In the stock market, hopes have run high among many sectors after Trump’s election victory. People, immediately following the election results, started measuring which companies would benefit from expected Trump economic policies.

Many infrastructure (nuts and bolts) companies saw their valuations increase dramatically. Banks saw huge stock price increases.  Goldman Sachs, for example, saw its price increase from just over $180 the night of the election to over $245 just over a month later.  Gold was slammed from over $1300 per ounce at the time of the election to $1122 over a matter of several weeks. In the last week or two, the most recent radical price swings have moderated quite a bit. For example, gold has recovered to nearly $1220 the past week. Related precious metals stocks have moved wildly about with the wild moves in gold prices.

Investing on this kind of political speculation can be profitable but also costly as it is heavily dependent of timing unless it’s coupled with proper risk assessment analysis which involves scoping out the financials, especially the positional strength of the balance sheet. There will surely be some winners and losers as actual Trump policies are implemented and become better understood. Prospecting now for possible election benefactors can be mighty risky business unless the prospect(s) discovered satisfy valuation results that reveal a company that is already presently undervalued. In such a situation, there might indeed be a noteworthy investment opportunity.