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The market has had a blistering run since Nov. 8 – with the Dow Jones Industrial Average up 9% – but plenty of the "experts" on Wall Street are pessimistic about Donald Trump's effect on tech stocks.
These folks believe that Trump's tough trade stance will hurt tech because the big global players manufacture many of their products overseas.
"I would avoid [big tech stocks] in a big way," DoubleLine Capital CEO Jeffrey Gundlach said a week after the election. "The basic fundamental underpinnings of [big tech stocks] disappeared one week ago today."
Gundlach may be the "Bond King" – but he's wrong here about tech stocks.
In fact, they're all wrong.
Trump is going to be great for tech investors.
Listen closely, because I'm about to tell you the three things Trump is going to do to make that so.
Then listen closer, because I'll show you three market-beating plays that you can "Buy" today in order to make outrageous profits off of the president-elect's actions.
Let's get to it…
Pro-Growth Prez Means Rich Tech Investors
Before we get to Trump's plans, though, remember… we entered the "Singularity Era" back on Aug. 1.
Here's what that means.
In today's global market – where competitive pressures are forcing corporations to relentlessly pursue every efficiency and advantage possible – every company is a tech company.
And that makes this the greatest money-making opportunity we'll see in our lifetimes.
Now, back to "The Donald"…
As I like to remind investors, to make money in the wealth machine that defines high tech, you have to follow Rule No. 2 and "Separate the Signals from the Noise."
You have to get beyond Wall Street's hype – whether it's the mania you see on cable TV or the pessimism you get from the likes of Gundlach – and focus on the fundamentals.
Fact is, Trump is a pro-growth president, and that alone will be huge for the economy, the overall stock market – and tech firms. He's made 4% GDP growth one of his top goals. If he's able to hit that number, the economy would expand 66% faster than it has for at least the last eight years.
That may sound unrealistic – but here's how he could get there…
- Just look at Trump's Cabinet We're going to see more business-facing red tape cut at the Food and Drug Administration, the Environmental Protection Agency, and elsewhere in the next few months than we've seen in years. Part of his 100-day action plan is a "requirement that for every new federal regulation, two existing regulations must be eliminated."
- Trump has plans to bring some $2.4 trillion held offshore by U.S. firms back home. That alone will be huge for high tech. He proposes a onetime "repatriation rate" of just 10%. Because tech firms as a group account for roughly 35% of those overseas funds, Silicon Valley will soon be flush with extra cash… to the tune of $756 billi…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.