Wow, what a party!
Markets have been in a state of pure jubilation since Trump’s re-election last Tuesday — driving both bitcoin and the S&P 500 to unprecedented new highs.
But now that stocks are starting to level off, and it’s time to look toward the future.
Specifically, we need to consider how Trump’s inauguration will transform our investing opportunities in 2025…
His administration will immediately push to end the ongoing conflicts in Ukraine and Palestine, both of which have severely disrupted global trade.
Trump is also on track to remove Gary Gensler from his position as chair of the Securities & Exchange Commission (SEC).
And since the incoming president is a majority shareholder in his own social media business, we can expect him to represent the interests of shareholders over those of regulators.
Obviously, we can pontificate until we’re blue in the face whether the long-term impact of Trump 2.0 will be good or bad. Lord knows there’s an entire industry of podcasters and pundits making a living doing precisely that.
But in the short term, expect to see a massive boost in key sectors of the market and the economy.
That’s on top of the fact that inflation is already declining. And Federal Reserve Chair Jerome Powell is steadily cutting interest rates.
It’s the perfect environment for creating breakout investments with massive 10X profit potential.
And we can expect some of the biggest opportunities to emerge from three driving mega trends (in this case, I suppose we should call them “MAGA Trends”):
Trump 2.0 MAGA Trend #1: Soaring Small Caps
Small-cap stocks have struggled in recent years amid inflation and high interest rates that effectively cut thousands of companies off from affordable debt.
If borrowing costs are too high, these smaller businesses simply can’t afford to take out a loan to grow the business.
Now that rates are coming down, we’re seeing a flood of investment capital headed into small-cap stocks. And their prospects will continue to improve as rates keep falling.
Trump’s pro-business “America First” agenda will supercharge this mega trend.
Once again … Trump himself is a stock investor, and his Trump Media & Technology Group (Nasdaq: DJT) is a mid-cap stock. So we can expect policies that are favorable to smaller, high-growth businesses like these.
Even if Trump implements stiff tariffs, we could see key small-cap stocks thrive — since smaller American businesses usually favor domestic production and supply chains.
Trump 2.0 MAGA Trend #2: Renewed Crypto Boom
As I write this, bitcoin is scorching past $86,000 and setting new all-time highs on a nearly hourly basis.
Trump made his cryptocurrency enthusiasm very clear on the campaign trail, even going so far as to entertain the idea of a new Strategic Bitcoin Reserve.
Regardless of how those long-term plans pan out, Trump’s inevitable removal of Gensler from the SEC will clear a massive hurdle for broader crypto adoption.
Gensler’s likely replacement, Hester Pierce, has even earned herself the nickname “Crypto Mom” for her optimistic approach to the emerging currency.
This is especially great news for “altcoins,” the lesser-known cryptos that serve as an alternative to bitcoin.
2024 has already been a great year for bitcoin, due in large part to the success of multiple spot bitcoin ETFs approved back in January.
But unlike previous crypto bull markets, bitcoin has been going it alone. Altcoins simply haven’t generated the same interest they garnered back in 2020 and 2021.
All of that changes in just a few months.
As bitcoin continues to soar and a crypto-friendly administration bolsters optimism, you can expect to see smaller coins skyrocket in short order.
Trump 2.0 MAGA Trend #3: Oil & Gas
America’s oil and gas industry is currently in the middle of a massive shale boom that gets zero coverage in the media.
Thanks to the “Shale Revolution,” U.S. oil companies can now produce an additional three billion barrels each year — revitalizing our domestic economy and transforming the global power balance.
Trump has historically been all in on America’s oil and gas industry, while also highly critical of government mandates and green energy programs.
We can expect his administration to stay out of the way of America’s growing energy industry … and perhaps even forge new relationships to further improve our energy independence.
Trump will be meeting with Argentinian president Javier Milei this week, and the two will likely see eye-to-eye on a number of key issues.
If Trump can build a bridge with Milei’s contentious libertarian government, we could soon see American oil and gas companies delving into Argentina’s massive untapped reserves.
As you can see, Trump’s second term provides investors with plenty to be excited about.
To say I’m bullish about what’s ahead is a massive understatement.
These next two years will be absolutely pivotal when it comes to growing your portfolio and building your legacy.
So make sure you’re locked in and ready to profit when Trump 2.0 backs up the truck…
To good profits,
Chief Investment Strategist,
Money & Markets
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