By Graham SummersThe countdown to the 2020 U.S. Presidential Elec-tion has officially begun.

Whether you love or hate politics, this election is going to be huge for us as investors. The lead-up to Election Day 2020 will present us with several unique investment opportunities.

Before proceeding, I want to stress that none of my analysis is meant to indicate a political preference. That is, I’m not saying I support President Trump nor am I saying I am against him.

I am simply stating that I understand how the President does things from a policy perspective. And because of this, I can clearly see the policies he will be implementing to boost his bid for re-election.

These policies are:

1) Forcing the U.S. Central Bank (the Federal Reserve or the Fed for short) to ease monetary conditions, thereby weakening the U.S. dollar and boosting the stock mar-ket to new highs.

2) Implementing a large-scale infrastructure plan/pushing a “Made in the U.S.” manu-facturing program.

3) Addressing the border crisis with Mexico.

4) Lowering the U.S.’s debt payments so he can increase government spending even more without triggering a debt crisis.

5) Forcing China to its knees via tariffs and other trade re-strictions in order to arrange a trade deal that is most beneficial to the U.S.

On the surface, these policies will appear to be totally random with no relationship with one another.

However, once you put them into the context of President Trump’s re-elec-tion bid, the picture becomes clear. They are all perfectly intertwined to turbocharge the U.S. economy and stock market.

And I intend to have us profit from these policies.

Indeed, I’ve already detailed two unique investments to profit from Policies #4 and #5 in the first issue of Strategic Impact. Click here for access.

In this issue, I’m going to outline three investments designed to profit from the other three policies Presi-dent Trump will pursue to ensure the

INSIDE THIS ISSUETrump Policy #1: Get the Fed to EasePage 2

Trump Policy #2: Infrastructure/“Made in the U.S.” ManufacturingPage 3

Trump Policy #3: Fixing Im-migration with TradePage 5

Presidential Profits: Three Investments Set to Explode as Trump Gears Up For Election Day 2020

July 2019 | Volume 1 Issue 2

I intend to have us profit from these policies.

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U.S. economy and U.S. stock market head into November 2020 firing on all cylinders.

Let’s get started.

Trump Policy #1: Get the Fed to EaseFirst and foremost, in order for President Trump to position the U.S. economy and U.S. stock market for rapid growth, he’s going to need the Fed to ease monetary conditions.

The fact is that the U.S. financial sys-tem is highly indebted on a national, municipal, local, and even personal level.

With this much debt in the sys-tem, any time the Fed is tightening monetary policy by raising interest rates or shrinking its balance sheet via a Quantitative Tightening (QT) program, it’s only a matter of time before the U.S. economy and U.S. stock market take a nosedive.

We saw this in late 2018 when the Fed raised rates for a fourth time

while also draining $400 billion-plus in liquidity from the financial system in one year.

As you can see on the chart above, the stock market nosedived…

In terms of the economy, the quarter after the Fed did this started with the slowest growth since President Trump was sworn into office.

President Trump knows that both stocks and the economy LOVE when the Fed is easing monetary condi-tions by cutting interest rates, or implementing liquidity injections in the form of Quantitative Easing (QE programs)…

Which is why he summoned Fed Chair Jerome Powell and Fed Vice Chair Richard Clarida to the White House for a private dinner soon after the December financial mess hit the markets and the economy.

While we will never know what exactly the President told Powell and Clarida at the meeting, we can guess what his orders were based on what the Fed did soon afterwards.

These orders?

“End QT… and starting cutting rates as soon as you can… or YOU’RE FIRED!”

Within four weeks of the meeting, the Fed announced it would be ending its QT program. And soon after that, the Fed began talking about easing monetary policy.

This is just the beginning.

As we draw nearer to the 2020 election, the Fed, under increased pressure from President Trump, will begin moving away from just talking about monetary easing to actually easing it.

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A Closer LookQuantitative Tightening (QT): The

program through which the Fed

allows the bonds it owns to mature.

Meaning, it gets paid back by the

borrower before the Fed returns

the money to the U.S. Treasury,

thereby removing U.S. dollars from

circulation.

A Closer LookQuantitative Easing (QE): The program through which the Fed prints new money and then uses it to buy debt from bank/financial in-stitutions, in turn hoping to boost the financial system.

STRATEGIC IMPACT

Already the markets are predicting THREE rate cuts in 2019. And if things really intensify, we can also expect the Fed to implement new QE programs as well.

And this is going to send stocks soaring.

One way to play this with leverage is the Ultra S&P 500 ETF (SSO).

SSO OFFERS HIGHER RETURNS IN A BOOMING MARKETReason being, the SSO returns 2X the return of the S&P 500.

So if the S&P 500 rises 5%... the SSO returns 10%.

And if the S&P 500 rises 20%... the SSO rises 40%.

That’s how it’s supposed to work anyway. But the reality is that inves-tors tend to rush into SSO whenever the market rises – resulting in the SSO DRAMATICALLY outperforming the S&P 500.

See for yourself on the chart below. Since the bull market began in early 2009, the S&P 500 (red line) has returned a little under 300%.

By way of contrast, the SSO (blue line) is up an INCREDIBLE 1,439% over the same time period. That’s MORE THAN FOUR TIMES the performance of the stock market.

And as the S&P 500 explodes higher as President Trump pushes the Fed to ease monetary conditions SSO should soar to new highs.

Action to Take: Buy the Ultra S&P 500 ETF (SSO).

This brings us to the President’s second policy…

Trump Policy #2: Infrastructure/“Made in the U.S.” ManufacturingSince taking office in early 2017, President Trump has pushed for the U.S. to regain its position as a world leader in industry and manufacturing.

As the President himself stated, “The philosophy of my administration is simple. If we can build it, grow it or make it in the United States, we will."

Part of this has involved pushing for U.S. manufactures to move their factories/production centers back to the U.S. from overseas.

It has also involved presenting incen-tives to various industries (steel, coal, etc.) to expand operations domestically.

Regarding the latter point, most recently the President signed an executive order requiring Federal agencies to purchase American-made components.

In particular, for a Federal agency to claim a product is “American Made,” the product must have 75% of its components manufactured in the U.S.

As you could imagine, this will greatly benefit multiple

industries in the U.S. economy.

However, the greatest benefactors will be the steel and iron industries — as the executive order also required 95% of all steel and iron used for government projects to come from U.S. firms.

This is not coincidence. The President has singled out the U.S. steel industry on multiple occasions — both in speeches and via social media.

One company in particular is set to profit from the President’s steel-boosting policies…

I’m talking about U.S. Steel (X).

The President has tweeted about the company directly:

He took time from his extremely hectic schedule to personally attend the reopening of a U.S. Steel plant in Illinois:

And he’s hailed the company’s recent investment in Pennsylvania — proud-ly “branding” the company’s decision with the tariffs he has imposed on China are working:

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By the way, on the day of that last tweet, U.S. Steel shares spiked 17% in a single day, illustrated on the chart below.

Moreover, it is clear there is a close relationship between the Trump administration and the company’s leadership.

Simply take a look at the following tweet:

That’s all well and good… But what about U.S. Steel as an investment?

STEEL SURGES IN A BULL MARKET During market environments that align with President Trump’s economic agenda, U.S. Steel shares SOAR.

From the date Donald Trump won the 2016 Presidential election up until the time that the Fed began implementing its aggressive monetary policies (early 2018), U.S. Steel shares rose over 120% — QUADRUPLING the overall stock market’s performance of 30%.

The chart below illustrates this, with U.S. Steel in blue and the stock market in red.

U.S. Steel even crushed far more popular companies — Apple (AALP) and Facebook (FB) — more than DOUBLING their returns for the same time period.

Here’s the breakdown in this chart:

• U.S. Steel (X): Blue

• Apple (AALP): Red

• Facebook (FB): Gray

Put simply, as long as the Fed isn’t moving to hurt the President’s goals, U.S. Steel CRUSHES even the most favored stock picks.

And by the look of things, U.S. Steel is preparing to ignite again, staging its largest returns yet…

U.S. STEEL IS PREPARING FOR A MASSIVE RUN X shares are currently forming a bullish falling wedge formation (gray lines below).

This is THE most bullish trading pat-tern on the planet. The upside target for this formation is around $32 per share, more than 120% higher than X’s current levels.

And should the President single U.S. Steel out for the $2 trillion infrastructure plan he intends to unveil this year or the next, X shares could go to new highs, surpassing $46 per share for a return of more than 230%.

Action to Take: Buy U.S. Steel (X).

I must warn you: X is a volatile stock. It is not uncommon to see this company rise or fall over 10% in a single month. So be prepared for some bumps along the way.

My suggestion is to buy some X shares and just ignore what they do until late 2020. The last thing you want is for your emotions to get in the way of MASSIVE future gains!

Finally, the third policy President Trump will be addressing…

Trump Policy #3: Fixing Immigration with TradeThe immigration crisis at the Mexico-U.S. border is the single most defining issue for the Trump administration.

As a master negotiator, President Trump knows you can’t get a great deal by bullying your opponent non-stop. For one thing, it leads to your opponent becoming resentful, which makes them much less likely to honor any deal.

5STRATEGIC IMPACT

Instead, a critical part of any Trump deal involves presenting his opponent with an opportunity or benefit.

And the biggest benefit President Trump currently has with Mexico is to offer to channel a major portion of the U.S.’s trade/economic ties with China to Mexico.

Put simply, President Trump can tell Mexico, “Help us with the border crossings/illegal immigration issue and we’ll move our business away from China to Mexico.”

This process is already underway.

Since President Trump hit China with tariffs on $250 billion worth of Chinese exports to the U.S., manufacturers have been relocating to Mexico at a rapid pace.

From 2017 to 2018, Mexico saw its total exports to the U.S. increase by 10% as formerly China-based manufacturers/producers relocated to Mexico. The country’s trade surplus with the U.S. actually hit a RECORD high in 2018, growing by 15% in a single year.

Today, Mexico’s share of total U.S. imports is at an all-time high.

Put simply, the great irony of the Trump doctrine is that Mexico — which the media accuses the President of hating with a passion — will likely experience one of its greatest economic booms thanks to President Trump.

And the Mexican stock market knows it.

Take a look at the chart below.

The Mexican stock market crashed on election night in 2016 once it became clear that Donald Trump had won. But it recovered ALL of those losses within five months.

Thanks to this, we have a unique in-vestment opportunity in the Mexico Fund (MXF).

MEXICO FUND PREPARING FOR NEW ALL-TIME HIGHS The MXF is a closed-end fund. Meaning the fund operates differently than most mutual funds.

For one thing, closed-end funds have a limited number of shares outstanding. Put another way, the fund managers can’t just issue new shares anytime they want to dilute the ownership of current shareholders.

For another thing, closed-end funds can invest in private companies, not just companies that are publicly traded. This dramatically increases their investment options.

I would also like to add that many times private companies offer higher returns than publicly traded companies because the former aren’t constantly under pressure from Wall Street to hit quarterly projections. Instead, they can focus on long-term strategic value creation.

And finally, closed-end funds usually pay out larger than normal dividends.

The MXF is no exception.

The fund pays out a quarterly divi-dend of $0.25, or an annual dividend of $1.00. That doesn’t sound like a lot — except MXF shares are around $14. So we’re talking about a dividend yield of 7%!

In terms of investments, the MXF invests across a variety of sectors in the Mexican economy, including telecom, banking, soft drinks, ce-ment, chemicals and more.

What I particularly like about this fund is that it offers us the opportu-nity to invest in a number of Mexican businesses that are usually difficult for U.S.-based investors to gain access to.

The chart for this fund is EX-

TREMELY bullish, shown below. It’s one gigantic triangle formation.

A breakout to the upside of this formation targets a run to at least $21. That’s roughly 50% more than where MXF shares trade today.

And if President Trump really decides to shift the U.S.’s trade away from China to Mexico, MXF shares will likely hit new all-time highs.

And of course, while we’re waiting for this, we’re collecting a 7% yield.

Action to Take: Buy the Mexico Fund (MXF).

A Quick Review This concludes this issue of Strate-gic Impact. As a brief recap, President Trump will employ the following policies go-ing into the 2020 election.

1) Forcing the U.S. Central Bank (the Federal Reserve or the Fed for short) to ease monetary conditions, thereby weakening the U.S. Dollar and boosting the stock market to new highs.

2) Implementing a large-scale infrastructure plan/pushing a “Made in the US” manufac-turing program.

3) Addressing the border crisis with Mexico

4) Lowering the U.S.’s debt payments so he can increase

6 STRATEGIC IMPACT

government spending even more without triggering a debt crisis.

5) Forcing China to its knees via tariffs and other trade restrictions in order to ar-range a trade deal that is most beneficial to the U.S.

Between this issue of Strategic Impact and the last, we now have investments designed specifically to profit from all five of these.

They are:

• The Ultra S&P 500 ETF (SSO)

• U.S. Steel (X)

• The Mexico Fund (MXF)

• The Long Treasury ETF (TLT)

• The UltraShort China ETF (FXP)

Go here to access last month’s issue.

If you have any questions or feedback, feel free to send them here.

Best Regards,

Graham Summers Editor, Strategic Impact

SYMBOL ENTRY DATE ENTRY PRICE CURRENT PRICE % GAIN COMMENTS

CORE POSITIONS Ultra S&P 500 ETF SSO NEW NEW NEW NEW Buy at market.U.S. Steel X NEW NEW NEW NEW Buy at market.Mexico Fund MXF NEW NEW NEW NEW Buy at market.iShares 20+ Year Treasuries ETF TLT 6/24/19 $132.41 $131.22 -0.70% Buy at market.

SPECULATIVE POSITIONSUltra-Short China ETF FXP 6/24/19 $61.16 $61.51 0.94% Buy at market.

Updated on 7/24/2019

Strategic Impact Portfolio