Shark Tank star and businessman Kevin O’Leary discussed the recent assassination attempt on Donald Trump and its potential impact on the election with Fox Business’ “The Big Money Show” this week. O’Leary’s remarks suggest a bright future for the energy sector under a potential Trump administration.
During the interview, O’Leary stated that his organization plans to “double down on the energy sector” in anticipation of policy changes that could come with a Trump victory. He elaborated on this strategy in a LinkedIn post, saying, “We’re making a huge bet on energy in our own organization.”
O’Leary’s bullish stance on energy stems from his belief that a Trump presidency would significantly alter the landscape for the energy sector in America. He pointed to potential policy shifts that could include increased LNG exports, expanded capacity, and changes to drilling regulations in areas like ANWR (Arctic National Wildlife Refuge).
“If Trump gets in, that is going to change the game in America for the energy sector, one of the 11 sectors that’s been really pushed back in terms of its potential,” O’Leary stated. He added that if the Democratic ticket remains unchanged by August 7, his organization plans to “triple down on energy” at midnight.
The potential impact of a Trump victory on the energy sector aligns with historical trends. During his previous term, Trump implemented policies favoring traditional energy sources, including oil and gas. This approach contrasts with the Biden administration’s push towards renewable energy and efforts to combat climate change.
Investors that want to follow O’leary’s lead and gain exposure to the energy sector in anticipation of a Trump victory can look to ETFs. Two popular options include:
Energy Select Sector SPDR Fund (NYSEARCA: XLE):
This fund aims to provide investment results that correspond to the performance of the Energy Select Sector Index. It offers exposure to companies in the oil, gas, consumable fuel, and energy equipment and services industries. The fund had a 30-day SEC yield of 3.00% as of the last reporting date.
SPDR® S&P® Oil & Gas Exploration & Production ETF (NYSEARCA: XOP):
This ETF seeks to track the performance of the S&P Oil & Gas Exploration & Production Select Industry Index. It focuses on the oil and gas exploration and production segment, including integrated oil & gas, exploration & production, and refining & marketing sub-industries. The fund reported a 30-day SEC yield of 1.83% as of the last reporting date.
As always, investors should conduct their own research and consider their individual financial situations and risk tolerance before making investment decisions. The energy sector, like all markets, can be volatile and subject to various risks and uncertainties.
