Get ready for some big changes. In just over a week, Donald Trump will return to the White House.

For many, this might lead to celebration, while others may have concerns.

One undeniable fact remains: On January 20, Trump will officially be sworn in as President of the United States.

No matter your feelings about his presidency, it’s important to recognize that Trump’s administration will significantly impact the economy and stock market.

If you have not already done so, positioning your investments now could be a wise move.

With his leadership, Trump is expected to launch a series of executive orders in his first 100 days, a phenomenon I refer to as “Trump’s 100-Day Melt-Up.”

In today’s Market 360, I will explain what this “melt-up” could look like and how to prepare for it.

The New Presidential Landscape: Trump 2.0

Back in December 2023, I predicted that Joe Biden would withdraw from the presidential race, long before it seemed plausible.

Then, in May 2024, I made another bold statement:

“Donald Trump is poised to win the Presidential election. It’s crucial that you consider shifting your investments now. While the stock market is thriving today, it’s merely a warm-up for what awaits with Trump’s reelection.”

Upon Trump’s victory announcement, market reactions were immediate. The S&P 500 surged 2.5%, the NASDAQ increased by almost 3%, and the Dow jumped 3.6%.

This market rally continued for a while but has since retraced some of those gains. This shift reflects concerns over the deficit, tariffs, and inflation risks among bond investors. Yet, much of this anxiety may be premature—as it fails to consider the forthcoming actions from a Trump administration.

This new administration, referred to here as Trump 2.0, comes with a distinct advantage: it has experience managing a presidential transition. Given its solid electoral mandate, Republicans now hold the majority in both the House and the Senate.

In essence, Trump 2.0 has ambitious plans and will likely execute the policies he couldn’t during his first term.

You may ask, why is this relevant to you?

Let me answer that straightforwardly.

I believe this administration will kick off its policies from Day 1, fueling significant economic momentum. Here’s how:

Upcoming Changes to Watch For

1) A Revival for Manufacturing.

People from key states like Pennsylvania and Michigan have long been frustrated with the decline of good manufacturing jobs, often relocated overseas. They anticipate Trump will address this concern.

One of the initial goals of Trump 2.0 will be to reverse the current manufacturing recession, which has affected 24 out of the past 25 months, as reported by the Institute of Supply Management (ISM).

Reviving the manufacturing sector could prompt an impressive 4% annual Gross Domestic Product (GDP) growth, before even considering additional policy measures.

2) Increased Energy Production and Global Stability.

With Trump in charge, the ban on oil drilling on federal lands will likely be lifted through an executive order on his first day. Additionally, the restrictions on liquefied natural gas (LNG) expansion put in place by the Biden administration will be reversed.

Further, Trump aims to resolve ongoing conflicts in the Middle East and between Russia and Ukraine. If successful, this could lead to a “peace dividend,” similar to what was seen during Bill Clinton’s presidency, potentially allowing for 5% annual GDP growth.

3) Accelerating the AI Revolution.

The next few years promise a significant transformation in artificial intelligence, with potential breakthroughs in healthcare, self-driving technology, and automation affecting numerous industries.

The implications of this AI evolution cannot be overstated. Yet, its development must proceed promptly to maintain U.S. leadership in this critical field.

This situation recalls historical efforts like the Manhattan Project and the Space Race, underlining the urgency and stakes involved. The projected growth of AI relies on U.S. commitments to innovation.

As Brian Hunt, CEO of InvestorPlace, reminds us:

“Elon Musk and other technology leaders are expected to influence decisions in the White House significantly.”

“They recognize the challenge posed by China, including the critical military and commercial applications of Artificial General Intelligence. They know how to excel in this competitive race.”

Clearly, the Trump administration is also aware of these stakes. Consequently, Trump 2.0 is likely to reduce regulations significantly, paving the way for rapid advancements in essential infrastructure, including data centers and energy facilities critical for the AI sector’s expansion.

Getting Ready for the Changes

Investor enthusiasm typically gravitates toward companies that are best poised to thrive under changing conditions. Those who focus on key indicators such as growth in earnings and sales, rather than overreacting to daily news, will find success.

For this reason, I rely on my Stock Grader tool (subscription required), refined over 40 years, to help identify top investment picks.

In fact, during Trump’s first term, my system gave buy ratings to all of the top 30 performing stocks. I have pinpointed a select few stocks that I anticipate will do well during this 100-Day Melt-Up.

For more insights, I’ve prepared a special presentation that outlines everything you need to know.

In this presentation, you will discover:

• My primary pick for driving a manufacturing comeback under Trump 2.0.
• A lesser-known company contributing to the development of new AI data centers.
• Another energy investment linked to the “drill, baby, drill” initiative that supports the AI revolution.
• My analysis on how Trump’s stance on Bitcoin could elevate an undervalued stock to remarkable heights.

Click here for complete details on benefitting from the 100-Day Trump Melt-Up.

Sincerely,

Louis Navellier

Editor, Market 360