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Don't give up on the Trump trade yet, analyst says; 5 stocks that will rally on tax plan

Donald Trump
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Donald Trump


Strategas Research Partners told clients to not give up on President Donald Trump and buy stocks which will benefit from his likely plan to allow multinationals to bring foreign profits back into the country at a reduced tax rate.

"In meeting with clients, we are noticing post-election optimism is starting to temper. Often cited is the idea that immigration and trade policies restrict the free flow of labor and capital, and, all else being equal, offsets some of the positive impact from fiscal policy," strategist Dan Clifton wrote in a note to clients Tuesday. "Tax reform will take some time and will likely fail before it succeeds. But something is likely to happen on taxes by year-end and there is still a lot of value in our tax-related baskets. Our Trump baskets show government spending is largely priced in, but tax changes are not."

"Tax reform will take some time and will likely fail before it succeeds. But something is likely to happen on taxes by year-end and there is still a lot of value in our tax-related baskets. Our Trump baskets show government spending is largely priced in, but tax changes are not."