X
Home World News Developed Economies Investors Urged to Prepare for Energy Market Shifts Under President-elect Trump’s Policy...

Investors Urged to Prepare for Energy Market Shifts Under President-elect Trump’s Policy Overhaul

0
Energymarket Kanok Sulaiman Sstock Min
Energymarket Kanok Sulaiman Sstock Min

As President-elect Donald Trump prepares to take office on January 20, the CEO of one of the world’s largest independent financial advisory and asset management organizations has issued a stark warning to investors: swift action is required to realign portfolios in anticipation of major changes to U.S. energy and environmental policies.

Nigel Green, CEO of deVere Group, cautioned that the incoming Trump administration’s promises to roll back key Biden-era regulations, particularly in energy, will likely be enacted quickly. According to reports, Trump plans to sign up to 25 Executive Orders on Day One, with a focus on dismantling environmental regulations that have shaped energy markets during the previous administration. These changes, Green argues, could trigger substantial shifts in global energy markets, presenting both potential opportunities and significant risks for investors.

Trump has been vocal about his intentions to reverse many of the climate policies implemented under President Biden, particularly those affecting fossil fuel industries. At a rally in Phoenix, the president-elect reiterated his plans to sign several executive orders aimed at boosting domestic energy production. Key measures reportedly include repealing Biden’s restrictions on energy production, canceling the electric vehicle mandate, lifting the ban on natural gas exports, and reopening the Arctic National Wildlife Refuge (ANWR) in Alaska for drilling—actions that could potentially revitalize oil and gas exploration in some of the world’s most untapped regions.

For investors, these anticipated policy shifts could mean a resurgence for traditional fossil fuel industries, including coal, natural gas, and oil production, particularly in areas like Alaska where new drilling activities are expected. The opening of ANWR, a vast oil reserve, is viewed as a potential game-changer, capable of having significant ripple effects across global energy markets.

“There is a strong possibility that we will see a bull market in traditional energy stocks as regulatory constraints are eased,” Green explains. “Companies in oilfield services, exploration and production, and infrastructure firms are likely to benefit. Additionally, energy independence initiatives could create new opportunities for pipeline operators and midstream energy companies.”

However, Green warns that the renewed focus on fossil fuels may come at the expense of the renewable energy sector. Under Trump’s administration, climate-focused policies and incentives for electric vehicles and renewable energy projects could be rolled back, potentially stunting growth in these areas. Renewable energy firms reliant on federal support could face significant challenges, and international trade dynamics, especially concerning critical minerals for renewable technologies, could experience drastic shifts.

“In the long term, these policy changes could weigh heavily on sectors like electric vehicles and renewable energy, where subsidies and incentives have been key drivers of growth,” Green says. “Investors should be aware of potential volatility in these markets.”

With these uncertainties in mind, Green advises investors to reassess their portfolios, particularly their exposure to sectors that may benefit from Trump’s pro-energy agenda. Diversification will be key to minimizing risks, as potential volatility in renewable energy markets may require careful navigation.

Additionally, Green points out that infrastructure sectors could see significant growth as Trump’s energy policies take shape. The anticipated expansion of energy projects will likely result in increased demand for construction, engineering, and logistics services, presenting new investment opportunities for those looking to capitalize on the infrastructure boom.

Despite these opportunities, Green also cautions that Trump’s aggressive energy-focused executive orders could face legal challenges that may delay their implementation. These potential legal hurdles, combined with geopolitical factors related to energy trade dynamics, add complexity to the market outlook. Shifts in oil and gas prices and changes in trade relations with energy-exporting nations may further influence global markets.

“The incoming administration’s changes to energy policy could be monumental,” Green concludes. “Investors should act now to position themselves for the changes ahead. By preparing early, they can capitalize on the opportunities, while managing the risks that these sweeping policy shifts are likely to generate.”

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

error: Content is protected !!
WP Radio
WP Radio
OFFLINE LIVE
Exit mobile version