Last week was great for the Trump Trade. The White House even touted it as Infrastructure Week.
President Trump has become more focused over the last couple of weeks, and it’s paying off big time. Not only is he pursuing pro-growth policies, but he’s also slashing and trashing all those Obama-era regulations.
His heartland growth agenda sparked numerous rallies, most notably in infrastructure after he discussed the importance of a first-class system that would allow our economy to flourish.
This has always been a bipartisan topic, as people continuously complain about potholes and chunks of concrete falling off bridges — some of which even collapse. The key, like always, is how we plan to pay for this. It’s a novel idea of a true public-private partnership.
Some of the president’s lofty goals include:
- $200 billion fund
- $15 billion for transformational projects
- $25 billion for rural projects
- $100 billion for immediate local needs
- Streamlining the current multi-year permitting process into just two years
Wall Street understands that the Trump economic agenda will happen and at some point, bills will pass that are smaller versions of current proposals from the Obamacare replacement to taxes to infrastructure.
What This Means for Investors
There is no doubt investors are eager for movement, but it doesn’t have to happen today. Once it does, not only will the wheels of commerce move faster and create more well-paying jobs, but stocks will also rally higher after having checked those critical boxes.
Speaking of stocks, I’m watching and recommending several names that I believe will be huge infrastructure winners over time. Among them are Caterpillar Inc (NYSE:CAT), Vulcan Materials Company (NYSE:VMC) and Martin Marietta Materials, Inc. (NYSE:MLM).
All three of these companies are leading suppliers, producers and manufacturers of building materials such as equipment and construction aggregates like sand, gravel and concrete. Their projects can be seen all over the country and there’s no question each would see a lot of increased business in the event of a new infrastructure plan.
I will add the caveat that these stocks can be more volatile depending on the news out of D.C., but I really like the action we’ve been seeing recently on the charts. There will be ups and downs along the way, but I expect them to be strong over time.
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