InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

This Two-Minute Market Move Could Make You Rich

This Two-Minute Market Move Could Make You Rich[Revealed] How to generate instant income from the stock market. Over and over again. At will. This technique is so powerful – and safe – we’re guaranteeing you can use it to generate $1 million (or more) in retirement cash. And we’ll even send you a $1,000 check to kickstart your journey. Go here for details.

 

Profit Strategies for a “Black Swan” Presidency

By John Persinos on November 30, 2016

In 2008, the U.S. elected for the first time as president a black man. In 2016, the country elected for the first time as president…a black swan.

In Wall Street lingo, a “black swan” describes a shocking, unexpected event that carries disproportionately high consequences. A classic example of this rare bird is the global financial crisis of 2008, triggered by the collapse of the sub-prime mortgage market in the U.S.

The latest low-probability, high-magnitude event: the election of Donald Trump to the most powerful job in the world. Love him or hate him, the mercurial real estate mogul poses irregular risks — and opportunities — for your portfolio.

Here’s a quick survival guide for making money and protecting your portfolio, during the initial stages of America’s black swan presidency.

Get ready for precious metals mania…

The street protests in the aftermath of Trump’s election underscore how America remains a bitterly divided nation. As political rancor lingers into 2017 and beyond, you can expect a growing mania for precious metals.

Predictions for gold and silver prices are all over the map, but the consensus is for double-digit gains over the next year.

A particularly attractive gold play is miner Goldcorp (NYSE: GG). Goldcorp boasts production growth and extremely lean operating costs, a combination that should boost profits as the price of gold rises this year as analysts expect.

Goldcorp enjoys many advantages over its more volatile peers, including production growth combined with low cash costs and a strong balance sheet.

If you’re more comfortable with a fund, consider SPDR Gold Shares (NYSE: GLD), the largest gold exchange-traded fund (ETF) backed by physical holdings of bullion.

Another alluring precious metals investment is Silver Wheaton (NYSE: SLW), a “silver streaming” company that provides an advance payment to miners in return for the right to buy a pre-set percentage of their silver production. The company then makes incremental delivery payments as it receives the white metal.

Without exposure to the actual production side of the business, Silver Wheaton is more of a pure play on silver prices, which like gold are expected to rise this year.

If you’re risk averse but still want a play on silver, consider the benchmark iShares Silver Trust (NYSE: SLV).

Beating the war drums…

Before Trump’s surprise election, the Pentagon wasn’t exactly rattling a tin cup for funds. But under a Trump regime, the nation’s already ample defense budget is almost sure to get a massive boost.

That’s great news for Lockheed Martin (NYSE: LMT). As the largest defense contractor in the world, Lockheed Martin is a superb play on persistent demand for military aircraft. LMT shares have enjoyed a post-election tear, as investors realize that a Trump administration would pursue considerably more aggressive foreign policies than its Democratic predecessor.

Overseas hot spots should heat up in 2017 and beyond, especially those involving Trump’s expansionist ally, Russian President Vladimir Putin. Growing global tensions should also benefit aerospace giant Boeing (NYSE: BA), the world’s largest maker of both commercial and military aircraft.

Ultra-sophisticated combat jets produced by Lockheed Martin and Boeing are greatly coveted by warring nations around the world. These aircraft also require continual upgrades, which are expensive and confer high margins for the plane makers.

The more things change…

The more they stay the same. Sure, Trump’s election is an earthquake, but our analysts also remind you that the fundamentals never change.

Ari Charney, chief investment strategist of Utility Forecaster, advises companies as well as investors to stay focused on future earnings and dividend growth, rather than worrying about a raft of new federal regulations each year.”

As Ari puts it: “The president is not a king. Though the long-term trend has been for power to accrue to the presidency, Congress is still where legislation is written and negotiated.”

And if you’re suffering from political angst these days, he offers a modicum of hope: “Most politicians end up being more pragmatic than their electoral pitches might suggest.”

Jim Pearce, chief investment strategist for our flagship publication Personal Finance, says Trump’s triumph makes select bank stocks good buys now.

Jim asserts: “By a wide margin the biggest winner so far has been the financials sector, based on the presumption that Trump’s administration will adopt a less antagonistic posture towards banks than Clinton’s would have.”

The takeaway: Regardless of your political leanings, you need to remain coldly rational about your holdings. Tune out the political pundits and listen instead to Warren Buffett, who offers this famous piece of advice: “You want to be greedy when others are fearful and fearful when others are greedy.”

Never get emotionally attached to any one investment or desired political outcome. This holiday season, make a point of investing your emotions in your friends and family, where the dividends are higher.

Hey, big spender…

In an email to me this week, reader Neil Buckland offered his personal take on Trump:

“Trump made his name in real estate, so his impact on the real estate and construction markets will be interesting to see during his tenure as president. During the course of the election, Trump made big promises for big spending in the nation’s infrastructure. On his website, the president-elect notes that he wants to transform America’s ‘crumbling infrastructure into a golden opportunity for accelerated economic growth’ with over $1 trillion of investment over the next decade.”

That’s all true, Neil. If Trump makes good on his promise for increased infrastructure spending (and that’s a big if, considering the fiscally austere GOP majority in Congress), construction companies should reap a windfall.

A particularly appealing infrastructure play now is Martin Marietta Materials (NYSE: MLM). Raleigh, N.C.-based Martin Marietta is the country’s leading producer of crushed gravel, sand and stone, which are called aggregates and are mixed with cement to create concrete for the construction of roadways.

This Stock Has Immediate 172% Upside Potential

Certain investments are on track to thrive, no matter who sits in the White House. There’s no one better at finding them than Jim Fink, our chief investment strategist of Velocity Trader. His track record speaks for itself. At last count, he’s recommended 27 triple-digit winning trades over the past year.

Jim refuses to recommend any trade inside Velocity Trader unless it has the potential to double in value. And the move he’s recommending right now fits the bill. You just need to follow his two-sentence set of instructions to make it happen. Jim shows you how it works here.

 

 


You might also enjoy…

 

R.I.P Bull Market—Here’s How To Protect Your Wealth

I hope you’ve enjoyed the phenomenal bull market of the past eight years…

Because it’s about to come to a screeching halt.

The Federal Reserve’s nearly decade-long spending spree has finally come to an end.

With no other options left at their disposal, the Fed has no other choice than to raise interest rates to keep inflation in check.

And that leaves you with two options…

Do nothing and suffer the agony of watching the profits you’ve accumulated over the years evaporate right before your eyes…

Or reposition your portfolio and invest in companies which prosper as inflation rises and interest rates soar.

I think the choice is clear. And I’ll show you the best new positions you can take if you click here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.