Investing

Who Will Benefit the Most from Trump’s Victory?

“Never bet against America.” — Warren Buffett (2021)

The conventional wisdom is that this week’s election was a referendum on Donald J. Trump. But it was really more a vote against the Biden-Harris policies of the past four years… and the anticipation that Trump’s agenda would unleash the American economy and the stock market.

The truth is that the secret ballot elected Trump. Millions of Americans held their noses and privately voted for the man, even though many found his behavior — his exaggerations, insults and narcissism — distasteful.

As I stated in Monday’s hotline: “Donald Trump should win the election tomorrow, given the disastrous policies of the Biden-Harris administration since 2020: Sharply rising price inflation, trillion-dollar deficits, out of control illegal immigration, rising crime, misguided foreign policy in the Middle East and Ukraine and a disastrous withdrawal from Afghanistan, defiance of the Supreme Court’s ruling against student-loans forgiveness and woke culture…”

Trump Has a Mandate to Return to Normalcy

The American people have spoken. In many ways, it was a landslide. Despite Trump’s misbehavior and sometimes misguided policies, the American people gave him a landslide victory, handily winning the Electoral College as well as Republican control of Senate and probably the House.

Most shocking of all, he won the popular vote by five million!

What do the American people want? A return to normalcy: the end of price inflation… good job opportunities… higher standards of living for all… lower crime… balanced budgets… fewer regulations… control of the border… and return to traditional values.

Benjamin Franklin said it best for the United States: “The system of America is commerce with all and war with none… A virtuous and industrious people may be cheaply governed.”

His friend, Adam Smith, the Scottish economist, agreed: “Little else is required to carry a state to the highest degree of opulence but peace, easy taxes and a tolerable administration of justice.”

Americans want to go about their business without being overregulated, harassed, audited and taxed to death.

Who Will Benefit the Most from Trump’s Election? Investors!

Trump’s landslide victory has already caused the dollar, stocks and Bitcoin to rally, and gold to decline.

My favorite financial stock, the largest blue-chip private equity company on Wall Street, skyrocketed 13% the day after the election! It’s in my ideal portfolio. (To subscribe, go to www.markskousen.com, or call 800-211-7661)

Overall, I believe the Trump agenda will be good for most investors, but what are the best strategies for 2025?

This weekend will be the first economic/financial conference to address this issue, and I’ll highlight my favorite stocks and funds to profit from the New Trump Bull Market.

FreedomFest is joining forces with the Investment Club of America this weekend for the EconoSummit, which will be held this Saturday and Sunday, November 9-10, at the Ahern Hotel in Las Vegas. Experts will address the best investments in stocks, technology, AI, bitcoin and blockchain, gold and silver, foreign investments and real estate.

Experts to Speak at EconoSummit

Eagle editors, Jim Woods (Fast Money Alert) and I will be speaking on the impact of the elections on your portfolio. Other speakers include political expert John Fund and top economist Sean Flynn. Here is the full list of speakers: www.econosummit.org/speakers.

Plus, I just confirmed TV/radio personality Wayne Allyn Root, who is a close friend of President Trump, who will speak on “What’s Trump’s Agenda for His Second Term? Get Ready to Make America Great Again!”

This ticket, valued at $499, is FREE if you sign up for next year’s FreedomFest, set for June (not July!) 11-14, 2025, at the Palm Springs Convention Center in California. To register for FreedomFest, go to www.freedomfest.com. And you are still eligible for the low early bird rate! After you register, you will receive a special code for a free ticket to EconoSummit. For more information, go to www.econosummit.org or call Hayley at 1-855-850-3733, ext. 201.

Trump’s Agenda for a Second Term

Trump has promised a variety of policies, including closing the border, imposing tariffs, cutting taxes and ending war in Ukraine and the Middle East. And, during his acceptance speech, he declared, “A promise made is a promise kept.”

Alex Tabarrok, professor of economics at George Mason University, has created a list of ideas that Trump might consider. I quote here by permission from his popular website Marginal REVOLUTION – Small Steps Toward A Much Better World:

The economy is strong and Trump has a significant opportunity to simply take credit for that if he avoids major disruptions. While he must fulfill some of his campaign promises, people voted for Trump, not for his policies per se. Trump has leeway. No one will accuse him of flip-flopping. While these are not my first-best policies, Trump won against astounding media and elite opposition and an attempted assassination. The people have spoken, so here’s a best-case outline for following through on Trump’s policies without cratering the economy:

Trade Policy: Moderate tariff increases on China. No Chinese electric cars for us. But drop the “tariffs on everything” language. He can always say his rhetoric was a threat to get other countries to lower their tariffs. Let’s instead talk tough against our enemies but shift toward “friend-shoring”, maintaining or even lowering tariffs with allied nations, such as Canada, Europe and possibly India, as part of a broader strategy to contain China’s influence.
Border Control: Trump must strengthen the border. But let’s limit deportations to individuals who arrived in the past four years. Control the border, throw some illegals out but minimize human misery by not deporting long-term residents and their U.S.-citizen families. Declare a win while avoiding economic disruption and strengthening the police state.
Vaccine and Health Policy: Appoint Robert F. Kennedy Jr. to head a committee on vaccine policy and, after several years of investigation, write a report. Take medical freedom more seriously
Crypto Regulation: Appoint Hester M. Peirce to head the SEC. Stabilize the regulatory environment for cryptocurrency. Simplify tax rules for crypto. Support digital dollar growth and treat stablecoins as what they are, namely, the U.S. dollar dominating world electronic payments.
Space and Innovation: U.S. Space Force! Commit to Mars exploration and position the U.S. as a leader in space innovation. Get advice from Elon.
U.S. AI : Immediately approve Meta for its nuclear-AI program. Swat the bees. Approve Amazon as well. Tell the FERC that their job is to increase the supply of energy. Keep the Chip Act but make it clear that the goal is to dominate the space not make jobs or social policy. We are the world leaders in AI. Let’s keep it that way.
Kill Bureaucracy: Let Elon Musk take the chainsaw to a few bureaucracies like Javier Milei. Afuera! Afuera! Afuera! Streamline bureaucratic processes, cut red tape and invigorate tech and infrastructure initiatives.
Respect Meritocracy: End race and gender-based discrimination in government programs.
Expand Housing Supply: Build baby build! Trump is a natural to lead this. Trump the developer! Incentivize states and localities to streamline zoning laws and reduce restrictions that hamper new housing developments. Increase housing supply.

“Each of these policies is consistent with Trump’s priorities and rhetoric and has broad appeal for voters who value economic opportunity, accountability, and national resilience. The economy is strong. Trump has headwinds. If he is sensible, all of this would make for a successful presidency. If Trump wants the judgment of history, the path is open should he choose to walk it.”

Thanks, Alex.

Summary Paper: Let’s GO!

Special Announcement: Many friends have asked me to do a summary paper on my gross output (GO) statistic, which measures total spending in the economy. The 20-page paper includes all the pros and cons of GO and how to apply it in the real world. It is now complete and can be read online at the Social Science Research Network (SSRN) website here. Tyler Cowen recommended it on his Marginal Revolution website, and it already has over 2,100 views. Spread the word.

Good investing, AEIOU,

Mark Skousen

You Blew it!

Democrats Should Have Endorsed a Less Radical Candidate

By Mark Skousen

The Washington Post and The Los Angeles Times could see the writing on the wall: Vice President Kamala Harris was anointed to be the Democratic candidate for president without proper vetting by its own party members. The two prominent newspapers refused to endorse her or any candidate.

The Economist, the magazine founded on the classical liberal principles of free trade and limited government, should have done the same. Instead, they endorsed Harris and even predicted the night before that she would “just” barely win. Clearly the editors were out of touch with American voters, who were fed up with the Biden-Harris shenanigans and were suspicious of Harris’s flip-flopping.

Interestingly, Florida was able to count and post the results at the end of Election Day. They learned a lot from the 2000 election.

On the other hand, many of the swing states, such as Pennsylvania, Wisconsin, Arizona and Nevada, were unable to post results in a timely manner. Some take days to discover who won.

These are states controlled by the Democrats who have deliberately slowed down the voting process so that if there is a close election, it may take days or weeks to decide the outcome.

Neither Pennsylvania nor Wisconsin start counting the absentee ballots until Election Day.

Nevada doesn’t report any results until the last person votes.

Not a good way to fulfill the goals of its citizens.

Mark Skousen

Mark Skousen, Ph. D., is a professional economist, investment expert, university professor, and author of more than 25 books. He earned his Ph. D. in monetary economics at George Washington University in 1977. He has taught economics and finance at Columbia Business School, Columbia University, Grantham University, Barnard College, Mercy College, Rollins College, and is a Presidential Fellow at Chapman University. He also has been a consultant to IBM, Hutchinson Technology, and other Fortune 500 companies. He is a former analyst for the Central Intelligence Agency, a columnist to Forbes magazine (1997-2001), and past president of the Foundation for Economic Education (FEE) in New York. He has written articles for The Wall Street Journal, Liberty, Reason, Human Events, the Daily Caller, Christian Science Monitor, and The Journal of Economic Perspectives. He has appeared on ABC News, CNBC Power Lunch, CNN, Fox News, and C-SPAN Book TV. In 2008-09, he was a regular contributor to Larry Kudlow & Co. on CNBC. His economic bestsellers include “Economics on Trial” (Irwin, 1991), “Puzzles and Paradoxes on Economics” (Edward Elgar, 1997), “The Making of Modern Economics” (M. E. Sharpe, 2001, 2009), “The Big Three in Economics” (M. E. Sharpe, 2007), “EconoPower” (Wiley, 2008), and “Economic Logic” (2000, 2010). In 2009, “The Making of Modern Economics” won the Choice Book Award for Outstanding Academic Title. His financial bestsellers include “The Complete Guide to Financial Privacy” (Simon & Schuster, 1983), “High Finance on a Low Budget” (Bantam, 1981), co-authored with his wife Jo Ann, “Scrooge Investing” (Little Brown, 1995; McGraw Hill, 1999), and “Investing in One Lesson” (Regnery, 2007). In honor of his work in economics, finance, and management, Grantham University renamed its business school “The Mark Skousen School of Business.” Dr. Skousen has lived in eight nations, and has traveled and lectured throughout the United States and 70 countries. He grew up in Portland, Ore. He and his wife, Jo Ann, and five children have lived in Washington, D.C.; Nassau, the Bahamas; London, England; Orlando, Fla.; and New York.