Chris’ note: D.C. has already chosen who will be this year’s biggest stock market winners and losers. And there’s a way to profit from both in 2023… no matter which way the economy turns.
Colleague Nomi Prins will be revealing all tonight at 8 p.m. ET at her Winners & Losers 2023 online strategy session. She’ll be detailing how you can get on the right side of an estimated $46 trillion market shift… And be lifting the lid on a way to profit. It’s a strategy she learned during her time on Wall Street.
There’s still time to secure your spot. You can enroll with one click here. It’s free to attend. And it will be a chance to learn more about how to sidestep the bear market.
I just got some big news from a source up on Capitol Hill…
It came from a close contact – a senior D.C. staffer.
He named specific sectors of the economy that will be on the receiving end of gushes of dollars out of Washington.
And as I remind my readers all the time, where Washington money goes, Wall Street follows.
There are five sectors to watch. Each one has huge profit potential.
Washington’s Hectic Week
In the two decades since I left Wall Street, I’ve spent a lot of time on Capitol Hill.
I’ve spoken to hundreds of members of the House and Senate from both sides of the aisle.
I’ve also met with folks from the SEC, the Treasury, and the Fed.
I’ve advised presidential and vice-presidential candidates and their staffs.
I’ve even testified before the Senate Budget Committee.
And this has been one of the most hectic weeks I can remember.
On January 3, a new bipartisan Congress began. Republicans took charge of the House. But Democrats kept the Senate.
So only spending with bipartisan support will make it through.
That’s why my contact was so useful…
Watch These Five Sectors
We talked about five key areas with bipartisan support in this new Congress.
Each one will see new funding this year. That money will flow into related stocks. One thing I learned during my time at Goldman Sachs and other investment banks is that where government money flows, Wall Street goes.
Money managers track those flows… and invest in the sectors that are on the receiving end of government backing.
That creates a snowball effect. First, Washington money flows in. Then deep-pocketed banks and investment firms follow.
So, you’ll want to print out this email and keep it close. Think of it as a roadmap for profits in 2023.
1) Electricity – My contacts told me that Congress will unleash a “significant pile of money” to update the grid.
Some of that money will flow into the materials we need to build out the grid – think steel, aluminum, and copper. Some of it will go into new battery and storage systems. These can store energy from wind and solar and feed it onto the grid when it’s needed.
This is a huge deal for Democrats because they get to build toward renewable sources. It’s also a win for Republicans who support lowering energy costs.
2) Nuclear energy – The House Armed Services Committee is focused on nuclear energy. And that’s a big deal. It has input into the annual defense authorization bill. It also covers the national security functions of the Department of Energy.
Russia’s war in Ukraine has sent global energy markets into chaos. Energy security is now a matter of national security… something we haven’t seen at this level since the 1970s oil embargoes.
My source said even anti-nuke Democrats such as John Garamendi of California are on board with nuclear power now. So are right-of-center Republicans like Thomas Massie of Kentucky.
Look out for initiatives to upgrade America’s nuclear energy infrastructure. There will also be a focus on safety technologies.
3) Rare earths elements (“REEs”) – REEs are a group of 17 elements on the periodic table. They have unusual fluorescent, conductive, and magnetic properties. That’s makes them useful for making alloys with these properties.
You’ll find them in iPhones, laptops, and flat-screen TVs. They’re also in fighter jets, tanks, and missile guidance systems… as well as satellite communications, radar, and sonar systems.
Democrats can support REEs because they play a role in clean energy. We also use these metals in wind turbines and electric vehicle motors.
Plus, the Defense Department is making a large investment in domestic REE supply. The U.S. military can’t function without them. So, Republicans support REE investment, too.
4) Infrastructure – Congress still hasn’t greenlit many of the items the 2021 Bipartisan Infrastructure Act funded. But that’s going to happen soon. We’re going to see bipartisan support to fix commuter corridors, highways, roads, and bridges early this year. That means more demand for raw materials such as steel, iron, and concrete.
5) The bio-industrial industry – This is one I’m really excited about. But it’s still not on the radars of most mainstream reporters.
There will be new funding for research and development in biomass. It’s any plant- or animal-based organic byproduct that can be used to create energy. Think forest debris, industrial waste, or pretty much any dregs you can find in nature.
Biomass was the largest energy source until the mid-1800s. Now, it’s only used for 5% of our energy needs. But based on what my contact on the Hill told me, I expect to see a bipartisan biomass bill on the floor by next month.
Use This Wall Street Strategy to Profit
We’re going to see more of these standalone bipartisan bills in the first 8 to 10 months of 2023.
That will spell further opportunities for us to piggyback on D.C. spending, and profit in our portfolios. We’ll see bills for infrastructure… energy… and water.
Then politicians will shift their focus to the 2024 election. So, we need to act now to set ourselves up to profit.
The five areas above are only a sliver of the money flowing from Washington into the private sector this year.
I hope you’ll join me at my online strategy session all about it tonight.
I’ll show you how you can profit from the winners and losers using a strategy I worked on during my time on Wall Street.
Here’s that link again to RSVP with one click.
Editor, Inside Wall Street With Nomi Prins
P.S. One more thing about tonight’s strategy session… I’ll be sharing the name of my No. 1 stock to buy… and one you should avoid. It’s just a few hours away. So go here to secure your spot with one click.