Chief Investment Strategist, The Freeport Society
I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (“DOGE”). Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies… This will send shockwaves through the system…
It will become, potentially, “The Manhattan Project” of our time. …the department of Government Efficiency will … create an entrepreneurial approach to Government never seen before.”
- Statement yesterday from President-Elect Donald Trump
I take grandiose statements from politicians with a massive grain of salt.
I’m talking about a grain of salt with the mass and density of a neutron star.
Their track record for following through on promises isn’t great.
But when I hear “dismantle government bureaucracy, slash excess regulations, and cut wasteful spending” my blood gets pumping.
I dare to dream!
We’ll see if Mr. Musk is up to the challenge. Sure, he revolutionized electric vehicles, manages a global satellite network, built a rocket company that works with NASA, and drills underground tunnels to cut traffic as a side hustle.
But can he slay the government beast?
Musk is just a man, after all. He’s not God Almighty.
And every dollar of government waste he tries to cut is a dollar some congressman fought tooth and nail to include in an appropriations bill.
My best guess is that, after six weeks, Musk realizes the exercise is futile and goes back to spending his days playing with rockets and rage tweeting. That sounds like a lot more fun than sorting through government budget minutiae.
I hope I’m wrong.
And from the look of things, Mr. Market thinks there’s a chance Mr. Musk might just pull it off.
Since Election Day, the S&P 500 is up about 4%. And the Russell 2000 index of small-cap stocks is up about 6%.
Those are massive gains when you consider that the average yearly gain for the former over the past 30 years is about 10%. And the average yearly gain for the latter over that time is about 8%.
We’re talking about roughly half a year’s gain in the space of a week.
So, today, let’s look at how paid-up Freeport Society subscribers have been profiting by getting ahead of the Trump trade that’s raging on Wall Street.
We’ll also look ahead to how we’ll continue to profit from the Trump trade.
Big Wins on Our Agenda 47 Trades
Back in August, I called for a “surprise” Trump win. (This was when Harris was leading in the polls.)
And I put together a recommended portfolio of stock and options plays to profit from a second Trump term for subscribers of our premium advisory, Freeport Alpha.
I based them on Trump’s agenda for his first year in office – Agenda 47. (Trump will be the 47th president of the United States.)
It outlines 20 core promises to “make America great again.”
Not all of them were actionable for us as investors. But I identified the ones we could play for profits. Here they are, quoted directly from Trump’s policy manifesto…
- Seal the border and stop the migrant invasion
- Carry out the largest deportation operation in U.S. history
- Make the U.S. the dominant energy producer in the world, by far
- Stop outsourcing and turn America into a manufacturing superpower
- Making our military the strongest and most powerful in the world.
- Cancel the electric vehicle mandate and cut costly and burdensome regulations
So far, the recommendations I made based on these promises have worked out well.
For instance, we’re up 73% on GEO Group REIT (GEO). It’s a private prison company that U.S. Immigration and Customs Enforcement (ICE) uses to detain undocumented migrants.
We took some profits on this one last week when we sold half our position.
We’re up 75% on Peter Thiel’s data analytics firm Palantir Technologies (PLTR).
Thiel is a major Trump donor. And Palantir has been a key provider of data analytics software to U.S. intelligence agencies.
Crucially, it also counts ICE as a client. So, it will play a pivotal role in helping Trump keep his promise of controlling illegal immigration.
And we’re up 81% on U.S. Bitcoin mining company Riot Platforms (RIOT). As I wrote when I recommended it…
[Trump] is the first candidate to speak of the “crypto vote” as an identifiable demographic. And in speaking to this group earlier this year, at the Bitcoin Conference in Nashville, Trump promised to create a strategic national Bitcoin stockpile. “If crypto is going to define the future, I want it to be mined, minted, and made in the USA,” he said.
In case you think I’m cherry picking, 9 of the 10 stocks I recommended in August are showing gains.
And we closed an options trade in another public prison stock, CoreCivic (CXW), after doubling our money in just eight days.
So, kudos if you’re a Freeport Alpha subscriber who acted on those recommendations. You’ve made market-beating returns by getting ahead of the Trump trade.
And if you’re not yet a subscriber, don’t worry.
As I mentioned up top, there will be plenty of opportunities ahead as the second Trump term plays out.
Embrace the Age of Chaos
At the risk of sounding like a broken record, the next four years will be chaotic.
That would have been true with or without a second Trump term.
We live in an Age of Chaos. It’s defined by rapid technological change and a seismic shift away from traditional institutions and the globalized world order.
You may or may not like it, but the introduction of Trump’s particular brand of chaos will create amazing opportunities.
The early success of our Agenda 47 Portfolio is just the start.
Don’t fear the chaos. Profit from it.
To life, liberty, and the pursuit of wealth.