I try to avoid talking politics here.
My job at Strategic Tech Investor is to help you make money no matter who's occupying the White House and Congress.
I'm not here to comment on what they're doing except on how it affects your money.
And even though I could score some points if I did so, I'm certainly not here to endorse one party or the other.
I say all that so you don't think I'm a knee-jerk "Trump basher." I'm quite conservative myself – and have vocally supported the president on a number of matters (a tough thing to do sometimes in liberal Silicon Valley).
But I cannot hold my tongue any longer as President Donald Trump keeps damaging Main Street investors and their retirement holdings.
Of course, I'm talking about the president's misguided attacks on Amazon.com Inc. (Nasdaq: AMZN).
I want to show you how these attacks are part of a pattern for this administration.
In fact, they're related to the pressure we've seen on pot stocks of late.
Today I'm going to show you how that's playing out.
But more importantly, I'm going to show you how to profit…
Lack of Leadership
Not to boast – well, maybe just a tad – but this is the kind of insight you just can't find on Wall Street.
But I believe it's one of the reasons why my readers consistently score market-crushing gains.
Top Five: These tiny Canadian pot stocks are set to skyrocket. Click here…
So, let's get started by taking a look at the situation with Amazon.
President Trump charges that Amazon is cheating the U.S. Postal Service, but that's simply not true. The e-commerce company is just taking advantage of current low rates, as any business should.
The president is showing poor leadership here.
You just can't get around the fact that he isn't proposing any kind of solution. See, I live by that adage that if a leader offers criticism, then that person better have a solution.
Trump knows full well that neither he nor the U.S. Postal Service is equipped to change the postal rates that Amazon pays for what are known as "last-mile deliveries."
In fact, just about every commercial shipper piggy-backs off the post office's friendly rates. Moreover, data compiled by The Wall Street Journal reveals that Amazon and other e-commerce firms are probably doing the USPS a favor by adding new sales on top of what amounts to a fixed-cost base.
He also accuses Amazon of running Main Street retailers out of business. Yet, Trump leaves alone Starbucks Corp. (Nasdaq: SBUX) and Walmart Inc. (NYSE: WMT), two retail outfits that have been putting mom-and-pop shops under duress for decades.
Here's what he's missing there…
Thousands of merchants now sell their goods on Amazon. That has given struggling retailers the kind of cost-effective, global reach they couldn't get in a small town or even a medium-sized city.
I hope no one tells the president that, as leader in cloud services, Amazon is becoming a major U.S. contractor. The Seattle-based firm hopes to land a 10-year contract worth up to $10 billion. That's on top of the $2.8 billion in federal sales analysts say it will bring in this year alone.
And yet, the president's recent tweets seem to be a conscious decision to hurt Amazon's investors.
This is extremely misguided for two reasons…
- This is a poor way for the president to put pressure on CEO Jeff Bezos for the highly negative coverage the White House gets from The Washington Post. Bezos owns the famously liberal newspaper.
- AMZN is one of the most important stocks in the world today. Millions of investors have it in the retirement portfolios. They saw the value of their shares fall by as much as 14% in less than three weeks – meaning Trump's tweets cost them, temporarily at least, more than $60 billion in market value.
And that brings us around to what's happening with cannabis…
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.