I want you to consider this your wake-up call.
If you voted for Kamala Harris in last week’s election, then I’m sorry your candidate lost … but it’s time to hit the “acceptance” step in those five stages of grief.
If you voted for Donald Trump, then you need to take at least a momentary pause in celebration…
Because I need you to hear me loud and clear when I tell you:
These next two years will be the most important in your life as an investor.
It’s simply a fact.
All the hard work, saving and investing you’ve done…
All the wins and losses, the headaches and triumphs of making it on your own as an investor…
All of that pales in comparison to the transformational opportunities we’ll soon see in the stock market.
I realize you might want to doubt me.
I often read letters from folks who are concerned about their age — thinking the time for a major breakthrough has already come and gone.
For those readers, I’ll just point out that Warren Buffett earned 99% of his massive fortune after he turned 65.
And John Templeton pulled off one of the greatest trades in modern history at the tender age of 90.
Age isn’t a factor. Not when you’re dealing with the kinds of generational opportunities we’ll see in 2025.
I’m talking about stock investments that can 10X your wealth in just a few years.
But if you’re not locked in, you will only ever see this opportunity in your rearview mirror. By then, it will be too late.
As long as I’ve got your undivided attention, I’d like to explain why I’m so bullish on the year ahead…
Instant Boost Locked in for the Global Economy
Trump 2.0 is going to give this already bullish market a massive shot in the arm.
His administration will immediately push to end the ongoing conflicts in Ukraine and Palestine, both of which have severely disrupted global trade.
Trump is also already on track to remove Gary Gensler from his position as chair of the Securities & Exchange Commission (SEC).
And since the incoming president is a majority shareholder in his own social media business, we can expect him to represent the interests of shareholders over those of regulators.
Obviously, we can pontificate until we’re blue in the face whether the long-term impact of Trump 2.0 will be good or bad. Lord knows there’s an entire industry of podcasters and pundits making a living doing precisely that.
However, in the short term expect to see a massive boost in key sectors of the market and the economy.
That’s on top of the fact that inflation is already declining. And Federal Reserve Chair Jerome Powell is steadily cutting interest rates.
It’s the perfect environment for creating breakout investments with massive 10X profit potential.
And we can expect some of the biggest opportunities to emerge from three driving mega trends (in this case, I suppose we should call them “MAGA Trends”).
Trump 2.0 MAGA Trend #1: Soaring Small Caps
Small-cap stocks have struggled in recent years amid inflation and high interest rates that effectively cut thousands of companies off from affordable debt.
If borrowing costs are too high, these smaller businesses can’t afford to take out a loan to grow.
Now that rates are coming down, with Powell and his crew electing to trim rates by another 25 basis points last week, we’re seeing a flood of investment capital headed into small-cap stocks. And their prospects will continue to improve as rates keep falling.
Trump’s pro-business “America First” agenda will supercharge this mega trend.
Once again … Trump himself is a stock investor, and his Trump Media & Technology Group (Nasdaq: DJT) is already a mid-cap stock. So we can expect policies that are favorable to smaller, high-growth businesses like these.
Even in the event that Trump implements stiff tariffs, we could see key small-cap stocks thrive — since smaller American businesses usually favor domestic production and supply chains.
Trump 2.0 MAGA Trend #2: Renewed Crypto Boom
As I write this, bitcoin is scorching past $86,000 and setting new all-time highs on a nearly hourly basis.
Trump made his cryptocurrency enthusiasm very clear on the campaign trail, even going so far as to entertain the idea of a new Strategic Bitcoin Reserve.
Regardless of how those long-term plans pan out, Trump’s inevitable removal of Gensler from the SEC will clear a massive hurdle for broader crypto adoption.
Gensler’s likely replacement, Hester Pierce, has even earned herself the nickname “Crypto Mom” for her optimistic approach to the emerging currency.
This is especially great news for “altcoins,” the lesser-known cryptos that serve as an alternative to bitcoin.
2024 has already been a great year for bitcoin due in large part to the success of multiple spot bitcoin ETFs approved back in January.
But unlike previous crypto bull markets, bitcoin has been going it alone. Altcoins simply haven’t generated the same interest they garnered back in 2020 and 2021.
All of that changes in just a few months.
As bitcoin continues to soar and a crypto-friendly administration bolsters optimism, you can expect to see smaller coins skyrocket in short order.
Trump 2.0 MAGA Trend #3: Oil & Gas
America’s oil and gas industry is currently in the middle of a massive shale boom that gets zero coverage in the media.
Thanks to the “Shale Revolution,” U.S. oil companies can now produce an additional 3 billion barrels each year — revitalizing our domestic economy and transforming the global power balance.
Trump has historically been all in on America’s oil and gas industry while also being highly critical of government mandates and green energy programs.
We can expect his administration to stay out of the way of America’s growing energy industry … and perhaps even forge new relationships to further improve our energy independence.
Trump will meet with Argentinian president Javier Milei this week, and the two will likely see eye-to-eye on a number of key issues.
If Trump can build a bridge with Milei’s contentious libertarian government, we could soon see American oil and gas companies delving into Argentina’s massive untapped reserves.
As you can see, Trump’s second term provides investors with plenty to be excited about.
To say I’m bullish about what’s ahead is a massive understatement.
These next two years will be absolutely pivotal when it comes to growing your portfolio and building your legacy.
So make sure you’re locked in and ready to profit when Trump 2.0 backs up the truck…
To good profits,
Adam O’Dell
Chief Investment Strategist
