Foolish Take: The most durable Trump bump is prison stocks

Foolish Take: The most durable Trump bump is prison stocks

One sector of the stock market has benefited immensely from the Trump presidency is the private prison industry.

Foolish Take: The most durable Trump bump is prison stocks

Data source: YCharts.com. Chart by author.

Stocks in other sectors have begun to give back some of their post-election gains as the challenge of getting Trump's campaign promises through Congress sinks in. In contrast, shares of private prisons have continued to be buoyed by the Justice Department's vow to crack down on crime and reduce federal oversight of state and local law enforcement agencies.

Attorney General Jeff Sessions said in February, "If we take the right actions now, affirm good, effective, proven law enforcement techniques, we can avoid another surge in crime rates in America."

As the market's response to Trump's victory has shown, this is music to the ears of shareholders in CoreCivic and The Geo Group.

Offer from The Motley Fool: The 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run,Motley Fool Stock Advisor, has tripled the S&P 500!* Tom and David just revealed their ten top stock picks for investors to buy right now.

*Stock Advisor returns as of 4/3/2017.



Add Comment

all comments

  Other news

more
North should 'take control' of transport, says Grayling

North should 'take control' of transport, says Grayling..

22-Aug, 23:50

The north of England's leaders should "take control" of their own...

Prison visiting rules punish children, says charity

Prison visiting rules punish children, says charity..

22-Aug, 22:51

Children whose fathers are in jail are being punished by rules which...

'Donald Trump-shaped' ecstasy pills seized by German police

'Donald Trump-shaped' ecstasy pills seized by German police..

22-Aug, 11:30

About 5,000 carrot-coloured ecstasy tablets in the shape of Donald...

Demi Lovato celebrates 25th birthday with ex Wilmer Valderrama

Demi Lovato celebrates 25th birthday with ex Wilmer Valderrama..

23-Aug, 04:40

After her party, Demi took to Twitter to share her excitement with fans...

Dutch bike lock to boost safety by blocking rider's phone

Dutch bike lock to boost safety by blocking rider's phone..

21-Jun, 06:18

A telecom company in the Netherlands has teamed up with the country's...

British Airways cabin crew to strike in mid-June

British Airways cabin crew to strike in mid-June..

02-Jun, 13:12

British Airways cabin crew are set to go on strike in mid-June, offering...

Long-term mortgage rates rise to new highs for 2017

Long-term mortgage rates rise to new highs for 2017..

10-Mar, 16:36

Long-term U.S. mortgage rates rose this week, marking new highs for 2017....

UK welcomes Spanish king and queen with military pomp

UK welcomes Spanish king and queen with military pomp..

12-Jul, 19:10

Britain's Queen Elizabeth II and her husband led an extravagant ceremony...