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  Trump's $800 Gift To Ford Investors  
  Zach Scheidt on 2018-08-31 12:30:49.0
 
 

This post Trump's $800 Gift To Ford Investors appeared first on Daily Reckoning.

When I was in high school, the only thing I really cared about was basketball.

I wasn't very good at first, but I was EXTREMELY competitive.

Of course, like most freshmen, I had to spend my time on the bench watching the upperclassmen take all the glory. I worked my butt off, but each game I got stuck sitting on the sidelines because I just wasn't good enough yet.

Sitting on the sidelines was miserable! And honestly, I was a bit panicked in my teenage mind that I would be stuck there forever. That's probably what made me work so hard to get better ? so I could play in the big games when I was a junior and senior!

Why do I bring this up to you today?

Because just like an awkward freshman watching the action from the sidelines, many investors are holding a lot of uninvested cash in their accounts and watching the market move higher?

Of course, this is the exact script that we've been talking about for a while now.

Last week, we were just starting to break to new highs on the S&P 500. And I told you that once the water was over the dam, we'd start to see investors who had been sitting on the sidelines put their capital to work.

That sideline capital is what has been driving the markets higher this week. And it's about to get much more intense!

You see, this weekend marks the official end of the summer season.

We'll have the holiday weekend in observance of Labor Day, and then get back to work on Tuesday.

On Wall Street, this is typically the time when the big shots come back to the office after spending the summer in the Hamptons. And when these investment managers get back in the office, they're typically ready to rock and roll!

This year, the overwhelming question most of these guys will be asking is: "Do I have enough exposure?"

Or in other words: "Am I going to make enough money as this market moves higher "

And keep in mind, as small-time investors call up their broker and say "I want to get back into the market," this capital flows right to the funds managed by these big shots. So, just as these investment managers get back from vacation, they're going to be met with a lot of capital in their accounts and a market that is sprinting forward.

So what exactly will they do?

You guessed it! They're going to be buying stocks hand over fist. That's why I expect us to have a VERY strong September. And that's why I want to make sure that you're in a great spot to capitalize on this!

There are plenty of opportunities for you to put your sideline cash to work before this trend kicks into full gear.

One new opportunity that I'm watching closely is the decline of the U.S. dollar.

After rising quickly when the "trade war" broke out, the dollar has since receded on the heels of Trump making progress with Mexico. This is a trend that should continue as more deals are reached with Canada, the European Union and China in the future.

So what's the best way to play a falling dollar?

Invest in American companies that sell goods and services abroad like Ford, General Motors and Procter & Gamble. That's because these companies' overseas profits are now being converted back into more U.S. dollars.

Take for example Ford. Say Ford sells a car in Europe for ?20,000.

Last week, before Trump's trade war-calming Mexico news was released, the Euro/USD exchange rate sat at 1.13. That means that every Euro was worth 1.13 U.S. dollars, and a car sold in Europe for ?20,000 would be converted back into $22,600 worth of revenue for Ford.

But now, with trade war fears easing, the Euro/USD exchange rate has since spiked to 1.17, meaning the USD is weaker than it was last week.

That now means that every ?20,000 car gets converted back into $23,400 worth of revenue for Ford. That's an extra $800 in revenue per car!

Keep in mind, nothing has changed about the car. Ford is simply benefiting from selling in the right place at the right time, which is why I recommend you buy your shares before the dollar gets any weaker.

Here's to growing and protecting your wealth!

Zach    Scheidt

Zach Scheidt
Editor, The Daily Edge
Twitter ? Facebook ? Email

The post Trump's $800 Gift To Ford Investors appeared first on Daily Reckoning.

 
 
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