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HOW MAGANOMICS HAS CREATED THE AND HOW YOU CAN START PROFITING FROM IT TODAY OPPORTUNITY IN HISTORY... GREATEST WEALTH-BUILDING

HOW MAGANOMICS HAS CREATED THE GREATEST WEALTH …€¦ · reserves held overseas. In 2018, many US companies brought more than $2.2 trillion back to the US. The tax-break meant that

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Page 1: HOW MAGANOMICS HAS CREATED THE GREATEST WEALTH …€¦ · reserves held overseas. In 2018, many US companies brought more than $2.2 trillion back to the US. The tax-break meant that

HOW MAGANOMICS HAS CREATED THE

AND HOW YOU CAN START PROFITING FROM IT TODAYOPPORTUNITY IN HISTORY...GREATEST WEALTH-BUILDING

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You’ve made a great decision to get this report and to join the FREE MAGAnomics Daily eletter. Each day of the week, we’ll send you the latest and most important stories that will impact you, your family, and this great country.

Watch out for it in your email inbox each day.

We look forward to sharing our insights with you. And most of all, we look forward to you sharing with us your stories about how the last three years of the Trump administration has improved your life.

Send your feedback to [email protected].

Now, let’s get to it. The economic growth you’ve seen over the past three years in only the start. America has always been a great country. But thanks to MAGAnomics, that greatness is set to grow even further…

BUILDING ON AMERICA’S GREATNESSThe 2020 election cycle is in full swing. Yet the mainstream spends most of their time seeing who can publish the most dire coronavirus headlines. But one story seems to have disappeared from most of the media…

How MAGAnomics Has Created the Greatest Wealth-Building Opportunity in History… and How You Can Start Profiting From It Today

WE BELIEVE IN HELPING YOU PROSPER, AND WILL FIGHT TO HELP YOU ACHIEVE IT EVERY DAY

THE FIVE TENETS OF MAGANOMICS1. Tax reform

2. Infrastructure

3. Deregulation

4. Limiting government spending in certain areas

5. Signature deals with foreign governments

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It’s the great performance of the U.S. economy. That’s a shame. Because it means many Americans don’t know how the economy has improved over the last few years. Let me explain…

Measured by GDP, the US economy has grown steadily at a rate of about 2.4% since Donald Trump won the election in 2016.

Most mainstream pundits take the negative view on this. They say that’s below the 3% goal. But here’s what they fail to realize (or just plain ignore the fact): growth in many sectors is more than 3% since 2017.

In fact, several sectors are growing at an annual rate well over 7%. For investors who know where to look, that means huge opportunities.

In this report, I’ll show you which sectors have seen the most growth so far… and which ones are set to soar in the latter half of 2020.

But first, you’ll want to understand the five tenets of MAGAnomics that are driving this growth. So let’s dive in…

UNDERSTANDING MAGANOMICSTo make the most of this incredible growth, you must know what to look for.

And to know what to look for, it’s important to understand the fundamentals of Trump’s economic plan. And yes, despite what we always hear from his mainstream media and political opponents, the Trump team does have a plan.

First, MAGAnomics is the idea that the private sector knows how to solve private sector problems better than the government. That’s not to say that the government doesn’t have a role to play. This isn’t a Milton Friedman libertarian economic system.

After all, Trump’s defining trait is that he’s the Dealmaker-In-Chief. He uses his office and enormous platform to engage foreign governments and others in order to negotiate trade deals on behalf of America’s best interests.

But Trump’s penchant for deal-making stops short of the US government owning the specifics of trade agreements between private companies. Instead, he makes sure trade agreements treat US business interests fairly.

That’s a different approach to what has gone before.

Previous governments had tipped the scales in favor of foreign interests in trade deals. They claimed… that future global growth would make the short-term pain of US interests worth it in the long run.

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To say that was naïve was an understatement. Rather than gain foreign influence and benefit from the lopsided trade deals, the US lost influence. Even worse, companies moved key manufacturing and skilled labor jobs offshore.

So, who gained the most from that? Foreign interests, big business, and Wall Street – which helped big businesses to structure those offshore deals.

Trump’s approach is different. He works more to ensure there is a balance. To him, it’s important to help China, India, and other Asian markets grow… but it’s just as important to make sure that foreigners treat American businesses as equals.

The net result has driven both industry and wage growth in key sectors that rely on foreign trade.

That’s a win for MAGAnomics.

But MAGAnomics has specific tenets. And you need to know what they are. That’s especially true if you want to benefit and profit from the ongoing boom created by MAGAnomics. The tenets fall into five categories:

1. Tax reform

2. Infrastructure

3. Deregulation

4. Limiting government spending in certain areas

5. Signature deals with foreign governments

Let’s break down these five tenets one by one...

THE FIVE TENETS OF MAGANOMICSMAGAnomics Wealth-Building Tenet #1: Tax Reform

The Trump tax-cuts were much ballyhooed by friend and foe alike.

Supporters claimed the economy needed tax cuts to spur growth. Meanwhile, opponents decried the increase of budget deficits and debt. (And let’s not forget the false argument that the tax cuts only benefitted the top 50% of Americans. The bottom 50% don’t pay Federal income taxes anyway.)

The tax cuts helped because it increased discretionary household income for consumers… and increased capital investment opportunities for businesses.

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The plan worked. Both consumer and business spending increased at the fastest rate since before the 2009 Financial Crisis.

Businesses increased capital expansion by 12% in the 18 months following the tax cuts. This drove the unemployment rate to the lowest levels in decades.

As the old saying goes, “Business spending begets consumer spending”. And the adage proved true once again. Consumer spending on electronics, cars, and even in restaurants, have increased by double digits during Trump’s first three years in office.

The tax reform also encouraged many US-based multi-nationals to bring back cash reserves held overseas. In 2018, many US companies brought more than $2.2 trillion back to the US.

The tax-break meant that any capital investments would be tax-deductible right away.

Finally, companies put the repatriated money to further use. Many used stock buybacks. This helped drive stocks to all-time highs in 2019 and again in early 2020.

It was an incredible initiative, and the boom from it hasn’t ended.

SECTORS TO WATCH

Look for companies that have recently repatriated funds from overseas. This could indicate they’re about to embark on a big growth plan. If they get it right, that could result in bigger profits, bigger revenues, and a higher share price.

MAGAnomics Wealth-Building Tenet #2: Rebuilding America’s Infrastructure

Another pillar of Trump’s economic strategy is an area where the government can have an important role to play. That is, rebuilding and modernizing America’s crumbling infrastructure.

The Trump 2020 budget included a 25% increase to infrastructure spending. There are specific allocations to federal bridges and railways, as well as grants to state infrastructure projects.

Outlays for 2020 and beyond could create lucrative opportunities for a wide range of companies involved in infrastructure and construction. That includes companies that provide services to those sectors.

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Many of these companies don’t show up in the more popular indexes, like the Dow Jones Industrial Average or even the S&P 500. But winning a huge government infrastructure project can have a big impact on a company’s share price.

SECTORS TO WATCH

Mid-sized or smaller companies involved in infrastructure and construction. Also look for those in the services sector supplying to those other sectors.

MAGAnomics Wealth-Building Tenet # 3: Deregulation

While the government may have a role to play in parts of the economy, there’s also the “get Government out of the way” plan. Trump gave his team a red-marker. He told them to strike out any red-tape and oversight that harmed growth.

This mainly targeted America’s energy, industrial and mineral markets. It hasn’t pleased ‘green’ groups. They claim that removing regulations gives companies the green light to engage in environmentally unfriendly activities. Not surprisingly, industries like US mining and mineral production have soared as a result of this initiative. Capital investment in mining has worked. The mining sector enjoyed an 8% GDP growth rate in 2018. In 2019, GDP growth hit nearly 13%.

According to a report in ETF Trends, the deregulation of mining has also started to weaken China’s near monopoly on the world’s rare-earth mineral production. Plus, in 2019, US-based gold and silver mining production enjoyed its biggest year-over-year increase in over 20 years.

That’s not all. The Trump team has also removed Obamacare-era regulations on new drug research and production. The goal was to make it easier for drug companies to begin clinical trials for new drugs… and at the same time test drugs in the US, EU, and Asian markets.

2019 gave us the first indication that this plan is working. New patent filings, rose by 15%, which is another sign of growing confidence in the US economy.

SECTORS TO WATCH

For speculators only, look for some of the companies involved in early-stage drug development. This includes those involved in initiatives such as gene-editing and personalized medicine.

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MAGAnomics Wealth-Building Tenet #4: Targeted Government Spending Reduction

The MAGAnomics strategists have also shifted toward limiting government spending. This is mostly in areas they believe are best left in the hands of private investors and companies. This includes medical technologies, communication systems, and new energy technologies.

At the same time, the government shifted spending toward military and defense systems, space technologies and exploration, and Federal law enforcement spending for the Department of Homeland Security.

The results?

Although the mainstream perception of the Trump administration is that it’s in favor of fossil fuel and against green energy, there’s more to the story. Compared to Obama’s final three years, overall US spending on ‘green’ energy research and production has increased during Trump’s first three years in office.

And that’s even with the increase in domestic shale oil and gas production under Trump. In fact, alternative and green energy as a percentage of overall US energy production has increased by 11% from 2016 to the end of 2018.

SECTORS TO WATCH

Look for a diversified range of energy investments. Look at out-of-favor fossil fuel opportunities, while at the same time consider exposure to green energy – especially battery technology and solar.

MAGAnomics Wealth-Building Tenet #5: Art of the Deal

No analysis of Trump’s economic strategy would be complete without noting his signature deals with Mexico and Canada. Not to mention the Phase I trade deal with China.

It’s still too early to know the direct economic impact of the deal with China for now. But the key breakthrough is the framework and process now in place. It enables protections for US companies when it comes to intellectual property (IP), international licenses, and patents.

By some estimates, Chinese IP theft and unlicensed use of software, technology, and patents costs the US economy more than $500 billion per year. On top of that, it reduces US GDP growth compared to where it would be if the Chinese played fair.

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Similar protections exist in deals the Trump administration is negotiating with India and Indonesia. (India and Indonesia are the No. 2 and No. 3 markets for US IP theft.)

Assuming China honors the deal, the value of US-developed technologies should increase in the years ahead. If so, it should lead to higher levels of revenue over longer periods for US companies that use technology overseas.

But that’s not all the Phase I agreement with China promises to improve. It also outlines commitments for Chinese markets to import U.S. goods. This includes agriculture products, cars, and engine components… and even steel, oil, and sustainable lumber.

Thanks to MAGAnomics, the U.S. is on the path to leveling the economic playing field with China.

SECTORS TO WATCH

Look for companies in the high-tech sector that were previously barred from trad-ing in China, or which chose to stay out of the market due to the potential for IP theft. Gaining access to this market could be a major boon for these companies.

WHAT MAGANOMICS MEANS FOR THE ECONOMY… AND WHERE TO LOOK AS AN INVESTORThe net result of MAGAnomics on Main Street is low unemployment… increased household incomes and wage growth… and stable GDP growth with low consumer price inflation.

But focusing solely on that misses the bigger picture.

More than 61% of Americans surveyed in January 2020 said they were ‘better off’ than they were three years ago when Trump was elected. Interestingly, this includes 31% of self-described Democrats.

So far, Main Street has given the Maganomics or Trumponomics strategy a thumbs up. But on Wall Street, we’re well past “thumbs up” stage.

GDP growth for some sectors is up in a big way under Trump. For example, Information Technology is growing at nearly 8% per year… Mining at nearly 13%... Accommodation and Food Services at close to 6%... and Professional and Scientific trades have grown at 8%.

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These numbers are what have many economists touting the ‘greatest economy in US history’ line when it comes to MAGAnomics.

After all, these sectors are leading indicators of growth and productivity for workers. It’s also a good sign for growth… and yield for investors… in the years ahead.

Most important of all these sectors is Core Manufacturing. It grew at 7% in the third quarter of 2019. (Q3 is the most recent quarter for which data is available.)

That’s because manufacturing investment shows corporate faith in economic conditions and stability. That’s why economists use this sector as a key indicator for the health of the US economy.

In the chart below, you can see how much some of these sectors have grown…

Real Gross Output by Industry

Percent Change4%

0%

2019: Q2

2%

12%

Source: U.S. Bureau of Economic Analysis

Nondurable goods manufacturing Retail trade

-2%

6%

8%

10%

Information

Professional, scientific and technical services

Educational services

Accommodation and food services

2019: Q3

In short, for savvy investors who choose to look, sector-specific GDP growth is many times higher than the main GDP-growth you’ll often see quoted by the press.

You can see above that Mining and Manufacturing are both benefitting this year, as are many other sectors that are important for the US economy. As the China trade deal finally gets off the mat in the latter half of 2020, look for US farming, timber and auto sectors to join in the fun.

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So, that’s how you can begin to look for ways to profit from the biggest economic growth trend in history. But you shouldn’t think this is the end of the story. This is just the start.

And we’ll be here to tell you about it.

Each day in MAGAnomics Daily, we’ll introduce you to the themes and ideas that are helping put America back at the forefront as a respected nation – politically and financially.

We’ll share with you the latest political insights from our friends at Breitbart News. And from here at the MAGAnomics Institute, we’ll help guide you through the economic and financial world – and how it will impact you.

Thanks for taking the time to read this special report. Look out for your MAGAnomics Daily eletter in your email inbox each weekday afternoon.

Regards,

The MAGAnomics Institute Team

To contact us, call toll free Domestic/International: 1-888-415-6046, Mon-Fri: 9am-7pm ET or email [email protected].

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