Read This Before You Invest a Single Dollar in the Market
Editor's note: As regular Digest readers know, Porter hosted an emergency briefing with the "Metropolitan Man" earlier this week.
In the meeting, they covered the potential impact of President Trump's policies... and discussed which investments you should be making now to profit as we see some of the biggest economic reforms in U.S. history unfold.
In today's Masters Series essay – excerpted from a brand-new Stansberry's Big Trade special report – Porter and his research team analyze the key points you must understand...
Read This Before You Invest a Single Dollar in the Market
By Porter Stansberry and the Stansberry's Big Trade team
Big changes are on the way...
A lot of people remain uncertain about what might happen – or what they should do with their investments – now that Donald Trump is president.
We believe a stack of money can be made over the next few months as he implements some of his plans to "make America great again"... And it all starts with a tax reform.
We believe many investments could soar in value. Some could make two, three, or even as much as 10 times your money.
But before we get to the details, let's recap why we think you need to act now.
We'll keep it short. No long stories today.
It's important that you understand the crux of the matter before you invest a single dollar in these recommendations...
No one will admit it, but a secret civil war in Washington, D.C. is already underway.
No, this is not some conspiracy theory. It's based on facts.
You see, for the past four decades or so, the powers that be in D.C. have empowered themselves by building an economy that is highly dependent on a regulatory regime, a progressive tax system, and the North American Free Trade Agreement ("NAFTA").
These are what drive Washington's powerful people – the "Deep State" (both Republicans and Democrats) – who have entrenched themselves in a system that not only protects them, but also gives them tremendous power.
But now Trump's election is threatening to undo all that. The administration is putting together a litany of legal and regulatory changes that will dismantle the foundations of the Deep State's power.
Trump is in for a huge fight. The Deep State will go to war on these issues to fight and defend the system they have built around themselves over the past 40 years.
But a plan is already on the table...
In the March 31 Digest, we told you about the speaker of the House of Representatives, Paul Ryan. As the leader of the majority party, he holds a position with tremendous power to influence new laws and reform the old ones.
Without getting into too much detail, there are a few key points among the proposed changes that you should understand... as they will either hurt or help the positions in your portfolio.
For starters, the proposal aims to lower the corporate tax rate from 35% to 20%. This is a good thing for all companies... However, not all companies currently pay the full rate. This is not as straightforward as you might think. Some companies will benefit more than others. It's important to understand who pays what.
Next, the proposal aims to eliminate the tax deduction on interest. By eliminating the tax deduction, it will put the brakes on irresponsible managers from overleveraging their balance sheets. That is a positive step for corporate America.
Corporate America has racked up around $7 trillion in debt – up from $3 trillion just a decade ago. And a ton of it is noninvestment grade, or "junk." A lot of this debt will never be repaid... Defaults and credit downgrades are already on the rise. This is a problem that most investors don't truly understand.
We cover this issue in our regular monthly publications of Stansberry's Big Trade with a list of companies we call the "Dirty Thirty." We believe these companies will face big problems over the coming months and years. The bubble is already in play... It's just waiting for the pin. And we plan to profit using our Dirty Thirty list.
Another feature under the proposal is reforming how corporations treat capital expenditure. Some items can be expensed immediately, while others – like long-term investments in plant and equipment – are expensed over several years. The proposal aims to level the playing field and treat all investments the same by allowing corporations to expense items in the year they are incurred.
Finally, and perhaps most important for our Big Trade strategy, is the shift in how the government will favor exporters over importers... Ryan has proposed a border-adjustment tax ("BAT").
In a nutshell, companies won't have to pay U.S. taxes on their exports. You read that right... If a company makes its products here, it won't have to pay taxes if it sells those products overseas. That's a huge benefit for exporters. We want to be long these companies.
On the flip side... companies that import goods and services would have to pay a lot. Under the proposal, importers will not be able to deduct the cost of imports. That will result in an implicit tax of around 20%. And it will hurt a litany of companies. We want to be short these companies.
Trump clearly wants U.S. companies to make their products here. In Stansberry's Big Trade, we're betting that some form of a BAT moves forward later this year.
We want to position our portfolio before that happens.
In our brand-new special report, titled "The Trump Twelve," we've listed the 12 companies that we plan to trade around. We have six companies that will suffer... and six companies that will thrive under the proposed tax reform.
As with our Dirty Thirty list, we will build out a portfolio of tax-reform winners and losers over the coming weeks and months. This week, we opened two new positions – one short, one long.
Tomorrow, we'll discuss one industry set to prosper and another set to collapse in the months ahead...
Porter Stansberry and the Stansberry's Big Trade team
Editor's note: If Trump's tax agenda unfolds the way we're expecting, you could make HUGE gains by targeting the winners and losers Porter and the Stansberry's Big Trade research team have identified. Of course, these opportunities aren't for your rent money. They're speculations. But they could return five... 10... even 20 times your money if we're right. Learn more about this incredible opportunity right here.