Trump’s $10 Trillion Dollar Floodgates Are Going To Dump Money On These Stocks

This is the second in a series of articles of strategic investing based upon commitments of trillions of dollars, the finalization of a multitude of better trade agreements, and with tax cuts legislated by Independence Day. The latter will provide stability for domestic investment, which with no tariffs and an effective 15% tax for US production, this could launch the stock market upwards like one of Elon’s rockets!

Before I discuss growth stocks and ETF’s that should perform tremendously well; with respect to President Trump speaking of investment commitments of $10 trillion, consider how unimaginably large that number is.

$10 trillion is more than half of the market cap of the entire Dow Jones, and more than 50% of the GDP of China, with 4 times our population. What would the Dow Jones Average be if you add $10 trillion, with the current market cap ratio? Roughly 64,000!

For your imagination, place 10 trillion, one dollar bills end to end. That would stretch from the Sun, to about 80 million miles past Saturn. This is literally an incomprehensible amount of capital coming to the United States. We are on the threshold of amazing technological advancement with AI data centers, and of the return of manufacturing, which post NAFTA, had approximately 90,000 factories shut down with 5 million jobs lost.

In my previous article, I noted of nearly $3 trillion of investments in AI, for which I advised purchasing NVIDIA, Oracle, Apple, and Taiwan Semiconductors given their cumulative announced investments of approximately $1.3 trillion. Not genius picks, but NVIDIA from May 9, increased from 116 to 135, up 16%, while Taiwan Semiconductors rose 10%, with Apple and Oracle up over 6%.

Yes, Trump’s pause on tariffs with China and the framework for a trade agreement, combined with the new UK trade deal, had the DOW responding with a jump of 1160 points.

However, if we see a great increase in tech stocks simply from a pause on tariffs with China, what will happen when far better trade agreements are inked with China, India, Vietnam, the EU, and many other countries? Hint…the market takes off!

The US is positioning itself to be the dominant global producer of AI chips and semiconductors, for which one foresees great possibilities of amazing returns in the years to come. Particularly from forthcoming trade agreements with as many as 18 major countries in the short term, and another 100 or more countries outside of that.

Nvidia, Oracle, Apple and Taiwan Semiconductors are putting up their own funds and should be great growth stocks. Any investments in tech could have a higher degree of risk, as one never knows if China or somebody else will produce a more efficient AI chip, or if there will be breakthroughs in Quantum computing.

With $10 trillion coming into the US, regardless of the industry, there are commonalities of how this money is going to be spent. In writing with the eloquence of a second grader, I note that “we are going to build a whole lot of stuff!”

Translation for investors, look at materials ETFs, which in my previous article I mentioned XLB, Vanguard, and Invesco. Also, there are manufacturing ETFs, such as I Shares US Manufacturing, that is up 21% since April 8, but below its high of the previous year, slightly under $27. Also, there are infrastructure ETFs, that will be covered in my next article.

The I Shares US Manufacturing ETF should perform well, particularly as many more trade agreements are signed with countries that include the major population centers of the world. China, India, and the EU have about 3.25 billion people, for which our access to those markets has been highly restricted.

Hopefully American producers currently dealing with high tariffs, will soon have low or no tariffs. That will stimulate demand and production, particularly with the removal of non-tariff barriers. India just announced 0% tariffs on Harley Davidson, a huge drop from 30%-40%.

We have become used to hearing of 1 trillion dollars, particularly with annual deficits averaging over $2 trillion since 2020. Yet, with $10 trillion of capital being invested in the US, we will have large scale construction, with data centers requiring 9% of total electricity usage in the US. Last week I cited major providers of electricity in Florida (NextEra) Ohio (AEP), and Texas (Sempra) for investment, with dividends around 3.3%.

To summarize, the time to invest in building and technology is…drumroll…NOW!

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