Trump's Insured These Stocks Against Recession

To those of you who wiped your brow and breathed a sigh of relief after this month’s market somersault, I wouldn’t be so quick to get out your good Scotch just yet. 

We are now in the second-longest bull market of modern history, the previous one lasting from 1987 until the dot-com collapse in 2000.

This bull market, which kicked off in 2009, has seen the Dow jump more than 250%, from a decade low of around 7,000 in early 2009 to highs exceeding 26,000 earlier this month.

There are other less happy extremes associated with this era in modern economics. 

U.S. national debt, during this period of manic, swing-for-the-fences investing, has skyrocketed, putting added pressure on the dollar’s stability, as well as its status as the world reserve currency. 

Couple that with entire sectors like consumer tech, led by famous promotional juggernauts like Tesla (NASDAQ: TSLA); the rapidly emerging cannabis industry; and the most recent arrival, cryptocurrencies, marching perpetually deeper into overbought territory, and the sense of instability grows more profound.

No High Can Last Forever

With the nine years of uninterrupted growth and now an entire generation of traders out there who have only read about bear markets in their textbooks, there are plenty of veterans who are waiting for the other shoe to drop. 

What we saw earlier this month wasn’t just a heart-flutter for an otherwise healthy system (what denial-prone investors like to call “corrections”); it was a break in momentum substantial enough to cast fear across trillions of dollars of invested wealth. 

Fear which, if allowed to run rampant, will cause the very market collapse everyone dreads. 

Any sane, sober investor knows that downturns come. It’s cyclical, and it’s actually quite healthy. 

Overly bullish markets tend to get crowded with latecomers and imitators trying to enter already popular spaces with unremarkable or even substandard products. 

These need to be swept away to allow the strong and innovative to really prosper. That’s why the internet industry, though ravaged by the dot-com bust, came back stronger than ever and continues to grow to this day. 

But I don’t want to go over the events of this past month. 

What I want to do is explain that, recession or not, there is something out there today that is on the verge of a true golden era, no matter what happens with the broader economy. 

You may have heard of recession-proof investments… Well, this is one that, in the next several years, is going to be returning no matter what happens. 

Whether the bull market rages or we enter recession territory for the next two years, this class of stocks will rise regardless. 

How is this possible?

Simple. Like everything else these days, the class of stocks I’m alluding to is going to be powered by federal spending. 

A lot of it… almost $720 billion in 2019 alone. 

This isn’t infrastructure, either, where the recipients of these funds would be spread out across tens of thousands of projects and places around the country. 

It’s Not Just Recession-Proof… It’s Growth-Guaranteed

The bulk of this budget will go to only a handful of contractors who will then deliver some of the most expensive, most cutting-edge tech products in existence. 

Tech products that only the world’s wealthiest money-spender can afford. 

I’m talking, of course, about one of Donald Trump’s favorite topics, and a favorite aspect of the federal government: the U.S. military. 

After Obama’s gut job on all four branches — Army, Air Force, Navy, and Marines — the U.S. has a clay-footed giant on its hands. 

Planes are sitting in hangars, out of service. Ships are getting mothballed.

Multibillion-dollar submarines are losing their diving certifications.

As many as two-thirds of the Navy’s F-18 ground-attack jets are grounded, awaiting maintenance. 

Our average Minuteman ICBM, the mainstay of our nuclear arsenal, is 27 years old, operates using 50-year-old floppy disk technology, and is stored in a 60-year-old silo. 

All this while our main rivals, including Russia and China, are investing billions in new technologies such as lasers and robotics and fielding new, combat-ready units. 

It’s more than an embarrassment for the U.S.; it’s a major problem for both the citizens of this nation and the service men and woman who are left working with substandard equipment, and sometimes underpaid in the process.

There Is a Light at the End of the Tunnel

Trump promised to overhaul the military, and now he’s doing it. 

With a proposed $716 billion total defense spending budget for 2019, it looks like our armed forces are finally going to get the medicine they so badly need. 

Not just parts and materials, but all-new, cutting-edge technologies designed to recapture the edge from our rivals and maintain it for decades to come. 

These technologies, in the next decade, will transform the four branches of the military into fully-fledged 21st century fighting forces that are hardly recognizable to today’s soldiers. 

There are several specific areas in which the U.S. will be investing major chunks of that budget in order to keep pace with and eventually surpass rivals.

At least three such arms races are already raging, and the companies working on solutions for our DoD stand to receive billions in federal resources to get the job done. 

Like I said, this is a policy that will be pursued regardless of what the Dow does tomorrow, next week, or next year. 

I’ve been watching these trends, both financial and technological, for years. 

Right now, there are three areas where our military is going to focus disproportionate attention in the coming years. 

It’s within these three segments that the seeds for the rest of the century will be sown. 

Make no mistake about it: Without them, we will lose our status as the premier military power in the world. 

I’ve pinpointed one company for each of these segments that most efficiently captures the opportunity we’re facing.

These companies will rise if the economy continues on its current track, and they will rise if the economy descends into a recession. 

Federal spending will guarantee that much. 

So forget gold, silver, or any other “hedge investment.”

Find out how to safely grow your wealth for the next decade no matter what happens. Get your hands on my recently completed report on “Trump’s Shield” and how it can help you protect and grow you nest egg as it protects our national interests. 

Click here for immediate access.

Fortune favors the bold,

Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.