Let’s cut the sh*t (for once)... every other finance blog out there is trying to sell you on some “top AI stock that’s totally going to moon.” But here’s the thing, sometimes, it’s not about the shiny new penny. It’s about knowing which ones to toss before they burn a hole in your portfolio. And with Trump back in the Oval Office, a few stocks are practically begging everyone to sell.

If you thought cereal and ketchup were recession-proof, think again. Trump’s Health and Human Services officer, RFK Jr., has made it his mission to gut processed foods from SNAP (aka food stamps). His “Make America Healthy Again” plan would stop low-income shoppers from using SNAP to buy sugary cereals, soda, and processed snacks… a revenue lifeline for companies like General Mills and Kraft-Heinz. How bad could it get? SNAP spending topped $113 billion in 2023, and more than 20% of General Mills’ and Kraft-Heinz’s sales come from lower-income consumers. Take away SNAP benefits for Lucky Charms and boxed mac and cheese, and you’ve got a recipe for disaster. (Tony the Tiger? More like Tony the Terrified.)

And it’s not like these companies are crushing it elsewhere. General Mills’ Q2 2024 revenue grew a modest 4%, while Kraft-Heinz has struggled with stagnant market share for years (down 3% in the last 5 years). Sure, healthier options like Lean Cuisine might help Conagra Brands stay in business, but GIS and KHC could be taken out behind the barn and put out of their misery.

Trump’s tariff battle with China might as well have a subtitle: “Hasbro and Mattel’s Worst Nightmare.” Despite both companies’ efforts to reduce reliance on Chinese manufacturing, 40-50% of their products still come from China. Take into account a 60% tariff, and suddenly that $30 Barbie Dreamhouse is looking more like a mortgage payment.

But the problems don’t stop there. U.S. birth rates hit a record low of 3.6 million in 2023, meaning fewer kids (and fewer toys sold). Hasbro’s Q3 2024 revenue already dropped 9%, with its consumer-products segment falling 10%. Mattel hasn’t paid a dividend since 2017, so good luck convincing investors this is a good stock to buy with Trump in the White House. (Barbie hype can only take you so far… it’s not 2023 anymore).

Walmart and Dollar General thrive on cheap imports, but Trump’s tariffs on Chinese goods are about to make those imports a lot less cheap. Walmart’s $611 billion annual revenue might cushion the blow, but Dollar General’s stock is down 50% in the last 5 years, and they’re not exactly built to handle rising costs.

For bargain-hunting customers, price hikes could mean buying less (or nothing at all). Dollar General, which thrives on razor-thin margins and value shoppers, could see its already-struggling customer base start robbing the store as opposed to buying more goods. Walmart might pivot to its growing e-commerce division, but even that won’t fully offset the tariff-driven pinch. (Let’s just say, "Everyday Low Prices" might need a rebrand.)

While every finance blog is busy hyping the next big AI trend, don’t forget that smart investing is as much about playing defense as it is about chasing growth.

Stock.News does not have positions in companies mentioned.