Trump’s Jackpot(hole) for Americans

This post Trump’s Jackpot(hole) for Americans appeared first on Daily Reckoning.

This weekend, I spent a lot of time on the road…

From an 8-hour drive for a family wedding on Saturday, to a half-marathon race through the streets of Atlanta Georgia, I had a chance to see a lot of pavement.

And what I saw along the way was a “HUGE” opportunity for you to make some serious money in 2018.

It’s all because of the badly needed infrastructure spending Trump has been working on pushing through congress this year.

If you know how to play it, the $1.5 trillion in proposed spending can put thousands (if not tens of thousands) in your pocket this year.

But you have to make sure you’re in position to collect your payments before the spending begins. Otherwise, you’ll miss out on the first round of profits!

A Crumbling System of Roads

On Saturday, I crossed six state borders traveling some 400 miles of interstate roads.

On Sunday, I ran 13.1 miles through city streets and neighborhoods in Atlanta.

And with all of this traveling, there was one major recurring theme: POTHOLES!

Driving at 80 miles per hour, I had several instances where I had to swerve out of my lane to avoid breaking a wheel in a giant hole in the middle of the roadway. These holes are not just dangerous, they’re anti-productive for our overall economy.

Think about what happens when a big-rig with an Amazon shipment hits a giant hole and gets delayed. That can mean refunds, disappointed customers, and overall economic challenges if companies aren’t able to keep their promises to customers.

The situation wasn’t any better in-town…

Throughout the half marathon race, I was constantly dodging cracks and holes in the pavement and pointing them out to other runners. I’d hate to see the statistics on how many racers wound up with sprained ankles — or even severe falls — because of the broken pavement.

Ultimately, this is a problem that needs to be fixed.

Cities and states that take the initiative to clean up roadways and improve their infrastructure will attract new business contracts and actually grow their tax revenue over time.

Of course the opposite is also true. Locations that don’t attend to their roads and other infrastructure needs will ultimately lose business because it simply won’t be efficient or profitable to operate in these areas.

That’s why local cities and states are poised to spend big on infrastructure projects this year. And it’s why the Federal government is poised to help them out — supplementing infrastructure projects that states and cities commit to in the months ahead.

Getting Ahead of the Game With Infrastructure Stocks

As investors, we know the importance of recognizing trends ahead of time, and investing our hard-earned money early while there’s still time for exceptional profits.

Today, we’re in the early innings of an infrastructure boom in the United States.

And that means stocks associated with this new spending trend are set to trade higher in the months ahead. Now is the time to get invested, before the stocks move higher and you miss the early stages of profits.

In particular, I’m looking at companies that supply the materials for construction projects. Steel companies, cement producers and even oil refiners that produce asphalt will some of the first beneficiaries.

Equipment companies that make the tractors, cranes and earth movers are also set to see revenues increase as states and independent contractors gear up for new projects.

And finally, project management stocks are also poised for gains. These are the companies that will win bids to oversee specific roads, bridges and tunnels that are being built or renovated. And those contracts should be high-margin profitable endeavors for these companies.

We’ll have a lot more to say about this infrastructure trend as it evolves. So please make sure you stay tuned and that you participate in the investment opportunities that arise out of this massive wave of spending.

Now, let’s shift gears and take a look at the five things you need to know this week…

5 Must Knows For Monday, March 19th

All Eyes Are On The Fed —  On Tuesday and Wednesday, the Federal Reserve will hold its March policy meeting which will also be Jerome Powell’s first as chairman. Currently the market is showing a 94% probability of a 25 basis point hike. In previous meetings, the Fed signaled that gradual hikes (3 in 2018 and 2 in 2019) should keep the economy from overheating. However, historically low unemployment numbers coupled with tax cuts and a possible infrastructure plan are now indicating faster rate hikes could be on the horizon.

Putin Wins Again — On Sunday, Vladimir Putin won another landslide victory to secure his grip on Russia for another six years. The final tally showed Putin winning 77% of the votes while the next closest candidate won just under 12%. Although the race is widely being cast as unfair, Putin’s reported large margin of victory does cement his dominance in Russian politics — which has some geopolitical analysts worried.

Apple Proves Its Importance — According to multiple reports, Apple is designing and developing phone displays for the first time at a secret manufacturing facility in California. In the past, these displays have been sourced from multiple suppliers including Japan Display, Sharp Inc. and LG Display. This report serves as a reminder just how valuable Apple’s business is to suppliers. After Bloomberg News reported the plans, Japan Display dropped as much as 4.4%, Sharp tumbled as much as 3.3% and Samsung slid 1.4%.

Another Spending Deadline — I’m not purposely trying to sound like a broken record, but Congress is leaving me no choice. By Friday at midnight, the government will need to pass another spending bill or be forced to shut down for the second time this year. In the way (again) are immigration and health care reform which have proved testy in previous spending negotiations.

Earnings On Deck — Although we are not currently in an earnings season, this week has some major corporations reporting which will give valuable insights into some popular industries. On Tuesday, catch up with Amazon competitors FedEx and The Children’s Place. On Wednesday, The Daily Edge favorite Wheaton Precious Metals reports earnings. And later in the week, KB Homes, Nike and Micron Technologies are all scheduled to report earnings.

Here’s to growing and protecting your wealth!

Zach Scheidt
Editor, The Daily Edge
Twitter ❘ Facebook ❘ Email

The post Trump’s Jackpot(hole) for Americans appeared first on Daily Reckoning.

This story originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.