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.

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