Current Hotline

Update on Trump Agenda on Capitol Hill

The stock market continues to do well in an environment of stable interest rates (despite the Fed raising short-term rates), low inflation (gasoline prices are down) and rising corporate earnings (best results in six years).

The Trump agenda on Capitol Hill is still alive, but there’s worry the Republicans won’t be able to muster the votes necessary to repeal and replace ObamaCare. Next comes tax reform, which may even be more important than health care reform.

We are profitable in four out of six positions, and only one stock, Alliance Resource Partners (Nasdaq: ARLP), is down by more than 10%. However, ARLP is rallying today as oil prices have started to rebound. The recommendation of ARLP remains a “hold” until it is clear that oil prices have turned the corner.

Unlike most other mining companies, Agnico Eagle Mines Ltd. (NYSE: AEM) has been profitable. However, it is currently below our buy price after falling 2% in early trading. The stock has been treading water lately along with gold prices.

Our four traditional stocks are doing much better: Oaktree Capital (NYSE: OAK) is heading toward a double-digit-percentage gain. The outlook is positive, with a price/earnings to growth (PEG) ratio of 0.90. Anything less than 1 is excellent. It has beaten Street estimates four quarters in a row, and I suspect it will do the same when it reports second-quarter earnings in late July.

Deere & Co. (NYSE: DE) and Boeing Co. (NYSE: BA) look strong, and are quite profitable. Let’s raise our stop on Boeing to $195 a share here.

Our best performer continues to be Brookfield Infrastructure Partners (NYSE: BIP), the diversified owner of toll roads, power transmission lines, ports and natural gas pipelines in such diverse countries as Canada, Brazil and India. It is up 14% since we recommended it in March. Let’s raise our stop to $40.50 here.

I’m investigating several possible Trump-driven stocks and will have a new recommendation for you next week.

The Surprising Reason Forbes Has Outperformed Its Competition!

Forbes magazine is celebrating its 100th anniversary this year. B.C. Forbes started America’s first business magazine in 1917. We’re having a session on “100 Years of Forbes Magazine” on Friday, July 21, at FreedomFest, with Steve Forbes; Rich Karlgaard (the magazine’s publisher) and Ken Fisher, the billionaire money manager who had the longest-running column in Forbes history. The session is not to be missed!

Forbes is #1 among the top 10 business magazines in the United States. It has outperformed both Business Week and Fortune magazine, its two biggest competitors. Why? In in an article in the June issue of the American Economic Review called “Eponymous Entrepreneurs,” the authors conclude that companies that bear the name of their owner are “linked to superior firm performance.” However, only 19% of all firms are named after their owners.

Full Schedule Now Posted — Hotel Room Block Extended One Week!

Last week, we posted the full schedule of 250 plus speakers, panels and debates at www.freedomfest.com/agenda. Just scroll down and drool! Or click on your favorite speakers names and find out their schedule.

Also, we just extended the hotel room block for one more week. The price is only $129 a night, plus tax. It ends this weekend, so now is the time to sign up. Go to www.freedomfest.com/register-now, or call toll-free 1-855-850-3733, ext 202. Then go to “hotel” and make your reservations. Over 1,300 have already signed up and we expect over 2,000 attendees. Don’t miss out on our big 10th anniversary celebration, featuring Steve Forbes’ 70th birthday party and a historic photograph of the top libertarians, including Stossel, Kennedy, Steve Moore and dozens more.

Until next time,
Mark Skousen

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