How to increase your wealth thanks to Trump’s presidency, according to Jaspreet Singh

Trump will return to the White House this January, and some investors are already preparing for this scenario. Throughout the campaign, Trump hinted at which industries could benefit most from his policies.

Read more: How President-elect Trump’s victory could affect food prices

Find out: 9 things you must do to increase your wealth in 2025

Financial expert Jaspreet Singh has since covered these industries on his Minority Mindset YouTube channel. Singh also analyzed historical election data and long-term stock trends to help investors plan ahead to 2025.

Trending now: The Secret to a Rich Retirement by Suze Orman. Have you made this money move?

How presidents influence the stock market

The stock market has had its ups and downs under Democratic and Republican presidents, but stocks almost always rise in the year following an election. Singh looked at data from 1944 to 2020, and of all the post-election years, only 2001 produced losses for investors—9/11 and the bursting of the dot-com bubble made headlines that year.

Past performance is no guarantee of future results, but history is on any president’s side the year he is sworn into the White House. However, presidents also influence the stock market through their policies.

Politics and election promises dictate government spending, which amounts to between 22% and 29% of GDP. Singh told his viewers that Trump’s campaign promises included increased investment in oil companies, financial services companies, the military industry and space exploration. Stocks participating in these verticals could deliver huge returns during Trump’s second term.

YouTuber Minority Mindset also mentioned that Trump’s promise to deport illegal immigrants could be good for private prison stocks.

Read more: How President-elect Trump’s victory could change gas prices

Investors still need to master the basics

While elections may energize investors and have them chasing trending stocks and opportunities, Singh stressed the need for an investment strategy. Creating a strategy will help you determine which stocks and funds align with your long-term goals. You’ll also be more likely to stay the course rather than letting your emotions dictate your buy and sell orders.

For example, Singh said it’s okay to sell shares if your strategy changes or the company posts bad financial results that change the investment thesis. However, selling a stock just because of the headlines is not good. He mentioned that many major media outlets have to indulge in excessive greed or fear in order to gain maximum engagement. These headlines can stir up emotions and cause investors to deviate from their strategies.

The stock market continues to rise under Republicans and Democrats. The stock has corrected and experienced dramatic declines, but each time it has risen higher. Singh urged his viewers to keep this historical context in mind when pursuing their investment strategy.

Long-term investors don’t invest during election cycles. The best investors remained under Republican and Democratic presidents. They stick to their strategies and review new information to see if they need to adjust their portfolios.

Avoid trading stocks

Singh advocates long-term investing and cautions viewers against making trades. Trading stocks and options may seem fun and exciting, but that’s the problem: investing isn’t supposed to be fun and exciting. This is supposed to be calculated and will take time to see meaningful results.

YouTuber The Minority Mindset compared stock trading to gambling. Stock trading can also create an illusion of intelligence that makes you feel like you’re a skilled moneymaker rather than a gambler. Stock trading becomes even more dangerous when you add margin to it. This combination can destroy your entire portfolio.

While you can choose individual stocks to hold for the long term, investors can also invest in an index fund that tracks the S&P 500. Singh views this index fund as analogous to investing in the U.S. economy. It’s statistically unlikely that you’ll make a profit from stock trading, and you could instead spend all that time working on a side hustle and developing your career skills.

By avoiding stock trading and sticking to long-term investments, you can save time and grow your wealth faster.

_{Editor’s note about political coverage: GOBankingRates is unbiased and strives to objectively cover all aspects of the economy and present balanced reporting on politically oriented financial stories. More information on this topic can be found at GOBankingRates.com.}

More from GOBankingRates

This article originally appeared on GOBankingRates.com: How to Increase Your Wealth with the Trump Presidency, According to Jaspreet Singh