It’s been slightly less than six months since Donald J. Trump was inaugurated as the 47th President of the United States of America. Think about that for a minute or two. It’s amazing to think and register what he’s accomplished. As a consultant, it’s more amazing to think about “what’s next”.
That’s where I live. I thoroughly enjoy the several pundits who summarize what we’ll observe daily, simply watching the markets trade. I thank you for your endeavors, but in reality, there are far too many sources for this type of information. I follow the sites where the greatest number of individuals receive this information.
Unfortunately, the past is history, but careful examination of what’s presented helps to determine what more than likely will follow. Trump has a plan, and it is truly based on the “art of the deal”.
Build Baby Build
What’s the best way to avoid tariff charges when importing to the United States? It’s best to “build it” here. Trump is attracting the world to establish manufacturing here in the States. From cars to chips, from pharmaceuticals to cell phones, the push is on to “make America great again,” and that starts by building it here.
There’s a secondary effect that's happening as well. The government is getting smaller day by day, and the sheer number of illegal immigrants, criminals in particular, is less of a problem than it was during Biden’s true insurrection. The employment rate is on the low side as work-worthy citizens are stepping up, taking jobs that went to illegals in the past. Face it, it’s cheaper to self-deport than to be caught and thrown out.
Trump is on his way to a decisive twist in how this great country became great, and if given the opportunity, through tariffs and more, will, with a plan, continue to prove a “build baby build” strategy will work.
Drill Baby Drill
How do you beat inflation? Reduce the costs of energy and maintain lower prices. The trade deficit is far too high. Tariffs will help, but basic increases in their rates are just a start.
There’s more than one way to lower the trade deficit. We have energy to sell, lots of it. I am a strong proponent of Liquified Natural Gas. It’s been years since industrial sites have been in the planning stage, and ships are being built to move America’s natural gas from here, where it’s available, around the world where it’s needed.
In this way, the second phase in reducing the trade deficit will come out of Trump’s Art of the Deal. It just makes sense. Think about it. If we are able to sell natural gas to the world, with a simple calculation, we’ll lower the deficit. I’m sure that Trump has a way of working with countries in need of our natural gas, in particular Europe. I bet that Trump has more of a working agreement with Europe than he’s disclosed. I’d be one to start with higher tariffs and negotiate some type of reduction if the flows of an abundant source of energy were included. Time will tell, but I’m “long and strong” in this arena. You should be, too.
Trust But Verify
Reagan was right, and it worked well for him during his time in office. Trump has the same tools in his negotiation strategy box today. I’ve said it many times. I do not trust China. Neither does the United States at heart.
Welcome to the rare earth element arena. I’ve been involved in this industry for years. It was apparent to me that China had far too much power controlling the world’s total supply of rare earth elements to the exclusion of a few other international suppliers. It made sense for the DoD to fund a few of these behemoths, but what you are seeing is just the “tip of the iceberg”.
The DoD has an open checkbook for many reasons. They need a regular, refined, and trusted supply of rare earth elements to protect, not just industry, but our defenses. In the recent past, we’ve seen billions of dollars spent to strengthen our domestic supply in this general industry, but there’s more. Together with several major suppliers, we’re on the cusp of searching the Gulf of America for greater supplies of rare earths than we ever thought possible. It’s just getting started. Jump on board.
Cat Stevens was right. It’s a wild world out there, and it is getting crazier every day. There’s no way around it. You have to keep both ears open and “read baby read”. I do that every day. You should, too. Perhaps you’ll get a glimpse of what drives success. In any case, you’ll open up your mind to what’s next. The past is repeatable history. Sure, it is nice to buy turnaround stocks, but our biggest hits come from being ahead of the curve. You have two ears and one mouth. Listen more than you talk.