Bank Stocks Set to Thrive Under Trump 2.0, Says Investor

As former President Donald Trump begins his second term, investors are bullish on the prospects for bank stocks, with one investor, Kingsley Jones of Jevons Global, naming his favorites: Goldman Sachs and JPMorgan. Jones believes that Trump's presidency will be pro-business, with a focus on building new factories and shifting trade patterns, which will benefit the financial sector (Source: CNBC, 2025).



Jones also sees a two-horse race in the AI sector between the U.S. and China, with the emergence of China's Open AI model DeepSeek set to spark a boom in AI competition. This development is expected to drive a surge in AI applications and innovations in both nations, creating new opportunities for investment in AI-related technologies and companies (Source: CNBC, 2025).

Investment bank stocks are expected to benefit from Trump's presidency, with data from Coalition Greenwich suggesting that investment bank income could reach $316 billion in 2025, and M&A bankers earning around $27.6 billion in fees. This would be the second-highest-grossing year in two decades (Source: Reuters, 2025).

Following Trump's election victory in November, dealmakers and leaders on Wall Street, including Goldman Sachs CEO David Solomon, have expressed their expectations for a floodgate opening on merger and acquisition activity. This optimism is driven by the anticipated regulatory backdrop and increased CEO confidence (Source: CNBC, 2025).



Investors should consider allocating a portion of their portfolios to AI-focused investments, such as AI chipmakers, AI software and platforms, and AI-focused ETFs. However, it is essential to be mindful of the risks and challenges associated with investing in AI-related technologies, such as regulatory uncertainties, data privacy concerns, and the rapid pace of technological change.

In conclusion, the combination of Trump's pro-business policies, the emergence of China's Open AI model DeepSeek, and the expected increase in M&A activity under his second term creates a favorable environment for investment in bank stocks and AI-related technologies. Investors should stay informed and consider diversifying their portfolios to capitalize on these opportunities while being aware of the associated risks.