Donald Trump's Mar-a-Lago Estate Searched by FBI — What Stocks May Be Affected

Former U.S. President Donald Trump released a statement last night that painted the present as “dark times for our nation” as he says his home was “under siege, raided and occupied by a large group of FBI agents.”

He went on to explain how he isn’t being treated like a former President of the United States, that the activity is “prosecutorial misconduct” and a “weaponization of the justice system.” He attacked “radical left Democrats” who are afraid of him running for president in 2024.

It remains unclear what impact the raid will have on the former president, his likelihood to run again and general political unrest in the United States. Those topics are complex and involve a lot of unpacking. However, speculation as to what news and rumors do to stocks is not.

Robinhood Markets Inc. HOOD describes Digital World Acquisition Corp. DWAC as “a blank check company which was formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities.” 

So, how is this information tied to Trump? DWAC has been planning a merge with the company that backs former President Donald Trump's Truth Social platform. As recently as Aug. 5, 2022, DWAC has been asking shareholders to delay the deadline to complete the deal amid the investigation against former President Trump. This request is necessary because of the approaching two-year deadline for the blank check company to complete a deal or return its funding to investors.

In October 2021, DWAC announced plans to merge with a new firm called the Trump Media and Technology Group, and trading took off. Because of volatility safeguards, runs were capped, but the stock reached peaks of over $120 per share. As for the present, the stock closed at $30.80 last night. After hours, when the statement was released and news broke of the raid, DWAC dropped by less than a dollar. 

Trump is a lightning rod for controversy and exposure. In the business world, they say that any publicity is good publicity. Time will tell how this adage applies to DWAC stock. Perhaps now is a good time to invest if this opportunity fits with your risk profile. 

Additionally, and informally, the former President has been tied to Elon Musk’s Twitter Inc. TWTR bid, which seems to be gaining traction again. Musk has said that he believes the former president should have a space on the platform. Recent developments highlight how important and how impactful that decision may be.

If you’d like to keep your distance from the uncertainty and general controversy that follows Trump and the stock market as a whole, you could consider investing in alternative investments:

• Art: Art has shown that it holds value and appreciates over time. It can be a relatively safe play during volatile times, especially during a recession or threat of a recession. Whether you invest on your own or participate in crowdsourcing options like MasterWorks, art can be a savvy way to diversify your portfolio. Check out How to Invest in Art.
• Jewelry: According to a report published by Allied Market Research, the global luxury jewelry market generated $21.75 billion in 2021 and is projected to reach $40.19 billion by 2031, growing at a compound annual growth rate (CAGR) of 6.4% from 2022 to 2031. If those gains end up being manifested, jewelry could be a safer investment than traditional investments. 

These opportunities may be a way to stay safe during financial turmoil. Historical returns on gold and silver during recessions, depressions and inflation are nothing to scoff at.

Check out Benzinga's coverage of Alternative investments:

• You Can Become Part-Owner Of This Cash-Flowing Multifamily Real Estate Portfolio With an 8% Target Yield
• Fine Wine Continues To Outperform The Stock Market - Burgundy Index Up 24% YTD
• Why Billionaires Like Jeff Bezos Invest Millions In Artwork And How Retail Investors Found A Way To Get In On The Action

Photo by Evan El-Amin on Shutterstock