Bulls have a big reason to be optimistic about 2020 — namely, there’s one massive cheerleader in their corner …
“Is your portfolio ready for a tremendous 2020?”
That’s the question Louis Navellier posed to his readers a few days ago.
Louis’ bullishness runs counter to the pessimistic forecast many marquee investors are making today. They see subdued market returns in 2020 … if not outright negative returns.
But Louis isn’t alone in his optimism.
This past Saturday, Matt McCall’s update to subscribers featured an enthusiastic opening:
I am more excited right now than I have been at any other time in my 25 years as an investor.
I know that’s a bold statement. And I don’t make it lightly.
But it’s the truth.
If you’re a regular Digest reader, you know that Matt and Louis did something special a week ago after realizing they both shared this wildly bullish orientation. In short, they came together to create the Power Portfolio 2020.
It’s a collection of nine stocks, each one hand-selected due to its potential to crush the market in 2020 — which is no small order if Louis’ and Matt’s prediction about next year’s bullishness is accurate.
Now, making market forecasts is always tricky. There are simply too many unknowns that can pop up out of nowhere to derail a prediction.
But as we stand here today, there’s one influence on the market — an enormous influence — that’s 100% bullish, and has the potential to ward off a great many bearish factors.
To be candid, it’s an artificial influence. We can’t expect it to be as supportive of markets beyond next year. But for the next 12 months, it will be a gale-force tailwind of bullishness.
So, what exactly are we talking about?
Love him or hate him, it’s Donald Trump.
***Why Trump’s quest for re-election will goose the markets in 2020
This is not a political Digest.
We’re not advocating for, or against, Trump’s re-election.
What we are advocating for is you becoming wealthier. Because of this, we’d be foolish to ignore Trump’s likely impact on the investment markets in 2020.
Here’s our own CEO, Brian Hunt, explaining the core dynamic:
No matter what your political views are, you can’t deny the stock market is at a new high and the economy is doing well. If you think of the economy and its financial markets as you would a car, you’d say the car is moving down the highway at 65 or 70 miles an hour.
We believe Donald Trump is about to pour nitro glycerin into the car’s engine.
He’s about to turbocharge it. Investors stand to make a lot of money in 2020.
The reason Trump is about to turbocharge the economy is as old as the hills.
Like any politician, Donald Trump wants to get reelected …
Over the past three years, Trump has turned off people on both sides of the aisle.
But Trump knows what is happening with the economy and the market around election time will far outweigh all other factors when it comes winning the presidential race.
Brian goes on to explain how Trump is all-too-aware that people tend to vote with their wallets.
Given this, if the economy is running smoothly come November 2020 … if the stock market is hitting all-time highs … if people are watching their retirement-account values soar … if there’s a general “bounce in our step” when it comes to our financial situations … then Trump is very likely to get re-elected.
So, what can we expect from Trump as he tries to push the market higher?
***Trump’s potential impact on your portfolio
The markets rise and fall based on myriad influences. But to the extent he’s able, Trump will try to puppeteer a melt-up in 2020.
First, expect more calls of “progress” and “victory” on the trade war front.
Perhaps we’ll see a phase two deal inked. Regardless of whatever happens, the spin will be enormously bullish — our farmers will be doing better … the intellectual property of our corporations will be more secure … the trade imbalance will be better than at any other time in the last few decades …
Second, look for Trump to pressure the Fed — loudly and repeatedly — to return to a rate-cutting regime and accommodative monetary policy. Though Fed Chairman Jerome Powell has shown resistance to pressure in the past, that won’t stop Trump from launching a loud campaign to push rates lower.
Back to Brian on this point:
Let’s talk about another thing that is in Trump’s DNA …
His deep knowledge of how important interest rates and access to credit are to an economy.
Trump knows low interest rates and access to credit are like nitro glycerin in the economy’s engine. Low interest rates stimulate business activity and consumer spending. They encourage people to buy stocks and real estate.
Believe us, Trump is going to pull every possible lever to dump as much nitro glycerin as possible into the engine.
Third, expect Trump to repeatedly boast about how great the economy and the markets are doing. The intended effect is to bolster investor sentiment.
Consumer spending makes up nearly 70% of the U.S. GDP. So, it’s absolutely critical that the U.S. consumer feels good about the economy and his/her financial situation.
Given this, you’re going to hear Trump make repeated claims about how amazing everyone and everything is doing in order to help prop up sentiment … which will keep people spending and investing.
Here’s how Louis recently explained this point to his subscribers:
No matter what you think of our current Commander in Chief, President Trump is a big cheerleader for the U.S. economy and, in turn, the stock market …
Personally, I expect that President Trump will continue to talk up the U.S. economy and the stock market heading into the 2020 presidential election. It will be a perpetual promotion campaign that will likely kick off with his State of the Union address in January.
Beyond these three points, look for potential efforts to further deregulate parts of the economy, and also possibly reduce taxes (or promise tax reductions).
Bottom line, Trump is going to pull out all the stops to support this bull.
Here’s how Brian sums it up:
Folks — don’t overthink this one.
2020 is going to be an amazing year for stocks for one simple reason:
Trump wants to get re-elected. He’s going to go all out in his bid to win.
***Capitalizing on the market strength in 2020
As we noted at the top of this Digest, Louis and Matt have come together to create the Power Portfolio 2020. For any readers who aren’t aware, this is unusual …
You see, since Louis and Matt approach the markets differently.
A classic quantitative investor, Louis has objective criteria programmed into highly-advanced computer models that signal what to buy, when to buy it, and when to sell to collect the profits.
Matt is more of a thematic investor, analyzing entire sectors poised for huge growth like cannabis, 5G or Artificial Intelligence.
The Power Portfolio combines these two different market orientations. As you can imagine, very few stocks make it through each set of selection criteria — only about one out of 500. Given this, you might think of the Power Portfolio as a “best of breed” portfolio, blending Louis’ and Matt’s styles to identify a small selection of elite stocks.
In fact, Louis and Matt are so confident in their 9 picks, that if by the end of 2020, the Power Portfolio doesn’t show at least triple the returns of the Dow Industrials, you’ll get another year of this research service for free.
I’m not aware of any such performance guarantee in the entire investment newsletter industry.
Obviously, evaluating how returns are coming in after one week is meaningless, but for fun, I just gave it a look. As I write, the Power Portfolio is beating the Dow by 124% since launching. One of the picks is already up nearly 16%.
But, keep in mind, the portfolio’s return isn’t at 3X the Dow, which is the guarantee — so at this pace, subscribers would get the 2021 portfolio free … despite Matt and Louis helping them beat the Dow by 124%.
To learn more about the Power Portfolio, click here.
Wrapping up, politics aside, Trump is going to do all he can to keep the party going in 2020. Let’s take advantage.
Have a good evening,