Depending on which side of the aisle you stand on, President Trump’s State of the Union address was either brilliant or lackluster…
Former House Speaker Newt Gingrich said it “was a speech that changed the trajectory of history.” He magnanimously compared Trump to conservative icon President Reagan.
But fiery New York Democratic Representative Alexandria Ocasio-Cortez—who sat stone-faced during much of the speech—called Trump’s address an “embarrassment.” She also disapproved of the president’s criticism of socialism.
Nevertheless, Trump called for bipartisanship in an era of hyper-partisanship… He struck a chord of unity. (“As we have seen, when we are united, we can make astonishing strides for our country.”)
And he didn’t make any new, bold proclamations—although he continued his controversial call for a wall on the U.S.-Mexican border. (“I’ll get it built.”)
Mostly, it was a relatively tame affair—at least by Trump’s standards.
As longtime PBRG friend and my mentor Bill Bonner put it, Trump’s “speech was so mealy-mouthed mainstream even Barack Obama could have delivered it.”
To be honest, I didn’t even watch what amounted to a 90-minute pep rally. (Republican lawmakers even broke out into chants of, “USA! USA!”)
Instead, I let my wife treat me to a nice steak dinner while we stayed in Las Vegas as I continue touring the nation, looking for ways to help you build your wealth.
As regular readers know, I don’t enjoy politics… It’s more efficient for me to spend five minutes reading the transcript of the president’s speech the next morning than 90 minutes of watching it live.
While the mainstream media debates Nancy Pelosi’s “golf clapback” at Trump… the white outfits worn by female lawmakers… and the “national emergency” on the southern border, I dug deeper into the speech to find money-making opportunities.
And there was a big one hiding in plain sight…
During his speech, Trump urged both parties to “unite for a great rebuilding of America’s crumbling infrastructure.”
Even Democrats applauded that line…
After the speech, Senator Chris Van Hollen of Maryland said infrastructure was an issue Democrats could compromise on with the president.
And he wasn’t alone… Democrat House members Haley Stevens, Max Rose, and Anthony Brindisi said they’d also be willing to work with Trump on an infrastructure package.
Now, Trump hasn’t unveiled any infrastructure plans yet. But with both parties seemingly on board, the tide is pointing toward more infrastructure spending.
And it’s easy to see why…
Every four years, the American Society of Civil Engineers (ASCE) issues a report on the condition of U.S. infrastructure. The report assigns a letter grade based on the physical condition and the improvements needed.
In 2017, ASCE gave the U.S. a D+. While that’s technically a “passing” grade… in the household I grew up in, that would’ve been considered a massive failure.
Does anyone remember the I-35W bridge that collapsed in Minnesota 12 years ago? Or the Amtrak train that derailed in Washington state in 2017? Or the ongoing water crisis in Flint, Michigan?
Well, ASCE says one in nine U.S. bridges are structurally deficient. It estimates that the government needs to spend more than $2 trillion over the decade just to fix them.
And that doesn’t include the trillions more we need to repair and upgrade other infrastructure—like electrical grids, dams, airports, and railroads.
It’s no wonder an infrastructure bill has bipartisan support. You can’t make America great again if it’s falling apart…
Trillions in Spending Ahead
During his speech, President Trump said:
I am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting-edge industries of the future. This is not an option. This is a necessity.
It’s one of the few agenda items that he and the Democrats agree upon (along with lower prescription drug prices).
That means at some point, trillions of dollars in federal spending will go into infrastructure projects in the coming years. And that’s good news for companies in that space.
Expect railroad, water, energy, construction, and even utility companies to benefit. Even consulting firms are likely to pick up more federal contracts.
And the easy, one-click way to play this trend is the Cohen & Steers Infrastructure Fund (UTF). It’s a closed-end fund that invests mainly in infrastructure companies incorporated within the U.S.
Right now, the fund trades at a 5% discount to the value of all the stocks it holds. That means investors are able to get into these companies at a cheaper level than buying them on the open market.
Analyst, The Palm Beach Daily
P.S. Did you watch President Trump’s State of the Union address? Share your thoughts on the president’s agenda (and the Democrats’ response) right here…
Crypto investors respond to our warning about the Grayscale Bitcoin Trust (GBTC)…
From Kenneth W.: I didn’t invest in Grayscale Bitcoin Trust (GBTC). But I did invest in a bitcoin IRA. The custodian raised annual fees from $100 to an average of $600 per month.
From B.R.: Yes, GBTC has a 20% premium. But I have 25 accounts for kids and grandkids. So it’s the only way for me to buy bitcoin that makes sense and won’t drive me crazy!
If I’d bought GBTC in July 2016 when Teeka started pounding the table to buy bitcoin and ether, I would be 10x richer, minus the 20%. Buying bitcoin the right way makes sense for only my own account, but not for 20 accounts.
The debate between crypto idealism and crypto realism continues…
From Tom T.: I get that, ideally, the attraction of crypto is its decentralized status. But having done the ridiculous crypto transaction thing last August after Teeka’s recommendation—then watching cryptos’ favorability wane—the realist side of me says T was a bit early with his market projection. But what he’s said all along still holds true: We need the masses to be incentivized to enter the crypto space to realize any sizable growth.
From Daniel K.: I agree with Teeka’s view on being a realist or idealist with the crypto market. It’s still early days, and crypto will evolve as time goes by. We have to get over always wanting a quick fix. I’m a “buy-and-hold for the long-term” person… and I’m not worried about the hiccups along the way.
And a reader comments on modern monetary theory…
From Jim S.: Eliminating the Federal Reserve would be an improvement—no need to go into debt to a private bank cartel for fiat currency created out of thin air. Get the crooks out of the fiat currency loop completely.
As for everything being free, that’s a separate issue… and I’m against that, as it’s highly inflationary. Universal healthcare can—and does—work elsewhere for way less than we spend on our current system. Government-run programs are always bad, but what exists now is a terrible patchwork.
I have good coverage through work. But the contractors I work with have nothing. Healthcare shouldn’t be free, either, but you shouldn’t go bankrupt just because you have heart attack or get cancer.
It might not seem like it… But all of the volatility in the crypto space has unearthed a new opportunity.
Right now, there’s a small group of investors collecting income in the crypto market—whether it’s moving up… down… or even sideways. It doesn’t matter.