Trump Just Sent Blackstone Stock Plunging Below Key Support Levels. How Should You Play BX Here?

Core Viewpoint - Blackstone's stock is under pressure following President Trump's announcement of a potential ban on institutional investors purchasing residential properties, which could negatively impact the company's earnings outlook [1][5]. Group 1: Impact of Trump's Announcement - Trump's plan to bar institutional investors from buying residential properties is expected to tame soaring prices and could significantly restrict Blackstone's ability to invest in a key growth area [1][4]. - The company has made substantial investments in residential real estate, including $6 billion for Home Partners of America in 2021 and $3.5 billion for Tricon Residential [3]. - This ban could undermine Blackstone's rental income and long-term appreciation strategies, indicating increased regulatory risks for large investment firms [4]. Group 2: Current Stock Performance - Blackstone's stock has already declined approximately 18% from its 52-week high, reflecting investor concerns over the potential impact of the proposed ban [2]. Group 3: Long-term Outlook - Despite the challenges posed by the potential ban, Blackstone's diversified portfolio across private equity, credit, real estate, and infrastructure remains attractive, mitigating risks from any single segment [6]. - The firm benefits from ongoing trends in alternative asset management, with continued capital allocation from institutions and high-net-worth investors [7]. - Blackstone offers a 3.34% dividend yield, enhancing its appeal for income-focused investors [7].