I suppose the theme for anyone disappointed with Tuesday’s election result is this: when life gives you lemons, make lemonade. In the case of a second administration of President-elect Donald J. Trump, we’re going to get a heavy dose of incredibly draconian (and thus controversial) immigration policies. As such, the market has been aggressively focused on private prisons such as Geo Group (GEO).
To be clear, I don’t want to get into a political or ideological discussion on the merits of private prisons. Suffice to say, it is a scandal-ridden industry as the profit motive may put both inmates and correction officers at risk. However, it’s unignorable that under another Trump administration, GEO stock will likely become wildly relevant, as evidenced by its 78% surge this past week.
