The Trend

How to Get U.S. Presidents to Pay You



Every President in history has impacted stocks.

The key to being in those very stocks lies in policy announcements.  All we have to do is pay close attention and buy as the policy news begins to hit the press.

Going back to Barack Obama, we can see how it works.

Once President Trump was elected, we already knew that potential corporate tax cuts would be great for small cap stocks.  It’s why the Russell 2000 exploded from 1,160 to 1,420 within months of his election.

  • On promises of infrastructure programs, Vulcan Materials (VMC) ran from $112.50 to $137.50.  Jacobs Engineering (JEC) soared from $50 to $63.
  • On promises of the Mexican wall, Cemex (CX) ran from $7.60 to $9.40. Martin Marietta Materials (MLM) ran from $180 to $245.
  • On promises to increase military spending by $54 billion, Boeing (BA) ran from $140 to $185.  General Dynamics (GD) ran from $152.50 to $192.50. United Technologies (UTX) ran from $100 to $114.
  • Meanwhile, as the threat of gun control disappeared under Trump, gun-stocks like Sturm Ruger & Company (RGR) slipped from $65 to $47.
  • Promises of deregulation sent bank stocks soaring.  The XLF ETF for example roared from $19 to $25 as a result, for example.

When it comes to politics, there’s always a way for smart traders to make money.  You just have to pay attention and stay on top of the news, as we do.

With Barack Obama:

  • With the threat of gun control, related stocks soared during this Administration.  In fact, RGR exploded in 2015 from $32.50 to $75 on the threat.

  • In January 2015, as Obama declared climate change was one of the biggest threats, solar stocks soared.  The Guggenheim Solar ETF (TAN) jumped from $30 to $47.50.  First Solar (FSLR) jumped from $40 to $75.  Canadian Solar (CSIQ) jumped from $20 to $40.  JA Solar (JASO) ran from $7.50 to $11.
  • When Obama Care passed in March 2010, hospital stocks skyrocketed, including HCA Holdings (HCA), Universal Health (UHS), Life Point Health (LPNT), Health South (HLS), and Tenet Healthcare (THC).
  • Big banks were regulated by Dodd-Frank in July 2010.  It’s the reason that financials took a hit.  Bank of America (BAC) fell from $16 to less than $6, for example. 
     

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We could go on for pages, but you get the idea.

Any time there’s even an announcement of a new policy, dig into it see what it may positively or negatively impact with regards to stocks and you’re ahead of the game.