Will Trump's Policies Kill the U.S. Auto Industry?

I’m not going to lie…

I am a fan.

Meryl Streep is undoubtedly an incredibly gifted actor. But boy did she screw the pooch on Sunday night during her speech at the Golden Globe Awards.

While her intentions were clearly to call attention to a lack of empathy she and many others see with the president-elect, she ended up doing the exact same thing.

Streep told the crowd of mostly wealthy liberal actors that “disrespect invites disrespect.”

Certainly I agree. But what’s interesting is that she also made the following statement…

Hollywood is crawling with outsiders and foreigners, and if we kick ’em all out, you’ll have nothing to watch but football and mixed martial arts, which are not the arts.

I am in no way advocating for the removal of all outsiders and foreigners. As a libertarian, I actually find the call to deport all these folks an exercise in bureaucratic buffoonery. Rest assured, dear reader, if you enjoy cheap food, products, and services, you can thank all those “outsiders and foreigners.”

That being said, saying something like “You’ll have nothing to watch but football and mixed martial arts” is the perfect example of why Donald Trump won this election.

The very insinuation that watching football and mixed martial arts instead of big-budget Hollywood movies is somehow a bad thing that should be mocked is why so many Americans want to stick it to the liberal elite.

I tell ya, if they keep acting like this, all they’re going to do is ensure a second term for a president who hasn’t even taken office yet.

Donald Trump Goody Bags

Now, I didn’t vote for Trump.

I think his policies on defense, energy, immigration, and the economy are terribly flawed.

However, he is now our president, and no speech from a wealthy Clinton apologist is going to change that.

In fact, while I probably disagree with nearly everything Trump has done so far, that doesn’t mean that, as an investor, I’m not going to take full advantage of his policy decisions.

I wrote to you about this very issue last week, noting that Goldman Sachs (NYSE: GS) will probably end up getting a very big goody bag from Trump in 2017.

Big Oil will also be on Trump’s Christmas list, as will the companies that make our military the most technologically advanced in the world.

If you choose to play these policy moves, you could do quite well in the coming years. And if you want to save a few bucks, you can also look to Trump’s policies to find indicators of what might help you hold on to more of your money.

Buy Your Next Car This Year

Over the past few weeks, we’ve seen Donald Trump champion his ability to keep auto-manufacturing jobs in this country. Certainly the folks that work those jobs are happy with the news. And I’m hoping they get discounts on their cars, too.

You see, while a lot of folks may be cheering these “saved jobs” now, in a couple of years, they might be cursing them.

It’s pretty simple, really.

If labor costs end up soaring from $8/hr. to $60/hr. as a result of keeping these jobs in the U.S., how much do you think your next car might cost you?

Car companies don’t set up manufacturing facilities in Mexico because they want to screw over U.S. citizens. They set up manufacturing facilities in Mexico because it makes their cars much cheaper for you to buy.

Don’t get me wrong. If you’re fine with spending more on a car if it’s made in the U.S., go for it.

I put my deposit down on a Tesla (NASDAQ: TSLA) Model 3, and that car, while not cheap, is being manufactured in the U.S.

But for most folks, the only result of an increase in U.S. car manufacturing will be an increase in sticker price. And that, my friend, is going to royally screw over many of these U.S. car companies.

Tesla’s actually at an advantage, as it’s always been manufactured in the U.S. and has had no problem selling cars that cost a bit more. Of course, Tesla also makes one of the best vehicles in the marketplace and has no history of producing garbage. While GM (NYSE: GM) and Ford (NYSE: F) are making some pretty solid vehicles today, the two automakers still fight an image problem that started more than 30 years ago.

So while we certainly have a number of investment opportunities coming up under a Trump presidency, I suspect that if you want to save a few bucks, you might want to consider buying your next car this year — before Trump starts inflicting tariffs on cars made outside of the U.S.

While it might seem nice to have more folks manufacturing cars right here in the United States, it’s going to look kind of ridiculous if those workers end up having to take the bus to work because they can’t afford their “Made in the U.S.A.” cars.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.