Trump Trade - Phase 2
From the "Memes that Make Money" Series
In this monumental week, the S&P closed up +5%, crossing the 6,000 level for the first time ever. Once again, Shrub’s “Law of Large Numbers” has been respected, proving once again to be as infallible as Newton’s Laws of Motion…
More interestingly, the Russell outperformed the Nasdaq by +3% and our other Trump Trades really delivered: GEO finished the week up +75% and the FNMA prefs up +85%.
If you are surprised by this, you probably didn’t get the Memo … or should I say … you didn’t get the Meme! (originally published in July, here):
After a year in the making, we closed these Trump Trades for nearly 3x and 4x returns respectively and gave mega-thanks (or should I say, MAGA-thanks… and just as an fyi, they can both go higher…)
Also interestingly, our Quantum Ponzis were up +65% this week, as if to remind us that a portfolio in this Meme Market needs a sprinkle of Ponzi (please refer to our “Theory of Rolling Ponzis”).
Let’s rate our original Meme, before we file it under “Memes that Make Money”™:
GEO was almost a 3-bagger, the FNMA Prefs were almost 4-baggers
The Rotation is showing promising signs of life. The runway could be long. More on this later…
Commodities? Meh…China and the Dollar have put a lid on this trade…for now!
We now move to Phase 2 of the Trump Trade and this Meme needs updating. This is the purpose of today’s post…