By Graham Summers, MBA | Chief Market Strategist
The Trump administration just gave one of the most blatant “tells” in investing history.
Yesterday, President Trump told investors to “buy stocks” because the U.S. economy was going to be like a “rocket ship” as the U.S. begins signing trade deals.
Yes, President Trump is famous for making bold, oftentimes extreme statements. But he is also the President of the United States. And as such he wields INCREDIBLE power over the economy and financial system.
In this context, regardless of your feelings concerning the President and his agenda, you HAVE to take note. Rarely if ever are investors given EXPLICIT signals by the elites as to what is coming down the pike.
Why is President Trump doing this? What does he see that we don’t?
President Trump has figured out that stocks HAVE to go up as a matter of national security.
Over 60% of American households have exposure to the stock market. Stocks are the 2nd most owned asset class behind real estate. Stocks comprise the bulk of American retirement accounts.
Put simply, Americans’ wealth LITERALLY requires stocks to remain strong. It is not merely a matter of profits… it is a matter of national security: a stock market crash can cripple the economy as consumers panic and cut back on spending.
President Trump figured this out when the Trade War erased $11 trillion in wealth in a matter of two weeks, and consumer spending/ sentiment imploded. As I noted last week, companies ranging from Southwest Airlines, McDonalds, PepsiCo, Chipotle and even Walmart noted that consumers pulled back on spending in ways not seen since the pandemic.
Again, all it took was two weeks of stocks falling to trigger a consumer panic that would have easily resulted in a recession had things not changed course.
So where do things go from here?
The Trump administration has very publicly to prioritize the markets. The President himself literally told Americans to buy stocks yesterday. This doesn’t mean that stocks will go straight up… but it DOES mean that the administration WANTS a raging bull market.
So, what does this mean for stocks and investors?
THE lows are in. And while the markets as a whole should work their way higher, certain investments are poised for truly EXTRAORDINARY gains based on this unique environment. We detail three of them it in a Special Investment Report titled How to Profit a Inflation.
Normally this report is only available to our paying clients, but in light of what’s happening in the markets today, we are making just 99 copies available to the general public.
To pick up one of the remaining copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
