Donald Trump's win in the US presidental elections caused ripple effects across the financial markets .
GEO Group is a publicly traded corporation, a business entity that is taxed twice separately. It has been investing in private prisons and mental health facilities for over three decades, drawing several lawsuits from prisoners and their families over a range of allegations - lack of hygiene, overcrowding, rioting and poor treatment of inmates.
Investors are anticipating a repeat of past trends and expecting the Trump administration — who has promised a mass deportation of illegal immigrants—to once again adopt a hardline stance on immigration and crime enforcement.Private prison stocks in the US represent shares in companies that own and operate a network of prisons, immigration detention centres, and correctional facilities under government contracts.
Both companies have invested heavily in lobbying efforts to secure government contracts, which reveals the tight connection between the private prison industry and federal policy decisions, promising correlated revenue streams.Stocks for private prison operators Geo Group and CoreCivic soared today, with gains of over 4% and 8% in premarket trading, after Trump appointed immigration hardliner Tom Homan as “border czar.