One Stock to Short as Trump Takes Office

For a long time, one of the most frustrating things about wind power from an investor’s perspective was that it was very hard to find ways of playing the industry, regardless of whether your views were bullish or bearish.

That was because the two biggest players in the industry were (GE) and Siemens (SIE.DE or SIEGY: ADR). Both are huge conglomerates where wind power made up a fairly small percentage of their revenues and profits. That changed for Siemens to some extent in 2020 when they spun off their green energy division, and for GE earlier this year when they did the same thing, creating GE Vernova (GEV) in the process.

The GE spinoff has been remarkably successful, as this chart of the stock since its inception clearly demonstrates…

That is not really surprising. Wind turbines were, for a long time, a successful and profitable business for GE, even as the rest of the company struggled to find a footing. Then add in the help given to the industry by the Biden administration’s push to help green energy companies in the US, through the “Inflation Reduction Act” among other things, and Vernova was always positioned to be a success.

What is surprising, however, is that the stock has continued to show significant gains since the US election a few weeks ago resulted in a big win for Donald Trump in the Presidential race, and for Republicans in general, who kept control of the House and established an albeit slim majority in the Senate.