President-elect Donald Trump has vowed sweeping changes to energy and environmental policies on Day One of his presidency — and investors need to take immediate action to align their portfolios.

This is the warning from the CEO of one of the world’s largest independent financial advisory and asset management organizations.

Nigel Green of deVere Group is speaking out ahead of the January 20 inauguration after which Trump is reported to sign up to 25 Executive Orders, one of which promises to dismantle key Biden-era regulations, and could ignite significant shifts across energy markets, creating both lucrative opportunities and substantial risks.

He says: “Donald Trump’s campaign promises of reversing environmental regulations and boosting domestic fossil fuel production are expected to materialize quickly.

“At a recent rally in Phoenix, Trump reiterated his intent to sign a series of Day One executive orders targeting energy policy.

“These orders include repealing Biden’s restrictions on energy production, terminating the electric vehicle mandate, canceling the natural gas export ban, and reopening the Arctic National Wildlife Refuge (ANWR) in Alaska for drilling. Trump’s team also plans to launch a government downsizing initiative—the Department of Government Efficiency—to cut regulations further.”

Trump’s policies, designed to increase domestic energy production and reduce regulatory hurdles, could lead to a resurgence of fossil fuel industries. This includes the revival of coal, natural gas, and oil production on a large scale, particularly in regions like Alaska. The reopening of ANWR, potentially one of the largest untapped oil fields globally, alone could send ripples through global energy markets.

“These shifts present an opportunity for investors to capitalize on a likely surge in traditional energy stocks,” notes Nigel Green.

“Oilfield services, exploration and production companies, and infrastructure firms stand to benefit significantly as regulatory constraints are eased. Additionally, Trump’s focus on energy independence could boost investments in ‘midstream’ energy companies, including pipeline operators, as new projects receive expedited approvals.”

However, investors should also prepare for potential volatility in renewable energy sectors. Trump’s rollback of climate-focused initiatives, such as subsidies for electric vehicles and renewable energy projects, could undermine growth in these areas.

“Firms reliant on federal incentives may face headwinds, forcing a recalibration of their strategies. Additionally, international trade dynamics, especially in critical minerals for renewable technologies, could shift dramatically if tariffs or export bans are introduced,” affirms the deVere CEO.

Now is the time for investors to reassess exposure to sectors that stand to benefit from Trump’s pro-energy agenda while mitigating risks in potentially vulnerable areas. Diversification and proactive adjustments to asset allocations will be key.

“The deregulation of fossil fuels, combined with incentives for domestic energy production, will likely drive a renewed bull market in traditional energy stocks. At the same time, the renewable energy sector may face turbulence, requiring investors to tread carefully,” comments Nigel Green.

He also highlights the importance of evaluating emerging opportunities in infrastructure. “As energy projects ramp up, there will be increased demand for construction, engineering, and logistics services to support this growth. These sectors could provide new avenues for strategic investments.”

Trump’s energy-focused executive orders could face legal and regulatory challenges, potentially delaying implementation. These uncertainties add a layer of complexity for investors.

Also, geopolitical factors must be considered. Policies aimed at boosting domestic energy production could alter international trade dynamics, particularly with key energy-exporting nations. This could lead to shifts in oil and gas prices, further impacting global markets.

Nigel Green concludes: “Trump’s incoming administration is set to ignite a seismic shift in energy policy, presenting a pivotal moment for investors. The time to prepare is now—before these changes begin to impact markets.

“Those who act with urgency can position themselves to capitalize on the opportunities while sidestepping the risks that come with such dramatic policy shifts.”

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of offices around the world, more than 80,000 clients, and $12bn under advisement.

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