Day 3 of the shutdown rolls on… the issue that caused our politicians to unite… the potential impact on your portfolio… Jonathan Rose flags the next potential government investment stock… more signs of our bifurcated economy/market. VIEW IN BROWSER We’re on Day 3 of the government shutdown. As I write, the Senate is expected to vote this afternoon on short-term spending bills (which have already failed to advance a handful of times). If not passed, Senate Majority Leader John Thune, R-S.D., says he’ll adjourn until Monday, taking the shutdown to Day 6. On one hand, these shutdowns aren’t unusual. According to the Committee for a Responsible Federal Budget (CRFB), there have been 20 “funding gaps” since 1976. But the degree of political polarization driving the one today is new. From a recent piece from Pew Research: It’s become commonplace among observers of U.S. politics to decry partisan polarization in Congress. Indeed, a Pew Research Center analysis finds that, on average, Democrats and Republicans are farther apart ideologically today than at any time in the past 50 years… Five decades ago, 144 House Republicans were less conservative than the most conservative Democrat, and 52 House Democrats were less liberal than the most liberal Republican, according to the analysis. No chance you’d find such overlap today. Instead, we have a cavernous and widening ideological divide – which is why the latest research piece from our hypergrowth expert Luke Lango stood out. In a political environment where almost nothing unites both sides, Luke highlighted one of the rare moments of true consensus… Earlier this year, 102 House Democrats broke ranks to support a key initiative from President Trump. | Recommended Link | | | | Nvidia helped trigger a historic AI boom that minted 600,000 millionaires in America. It’s now working on a new tech that could be even bigger than AI. According to Bank of America, “this [technology] could be the biggest revolution for humanity since discovering fire.” Click here to get the details. |  | | What issue is so important that it’s overriding today’s historic partisan divide? “Project Yorktown,” as Luke calls it, is a financial reset so urgent that even partisan politics were sidelined. Luke describes it as a four-page document, signed in the final weeks of Trump’s first term, designed to secure America’s “financial independence” from foreign creditors. He views it as a pivot that could reshape how global capital flows through the U.S. economy. As to why our divided politicians were able to unite, here’s Luke’s explanation: Our nation’s debt crisis is unsustainable… America’s national debt is now over $34 trillion and climbing… China, Japan, and other rivals hold vast amounts of U.S. Treasuries. At any moment, they could threaten to sell — destabilizing our economy and crippling our ability to respond. Both parties understand this is a national security risk. Project Yorktown offers a way out… As outlined in a four-page document signed back in 2020, the project that finally takes effect on October 21 outlines a radical financial framework that ends foreign “financial blackmail,” injects trillions into our system, and restores true economic independence. Why this matters for your portfolio As Luke just noted, the document officially takes effect on October 21. At that moment, Luke believes as much as $4 trillion could begin redirecting into a corner of the markets that Wall Street is mostly ignoring. As to the potential investment payoff for investors who get there first, here’s Luke: Americans who prepare before October 21 could see a once-in-a-lifetime wealth window open in front of them. How much wealth? Some estimates suggest 10x in the next 12 months, 30x in the next three years, and even 100x by 2030 for those who understand where the money is going. This Monday, October 6, in a briefing at 1 p.m. Eastern, Luke will dive into all the details, fully explaining “Project Yorktown” and highlighting the steps investors should take before October 21. As part of the event, he’ll give away a free pick poised to double within 12 months. To instantly sign up to attend with just one click, here’s your link. Here’s Luke’s bottom line: When 102 House Democrats put politics aside… It’s time for you to pay attention. When even Washington – divided as it is – sees the writing on the wall, you can’t afford to wait until the headlines catch up. Sign up with just one click – right here – for our Project Yorktown Summit now. Which government bedfellow will surge next? In recent months, the Trump Administration has pushed government involvement with Corporate America in the most aggressive way in decades. Three recent examples are government investments in MP Materials Corp. (MP), Intel Corp. (INTC), and this past Monday, Lithium Americas Corp. (LAC). And what’s been the impact on investors? - On July 10, MP Materials announced a “transformational public-private partnership” with the U.S. Department of Defense – the stock has surged 147% since the day before the news.
- On August 22, Intel and the Trump administration revealed that the U.S. government would invest $8.9 billion in Intel common stock – investors who were there first are up 58%.
- And last Wednesday, September 24, the White House proposed an equity stake as Lithium Americas – LAC investors have made 191% in just over a week (it’s surging 30% here on Friday as I write).
Which company could be the government’s next bedfellow, turning it into a triple-digit winner? Veteran trader Jonathan Rose has you covered. Jonathan got his subscribers into that MP Materials move early – and they walked away with a 700% return on one tranche of their options play In the weeks since, Jonathan has been tracking this public/private money flow and looking for new opportunities. From his latest Masters in Trading: Live update: If this year has taught us anything, it’s that taking aim on these federally-fueled catalysts and position alongside them can be incredibly lucrative… There’s a new name I want you focused on: KRMN. It’s a small-cap defense contractor that builds the stuff that makes missiles fly and rockets launch… Its growth tells us one thing loud and clear: this company is built to scale — earnings up more than 230% year-on-year. They supply components for over 100 active missile and space programs, making them mission-critical to giants like Lockheed Martin and Northrop Grumman. Now, we actually put Karman on your radar thanks to Jonathan in our September 8 Digest – it’s up 19% since then. But our trading expert believes there’s plenty of juice left. Whether the government takes a stake in KRMN or not, defense spending will not shrink anytime soon. Plus, NATO is boosting commitments, and Washington has been pushing hard on supply chains. Jonathan writes that, together, “you’ve got a policy environment that practically guarantees steady contract flow for years to come.” We’ll continue tracking this. After all, if KRMN is the government’s next pick, that 19% return is just the tip of the iceberg. Here’s Jonathan’s bottom line: Here’s what really excites me: KRMN’s market cap is still under $5 billion. That means we’re in before the herd… When I look at KRMN, I see the same ingredients we’ve profited from in MP. A powerful policy tailwind. Deep government ties. A market that’s still sleeping on the story. That’s the exact recipe that’s given us our biggest winners. And I believe KRMN is next in line. If you’re looking for more trading ideas like this, Jonathan offers them in his free episodes of Masters in Trading: Live, which air every day the market is open at 11:00 a.m. Eastern. Click here to sign up and get all the details to join him. Before we sign off, more evidence to support today’s bifurcated economy and stock market On one hand, low-income Americans are struggling financially, and non-AI stocks are mostly flatlining. On the other hand, Americans with assets are enjoying soaring net worths, and AI stocks are setting new all-time highs. It’s a bifurcated economy and stock market. Luke just added more color on this divide. Let’s return to his Innovation Investor Daily Notes: [Tuesday’s] September ADP Jobs Report was ugly. Instead of adding 51,000 jobs as expected, the economy lost 32,000 jobs last month… Meanwhile, the ISM Manufacturing Report wasn’t much better. The headline index stayed stuck below 50, signaling contraction… But Wall Street? It doesn’t seem to care. The financial economy—the part of the economy that drives asset prices—is still being turbocharged by the AI Boom. And that’s what really matters for your portfolio. Luke points to U.K. datacenter operator Nscale as the latest evidence of the AI boom. It just received another $433 million from Dell, Nvidia, and Nokia. He also highlights yesterday’s report from Morgan Stanley. Here’s Luke with the details: Analysts estimate that retailers like Gap, Macy’s, Victoria’s Secret, and Kohl’s can collectively save ~$6 billion using AI to optimize supply chains and operations. That’s a 200-basis-point boost to EBIT margins and a ~20% lift to 2026 earnings forecasts. These aren’t small numbers—they’re bottom-line game-changers. After Luke draws additional contrast between the “real economy” and the “AI economy,” he presents a stat that drives it home: Ever since ChatGPT launched in November 2022, the S&P 500 has rallied ~70% while job openings have dropped ~30%. The AI Divide is very real and only getting bigger. As we highlighted in yesterday’s Digest, no Wall Street party lasts forever, but momentum is overwhelmingly bullish. We’re in a money-making environment – regardless of what’s happening in the “real” economy. Be careful…but invest accordingly. Have a good evening, Jeff Remsburg | 
No comments:
Post a Comment