Trump Is Creating a Gold Rush for This Asset Class
Robert Ross|November 12, 2024
Crypto is about to take over the White House.
But if you’ve been following along… it shouldn’t be a surprise.
Back in August, I wrote in Manward Money Report…
I’ve long operated under the assumption that Trump would take back the White House. My personal portfolio is positioned to profit from this administration. In fact, my entire portfolio is now leveraged to a weak dollar regime, which will massively benefit some industries… and cripple others.
And with President-elect Trump’s decisive victory last week, this trend is about to kick into high gear.
The Trump Administration 2.0
A “weak dollar” means the dollar’s value falls relative to other currencies, often due to increased government spending, higher deficits, or lower interest rates… all of which are likely under Trump’s renewed administration.
Trump plans to slash corporate tax rates from 21% to 15% and ramp up infrastructure spending, expanding the deficit and weakening the dollar. In addition, his proposed protectionist policies, such as tariffs on Chinese imports, would further reduce confidence in the dollar.
Trump has also been vocal about reducing U.S. interest rates, pushing for lower rates as early as his first term when he pressured Fed Chair Jerome Powell to make cuts.
A larger deficit, protectionist policies, and potentially lower rates all point toward a weaker dollar under Trump 2.0.
This has significant implications for investors…
The Great Weakening Is Beginning
A weaker dollar spells bad news for companies that rely on imports.
But it’s a boost for major exporters like Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA). These companies benefit because a weaker dollar means overseas profits convert back into more U.S. dollars, lifting their earnings and stock prices.
A weakened dollar would also give commodities like oil, copper, and certain cryptocurrencies a boost. A weaker dollar means less purchasing power. That combination leads to higher prices, or inflation.
People turn to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETC) to protect their wealth. These digital assets are seen as hedges against inflation.
We saw this during the COVID-19 pandemic. The U.S. government introduced large stimulus packages to support the economy. All that free money led to concerns about increased inflation and a weakening dollar.
As a result, Bitcoin’s price surged from around $7,000 in April 2020 to nearly $30,000 by the end of the year. That rocket ride showed how a weaker dollar can drive up demand for cryptocurrencies.
Second, a weaker dollar leads to more crypto buyers. As the dollar weakens, investors look for other assets. They want things that might hold value better. This higher demand can push up the prices of cryptocurrencies.
We saw this happen with the rise of decentralized finance (DeFi) platforms like Ethereum, which gained significant traction as the dollar weakened. Platforms like Bitcoin and Ethereum are built on blockchain technology. When the dollar is weak, they offer higher returns than assets like bank accounts or bonds.
Lastly, many investors overlook that crypto is a truly global market. If the dollar is weak, it’s more attractive for international investors to buy crypto than hold dollars. Global investment can further boost crypto prices. We saw that in early 2021 when Bitcoin saw massive inflows from European and Asian markets as the dollar weakened.
All these factors will work in crypto’s favor during Trump’s presidency. But to capitalize on this trend, you need to make sure you’re holding the right cryptocurrencies.
Aiming at the Right Target
The first and most obvious beneficiary of a weak dollar is Bitcoin. In times of currency devaluation, investors see Bitcoin as a store of value. In 2017, when the dollar index fell 10%, it triggered one of Bitcoin’s biggest bull runs, showing how a weaker dollar can fuel crypto prices.
Second on my “Buy” list is Ethereum. As the second-largest cryptocurrency, Ethereum often moves in tandem with Bitcoin during macroeconomic shifts.
Beyond its correlation to Bitcoin, Ethereum benefits from being the primary platform for decentralized applications (dApps) and DeFi platforms. Demand for these applications means demand for Ethereum, as seen during the pandemic when its price skyrocketed from $140 in March 2020 to over $730 by the year’s end.
Lastly, a basket of “altcoins” stands to gain from a weak dollar. We’ve been accumulating crypto tokens and stocks in the Breakout Fortunes portfolio to capitalize on this trend.
Because the “Trump Trend” is setting the stage for a new era of digital assets and global markets. With a weaker dollar on the horizon, assets like Bitcoin, Ethereum, and select altcoins stand to gain as investors look to protect their wealth from inflation and currency devaluation.
Get in on the ground floor before the boom begins.
A Note From Amanda: President Trump just revealed his plan to protect Americans’ crypto freedom. During his first term, Bitcoin soared an incredible 3,830%… and some smaller cryptos exploded even higher – up to 12,850%! See why similar opportunities could be ahead…
Robert Ross
Robert Ross’s unique style of clear and direct stock research helped him build a massive following in the investment research industry, starting his career at investment research company Mauldin Economics and quickly rising through the ranks to become one of the youngest chief analysts in the industry. Today, over a million investors turn to Ross every month for his take on investing, economics, and personal finance. He now shares his unique insights in Total Wealth and Manward Money Report.
