“The trade war is going to destroy the United States and our economy.”
“Rising interest rates are going to flatten everything.”
“Emerging markets will be the death of America.”
This is just a small taste of the negative comments people have had about the market over the past few months. Every time I go online to do research, I get inundated with a new crash scenario.
However, when you actually go and look at the news, whether you look at industrial production or capacity utilization, or really any other number of economic measurement, what you’ll find is that our economy is doing absolutely great.
And if anything, recent negotiations by the Trump administration have us set up to do even better.
Industrial Production Comes Back to the U.S.
A recent agreement by the North American Free Trade Association (NAFTA) made it a requirement that all cars sold in the U.S. would need to have at least 75% of their parts made here at home.
That means automakers around the world are going to have to make major production adjustments to meet these new requirements. And as I’ll talk about in today’s video, that’s going to result in a major boost to our overall economy.
To find out how this could directly benefit you, check out the video below:
Hi, this is Paul with this week’s Winning Investor Daily.
I saw this headline, which, if you see it, it says that automakers are looking to move more and more production to the United States and North America.
If you go and read this article, it says that because of the recently renegotiated NAFTA agreement — or North American Free Trade Agreement — between Canada and Mexico, it’s going to be required that cars sold in the United States would have to have as much as 75% of it actually made in the U.S.
So, automakers from around the world — and the United States is still one of the largest if not the largest market for cars — are going to have to adjust. And the way they’re going to have to do it is that they’re going to have to bring the production of various parts, various processes, all to the United States.
And that’s a big deal. Because even though it seems like cars are a fairly small part of our economy, just remember that there is a huge chain of machine shops and auto parts that have to come together to make a car.
So it does matter. And it particularly matters for the industrial side of our economy which, if you’ll look at this chart, even before this news it was actually completely booming.
Now, you’ll have seen that in the last few days the stock market has gone down a lot. And prior to it, I can tell you that as the market was making new highs, there’s been this drumbeat of fear and gloom that a crash is coming — that there’s a recession or a crisis that’s coming.
And the reasons that people put out there are that, “Wow, there’s a trade war going on and that’s going to destroy the United States and our economy. Interest rates are going up and that’s going to flatten everything. And if it’s not that, well then it’s going to be something else. It might be the emerging markets because of the interest rates and the currency problem is going to destroy the United States.”
However, when you actually go and look at the news, whether you look at industrial production or capacity utilization, or really any number of these measurements, our economy is doing great. Absolutely great.
And if anything, it’s setting up to do even better. That’s what I believe and that’s what this chart on industrial production is showing you, which is that we are starting to make more things within this country.
And the Trump administration, by its very tough stance on trade and very tough stance on trade deficits, is actually beginning to move the needle where people are now actually making plans to move more assets into the United States. And that’s going to ultimately benefit us. And it’s going to benefit the industrial side of the economy.
Which is why I believe it’s no coincidence that, over the last few days, if you go and look, there’s one group of stock that has gone down very little. In fact, it’s largely been flat. And it will come as no surprise to you that it’s these industrial stocks. They’re really hanging in there. They’re hanging tough.
I believe that what you have actually been seeing over the last few days is what is called a rotation in the stock markets. In other words, people can see what I’m telling you about this move of industrial assets and machinery that’s going to get going in the United States. And they are reorienting their portfolios.
They’re selling some amount of these technology stocks — things like Facebook and Amazon and Netflix, and Google and even Apple. And they’re moving their money into the industrial, manufacturing side of the economy which is already doing very well.
However, with all of these deals coming where more things have to be made here and more things have to be manufactured here, you’re going to see that side boom.
I believe one of the easiest ways to play that is actually buying into an industrials ETF. Now, there’s any number of these and I’m going to show you one, which is one from Vanguard. It’s the Vanguard Industrials ETF (NYSE: VIS).
This will give you a general, broad exposure to all kinds of industrial companies that I believe will benefit in an overall, general way from what’s going to unfold over the next six, 12 and, frankly, many years from now. So, you’d want to buy into this ETF to benefit from this trend and this movement.
Now, however, if you want to get really big gains, you have to be into the specific stocks that really benefit from the biggest moves that are going to be happening in this part of our economy — the machinery part of our economy.
And I believe that it’s actually going to come from an area of the Internet of Things and of technology trends that I talk about and have told you about. That’s going to be in automated machinery, or robotics. That’s why, in my Profits Unlimited service this month, after seeing what was going to happen, we have decided to add on the best machinery and robotics stock in the United States. I’m going to put that into our portfolio.
So those are the kinds of ideas — the laser-focused ideas — that will really give you focused exposure to these kinds of ideas and help you make more money. Now, you’ll do perfectly well with the ETF.
However, if you really want to make big money and you’re the type of person who wants this focused exposure to make big money, you should check into Profits Unlimited where, next month, we’re going to be putting this particular stock into the portfolio.
And you can bet that in the near future, in the months after, we’re going to see that this part of the economy — which is really the industrial Internet of Things and robotics — we’re going to put way more stocks into the Profits Unlimited model portfolio so that readers of the service can benefit.
So, if you’re interested in something like that, please check out my Profits Unlimited service. Until next week, this is Paul Mampilly for Winning Investor Daily.
As I mention in the video, one of the best ways to play this market is to buy into an exchange-traded fund (ETF), many of which are made up of all different kinds of industrial companies.
The ETF that I like the most is the Vanguard Industrials ETF (NYSE: VIS) due to its broad exposure to the market. While I give you a snapshot of this particular ETF’s holdings in the video, you can also read more about it by clicking right here.
Of course, if you want to make really large returns on your investment, the best thing that you can do is target specific companies that participate in the machinery part of our economy.
I’ve been talking about this growing market with my Profits Unlimited readers, and actually have two great new picks lined up for next month that will get us directly into the heart of the industrial Internet of Things.
If you’d like to read more about them, I recommend signing up for my Profits Unlimited service before the end of the month.
This trend will continue for many years into the future, so stay tuned for future updates on the industrial stock boom.
Editor, Profits Unlimited