Where to Invest Before Trump Takes the White House

by Sean Brodrick
Where to Invest Before Trump Takes the White House

The mainstream media and odds makers have written off Donald Trump as a mere joke of a presidential candidate. However, I believe the polls are wrong. I think Trump has a good shot at winning the White House.

And I know how you should be invested if he does win.

Publicly, I’ve said Trump will win since February. I was on a Money Show/Oxford Club cruise with a bunch of other financial speakers. At a panel, everyone picked who they thought would win.

I heard a lot of other Republican names, plus Clinton... and even Biden. (Seriously? Biden?) I was the only one on the panel who picked Trump.

It’s not because I think he will be a great president. It’s because I know a tidal wave when I see one...

That tidal wave is public anger with the status quo. And Trump is the only candidate left with a surfboard.

For Joe and Jane Main Street, it appears our economy is not working. And they expect their children to have it worse - not better - than they do.

Under the circumstances, how do you think they’ll vote?

Do you think they’ll vote for the smug know-it-all who is so far in Wall Street’s pocket that she’s getting lint in her eyebrows? Or do you think they’ll vote for the orange know-nothing who is raging against the system?

Sure, Donald Trump is prone to gaffes. But he speaks to the anger that people really feel. Hillary Clinton, meanwhile, is totally out of touch with regular Americans.

You think ordinary Americans care if the president is an elitist man or an elitist woman? No. They care about who will help them.

And if no one will help them? Well, they might take a cue from our friends across the pond...

Britain’s Big Surprise

Let’s look at what happened in Britain. That country voted to exit the European Union despite polls that were so lopsided even the pro-Brexit politicians thought they’d lost.

But they won.

Here’s why Britain voted to exit the EU: 13 million foreigners have settled in Britain since 1990. That’s equivalent to 63.8 million foreigners moving to the U.S.

The newcomers competed with working-class people for jobs. Jobs for construction workers, gardeners, truck drivers, store clerks.

Wages. Went. Down.

As Nigel Farage, the leader of the pro-Brexit U.K. Independence Party, said, “There is no question that it’s pushed wage inflation down; it’s helped big companies and big corporations and big landowners to make bigger profits.”

Immigration is hammering Britain’s middle class. Something has to change. Even if you have to burn it down.

But it’s not like the banking and limousine classes noticed. Everything was ducky for them.

People say we can’t draw too many parallels between the U.S. and the U.K. Our country is much larger. It’s more diverse.

Sure. You know what America also has? Evangelical Christians. About 25% of the population. And most of them won’t vote for Hillary.

And Hillary has come out hard against assault rifles. Though that is a loaded term (pardon the pun). I have relatives in Maine and New Hampshire. Their houses look like mini-gun shows. I have a cousin who works at the Ruger factory in Newport, New Hampshire.

Who do you think they’ll vote for?

New Hampshire is a “blue” state, right? Not this year. Not if my relatives are any indication.

So sure, ace “polling guru” Nate Silver says Hillary has a 79% chance of winning in November. Tell me, how many evangelicals and gun owners did he poll?

That’s the thing about evangelicals and gun owners. They vote.

They vote a lot, in fact. And it’s not public opinion that wins elections. It’s who turns up to vote.

How to Ride This Angry Tidal Wave

Maybe things will change between now and November. Sometimes Trump says and does things so outrageous I shake my head. (Though the same can indeed be said for Hillary.) I say to myself: “It’s like he’s doing this as performance art.”

I mean, seriously, who gives a speech on how he’ll revitalize America in front of a wall of garbage? Who?

Donald Trump, that’s who.

Trump Trash Speech(Source: Washington Times)

But let’s say that the trends I’m watching remain in place - and Trump does win. Where should you be invested?

Looking at what happened in Britain after the surprise Brexit vote...

  • Gold soared. It jumped 8.1% the day after the Brexit vote. That’s in dollar terms. In other currencies, it went up more. Speaking of which...
  • British currency crashed. The pound fell 8% the day after the vote.
  • Interest rates went down; bond prices went up. U.S. 10-year Treasurys went up 3.2%. German 10-year bond yields were positive before the vote but went negative afterward.

That’s a 1-2-3 that works for me.

In March, a Trump supporter told The New York Times, “We know who Donald Trump is, and we’re going to use Donald Trump to either take over the GOP or blow it up.”

I think that goes for the status-quo system that hurts working folks, too.

In other words, voters are saying, “Burn that mother down!”

Buy gold. That will hedge your currency bets. And buy bonds.

November is coming. Be ready.

Good investing,


Have thoughts on this article? Leave a comment below.

P.S. A lot’s been said about Trump. But for a guy who holds at least $78 million in assets, little is known about his personal stock portfolio. For some reason, it just seems like very few main street investors have thought to look for this list. But The Oxford Club did - and what we found was shocking.

Whether you love him or hate him, I think you’ll be very interested to see what America’s most notorious billionaire owned upon entering the presidential race. Click here for details.

Volatility Has Investors Seeing STZ

Despite hitting new highs, the markets have thrown investors for a loop this year. Volatility has driven many Americans to drink, which is one of the main reasons why Sean Brodrick recommended Constellation Brands (NYSE: STZ) to his Oxford Resource Explorer subscribers.

In Sean’s words, “Even in hard times, people always manage to find a few dollars for beer or spirits.” Let's take a closer look at the company...

Constellation is the world's leading wine company, with international labels, such as Robert Mondavi, Ravenswood and Monkey Bay, and low-priced wines. It is also the leading beer importer in the U.S. You're likely familiar with its brands, which include Corona, Modelo, Pacífico and Tsingtao. Its Corona Extra is the No. 1 imported beer in the U.S.

According to Sean, “Following an estimated growth rate of about 15% in fiscal 2016, sales are expected to grow 15% to 17% next year.

“This stock is not cheap. It trades at 4.3 times book value and 19.6 times cash flow. But operating margins are rising, coming in at 27.3% in the third quarter. That's higher than 89% of global alcoholic beverage companies.

“Constellation's share price has been accelerating for over a year. With revenues, earnings and operating margins rising, I don't expect its big trend to change.”

- Alexander Moschina with Sean Brodrick

Live Twitter Feed