copyright © profits run, inc. page 1 of 12...now, it could certainly be argued that bulls went...
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Copyright © Profits Run, Inc. Page 1 of 12
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DISCLAIMER: Stock, forex, futures, and options trading is not appropriate for everyone. There is a substantial risk
of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been
developed that can guarantee profits or ensure freedom from losses. No representation or implication is being
made that using the information in this special report will generate profits or ensure freedom from losses. Risks
also include, but are not limited to, the potential for changing political and/or economic conditions that may
substantially affect the price and/or liquidity of a market. The impact of seasonal and geopolitical events is already
factored into market prices. Under certain conditions you may find it impossible to liquidate a position. This can
occur, for example, when a market becomes illiquid. The placement of contingent orders by you, such as “stop-
loss” or “stop-limit” orders will not necessarily limit or prevent losses because market conditions may make it
impossible to execute such orders. In no event should the content of this correspondence be construed as an
express or implied promise or guarantee that you will profit or that losses can or will be limited in any manner
whatsoever. Past results are no indication of future performance. Information contained in this correspondence is
intended for informational purposes only and was obtained from sources believed to be reliable. Information is in
no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are
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Introduction
The coronavirus, social justice, and cancel culture.
These three topics will become even more popular as we hurtle toward the 2020
presidential election. And, depending on who you support for president (or simply
how outspoken you are), the next few months could have dramatic impact on
your life.
Not just on an emotional level, either.
These days, it isn’t easy getting political in America. Everyone’s got an opinion.
And thanks to the internet, they’re more than happy to share it with the world.
But when it comes to actually discussing the issues, Americans remain completely
stubborn, bull-headed, and most of all…
Divided.
The idea of debating anything is mostly a non-starter. Millions of people have
made their political beliefs part of their identity.
Disagreements over those beliefs are often interpreted as personal attacks as a
result.
Now, level-headedness has given way to tribalism. The political parties have
grown hostile.
It’s no longer just a race for the White House between Liberals and Conservatives.
It’s a full-blown war.
Making things worse are extremists on both sides of the aisle. Cities have erupted
with violent clashes between the two groups. Misinformation and censorship are
the norm.
But thankfully, it’s not all bad, demoralizing as affairs may currently seem.
Because through the fire and flames, one constant holds true:
The strength of the free market.
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Don’t believe me? Just take a look at how much money traders have made since
the “Covid-19 crash.” The market bottomed in late March, only to rally in historic
fashion shortly thereafter.
Now, it could certainly be argued that bulls went overboard. And I’d say that’s
likely what happened.
But it doesn’t change the fact that there was big money to be made for nimble
traders that could predict what was coming next.
With a massive presidential election coming up, another one of those moments is
about to kick-off.
And it all depends on who wins:
The incumbent, President Donald J. Trump…
…Or the challenger and former Vice President, Joe Biden.
It’s going to be Democrats vs. Republicans in a “winner take all” cage match with
the Oval Office hanging in the balance. Biden says he’ll change things dramatically
if he’s victorious in November.
Trump says he’ll double-down on his mission to keep America great if re-elected.
The truth is, though, that we don’t quite know exactly what’s going to change (or
stay the same) after the election.
What we can predict, however, is how the market is going to react.
And how to play those reactions for big profits.
If Joe Biden Wins
If Biden manages to win the presidency in November, you can be sure that a
heavy dose of chaos will be injected into the market, followed potentially by a
recession (as corporations pivot out of aggressive growth) and even a financial
upheaval.
When those kinds of things happen, specific groupings of stocks tend to surge.
First and foremost, ones related to precious metals.
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Precious Metals Stocks
Gold
It’s no surprise to see gold surge when uncertainty rises. And if Biden becomes
president, a massive wave of uncertainty will undoubtedly wash over equities,
pushing gold higher.
But not all gold stocks are created equal. Some are ETFs while others are
individual gold miners. Among the many offerings on the equity side of gold
investing, these are the best options for the average trader:
VanEck Vectors Gold Miners ETF (NYSE: GDX)
The VanEck Vectors Gold Minders exchange traded fund (ETF) is the easiest – and
most liquid – way for traders to gain exposure to companies that mine gold.
Established in 2006, this ETF was created in the midst of a strong gold market.
Since it debuted, though, GDX hasn’t tracked gold 1-for-1. Gold’s spot price has
outperformed GDX substantially in the past, and while that may frustrate
investors, it’s good news for anyone buying-in more recently. Now, GDX is
catching up to gold, making it a very attractive ETF to buy as gold miners slingshot
higher.
VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ)
Is GDX not risky enough for your investing appetite? Don’t worry, the VanEck
Vectors Junior Gold Miners ETF has you covered. As an ETF focused on younger,
less-diversified mining stocks, GDXJ is more “boom and bust” in nature. When
gold rises, GDXJ soars. When gold falls, GDXJ plummets.
Depending on your own risk tolerance, it might make sense to invest in either
GDX, GDXJ, or a portion of both.
Royal Gold (NYSE: RGLD)
Among the precious metals companies, few can compare to Royal Gold in terms
of pure performance. RLGD is up a whopping 3,000% since the year 2000,
outperforming both physical gold and the S&P 500. Much like GDXJ, though, RGLD
is prone to bigger drops as well.
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If you’re investing for the long-term, RGLD provides a fantastic way to profit off
gold. Especially if Biden takes the Oval.
Barrick Gold Corp. (NYSE: GOLD)
Last, but not least, is Barrick Gold. As a gold miner, GOLD has significantly
underperformed over the years. In fact, it’s actually down since 2000, which isn’t
reflective of the physical gold market in the slightest.
However, that doesn’t mean GOLD is a “bad buy.” It’s simply valued lower due to
inefficiencies and poor decision making during the last gold boom. When gold
rises, GOLD does, too, often in spectacular fashion.
Silver
In addition to gold, precious metals traders like to also invest in silver. Often seen
as a “blue-collar” metal, silver has played second-fiddle to gold for a long, long
time. More recently, though, gold’s incredible run-up has made silver seem
somewhat undervalued.
That makes it an especially desirable metal to trade should uncertainty arise in
the near future.
Wheaton Precious Metals Corp (NYSE: WPM)
Wheaton Precious Metals is a multinational precious metals streaming company,
responsible for producing over 26 million ounces and selling over 29 million
ounces of silver mined by other companies as a by-product of their main
operations.
In other words, when other miners go looking for gold and find silver, Wheaton
steps-in. The company was founded in 2004, and since then, has seen its share
price rise almost 1,500%.
Among the silver-focused stocks, WPM is one of the most popular, and as a result,
one of the most liquid.
Pan American Silver Corp. (NYSE: PAAS)
Pan American Silver is a miner through and through. The Canadian-based
company has mines all over the world – in Mexico, Peru, Bolivia, and Argentina –
and has been a top performer since it was founded in 1994.
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Stocks Less Impacted by Recession/Uncertainty
If Biden wins, you can be sure that the market will likely react poorly. When
Trump won in 2016, Wall Street celebrated.
Biden should have the opposite effect.
That means it might be a good idea to find stocks that are more resilient to
market upheaval, like those in the consumer defensive and healthcare sectors.
Walmart Inc. (NYSE: WMT) – Consumer Defensive
Walmart, love it or hate it, persistently does good business regardless of what’s
going on in the world. The stock continued to flourish amid the Covid-19
pandemic. If it can survive – and thrive, even – during a pandemic, Biden’s
election won’t knock it down either.
Coca-Cola Co. (NYSE: KO) – Consumer Defensive
It’s the most successful beverage of all time. So, it makes sense that Coca-Cola
boasts a market-leading, recession-resistant stock often seen as a market
bellwether. In many ways, KO’s an “equity cockroach.” It doesn’t get wounded as
severely as other companies do during economic downturns, making it a smart
addition to any “Biden portfolio.”
Merck & Co. (NYSE: MRK) – Healthcare
Scared that Trump’s re-election plan won’t work? Invest in Merck. As one of the
largest pharmaceutical companies in the world, MRK has weathered plenty of
storms.
And many times, emerged on the other side stronger than its peers with vicious
comeback rallies.
Cannabis Stocks
With a Democrat in office, there’s a chance that marijuana may be federally
legalized quicker than with a Republican. And even if it doesn’t happen any faster,
you can expect cannabis stocks to rise in anticipation.
And of the many cannabis corps. out there, one stands a head above the rest:
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Canopy Growth Corp. (NYSE: CGC)
Canopy Growth has sold-off considerably from its all-time high in 2018, at the
height of “pot stock mania.” When Covid-19 hit, though, it didn’t get crunched
nearly as much as other corporations.
And as the top pot stock in terms of revenue, CGC is the industry leader. If Biden
wins, expect investors to pile back into the cannabis company they know best.
Infrastructure Stocks
If the Democrats take control of Washington, you can be sure that they’ll finally
get what they’ve wanted for years, now:
An infrastructure bill worth several trillion dollars.
If Biden wins, a massive infrastructure boost will follow, causing top-flite utility
and infrastructure companies to soar.
American Water Works (NYSE: AWK)
If you had to pick one utility stock to own, it’d probably be AWK. Since appearing
in 2008, AWK has done little but go up. Even the coronavirus couldn’t keep it
down. The stock actually hit another new all-time high in the midst of the
pandemic.
And a Biden victory would likely send its share price into the stratosphere.
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If Donald Trump Wins
Thankfully, we already have a “playbook” on what to do if Trump is re-elected.
When he won in 2016, certain sectors outperformed the rest as a flood of
business investment (CAPEX) and new money entered the market in anticipation
of pro-business policy.
First and foremost, commodities – which have mostly been stuck in a bear market
as of late – should enjoy a huge surge in demand.
Commodity Stocks
Freeport-McMoran Inc. (NYSE: FCX) – Copper
Freeport-McMoran is a geographically diverse mining company that focuses on
copper production. Based out of Phoenix, Arizona, the miner has had a rough go
of it over the last decade. Commodities in general have, too.
In 2016, however, after Trump won, FCX went on a tear, rising over 200%. When
increased productivity seems likely, the market loves commodities. Copper
included. That makes FCX a great buy if Trump is re-elected.
Invesco DB Agriculture ETF (NYSE: DBA) – Agriculture
This ETF, despite being agriculturally focused, isn’t just for hayseeds. If Trump
wins in November, expect DBA to surge as agriculture demand does as well.
And for investors trying to profit off the agriculture market, DBA is their best bet.
Much like copper, the agriculture industry has been in a bear market for a while.
One of the few bright spots was Trump’s election, which sent DBA on a short-
term uptrend.
Should Trump be re-elected, it’s likely to happen again.
Democrat Targets
In addition to buying stocks that make sense on a fundamental level, some
companies stand to do well on a policy-based level as well. House Democrats
have their sights set on a few of America’s top corporations.
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If Biden wins, they’ll probably go after them more seriously in the name of
“monopoly busting.” If Trump wins, they probably won’t.
Historically, Trump doesn’t care about breaking up monopolies. He’s more
worried about preventing censorship and anti-consumer practices. So, if re-
elected, Trump is likely to let the following stocks continue to dominate their
respective sectors:
Facebook Inc. (NASDAQ: FB) – Technology
Facebook is a bit of a polarizing company. Some people say it’s “the devil.” Others
would be lost without it. What can’t be denied, however, is its fantastic post-IPO
performance. The stock is up big since it debuted and should rise further if left
alone by regulators.
Exxon Mobil Corp. (NYSE: XOM) – Energy
Exxon Mobil is an oil & gas “megaproducer.” If Biden and the Democrats get their
way, XOM could end up in splinters.
But if Trump stays in the White House, XOM should continue to do well and
remain a leading energy stock.
Teva Pharmaceutical Ind. (NYSE: TEVA) – Healthcare
When you think Big Pharma, think Teva. It’s a huge drug producer, responsible for
thousands of medications and billions in revenue. Democrats have long awaited
the chance to slice-up Big Pharma firms.
If Trump wins in November, Teva should be safe. For now, at least.
Defense Stocks
No, not defensive stocks, but defense stocks – the companies that produce
weapons and technology to physically defend borders. There are several
companies in this sector, but only one truly stands out as an overachiever:
Lockheed Martin Corp (NYSE: LMT) – Aerospace & Defense
Historically, Republicans have been big defense spenders. Trump, despite not
being a “classic Republican,” fits the bill at least in this regard. LMT shares surged
after he was elected, rising over 70% in less than a year.
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Since then, LMT has only climbed further. If Trump wins, expect more spending
on defense offerings from Lockheed.
Industrial Stocks
Much like commodities, industrial stocks got a “shot in the arm” from Trump’s
election in 2016. Again, there are plenty of stocks available in this sector, but if
you had own just one, it would be:
Caterpillar Inc. (NYSE: CAT) – Construction Equipment
If something’s getting built in America, you can almost guarantee that CAT
equipment will be doing the heavy lifting. As a longtime market bellwether, CAT’s
also a bit of a market superstar.
Especially among industrial stocks. CAT shares are up almost 200% since they
bottomed in 2016. Trump winning in November will likely ensure that they go
even higher as renewed economic strength results in more business investment
(CAPEX) and, as a result, demand for construction equipment.
Conclusion
Regardless of who reigns supreme in November, and what they plan to do once
elected, the market should react in one of two somewhat predictable ways.
Now, you’ve got “game plan” to follow depending upon the results of the
election. A Biden victory would result in instability and change, causing a shift in
momentum.
A Trump victory would kick the 2016 “winners” into overdrive.
And with the U.S. economy in recovery mode following the Covid-19 pandemic,
the future is likely a bright one for investors that choose to buy in the near future.
Like anything else, though, it’s not just about doing well in the market; it’s about
outperforming the market, too.
Armed with this information, you’ve got a great shot at doing so.
No matter the outcome of the presidential election later this year.
Copyright © Profits Run, Inc. Page 12 of 12
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