Financial Association News on November 8th (Editor Malan) The upcoming inauguration of the new US President Trump has triggered rounds of concept stock trading in the US stock market, with private prison operators now in the spotlight.

Due to Trump's promise to crack down on large-scale illegal immigrants, some investors believe that this means big business for private prisons. Among them, the leading companies$CoreCivic, Inc. (CXW.US)$And.$The GEO Group Inc (GEO.US)$have tasted the sweetness of this expectation.

Since Trump's election victory on Wednesday, the stock prices of CoreCivic, Inc. and The GEO Group Inc. have both surged by over 50%. The performance of these two stocks this year has also been quite outstanding, with CoreCivic, Inc. showing a 52.8% increase; and The GEO Group Inc. has already risen by 127.04%.

And the soaring prices of these two stocks are also inseparable from the billionaire Musk's promotion, who repeatedly emphasized immigration issues in the second half of the Trump campaign. As Musk is almost certain to have a position in the Trump administration, the market is even more bullish on the profit potential of CoreCivic and the Geo Group.

Goodbye, illegal immigrants.

According to the investigation results of the American Civil Liberties Union, during Trump's first term in office, the U.S. federal government expanded its immigration detention system by over 50%, reaching a peak of 0.055 million illegal immigrants detained in 2019.

Even after Biden's election, the 'popularity' of private prisons has not ended. Despite Biden immediately issuing an executive order upon taking office in 2021 to terminate the contracts between private prisons and the federal government, he decided to preserve the immigration detention facilities.

Trump seems poised to change Biden's mild approach to immigration, fulfilling his commitment to combating crime and immigration. The new Vice President, Pence, suggested that Trump could start the new government's agenda by targeting 1 million undocumented immigrants. This action is expected to be the largest deportation operation in U.S. history.

This action also bears the color of Trump defending the Republican vote bank. Musk emphasized during the campaign that Democrats deliberately opened America's southern border, strategically transporting Latin immigrants from countries like Venezuela to battleground states, in a planned effort to dilute the Republican votes.

Therefore, the Trump administration clearly has extraordinary determination regarding immigration issues, which for the market means a bright future for private prisons.

However, some people also point out that addressing the immigration issue requires cooperation between state governments and Immigration and Customs Enforcement, and some state governments may refuse to take action. Yet, for Trump, there are ways to deal with uncooperative local governments, such as withholding federal funds. It seems that the 'wise king's' immigration action is imminent.

Editor/ping