‘Fight Trump! Fight Trump! Fight Trump!’
There must be rejoicing in ‘flyover country’, where the Donald is regarded as an American hero.
But long faces dominate on the two coasts, where he is considered a sort of biblical curse visited on the Establishment by vengeful gods.
Last night, we heard chanting out on the street near our Baltimore headquarters. A small crowd of protesters stopped traffic, briefly, on Charles Street.
So far, up in our office, we’re enjoying a jolly revolution.
Hillary supporters are whining and kvetching. They would be ‘soul-searching’, if they had souls to search. Instead, they are figuring out how to hold on to their zombie incomes, crony deals, and claptrap theories.
Drain the Swamp?
We got a report from the Soho House private members’ club in Los Angeles:
‘Oh Dad, you wouldn’t believe it. Hollywood is so liberal…so politically correct. Many of the people in the club were shrieking when the state-by-state results came in. They were in a panic. I was afraid they were going to jump off the roof.’
But we will neither celebrate nor look for a sharp object. Instead, we’ll put on our thinking caps. What will a Trump presidency really mean?
To many, including many of our own dear readers, a Trump in the White House means a victory over the insiders. He is supposed to bring ‘a new political order’, says The Wall Street Journal.
Didn’t he promise to ‘drain the Swamp’? Didn’t he stand up to the Deep State? Won’t he do to Washington and Wall Street roughly what Sherman did to Atlanta?
‘See,’ they say triumphantly, ‘voting does matter. With our man in the White House, no dream is too big. Now, we’ll make America great again. Won’t we?’
But you don’t pay us to cheer with the winners or chant with the losers. In fact, you don’t pay us at all, which makes our comments worth at least what you pay for them.
Sometimes right…sometimes wrong…and always in doubt…we just try to connect the dots.
So let’s take a look…
Fox in the henhouse
Trumpism hit the markets on Tuesday night, like a fox entering a henhouse.
Panic broke out. Feathers flew. At one point, the Dow futures seemed to be heading to an 800-point loss.
But when the sun came up, the hens were still alive. And a Trump presidency didn’t seem so bad.
Mr Trump never suggested that he would root out the real problem behind low growth and high inequality: the Federal Reserve’s fantasyland credit system.
Nor did he ever claim to be an austere conservative. He will not cut spending. He will increase it.
‘Stocks surge as investors put money on stimulus,’ reports The Wall Street Journal.
Banks and jail operators soared. Apparently, the markets don’t think Trump will be bad for Wall Street or the prison industry. Pharmaceutical stocks rose, too. What does that mean?
Investors must not expect Trump to shake up the medical cronies or lower the cost of drugs.
Other big winners include defense and infrastructure stocks. What? Wasn’t Trump supposed to stop these dumbbell wars and bring the Pentagon to heel?
Pour more concrete!
And as for infrastructure…we could almost see smiles on two of our favourite claptrap economists — Larry Summers and Paul Krugman.
Both have urged the feds to do precisely what Trump now proposes to do: Pour more concrete.
The drumbeat for a massive infrastructure spending program will be more apparent later when the next crisis appears. But you could have seen it coming for months.
The insiders are desperate to keep the feds’ credit money system alive. But monetary stimulus measures have flopped. All that is left is fiscal stimulus — old-fashioned Keynesian deficit spending.
The president-elect promised it on election night. And markets have — rightly or wrongly — believed him.
They are betting that Donald J Trump will come into the White House not with a stiff broom, but with more dirt…that he will come not to bury the Deep State, but to save it.
They are probably right.
For The Rum Rebellion
BEFORE WE BEGIN THIS FRIDAY, AN IMPORTANT ANNOUNCEMENT FROM THE GROUP PUBLISHER…
The outlook could hardly be rosier for clean energy investors going into 2021.
Electric vehicles (EVs) are now on track to overtake gas guzzlers inside the next decade or so.
Trillions in stimulus cash is looking for a home next year — and all things low emissions are first in line.
Australia is going green crazy. Extraordinary announcements seem to be made weekly. The world’s largest green power station is being planned in the Pilbara. Woolworths is promising to go 100% renewable. Super funds are dumping coal shares in droves.
And, to top it all off, a green president-elect is measuring for curtains in the Oval Office.
Could the case for smartly selected alternative energy shares be more bullish?
Well…since you ask…yes, it could…
The green revolution is already here.
But it’s the evolution of the revolution where the real history-making profits will be made, banked and spent.
What do I mean by this?
Well, that’s what we’re going to be covering here next week.
There’s something called a ‘second-order effect’ to everything that has gone down in the green energy space in 2020.
You’ll see exactly what that means as next year unfolds.
Next week, we unwrap it all for you. And give you some ideas on which stocks — local and international — that we think have a great shot at making headlines and rising to the top.
They’re not the obvious plays here.
And it’s unlikely you’ve even heard of them.
But if the worldwide transition to a low-carbon economy takes the unexpected (by the mainstream) turn we’re predicting…these will be the stocks that will benefit most.
I don’t think there’s a more important investment story on the planet you should be studying up on and preparing for right now.
Look out for this fresh research next week.
And now, back to our scheduled programming…