Chief Investment Strategist, The Freeport Society
He’s chaos personified…
As he returns to the White House, President-elect Donald Trump is packing a metaphorical chainsaw that will chop the Environmental, Social, and Governance (ESG) movement to pieces…
He’s sending an “It’s not you, it’s me” message to renewable energy projects – particularly new offshore wind-power projects.
He’s bidding the Paris Agreement on climate change au revoir.
And as one final snub to President Biden, Trump is set on expanding U.S. oil-and-gas production… and reviving the Keystone XL Pipeline.
Love him or hate him, Trump will shake up the status quo and give us fantastic new investment opportunities.
We just need to grab them.
This is something my paid subscribers of our elite Freeport Alpha advisory have already had the chance to do.
We’ve exited or partially exited 9 of the 11 recommendations I made last August to profit from Trump’s second term. We closed seven of the nine with gains of more than 60%. Three of those were up 100% or more.
And we’re sitting on double-digit open gains on three others.
(Kudos, if you’re a Freeport Alpha subscriber who acted on those recommendations. Let me know how you got on at [email protected].)
And it’s not too late to make big gains.
That’s why, this week, I’m sharing with you some other top plays to profit from Trump’s next term.
Yesterday, I shared with you the “twofer” ETF that will pay off from Trump’s crypto friendly stance and protect you from further dollar devaluation as the national debt continues to rise. (And it will continue to rise.)
Today, I have a play for you that will pay off from Trump’s “drill, baby, drill” approach.
Energy Power Play
More drilling may be great for you, me, and every other American. But it tends to lower the price of crude oil. So, it isn’t always good for energy companies’ profit margins because
But while more drilling is a mixed bag for oil-and-gas exploration and production companies, it’s fantastic news for the companies building out the infrastructure to bring that new production to market.
Pipeline operators don’t care about energy prices. Their income is based on the volume of the oil and gas they move.
So, the best way to position yourself for a major boost in American production is by way of pipeline stocks.
For a one-stop shop, you can’t go wrong with the Global X MLP & Energy Infrastructure ETF (MLPX).
It gives you exposure to the most dominant oil-and-gas pipeline companies in the U.S. and Canada.
These include Enbridge, ONEOK, Kinder Morgan, Cheniere Energy, Energy Transfer LP, and Western Midstream Partners LP to name a few.
These companies collectively manage hundreds of thousands of miles of pipelines. And they’re the workhorses Trump needs to prioritize domestic energy production.
This means MLPX has a resilient business model that can thrive in all market conditions.
Because pipeline operators generate revenue based on the volume of resources they transport, not on volatile energy prices, they throw off consistent earnings. This makes MLPX a more stable investment during periods of energy market fluctuations.
Cherry on Top
And as a cherry on top, MLPX pays an annual yield of 4.3%.
That’s nearly four times more than the yield on the S&P 500.
And it’s 10 times higher than the average interest rate for a savings account in the U.S. which, as of last December, stood at 0.42%, according to the Federal Deposit Insurance Corp.
So, while the ESG crowd are clutching their pearls, MLPX investors will be laughing all the way to the bank.
This isn’t about politics – it’s about profits. If Trump sticks to his promises, energy infrastructure is going to boom.
And MLPX is the best way to play it.
To life, liberty, and the pursuit of wealth,
Charles Sizemore
Chief Investment Strategist, The Freeport Society
P.S. Will Trump stick to his promise on expanding domestic oil and gas production? Do you agree with me that pipeline stocks are the way to go?
This year, I want to make Freeport Navigator more interactive. Which means I want to hear from you. So, email me with your questions at [email protected].
On Friday, January 24, I’ll be running an “Ask Me Anything” issue of Freeport Navigator to answer the questions you send in. Just remember that I can’t offer any personalized investing advice. I look forward to hearing from you.