Crossing President-elect Trump's path is proving to be treacherous and he's not even in office yet.
Areas of the market Trump waged a war of words against — especially technology companies, emerging markets like China, Brazil, and Mexico and beneficiaries of the Affordable Care Act — are being hit on the stock market. These drubbings quantify just how different Trump's expected administration will be and how costly being on the wrong side appears.
"Investors are already repositioning their portfolios in favor of what they view as Trump Administration policies," says Jack Ablin, chief investment officer at money management firm BMO Private Bank. "Seemingly quiet trading on the surface masks the turbulence that's going on underneath."
Investors are already taking Trump at his word to rollback long-standing policies toward free trade, health care reform and push for changes in the technology industry. Some of the areas to suffer already include:
* Technology stocks. The tech-heavy Nasdaq Composite has been conspicuously left out of the market's rally since Trump's win. The Nasdaq 100, an index of the largest non-financial stocks in the Nasdaq, is down 1.2% since the Trump election, lagging the 1.3% rally by the broader Standard & Poor's 500 and 2.6% rise by the Dow Jones industrial average. Trump has routinely fingered technology firms as a source of job losses and low tax rates. Amazon.com (AMZN) has especially been in Trump's cross hairs. Amazon CEO Jeff Bezos is the owner of the Washington Post, a news operation which has been a steady critic of Trump. Trump has accused Amazon of controlling too much of domestic commerce and paying too little in taxes. Shares of Amazon.com are down 5.8% since Trump won the election making it the 13 worst performing stock in Nasdaq 100. Bezos Thursday Tweeted a congratulations to Trump. But Amazon.com isn't alone as Apple (AAPL) has been targeted by Trump due to its heavy reliance on overseas manufacturing. Apple is down 3% since the election.
* Emerging markets. Trump has routinely railed against several of the U.S. international trade pacts, stating these deals put other nations at a bigger advantage than the U.S. Investors expect revisions to these trade agreements that could slow down trade with other countries. That belief is priced into various emerging markets stocks. The Vanguard Emerging Markets exchange traded fund sank 5.5% over the past few days. Not all emerging nations will be hurt equally, according to research by money management firm Causeway Capital. "The disposal or renegotiation of trade deals would disproportionally hurt those economies with a significant dependence on exports such as Taiwan, India, South Korea, and Mexico," the report says. "We expect more domestically focused economies, such as China, Thailand, and Indonesia, to be less affected."
TECH AND EMERGING MARKETS STOCKS ARE LAGGING
Index, % ch. since election
Vanguard Emerging Markets index, -5.5%
Nasdaq 100 index, -1.2%
S&P 500, 1.3%
Dow Jones industrial average, 2.6%
Source: S&P Global Market Intelligence
* Hospitals. Trump's effect on healthcare is largely yet to be determined, but investors are already assuming the worst for hospitals. Seeing the repeal of Obamacare will likely increase the number of uninsured patients going to hospitals, which will be a cost for them. Tenet Healthcare (THC) is the second worst performing stock in the S&P 1500 since Trump won, declining 28%. In fact, health care facilities companies account for four of the 15 worst-performing stocks since the election, which is more than any other industry.
Investors' fears may prove overblown as there are offsets to soften any hits. Trump's plans to lower corporate tax rates might encourage tech companies holding cash overseas to bring it to the U.S. and boost dividends.
Much remains unknown about a Trump presidency. Trading in the 24 hours after an election is only predictive of the market in the next 12 months half the time, says investment firm Azzad Funds.
"Elections do not in and of themselves cause recessions," says Burt White, chief investment officer of LPL Financial in a note to clients. "Policies can, however, and we need to wait to see which policies Trump moves forward with and the details of those policies."
WORST PERFORMING NASDAQ 100 STOCKS SINCE ELECTION
Company, Symbol, % ch. since election
TripAdvisor, TRIP, -17.9%
Mondelez International, MDLZ, -8.9%
SBA Communications, SBAC, -8.2%
NetEase, NTES, -8.2%
The Kraft Heinz Co., KHC, -7.8%
Intuitive Surgical, ISRG, -7.2%
Netflix, NFLX, -7.2%
Liberty Global, LBTY.A, -6.8%
Monster Beverage, MNST, -6.6%
Cerner, CERN, -6.1%
Ctrip, CTRP, -5.9%
Electronic Arts, EA, -5.8%
Amazon.com, AMZN, -5.8%
Activision Blizzard, ATVI, -5.6%
, AVGO, -5.1%
Source: S&P Global Market Intelligence, USA TODAY