President Trump is focused on affordability. Fintech stocks may be the way to play it

• The political push for affordability and addressing economic anxiety favors FinTech companies that reduce costs and enhance efficiency.
• FinTech opportunities are identified in consumer-focused areas like Buy Now Pay Later (BNPL) and digital assets/next-gen lending.
• Increased regulation in the digital assets space is viewed as a positive, affirming the legitimacy of these businesses.
• FinTech stocks are characterized as high-beta, suitable for satellite positions in a diversified portfolio, offering leveraged exposure to a bullish consumer thesis.

Citi's U.S. Equity Strategist Drew Pettit discusses how former President Trump's focus on affordability policies could create tailwinds for FinTech stocks. He highlights that companies disrupting traditional financial systems by lowering costs and increasing efficiency for consumers and small businesses are well-positioned, viewing increased regulation in digital assets as a positive legitimizing factor.