He’s gonna make America great again and Mexico is gonna pay.
Since we do not live in a dictatorship, President Trump isn’t likely to get the majority of his ideas past the catamites in Congress, who are wholly corrupt and bedraggled. However, there are some bankable plays that will be forced upon them, whether they like it or not.
The number one theme in a President Trump America is protectionism of U.S.industries, which means doom for multi-national, global, plays like KO, PG and ITW. The days of using foreign slave factories to produce cheap as shit goods that break upon initial usage might be coming to an end. Companies like TGT, WMT and other large retailers might suffer, as trade with China becomes ‘difficult.’
But, domestic companies that are being strangled by unfair Chinese practices will flourish. Since Trump is a construction man, it makes sense to get long X, AA and core infrastructure plays like LNN, VMI, CLF, and MLM.
Also, the carnage in coal might be undone, paving the way for big recoveries in CNX, WLB, GBX and a sundry of ancillary plays. Or, you can just buy KOL.
The rails might suffer, in spite of a possible resurgence in coal. Trump wants the keystone pipeline and isn’t afraid to introduce 1930’s technology today, over Victorian era rail transport.
If you recall when Romney was up in the polls, the single best plays were coal. As the Presidential elections near, expect some of the above names to really gain some traction. Think big American infrastructure, energy independence, and an unwind of the EPA. This means many filtration plays, who’ve thrived under Obama, might suffer. Additionally, we’ll need lots of concrete for the massive wall that is going to be built– EXP, KWR, MLM and USCR are choice wall plays for border loving investors.
One side addendum: Yellen will be fired as soon as Trump gets in. He’s a low interest rate guy. Expect credit to flourish; but banks to get squeezed.
Investing isn’t about ideologies and politics. You can hate Trump and still game the system to your benefit. That’s your job, so get to work.
These are just a few ideas. I’ll have more as the elections near and if I ever decide to start investing again.Comments »