Before Hugo Chavez died in 2013, he hand-picked a communist dictator to succeed him.
In the years since, that dictator — Nicolas Maduro — has clamped down harder on the Venezuelan people than Chavez ever did.
Elections are fully fraudulent and crime is rampant. Armed militias patrol the rooftops at night. The walls have ears. And bounties are offered to anyone willing to accuse their neighbor of disloyalty.
Under this regime, Venezuela is a corridor for the trafficking of everything from drugs to people.
In a page out of Castro’s playbook, Venezuela exports drugs and criminals to the United States and revels in the support of America’s top rivals, Russia and China.
It’s the kind of regime you get a Nobel Peace Prize for fighting — just like María Corina Machado did a few months back.
Machado has been fighting for freedom in communist Venezuela for more than a decade — first taking on Chavez and now Maduro.
And now she has a powerful ally in President Trump.
Like the Founding Father and fifth president of the United States James Monroe, Trump is determined to ensure that every country on this side of the planet is in line with American values.
Hell, I’d even endeavor to say that the real estate mogul attempting to annex Canada and Greenland might even be more interested in the underlying assets — oil, minerals, and metals — abundant in America’s backyard.
Truly, though, the motivation doesn’t matter.
Whether it’s greed, altruism, or both, Trump has made up his mind on the Venezuela issue.
In September, the Trump administration began bombing small boats sailing out of Venezuela, ostensibly because they’re trafficking drugs.
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There’s no way to verify whether or not that’s actually the case, and Congress is being kept in the dark, but so far at least 65 people have been killed in 16 strikes.
But that was just the start.
In the weeks since, America has mustered the largest military buildup in the Caribbean since the Cuban missile crisis.
Roughly 10,000 troops and nine warships — including the world’s largest aircraft carrier, the USS Gerald R. Ford — have accumulated along Venezuela’s coastline, along with fighter jets, drones, and a nuclear submarine.
Asked last week if Maduro’s days were numbered, Trump said, “I would say yeah. I think so, yeah.”
“They’ve been treating us very badly, not only on drugs,” Trump added. “This is about many things.”
I think it’s pretty clear where this is headed.
Remember, this is the same president that assassinated an Iranian general in his first term and bombed their nuclear facilities at the start of his second.
Trump will deal with the likes of Russia and China, but his tolerance for mid-level meddlers is nonexistent.
In fact, punching down as a show of strength is his calling card.
So is defense spending.
With Trump at the helm, America’s defense budget has blown past $1 trillion annually. And what’s the point of paying for all those fancy toys if you aren’t going to play with them?
Or as Machado put it…
“Maduro started this war, and President Trump is ending that war.”
Now, you’re welcome to feel anyway you like about foreign intervention, but from an investing stand point, the implications are clear.
Defense stocks soared in Trump’s first term and they’re off to a blazing start in his second. I’ve seen my own portfolio of defense contractors deliver a bounty of triple-digit gains and we’re not even through the first year.
There are a ton of ways to play it but I think the best place to start is here — with the company that stands to benefit most from Trump’s Golden Dome initiative.
It’s shaping up to be the biggest military project since the Manhattan Project. And getting in now will deliver massive returns in the next few months.
Fight on,
Jason Simpkins
Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more… He also serves as editor of The Crow’s Nest where he analyzes investments beyond the scope of the defense sector.
For more on Jason, check out his editor's page.
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