How To Profit In A Democrat-Led Economy

So it was that the Federal Reserve, with the total assent of the Republican president, Republicans, and Democrats everywhere, started printing more and more money to throw where they and politicians thought it should go.

So, what have been the consequences of this massive, unprecedented experiment in a heterodox macroeconomic framework? What has been the downside of Modern Monetary Theory in practice?

Well… none. At least, none so far.

MMT Could Drive Profits from Here on Out

That genie is out of the bottle. Republicans are going to have a hard time knocking what essentially no one complained about in the COVID-19 crisis. Democrats are going to say, "See? We told you so! MMT is the real deal."

With that in mind, the Democrats could very well have free rein to pursue a raft of policy priorities, including renewable energy investments – the so-called "Green New Deal" – infrastructure spending, and healthcare reform. Healthcare reform attempts alone could be a huge boon to healthcare stocks – except for the drug-makers.

For instance, I happen to think these five stocks belong in everyone's portfolio – especially now.

I've pointed to stocks like Clean Energy Fuels Corp. (Nasdaq: CLNE) as a major beneficiary of the policy of "greening," and U.S. Lime & Minerals Inc. (Nasdaq: USLM) as a potential standout from the infrastructure push you just know is coming. We'll see whole indexes lifting higher as Democrats open up the money tap to boost coronavirus recovery; I particularly like the prospects of the small-cap Russell 2000 Index, as tracked by the iShares Russell 2000 ETF (NYSE: IWM).

And remember, there's little to no doubt there will be money there to spend. Our job is to be there when it happens.

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Disclosure: None.

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