Analyst calls for a massive wave of illegal immigration coming into the United States. Here’s why, and before it becomes a problem, here’s how to profit from it…
by Zach Scheidt of Daily Reckoning
Fair warning… Today’s alert is going to be a little bit controversial.
Let’s face it… Trump has been a lightning rod for criticism. And sometimes his agenda — or even the way he moves his agenda forward — can backfire. It can be uncomfortable to watch the drama play out, and tough to take sides on some very sensitive matters.
The way I see it, my job is to dig deep and find the best opportunities for you to grow and protect your wealth. Opportunities that many times no one else is talking about.
Today, I’ve got an opportunity that comes straight from one of Trump’s most controversial items. His plan to build a wall between the U.S. and Mexico.
You may be in favor of the wall. Or you may think the wall is a horrible idea! That’s a discussion for a different time and place.
What I’m going to share with you today is a way to profit from Trump’s rhetoric surrounding the wall. And as you’ll soon see, this is an opportunity that few (if any) financial advisors or brokers are talking about…
Trump’s Wall Triggers Immigration Rush
It’s ironic how sometimes the biggest pushes to regulate or limit behaviors can totally backfire.
Take for instance Obama’s push for stricter gun control…
During the periods when it looked like there was a high probability that gun control legislation would be passed, shares of Ruger (RGR) and Smith & Wesson (now American Outdoor Brands AOBC) traded sharply higher.
Because the threat of gun control caused significantly more demand for firearms. Gun enthusiasts were doing everything they could to buy weapons and ammunition beforegun control legislation was passed. The result was instantly higher profits for gun manufacturers.
I don’t care whether you’re in favor of more regulation or against it. You could have built a solid retirement account by investing in gun stocks during the Obama administration.
Today, a similar situation is happening with Trump’s plans to regulate the U.S. border.
Last week, a series prototypes for the wall between Mexico and the U.S. were released. These prototypes will be tested to see how well they can withstand attempts immigrants will use to cross the U.S. border.
Regardless of how the wall is eventually built, or what materials are used, what do you think the instinctive reaction will be?
It’s pretty clear that if would-be immigrants want to get into the United States, now is the time to cross the border… Before the much-bigger wall is put into place.
And so, Trump’s plan to build a wall between the U.S. and Mexico may or may not actually come to pass. But in the meantime, very public plans to put this wall into place will naturally trigger a flood of immigrants into the U.S…
Who Benefits Most From Mexican Immigration?
As an investor, I’m always looking for companies that will benefit from shifts in the market, shifts in society, and shifts in politics.
It makes sense that when big changes take place in our world, money will follow these changes and there will be opportunities for savvy investors to profit.
In this scenario, the money from a surge in illegal immigration is likely to flow back across the Mexican border. That’s because it’s very common for immigrants to come to the United States for work, and then to send money from that work back to loved ones south of the border.
According to NPR, 2016 payments sent home from Latin American and Caribbean immigrants topped $69 billion.1 And much of that cash was sent before it became clear that Trump was going to win the election and push his border wall agenda forward.
Cross-border payments are only going to increase as immigrants pour into the United States over the next few months. Which means more profits for the companies that facilitate these transactions.
Western Union (WU) is the most well-known vehicle for sending money back to loved ones south of the U.S. border. The company has made it very easy to transfer cash to anyone else with access to a Western Union location.
And with more than 500,000 locations spread across more than 200 different countries, it’s very easy to use the company’s services to transfer money just about anywhere in the world.2
Shares of WU pay a 3.4% dividend which makes the stock an excellent position for generating income in your retirement account. And I expect shares to move higher over the next 2-3 years as plans for the wall are developed, as legislation is drafted, and as debate over the wall rages.
Remember, it’s not actually the implementation of this wall that is driving today’s opportunity. Instead, it’s the perception of progress on the wall that will drive immigration and ultimately revenue for Western Union’s money transfer service.
Sure, the actual wall is a controversy. But there’s nothing controversial about growing your wealth with shares of Western Union.
Action to take: Buy shares of WU at the market.
Now let’s get to the 5 most important things to know in the markets right now…
5 Must Knows For Monday, Oct. 30
Tax Time– The wheels are in motion. On Wednesday, the Republican Party is officially set to release its long-awaited tax plan. This is what investors under Trump have been looking forward to since the election, and one catalyst that could add fuel to the already strong rally. But this tax plan won’t be easy to get through Congress, as there are already some major controversies including 401(k) limits, the mortgage-interest deduction, and of course the much-talked about corporate tax rate. Stick with The Daily Edge this week as new details emerge.
The Fed Meets– On Tuesday and Wednesday of this week, the Federal Reserve is set to meet. Markets so far are not expecting another rate hike to come out of this meeting. However, there are other reasons to pay attention to this two day meeting, including details on the unwinding of the balance sheet and clues to a potential December rate hike.
The Next Fed Chairman– Speaking of the Fed, President Trump is finally expected to announce his nomination for the next Federal Reserve Chairman. This comes after a few weeks of delays but this time looks to be for real. Trump departs on an overseas trip on Friday and has indicated that his pick will be announced before then. Today, the current frontrunner is Jerome Powell.
Jobs, Jobs, Jobs– On Friday, the U.S. Labor Department will release its October Jobs report. The figure is estimated to be massive — 310,000 jobs added on the heels of a poor September month that actually saw a decrease of 33,000 jobs (mostly due to the hurricanes). Another interesting note is that this jobs figure comes after last week’s GDP estimate that showed a booming economy. A solid jobs number could be just the fuel this rally needs to continue.
Earnings Season Rolls On– We’re entering our third full week of earnings season and we’ve got a whole new lineup of major corporations set to announce. On Tuesday, Kellogg, MasterCard, and Under Armour are set to announce. On Wednesday, Facebook and Kraft Heinz take their turn. And on Thursday, Apple, Alibaba, and Starbucks are set to announce their earnings. Tune in on Saturday for a recap of the action.
Here’s to growing and protecting your wealth!