SINGAPORE (Nov 11): If Donald Trump’s campaign rhetoric is to be taken as a signal of what Americans want and what he plans to do, then the biggest worry is likely trade.

And if Trump goes one step further and carries out his anti-trade rhetoric, that could lead to a decline in global trade when it is already stagnating.

But while worrying about the impact of Trump’s anti-trade stance, investors also should not forget his stated intentions to increase government spending, say some analysts.

Alex Tedder, head and chief investment officer for global and US equities at Schroders, sees the possibility of a repeal of prior policies implemented by outgoing president Barack Obama.

“Healthcare reform will involve the repeal of Obamacare and reinstatement of market-driven pricing for drugs and healthcare services. Energy policy will move away from climate change initiatives and focus on domestic energy security. There will undoubtedly be many opportunities in the US as a result of policy changes,” says Tedder.

Victor Jones, director for education and trading products at TD Ameritrade Asia, agrees the healthcare sector will be an interesting one to watch.

So far this year, it has been the worst-performing sector, down 11%, and much of the poor investor sentiment can be attributed to anticipated regulation in the event of a Clinton presidency.

Another sector that could do well under Trump is defence and energy-related stocks.

“Trump has promised to build a stronger US military and increase the military spending cap. He also promised to cut back on oil and gas industry regulations and is more supportive of fossil fuels,” says Jason Low, investment strategist at DBS Private Bank.

Jasslyn Yeo, global market strategist at JP Morgan Asset Management, thinks there are positive implications for infrastructure-linked stocks in the US, as Trump has advocated running a bigger budget deficit and, among other things, intends to repair the country’s ageing infrastructure. She also likes the technology, healthcare and banking sectors.

CMC Markets analyst Margaret Yang also notes that the US Federal Reserve may choose not to raise the federal funds rate in December. “Owing to the rising political and financial uncertainties that Trump could bring to the market, the chance of a rate hike has lowered substantially,” she says. A delay in the rate hike decision could cause the US dollar to fall against its major peers. That, in turn, would improve earnings for corporate America.

To find out what the other beneficiaries under Trump would be and how investors should rebalance their portfolio, get Issue 754 of The Edge Singapore which is on sale now.