This Trump Tweet Is Good News for Your Portfolio

By Nick Rokke, analyst, The Palm Beach Daily

“Stock market at a new high, unemployment at a low. We are winning and TAX CUTS will shift our economy into high gear!”

That’s what President Trump tweeted to his followers on November 29.

And he’s right. Love him or hate him, the economy is getting stronger.

This shouldn’t come as a surprise to regular Daily readers. We’ve been telling you that all year. (For examples, read here and here.)

I even took a road trip through the Midwest this summer to highlight the strength of the U.S. economy.

The mainstream media told us the Rust Belt economy was struggling. I expected to find crumbling factories and deteriorating towns.

I found some of that… But what I mainly saw were new industrial buildings popping up and people thriving.

At the Daily, we dig beyond the headlines. We get out from behind our comfortable desks and travel far and wide to find out what’s really going on.

Once we know the facts, we can help you create a solid investing plan.

The crux of a strong economy is a strong consumer. Without anyone to consume things, there would be no business. Today, I’ll show you the consumer has never been stronger and what that means for your investments.

Jobs Are Coming Back

Just over the past year, the economy has added 2 million jobs. That means 2 million more people are collecting paychecks and are ready to spend some money.

Look at the chart of total jobs. It’s gone straight up since 2010.     

But here’s the thing…

Not only are more people employed, they’re making more money.

According to the U.S. Census Bureau, real wages (wages adjusted for inflation) have increased 10% since the bottom of the recession ending in 2010.

And this growth has pushed real median household and personal incomes to all-time highs.

The truth is, more people are working than ever before. And they’re making more than ever before.

That means people are spending more than ever before—which is why the economy is growing so rapidly.

The growing economy means companies will make more profits. And more profits generally mean higher stock prices. That’ll boost your portfolio and retirement accounts.

You must have money in stocks. If you don’t, you will be left behind as the market continues higher.

Regards

Nick Rokke, CFA
Analyst, The Palm Beach Daily

P.S. We think tech and biotech will do well in 2018. But there’s another industry that will get a boost over the next couple months from the growing economy. I’ll tell you about it in tomorrow’s Daily.

ELITE 25 DECEMBER UPDATE

Each month, we update our Elite 25 portfolio. We remove stocks that are too expensive and replace them with new stocks that meet our three criteria for elite status.

November was a wild month for Elite 25 companies.

We saw massive movements in some of the stocks this month.

The biggest gainers were Foot Locker and L Brands. They were up 40% and 33%, respectively.

On the downside, Nautilus fell 20% and Qiwi dropped 13%.

Overall, the Elite 25 was up 4.6%, which beat the S&P 500’s 3.1% gain.

Portfolio Changes

This month, we have four new positions.

We’re removing:

  • Brinker International (EAT)

  • Computer Programs & Systems (CPSI)

  • Meridian Bioscience (VIVO)

  • Starbucks (SBUX)

We’re adding:

  • NIC Inc. (EGOV)

  • S&P Global (SPGI)

  • Stamps.com (STMP)

  • Tractor Supply Co. (TSCO)

Click here for the updated Elite 25 list.

[Palm Beach Letter subscribers can read our Elite 25 special report right here.]

MARKET BRIEFS

Dow Surges Higher: On November 30, the Dow Jones Industrial Average broke past the 24,000 mark for the first time ever… and is expected to surge further from there as we head into December. This is the sixth time the Dow has risen above a thousand-point milestone since President Trump was elected. As we wrote above, it’s still a bull market—so stay invested in stocks.

IRS Targets Bitcoin Exchange: Last week, a California federal judge ordered bitcoin exchange Coinbase to turn over records for all users who bought, sold, sent, or received $20,000 or more through their accounts in a single year between 2013 and 2015.  Coinbase had fought the order, but called the ruling a partial victory. That’s because 97% of Coinbase users didn’t go over the $20,000 threshold for disclosure. But if you did go over the threshold, make sure your keep a track of your cryptocurrency transactions. You can read our May 15 Daily for a primer on how cryptocurrency gains are taxed.

Amazon Dominated Black Friday: Amazon captured 54.9% of all online transactions on Black Friday, which traditionally kicks off the holiday shopping season. The e-commerce giant pulled in 7.14 million transactions. That’s six times more business than Walmart, 11 times more than Best Buy, and 16 times more than Kohl’s. Amazon’s continued dominance in online sales is a major reason why it will become the first U.S. company to be worth $1 trillion.

IN CASE YOU MISSED IT…

This Silicon Valley insider “leaks” the No. 1 investment idea from a private meeting with 34 top tech investors…

What he reveals could make you 21 times your money over time if you invest before midnight, February 18, 2018… Click here for more proof

Posted in Palm Beach Daily
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