepares to return to the White House on January 20, 2025, investors are bracing themselves for the potential impact on the stock market. While some stocks have performed well in the past year, driven by Trump’s victory and expectations of lower taxes and higher growth, others may struggle due to his policies and regulatory changes.
Three companies that could be at risk include Lucid Group (LCID), Ford Motor Company (F), and D.R. Horton (DHI). Lucid, an electric vehicle maker, has seen its share price surge over 50% in the past month, but concerns around its ability to take a dominant market share in the luxury EV market and high cash burn rates may lead to additional capital raises and significant losses.
Ford, another leading auto manufacturer, is facing intense competition in the EV sector and has yet to gain traction with investors. The company’s EV division continues to burn cash, and higher mortgage rates due to expected Trump policies may further reduce demand for its products.
D.R. Horton, a US home builder stock, has underperformed the broader market by more than 6% over the past year, largely due to rising bond yields and increased mortgage rates. The company’s inventory glut and reduced buyer activity due to economic uncertainty may lead to losses in the coming years.
As investors head into Inauguration Day, they should keep a close eye on these companies and consider their potential risks and rewards. With Trump’s policies expected to shape the market landscape, it’s essential to stay informed and adapt your investment strategy accordingly.
Source: https://247wallst.com/investing/2025/01/08/why-these-3-stocks-could-crash-post-inaguration-day