US President-elect Donald Trump’s imminent energy policy changes are set to reshape markets, prompting investors to recalibrate their portfolios immediately.
This warning comes from Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organisations.
As Trump prepares to take office on January 20, he is expected to sign up to 25 Executive Orders, including one that promises to dismantle key Biden-era regulations.
These actions could trigger significant shifts across energy markets, creating both opportunities and risks for investors.
Trump’s Day One agenda includes repealing Biden’s energy production restrictions, terminating the electric vehicle mandate, cancelling the natural gas export ban, and reopening the Arctic National Wildlife Refuge (ANWR) in Alaska for drilling.
These policies aim to boost domestic energy production and reduce regulatory hurdles, potentially leading to a resurgence in fossil fuel industries.
Green advises investors to capitalise on the likely surge in traditional energy stocks, noting that oilfield services, exploration and production companies, and infrastructure firms stand to benefit significantly.
However, he also warns of potential volatility in renewable energy sectors as Trump rolls back climate-focused initiatives.
The deregulation of fossil fuels, combined with incentives for domestic energy production, is expected to drive a renewed bull market in traditional energy stocks.
Conversely, the renewable energy sector may face turbulence, requiring careful navigation by investors.
Green emphasises the importance of diversification and proactive adjustments to asset allocations.
He also highlights emerging opportunities in infrastructure, as increased energy projects will drive demand for construction, engineering, and logistics services.
Investors should be aware of potential legal and regulatory challenges to Trump’s executive orders, which could delay implementation.
Additionally, geopolitical factors must be considered, as policies aimed at boosting domestic energy production could alter international trade dynamics and impact global markets.
In conclusion, Green urges investors to act swiftly, stating: “Trump’s incoming administration is set to ignite a seismic shift in energy policy, presenting a pivotal moment for investors.
“The time to prepare is now — before these changes begin to impact markets.”