Dow 30,000 (…And Trump’s 2nd Term)
Extra, extra! Read all about it!
Democrats, Trump Agree to Aim for $2 Trillion Infrastructure Package — Wall Street Journal
I hope you heard the great news announced this week.
The next phase of President Trump’s “Make America Great Again” agenda just kicked off with a meeting with Democrats at the White House.
In a promising turn of events, House Democrats and President Trump agree that BIG investments need to be made into America’s ailing infrastructure.
Today, I want to explain the many reasons why this is good for both America AND your retirement account!
An Infrastructure Bill, Dow 30,000 and Trump’s 2nd Term…
This is a story we’ve followed for a long time here at The Daily Edge.
The American Society of Civil Engineers recently gave America’s infrastructure a D+ rating in their most recent report. That puts us in the “Poor, at Risk” category that describes many elements (like bridges, tunnels and highways) as approaching the end of their service life with a large portion of the system exhibiting significant deterioration.
Now, President Trump knows that America simply cannot compete in the 21st century global economy with crumbling infrastructure.
So in true “Art of the Deal” fashion, President Trump just extended an olive branch to Democrats in the form of an infrastructure spending bill that both parties have previously called for.
Included in this week’s initial discussions were upgrades to our nation’s broadband internet access, our power grid, and improvements to our roads and highways.
But this goes way deeper than just pothole-free highways… Or the fact that Republicans and Democrats finally agreed on something…
A $2 trillion investment into America’s infrastructure truly has the power to “Make America Great Again” by creating an estimated 15 million jobs, catapulting our stock market to highs never seen before, and even paving the way for Trump’s reelection in 2020.
If an infrastructure bill of this magnitude gets passed, the amount of jobs created coupled with the subsequent wave of consumer spending could easily push the Dow to 30,000 or higher.
(Remember, it all comes down to the “wealth effect” we’ve talked so much about.)
Add this on top of the tax bill that went into effect last year — and it would be nearly impossible to deny Trump a second term in office.
Trump Reaches Across the Aisle — And America Benefits
As investors, this early in the discussions is certainly a high(er) risk / high(er) reward time to invest in infrastructure.
It’s still unclear exactly how this bill will be paid for, and it could take some time to figure it out.
But the people who act first while many of these stocks are cheap will make the most when an actual infrastructure bill is actually passed.
That’s why I want to share with you the best stocks to profit from the next phase of President Trump’s MAGA agenda:
AECOM (ACM) — AECOM specializes in providing infrastructure assets and services for government agencies. Last year, 42% of AECOM’s $20 billion in revenue came from the U.S. federal, state, and local governments. And the company is already confident in growing its organic revenue annually at 5% between 2018 and 2022, without including a $2 trillion infrastructure bill into their calculations.
Caterpillar Inc. (CAT) — This construction machinery behemoth is the undisputed global leader and has the broadest product portfolio among peers. And while it has done well for itself in the past, Caterpillar’s real gains are ahead as analysts expect the company to grow its earnings per share (EPS) by almost 40% in the next five years. In addition, Trump has already hinted that this Caterpillar could bag a big piece of government infrastructure contracts.
U.S. Steel (X) — It would be difficult to construct bridges, pipelines, tunnels and rail tracks without steel. Therefore, companies like U.S. Steel are bound to benefit when infrastructure spending takes off. Throw on top Trump’s protectionist policies against cheap and illegal steel imports, and U.S. Steel should prove to be a primary supplier when a bill finally does get passed.
The next step on the way to these lofty goals comes in three weeks when both parties are scheduled to have another meeting to discuss specific proposals and financing methods.
As always, I’ll keep you posted on the details when they emerge. But until then, I recommend you start allocating a part of your portfolio towards the companies set to benefit most — before the rest of the market catches on.
Here’s to growing and protecting your wealth!