{"id":111535,"date":"2017-08-23T10:22:00","date_gmt":"2017-08-23T14:22:00","guid":{"rendered":"http:\/\/countingpips.com\/?p=111535"},"modified":"2017-08-23T06:58:33","modified_gmt":"2017-08-23T10:58:33","slug":"the-trump-trade-is-back-from-dead","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/the-trump-trade-is-back-from-dead\/","title":{"rendered":"The \u201cTrump Trade\u201d is Back from Dead"},"content":{"rendered":"<div id=\"inves-1135400316\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 23, 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\/08\/0817_trump_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/08\/0817_trump_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/08\/0817_trump_feature-300x155.jpg 300w\" alt=\"The \u201cTrump Trade\u201d is Back from Dead\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>Trump policies on deck for Congress.<\/li>\n<li>A win will unleash a torrent of wealth.<\/li>\n<li>How gold will play a key role.<\/li>\n<li><strong><a href=\"https:\/\/pro.agorafinancial.com\/m\/737169\" target=\"_blank\" rel=\"noopener\">Also recommended: Why \u201cdigital gold\u201d is here to stay\u2026<\/a><\/strong><\/li>\n<\/ul>\n<hr \/>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-louis-basenese.jpg\" alt=\"Louis Basenese\" \/>It\u2019s a tough time to be Donald J. Trump.<\/p>\n<p>White House infighting, rifts with Congress and a raving lunatic overseas threatening a missile strike on the United States\u2026<\/p>\n<p>The first eight months of the Trump presidency have been anything but smooth.<\/p>\n<p>But the sky isn\u2019t falling, either.<\/p>\n<p>Since Trump took office, GDP is up, unemployment is down and the confidence of American businesses hasn\u2019t been this high in a decade.<\/p><div id=\"inves-1165165027\" 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>Not to mention all three major U.S. stock benchmarks are sitting just below all-time highs.<\/p>\n<p>And while the politically divisive health care bill stalled, Trump\u2019s business-friendly growth policies are on deck for Congress \u2014 with a much higher probability of success.<\/p>\n<p>A win here will unleash a torrent of wealth for investors.<\/p>\n<p>Below, senior analyst Jonathan Rodriguez shows you exactly why it\u2019s time to get excited about the next leg of the Trump legislative agenda.<\/p>\n<p>Ahead of the tape,<\/p>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <em>Wall Street Daily<\/em><\/p>\n<hr \/>\n<h2 class=\"centered headline\">Taxes Are About to Die by the Sword<\/h2>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-jonathan-rodriguez.jpg\" alt=\"Jonathan Rodriguez\" \/>These days, U.S. stock investors are some of the most optimistic people around.<\/p>\n<p>Fueled by excitement over the president\u2019s pro-growth agenda \u2014 the likes of which haven\u2019t been seen in 30 years \u2014 American stocks have added more than $3 trillion in value since Election Day.<\/p>\n<p>To be sure, Trump\u2019s comments on the protests in Charlottesville have dampened the market\u2019s enthusiasm a bit.<\/p>\n<p>But the heart of the president\u2019s economic policy package is about to make its way through Congress: tax reform.<\/p>\n<p>As you may know, President Trump wants to cut corporate tax rates by 20%. He also aims to cut middle-class taxes and simplify federal personal income tax brackets.<\/p>\n<p>And the corporate tax cuts alone will unlock massive wealth for shareholders\u2026<\/p>\n<h2 class=\"subhead\">The Dormant Volcano of Profits<\/h2>\n<p>In a CNBC interview earlier this year, UBS managing director Vinay Pande said that every 5% reduction in the corporate tax rate translates to an increase of 4% in EPS.<\/p>\n<p>And Michael Thompson, president and chairman of S&amp;P Investment, and a team of number crunchers found that a drop in corporate taxes to 15% would bring S&amp;P 500 2017 earnings up to $158.20 from $132.<\/p>\n<p>Using the S&amp;P\u2019s current forward-earnings multiple of 18.7, that would imply upside of about 22% from its current level.<\/p>\n<p>And even if we get to 20% from 35%, that would bring EPS up to $145.10. That\u2019s upside of about 12%.<\/p>\n<p>Add it all up and the tax cuts could add anywhere from $80 billion\u2013$200 billion back to the bottom lines of S&amp;P 500 firms this year.<\/p>\n<p>This is the kind of stimulus that mints millionaires out of investors.<\/p>\n<p>Here\u2019s a cheap way to play the unleashed action\u2026<\/p>\n<h2 class=\"subhead\">All That Glitters Is Gold<\/h2>\n<p>As you can imagine, if and when Trump\u2019s tax cuts are passed into law, inflation is bound to rise quickly.<\/p>\n<p>According to the Tax Policy Center, Trump\u2019s plan would result in $6.2 trillion in cuts over the next 10 years.<\/p>\n<p>That\u2019s a lot of capital going back into American wallets, both corporate and consumer.<\/p>\n<p>And along with stocks, the asset class most likely to benefit from inflation: gold.<\/p>\n<p>Amid mounting geopolitical tensions, gold has already been on the rise.<\/p>\n<p>But while you might be tempted to buy physical gold \u2014 or even shares of \u201cpaper\u201d gold ETF GLD \u2014 the bigger play is in the miners\u2026<\/p>\n<p>The precious metal is up about 6% over the last month.<\/p>\n<p>And shares of gold miners \u2014 which have cleaner balance sheets than they have in years \u2014 are up 12% over the same period.<\/p>\n<p>If you\u2019re looking for a quick pop on the tax cuts, consider the VanEck Vectors Gold Miners ETF (GDX).<\/p>\n<p>Not only will the fund rise with inflation, but it also serves as a solid hedge against stock market shocks \u2014 a win-win.<\/p>\n<p>Bottom line: Don\u2019t buy into the noise. Ahead of the president\u2019s landmark tax legislation, it\u2019s time to buy stocks, not sell them. And gold miners offer investors the perfect way to play the upside \u2014 and cushion on the downside.<\/p>\n<p>On the hunt,<\/p>\n<p>Jonathan Rodriguez<br \/>\nSenior Analyst, <i>Wall Street Daily <\/i><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/08\/23\/trump-trade-back-dead\/\" rel=\"nofollow\">The \u201cTrump Trade\u201d is Back from Dead<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Trump policies on deck for Congress. A win will unleash a torrent of wealth. How gold will play a key role. Also recommended: Why \u201cdigital gold\u201d is here to stay\u2026 It\u2019s a tough time to be Donald J. Trump. White House infighting, rifts with Congress and a raving lunatic overseas threatening a missile [&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-111535","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111535","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=111535"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111535\/revisions"}],"predecessor-version":[{"id":111540,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111535\/revisions\/111540"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=111535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=111535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=111535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}