Building a Trump Portfolio

12/14/2016 9:00 am EST


Tony Daltorio

Editor, Investors Alley Premium Digest

What has been the one consistent trait of Donald Trump throughout his whole life? He has built things, observes Tony Daltorio, contributing editor of Daily Profit.

The only difference now is that instead of building hotels, casinos and golf courses he plans to rebuild our nation's deteriorating infrastructure. As a result, this sector is poised to benefit the most from a President Trump.

Fortunately for investors, there are an incredible number of possible investment choices and infrastructure stocks that will benefit from an infrastructure build-out under Trump.

The first pick is an exchange-traded fund — the iShares Global Industrials ETF (EXI). Among its top positions are blue chips that are involved in many phases of the “Trump sectors” of infrastructure, defense and transportation.

Another sector to scour for prime infrastructure stocks is the materials and metals space.

Here one should consider aggregates suppliers such as Vulcan Materials (VMC) and building materials suppliers including Eagle Materials (EXP).

In addition, don't forget investments in a copper miner like Freeport McMoran (FCX) or a zinc miner like Teck Resources (TCK).

And, of course, among infrastructure stocks there are a raft of project engineering companies including Fluor (FLR) and Aecom (ACM).

One small-cap ($958 million) engineering company that caught my eye is Argan (AGX). It is heavily involved in the heavy construction industry and specializes in the engineering and construction of natural gas power plants.

Anyone familiar with the power industry knows that of the big move by utilities away from coal-fired electricity generation and toward gas-fired power. With Trump pushing for more domestic energy production, this trend will only accelerate.

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By Tony Daltorio, Contributing Editor of Daily Profit

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