Survey Shows Most Investors Believe Donald Trump Will Be Good for the Market and Economy

According to CNBC's latest Delivering Alpha stock survey, 71% of respondents believe that Trump's presidency will benefit the economy and financial markets. Meanwhile, 29% are uncertain. However, it is clear that the business-friendly rhetoric and big promises have resonated with the majority of investors. The survey also revealed a surprisingly high level of trust in Trump's artificial intelligence navigation capabilities. More than half - 57% - of those surveyed expressed confidence in Trump and his team's ability to handle AI development. However, tariffs remain a hot issue, when those asked are divided on whether these trade policies will benefit or harm the economy, workers, and consumers. Customs duties and their complex network Trump's aggressive tariff strategy has always been a defining feature of his economic policy. During his campaign, he imposed tariffs of over 60% on imports from China. In recent months, he has doubled down on those threats, pledging an additional 10% tariff on Chinese goods and increasing tariffs on Canada and Mexico by an additional 25%. The investment world is deeply divided. Some believe these measures will level the playing field for US businesses, while others worry about high costs for consumers and potential backlash from global trading partners. "This is a gamble," a survey participant said. The impact of Trump is not only limited to policies. He is also building alliances with influential figures in the industry. His close relationship with CEO of Tesla and SpaceX, Elon Musk, has received mixed reactions. When asked whether Musk's influence on the Trump administration is positive or not, 36% of survey participants agree, while another 36% remain undecided. The remaining 28% completely reject this opinion. Investors aim for 2025 When the dust settles in 2024, small-cap stocks are becoming the darling of the investment world. Nearly 30% of survey respondents have chosen small caps as the top asset class for 2025. This choice is not surprising, as the Russell 2000 index, which tracks small-cap stocks, has risen nearly 12% this year. However, it still lags behind the impressive 26% increase of the S&P 500 and the 33% increase of the Nasdaq Composite. Large-cap technology is also not far behind, with 14% of investors considering this their top choice. Another 14% are betting on the S&P 500 in general. Bitcoin, Chinese stocks, Indian stocks, and private markets all won 7% of the vote. The technology sector could not be stopped this year, with the S&P 500 technology index surging more than 40%, thanks to giants like Apple, reaching a record high in Christmas Eve trading. But investors don't bet everything on the "Seven Tech Titans" - a group of large-cap technology stocks including Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla. Up to 77% believe that the rest of the S&P 500 will outperform these tech giants by 2025. 23% still believe that large technology companies have room to grow. AI-driven fields such as software and semiconductors are also attracting attention. The SPDR S&P Software & Services ETF has risen 29% year-to-date, while the VanEck Semiconductor ETF has surged 44%. However, 71% of investors expect software stocks to outperform semiconductor stocks in the coming year. Bitcoin: Boom or Bust? The cryptocurrency market has had a tumultuous journey in 2024, as Bitcoin surpassed the $108,000 mark in December. However, not everyone believes that the price surge will continue. 57% of survey respondents believe that Bitcoin is more likely to drop to $50,000 than to rise to $200,000. 43% still see further potential. Despite the excitement surrounding Bitcoin, cryptocurrency mining stocks are not favored by investors in the survey. None of the respondents consider these companies to be worthwhile investments for 2025. Instead, 64% support cybersecurity stocks, while 36% point to AI-related stocks as promising bets. Bitcoin's recent decline does not help its case. The top cryptocurrency has dropped 3% as of press time, even after MicroStrategy announced plans to issue more shares to buy additional tokens. Other cryptocurrencies, including Ethereum, Solana and Dogecoin, also follow suit, each decreasing by about 3%. On Friday, $43 billion in open cryptocurrency positions will expire on Deribit, a derivatives exchange. This includes $13.95 billion in Bitcoin options and $3.77 billion in Ether options, raising concerns about increased volatility. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)