Amid Trump Tax Cut Uncertainty, Bank on Defense!

President Donald Trump just unveiled the “biggest tax cut” ever. Or at least, that’s what he and deputies like Treasury Secretary Steve Mnuchin and National Economic Council Director Gary Cohn are calling it.

But truth be told, the plan is extraordinarily light on details and heavy on rhetoric. Reporters looking for some meat on the bone were instead given the one-sheet summary shown below. Just in case you were wondering, the U.S. tax code is about 74,000 pages long.

Bottom line: While Trump is proposing deep reductions in individual and corporate taxes, it’s impossible to say exactly which policies will pass as is … which will get renegotiated in Congress … and which have no chance of becoming law at all. That’s why it’s tough to say “Buy this sector because of Trump’s tax plan” or “Sell these turkeys because of such-and-such proposal.”

Instead, if you’re looking for certainty – a sector that’s already working and that should continue to do so – I suggest you focus on defense. Trump has made it 100% clear that he wants to spend gobs of money bolstering our offensive and defensive military capabilities, and recent events underscore why he’ll face little resistance to that. After all …

• North Korea is continuing to antagonize the U.S. with missile and nuclear device tests. So more American military might is bearing down on North Korea by the day.

The U.S.S. Michigan guided-missile submarine just docked in the South Korean port of Busan, while the U.S.S. Carl Vinson aircraft carrier and its associated surface ships have closed to within striking distance of the Korean peninsula. They carry hundreds of missiles, helicopters, and aircraft that could be called on at any time to strike.

• In response, Kim Jong-Un just threatened to sink “a nuclear-powered aircraft carrier with a single strike.” That followed earlier warnings that his country would “react to a total war with an all-out war” … “in the death-defying struggle against the U.S. imperialists.”

• North Korea followed up its warnings with aggressive long-range artillery drills, and a pledge to “never stop” conducting nuclear tests. Trump responded by having every single member of the Senate join him at the White House for a special briefing led by his Secretary of State, Director of National Intelligence, Secretary of Defense, and Chairman of the Joint Chiefs of Staff.

What’s the ultimate outcome here? Unknown. It could range from Kong Jong-Un backing down … to China cutting off energy supplies in order to pressure North Korea … to the U.S. and our allies launching a pre-emptive military strike. But there’s no denying that things are heating up in that part of the world – and it’s not like North Korea is the only global hotspot to worry about.

We recently launched dozens of cruise missiles at a Syrian air base. We warned that Iran “has the potential to follow the same path as North Korea and take the world along with it.” And we pushed our NATO allies to more aggressively counter Russian moves on the fringes of Europe.

Is this scare-mongering? I sure don’t think so. No rational human – myself included – wants to see a fresh conflict break out in Asia, or the situation in the Middle East spiral out of control. But neither you nor I can just wish away these tensions, nor should we bury our heads in the sand. We can and should take prudent, timely steps to protect and build our wealth, come what may.

That’s precisely why my team and I recently spent weeks putting together an urgent sector intelligence briefing called American Arms Bonanza: How to Profit as Trump Spends Trillions to Make Our Military Great Again.

The guide is chock full of actionable, timely, and comprehensive advice on how to make it through this period of geopolitical chaos intact, and to build up a more comfortable nest egg from the boom in domestic and global defense spending.

If you haven’t gotten your hands on a copy, I highly recommend you do so now by clicking here. After all, it’s not like other investors are sitting around and waiting … they’re already profiting from this trend.

Check out shares of General Dynamics (GD, Rated “B+”), up more than 38% in the past year, and setting an all-time high last Wednesday. Or Raytheon (RTN, Rated “A-”), up more than 22% to a fresh all-time high last Thursday. Or Northrop Grumman (NOC, Rated “A-”), up 21% and on the verge of hitting its own all-time record.

Those are just the most well-known, largest defense stocks, too. Many smaller ones that we follow and rate are doing even better. Certainty on this trend beats uncertainty on taxes, and I recommend you adjust your portfolios accordingly.

Until next time,

Mike