Following this week's surprising U.S. election, we're bringing investors one of the best investments for when Trump is president. You see, there are certain investments that just received a major bullish catalyst from President-elect Trump.
While U.S. stock futures tanked on election night, they quickly reversed course the following morning.
The Dow Jones Industrial Average had a more than 1,000-point swing Wednesday after Trump's victory. The blue-chip benchmark was down more than 800 points in overnight trading and lower by 223 points in pre-market trading. But by the closing bell Wednesday, the Dow finished up 256.95 points.
The Trump-inspired stock market rally continued into Thursday. Shortly after the open, the Dow was higher by 174.77 points, or 0.94%, at 18,764.46. That's a record high.
Asian markets followed a similar pattern. Japan's Nikkei rose 6.7%. European markets also moved higher and were holding on to gains of about 1% in midday trading. Overseas investors also appear willing to give Trump a chance.
The feeling among U.S. investors is that a Trump administration will spend heavily on infrastructure and defense, repeal the Affordable Care Act, and cut taxes.
Trump's victory also raises questions about trade deals with China, Mexico, Russia, and many other foreign partners.
Money Morning Director of Tech & Venture Capital Research Michael A. Robinson said U.S. and global markets will likely experience some instability over the next several weeks as Tuesday's election results sink in.
"Wall Street hates uncertainty, and that's precisely what we seem to have now," Robinson said.
But Robinson added that he believes that "instability is masking a huge new opportunity, one that might not have existed before Tuesday."
And that opportunity has brought us one of the best investments to make now...
One of the Best Investments to Make Before Trump Enters the White House
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The U.S. military will experience its biggest growth period in decades under a Trump presidency.
"In fact, we can think of his election as a bona fide mandate for more defense spending," Robinson explains.
Currently, the proposed Department of Defense budget for fiscal year 2017 - expected to be renegotiated by the new administration - already sits at $582 billion. Add another $34 billion a year in weapons exports and Robinson says "this flow of funds is about as strong and steady as any business could hope for."
While this will be a huge catalyst for traditional defense stocks like Lockheed Martin Corp. (NYSE: LMT) and Northrop Grumman Corp. (NYSE: NOC), there is another play that is also one of the best investments to make now. [Editor's Note: You can read all about how defense stocks are set to soar, right here.]
According to Robinson, there will be a rush to shore up U.S. military and governmental cybersecurity, and that has led him to recommend a specific exchange-traded fund (ETF).
PureFunds ISE Cyber Security ETF (NYSE Arca: HACK) is a pure play on the growing cybersecurity market.
Up 18% over the last six months, Robinson says there is plenty of room for HACK to run.
The ETF is comprised of some of the biggest names, cutting-edge players, and new entrants in the cybersecurity space.
Cybersecurity market research firm Cyber Ventures reports the cybersecurity market should eclipse $1 trillion between 2017 and 2021. Every company recognizes cyberattacks are a real threat, and they continue to spend on fending off breaches.
"Also bear in mind, nearly 200 million new people connect to the Internet each year," Robinson explained. "As more and more people come online, the cybersecurity challenges only grow."
"And now that the Internet of Things (IoT) is becoming a reality, you can expect 5.4 billion new devices - from unmanned weaponized vehicles to toasters - vulnerable to hacks," he continued.
With the United States in transition, this is one of the best investments to make before Donald Trump enters the White House.