{"id":103711,"date":"2017-03-21T11:14:12","date_gmt":"2017-03-21T15:14:12","guid":{"rendered":"http:\/\/countingpips.com\/?p=103711"},"modified":"2017-03-21T07:14:48","modified_gmt":"2017-03-21T11:14:48","slug":"dissecting-trumps-border-wall-parameters","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/dissecting-trumps-border-wall-parameters\/","title":{"rendered":"Dissecting Trump\u2019s Border Wall Parameters"},"content":{"rendered":"<div id=\"inves-224968686\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">March 21, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/03\/1116_flower-wall_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/03\/1116_flower-wall_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/03\/1116_flower-wall_feature-300x155.jpg 300w\" alt=\"\" width=\"580\" height=\"300\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-louis-basenese.jpg\" alt=\"Louis Basenese\" width=\"85\" height=\"100\" \/>Dear <em>Wall Street Daily<\/em> Reader,<\/p>\n<p>Sometimes my job isn\u2019t especially fun.<\/p>\n<p>Like this weekend, when I perused the 132-page government document that outlines the parameters for Trump\u2019s wall.<\/p>\n<p>The document offers guidelines to contractors who wish to help build the wall.<\/p>\n<p>Among the lines that caught my attention the most were (emphases mine)\u2026<\/p><div id=\"inves-3713866649\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p class=\"blockquote\">&gt;&gt; \u201cThe wall design shall be <b><u>physically imposing<\/u><\/b> in height\u201d<\/p>\n<p>&gt;&gt; \u201cThe wall design shall include <b><u>anti-climb topping features<\/u><\/b> that prevent scaling using common and more sophisticated climbing aids (e.g. grappling hooks, handholds, etc.)\u201d<\/p>\n<p>&gt;&gt; \u201cThe wall shall <b><u>prevent digging or tunneling<\/u><\/b> below it for a minimum of six feet below the lowest adjacent grade\u201d<\/p>\n<p class=\"centered\"><img loading=\"lazy\" decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/03\/AestheticallyPleasing-e1490041578974.png\" width=\"540\" height=\"240\" border=\"0\" \/><\/p>\n<p class=\"blockquote\">&gt;&gt; \u201cThe wall fittings and fixtures shall be secured on the north side of the wall to <b><u>shield from external attack<\/u><\/b>\u201d<\/p>\n<p>&gt;&gt; The north side of wall (i.e., U.S.-facing side) shall be <b><u>aesthetically pleasing<\/u><\/b> in color, anti-climb texture, etc., to be consistent with general surrounding environment.\u201d<\/p>\n<p>So with the wall getting closer to reality, I asked my senior analyst, Martin Hutchinson, to gauge the situation.<\/p>\n<p>Hutch surprised me with his analysis.<\/p>\n<p>To find a hidden bull market, he told me to simply fly over the wall.<br \/>\n<a id=\"video\" name=\"video\"><\/a><br \/>\nHutch\u2019s full report is below.<\/p>\n<p>Smart investing,<\/p>\n<p><img decoding=\"async\" class=\"align-none\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/signature-louis-basenese.jpg\" alt=\"Louis Basenese\" \/><\/p>\n<p>Louis Basenese<br \/>\nChief investment strategist, <i>Wall Street Daily<\/i><\/p>\n<p><script src=\"https:\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async><\/script><\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding: 56.88% 0 0 0; position: relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height: 100%; left: 0; position: absolute; top: 0; width: 100%;\">\n<div class=\"wistia_embed wistia_async_fvtft1r39x seo=false videoFoam=true\" style=\"height: 100%; width: 100%;\"><\/div>\n<\/div>\n<\/div>\n<p><strong>Question:<\/strong> Martin, the Trump administration seems to be continuing along a path that will harm the Mexican economy. What are you seeing? Are you seeing the same thing as me?<\/p>\n<p><strong>Martin Hutchinson:<\/strong> Very much so. I think the Mexican economy is going to suffer in a number of ways from the Trump presidency \u2014 starting with possible tariffs against it.<\/p>\n<p>Jobs are going to be brought back to the United States by U.S. companies because it\u2019ll please President Trump. And by and large, the places they\u2019re bringing them back from include Mexico, so there\u2019ll be much less outsourcing.<\/p>\n<p>Then we\u2019ll see possible renegotiation of NAFTA, the North American Free Trade Agreement, and you better believe that that\u2019s not going to be in Mexico\u2019s favor.<\/p>\n<p>And also, a wild card, we may see a possible border adjustment tax, which is Speaker Ryan\u2019s proposal. And that would make Mexican exports to the U.S. nondeductible for U.S. corporate income tax. That would effectively add 20% to their cost, making Mexican manufactured goods very uncompetitive in the U.S. market.<\/p>\n<p><strong>Question:<\/strong> Bottom-line it for me. Is a prudent move here, Hutch, to avoid all investments with ties to Mexico, or are there maybe some green shoots?<\/p>\n<p><strong>Martin Hutchinson:<\/strong> There are some green shoots. I think there\u2019s one sector that looks to do very well, and that\u2019s tourism. There are a number of reasons for this.<\/p>\n<p>A stronger U.S. economy, which we seem to be getting, will lead to more U.S. tourists. There were 7.16 million tourists by air in 2014, more than four times the number of Canadians, and 16 times the U.K. \u2014 which was third. There were 28 million visitors altogether, although that includes people going to Tijuana for the duty-free.<\/p>\n<p>And the Mexican peso is down 10% in the last year, down 21% in the last two years. So that\u2019s means that Mexican tourism deals are particularly attractive because costs are 20% lower. They\u2019ve got a little inflation there, but only 3% or 4%.<\/p>\n<p><strong>Question:<\/strong> Interesting. Well what about the effect of the border tax, Hutch? Will that be hurtful or helpful?<\/p>\n<p><strong>Martin Hutchinson:<\/strong> I think that could help. It would push the U.S. dollar up, because everybody would adjust for that additional 20% cost. That would mean that the Mexican costs would be even cheaper in dollar terms. And then when a tourist buys a night in a Mexican hotel, he pays directly; there\u2019s no business involved. Therefore, the border tax would have no effect. So Mexican tourism with U.S. individuals should be unaffected by the border tax. And it may benefit from it. So Mexican tourism looks like a very attractive sector to invest in right now.<\/p>\n<p><strong>Question:<\/strong> It\u2019s kind of like you found a hidden bull market hiding inside of Mexico. If that\u2019s correct, how do we play it?<\/p>\n<p><strong>Martin Hutchinson:<\/strong> Obviously, one would like to play it through a hotel chain, but the hotel chains are all private. Camino Real was listed for a few years, but got bought out.<\/p>\n<p>But interestingly in Mexico, they privatized the airports some years ago. And those aren\u2019t privately held and aren\u2019t state-owned. One particular company is <b>Grupo Aeroportuario del Pacifico (PAC)<\/b>. It operates 12 Pacific Coast airports, all the way up and down the Mexican Pacific Coast with all the resorts. So that\u2019s a pretty attractive play. Its net income in the fourth quarter of 2016 was up 28%. Now, that\u2019s not <i>quite<\/i> as good as it looks, because that 28% is in pesos. So it\u2019s only 16% in dollars. But still, up 16% is up 16%.<\/p>\n<p>The company\u2019s trading on about 20 times projected 2018 earnings \u2014 if you look at forward traders\u2019 projection of earnings. And it boasts a 2.1% dividend yield. That\u2019s a pretty attractive way of playing what could well be a big bull market in Mexican tourism.<\/p>\n<p><strong>Question:<\/strong> Great sleuthing today, Hutch. I\u2019ve got to give you credit. Thanks a lot.<\/p>\n<p><strong>Martin Hutchinson:<\/strong> Great pleasure. Thanks very much.<\/p>\n<p><strong>Question:<\/strong> This is <i>Wall Street Daily<\/i> signing off.<\/p>\n<p>Good investing,<\/p>\n<p><img decoding=\"async\" class=\"align-none\" src=\"https:\/\/sites.agorafinancial.com\/EMAILS\/images\/signature-martin-hutchinson.jpg\" alt=\"Martin Hutchinson\" \/><\/p>\n<p>Martin Hutchinson<br \/>\nSenior Analyst, <i>Wall Street Daily<\/i><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/03\/20\/dissecting-trumps-border-wall-parameters\/\" rel=\"nofollow\">Dissecting Trump\u2019s Border Wall Parameters<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Dear Wall Street Daily Reader, Sometimes my job isn\u2019t especially fun. Like this weekend, when I perused the 132-page government document that outlines the parameters for Trump\u2019s wall. The document offers guidelines to contractors who wish to help build the wall. Among the lines that caught my attention the most were (emphases mine)\u2026 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-103711","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=103711"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103711\/revisions"}],"predecessor-version":[{"id":103725,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/103711\/revisions\/103725"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=103711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=103711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=103711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}