The Trump trade is back! US stocks gained overnight led by the NASDAQ Composite which climbed 1.2% due to optimism after President Donald Trump announced a proposal to slash the US corporate tax rate to 20%, down from the present rate of 35%.
Australian investors looking to gain exposure to the US and hedge against the Australian dollar could consider these three shares that are likely to benefit from the Trump trade:
- CSL Limited (ASX: CSL) which earns over 40% of its revenues from the US.
- Cochlear Limited (ASX: COH) which earns over 50% of its revenues from the US
- Westfield Corp Ltd (ASX: WFD) which has 75% of its earnings coming from the US
The proposed tax cuts aren’t final and it could be months before they are approved by Congress. Long term investors are better off looking at the fundamentals of the underlying business before making an investment based on a rising US dollar and lower corporate tax bills.
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As of 2.11.2020
Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.
You can find Kevin on Twitter @kevingandiya
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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