Sludge contributing writer and uow money-in-politics nerd. Welcome to the sixth installment of our biweekly, members-only Sludge newsletter to let you know about the sludgiest characters in politics! This week, we explore just how much politics revolves around hooking up your friends with business opportunities or plum government posts, using your government jobs for personal financial gain, and selling access to powerful people. But your large adult sons really want to get their hands presdency that property! He made a similar amount from the hotel in Mother Jones. Foreign visitors may only attend a political fundraiser as a guest of a donor who is an American citizen or permanent resident.
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That means limiting access of lobbyists, curbing deals with foreign governments, and refusing to profit off the White House. Well, that never happened. In fact, since Trump got to D. Call it Swamp 2. Swamp on Steroids. Since the president continues profiting from his businesses, each of the days Trump spent at his properties in was a marketing event. Likewise, every time someone stays at the Old Post Office in D. But these are just a few examples of Trump and family monetizing the presidency. According to financial disclosures, Trump hotel revenue soared over the past few years. These extraordinary numbers appear easy to explain.
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Right here is an example why U. Since Trump still holds these properties, he and his family make bonus money every time he holds a fundraiser. This one was straightforward. After the election, Trump signaled he would spend a great deal of time at his Mar-a-Lago resort in Florida. In the first eight months of , two-thirds of those executives and lobbyists played golf on days Trump was there. The swamp was never so convenient for doing business, and the president was never so obvious about how to find him before. Donald Trump visits his golf course in Aberdeen, Scotland, in Overall, the easiest mark is the U. Secret Service tasked with the job of protecting Trump. As the law stands, the agency cannot receive payments from presidents.
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Investors have seen a dramatic and, for many, surprising rise in the U. Those who looked at his economic policy instead of listening to political rhetoric saw this coming. To make accurate predictions on stocks after Inauguration Day, you have to look at what has already happened, which is a dramatic rise in stocks, the dollar and bond yields. If you combine this with what Trump has pledged to do, along with rationalizing what he may actually be able to accomplish, you can develop a good forecast after Jan. Based on current earnings, the rising dollar and interest rates, the U. Here are the most important policy elements as they affect stocks. The repatriation of corporate profits will cause an increase in the anemic mergers and acquisitions activity of recent years. This will be a boon for banks and small to midsize companies, which will benefit from increased valuations, especially in the technology sector, where much of the mergers and acquisitions activity will focus. It will also cause more stock buybacks, which will mildly support prices. The planned tax cuts are criticized by the left as another break for the wealthy, but the true beneficiaries will be the middle class, working poor and small businesses.
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CNN Money. Lastly, the biggest losers may be companies that do lots of business with Mexico. Michael Bloomberg is a billionaire businessman, publisher, and philanthropist, and a former mayor of New York City. Our current rate of 35 percent is the highest in the world. That could infuse their balance sheets, prompting them to make more acquisitions and expand at a faster clip. How to Invest Under a Trump Presidency. Investors also seem to be betting that a Trump victory will translate to higher government spending. Insurance companies may be able to sell more policies across state lines, and drug companies may face less government pressure to cut prices, lifting industry profits. Overall, investors should realize that the U. Steeper inflation could prompt the Fed to raise interest rates more aggressively than previously anticipated. Table of Contents Expand.
1. Trump’s hotels
Your Practice. Lower corporate tax rates make the United States more competitive. In exchange, they’re given permission to brand their building with the Trump name and logo. Based on current earnings, the rising dollar and interest rates, the U. In normal recoveries into their eighth year, fiscal stimulus would be unnecessary. In addition to real estate, Trump has lent his name to a diverse list of products ranging from mattresses and apparel to fragrances and furniture. He has also barked about branding China a currency manipulator. The Art of the Deal was released in November Many U. These would all be positive developments for the fossil-fuel industry. These stocks are not as sure a bet as infrastructure plays. Already, the market appears to expecting stronger profits in the industry. Lower taxes will boost corporate earnings and serve as additional fiscal stimulus by increasing demand for U.
2. Trump campaign events at Trump properties.
Investors have seen a dramatic and, for many, surprising rise in the U. Those who looked at his economic policy instead of listening to political rhetoric saw this coming. To make accurate predictions on stocks after Inauguration Day, you have to look at what has already happened, which is ohw dramatic rise in stocks, the dollar and bond yields. If you combine this with what Trump has pledged to do, along with rationalizing what he may actually be able to accomplish, you can develop a good forecast after Jan.
Based on current earnings, how to make money from trump presidency rising dollar and interest rates, the U. Here are the most important policy elements as they affect stocks.
The repatriation of corporate profits will cause an increase in the anemic mergers and acquisitions activity of recent years. This will be a boon for banks and small to midsize companies, which will benefit from increased valuations, especially in the technology sector, where much of the mergers and acquisitions activity will focus. It will yo cause more stock buybacks, which will mildly support prices. The planned tax cuts are criticized by the left as another break for the wealthy, but the true beneficiaries will be the middle class, working poor and small businesses.
Benefits to the wealthy will be offset by the closing of many loopholes they currently use to lower their effective rates. Reductions to those in lower tax brackets and small businesses are significant and will act as a large fiscal stimulus. In normal recoveries into their eighth year, fiscal stimulus would be unnecessary. But the current recovery is the slowest since and therefore could use a good kick start.
This stimulus should do the trick, and I expect gross domestic product GDP growth to turmp above 3 percent on a sustainable basis for the first time since the middle of George W.
This will cause inflation makr rise to 2 percent to 2. The stimulus result is more money in the pockets of those who will spend it, a promise President Obama made but did not. Lower corporate tax rates make the United States more competitive. Our current rate of 35 percent is the highest in the world. I expect the rate to change to 20 percent Trump has proposed a 15 percent rate.
This will incentivize companies to bring jobs back to the United States. Lower taxes will boost corporate earnings and serve as additional fiscal stimulus by increasing demand for U. Deregulation will have an impact on banks and small businesses. Cutting back bank regulation could be quite dangerous, but it will be a positive for bank earnings. Small businesses, and thus the middle class, should benefit if current onerous regulations are reduced. They have already soared 18 percent and 30 percent, respectively, since before the election, and they have more room to run.
They again rose dramatically after the election, but I caution that pricing will be an issue in future defense contracts. These stocks are not as sure a bet as infrastructure plays. Trump promises to repeal ObamaCare, but with little stated as to what will trukp it.
The reality is that socialized medical care is not the problem. The cost of medical care in the United States is the real issue. When the new administration and Congress attempt to develop a new plan, they will quickly realize none will provide adequate medical coverage for Americans at a reasonable price unless there is dramatic reductions in health care costs. The attention will move to cost reduction. Given the power of healthcare lobbyists, reform will be an enormous undertaking.
But no doubt a giant industry spotlight will remain trumo healthcare for many years, and I recommend a significant underweight in this industry. My stock picks for fall into the theme of stronger American consumers, due to expansive fiscal policy, and finally some meaningful real wage gains. Steer clear from healthcare stocks as our government attempts to tackle the mess in this industry. Although the year may end flat, taking these investment suggestions can make a profitable year.
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An app to help you make money off of Trump’s tweets
President Donald Trump’s use of his public office to enrich himself has reached a new low. Hosting the summit at Doral would compel the federal government to spend money at the resort and could potentially require foreign governments to do the. This is Trump’s latest scheme to profit off of his time in public office. It meant that countless decisions he would make as president would have the potential to be influenced by his own financial interests. First, he frequently uses his office in a way that directly benefits his businesses by using his platform to advertise Trump properties.
Abusing office, breaking promises
The promotion is more than just talk. These events have been attended by at least 19 administration officials. Second, the fact that Trump continues to profit from his businesses encourages those who want to remain in his good graces to spend money at those businesses. Restore transparency: Potential conflicts, fraud, influence-peddling are why Congress can and must see Trump crom. Corporate executives gow industry groups with business interests before the Trump administration have made frequent trips to stay at his properties.
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