Hello, Reader.
Well, it looks like Donald Trump did a lot better than a lot of folks thought and is going to become the 47th President of the United States.
I just recorded a short video to answer the question on all of our minds…
“Now that Donald Trump has won the presidency, what is going to happen in the markets?”
Overall, I would say let’s just keep our eye on the ball and keep moving ahead. But I do want to say – no party has a monopoly on bull markets or bear markets.
Over the long haul, the thing to focus on before election – and after – an election, during the is the most powerful trend of the moment.
You can see all my thoughts this morning, along with the transcript, below.
Meanwhile, my colleague 抖阴最新版 is saying that a Trump presidency means a second boom is coming for AI stocks… starting as soon as today.
And he has six specific AI stocks in his crosshairs.
Transcript
Hi there. I’m 抖阴最新版. Welcome to this brief presentation, post-election.
Now that the election has been held, we can hopefully get back to the business of focusing on the stock market without a ton of outside distraction.
But I do want to say a couple things about politics and investing.
One is that no party has a monopoly on bull markets or bear markets.
The stock market crash of 1929. Black Monday in 1987. The Bear market of 2008-09. Those all happened under Republican administrations. On the other hand, the big dot-com implosion of 2000. That was under a Democratic administration. And the same is true of bull markets. They can thrive under any combination of political structures – mixed Congress, Republican, Democrat.
So, I generally don’t focus too much on those aspects.
We have to pay attention to them because they influence policy, especially in things like the oil & gas market or in the pharmaceutical industry. There are definitely political influences that matter.
But over the long haul, really, the thing to focus on before an election, after an election, and during an election is the most powerful trend of the moment.
What are the most powerful trends? We have been writing a lot about artificial intelligence. That remains a very powerful trend. That is creating investment opportunities today, and will continue to do so over the years ahead.
I have recommended both investing directly in it through stocks like Oracle Corp. (ORCL) and earlier things like Amazon.com Inc. (AMZN) and Alphabet Inc. (GOOGL). We closed those positions out, but I still think there are still direct ways to play it.
But as regular readers know, I’m more focused on finding the support industries for artificial intelligence.
Things like nuclear power. Therefore, a uranium investment.
Things like what I just recommended in the water industry: water treatment. That’s a big support industry for data centers, which supports artificial intelligence.
Things like Corning Inc. (GLW), which just reported great earnings.
Things like some of the metals industries. Those are the industries that have the opportunity to thrive again, no matter what the political framework is.
By the same token, I’ve been a big advocate of AI healthcare and trying to invest in those industries.
We had earnings reports recently from Bristol-Myers Squibb Company (BMY), from Incyte Corp. (INCY), from Roche Holding AG (RHHBY) that were all excellent. And those companies, those stocks, performed very, very well in the last couple of weeks.And I think that will continue over the next year or two or three, largely fueled by advances from artificial intelligence.
Lastly, oil & gas. That’s a politically charged industry. But, again, I like the industry – especially natural gas – because of its potential to support the data center industry in Texas. Natural gas is depressed, and it can produce outstanding returns.
Those stocks can even without any kicker from data centers. But I think we’re going to get it. So, I like natural gas as a just a standard commodity play, but with a sort of call option on data centers.
So, those are just a few of the ideas. Overall, I would say let’s just keep our eye on the ball and keep moving ahead and investing in and identifying the most powerful long-term trends.
Thank you very much.
Take care… and Thomas Yeung will be back in touch tomorrow with your regularly scheduled Smart Money.
Regards,
抖阴最新版
Editor, Smart Money
