2 Funds To Gain From Trump's State Of The Union Address
Zacks Investment Research | Feb 07, 2019 11:00PM ET
US President Donald Trump called for unity among Americans and cross-party cooperation during last Tuesday’s State of the Union Address. Trump expressed interest to rebuild the U.S. military by bumping up Pentagon’s budget. He also plans to reevaluate military alliances and agreements with foreign nations.
Trump did approve two defense-friendly budget bills that helped increase the Pentagon’s budget to $700 billion in 2018 and $717 billion in 2019. Meanwhile, Trump said that “for years, the United States was being treated very unfairly by NATO, but now we have secured a $100 billion dollar increase in defense spending from NATO allies.” Lest we forget, Trump had earlier threatened to trim U.S. military support if its allies didn’t raise defense spending.
At the same time, America is looking to develop a state-of-the-art missile defense system. And it’s only because Russia repeatedly violated the agreement by building banned weapon. Trump announced that “the United States is officially withdrawing from the Intermediate-Range Nuclear Forces Treaty, or INF Treaty.” Last but not the least, Trump claimed that American astronauts will go back to space with American rockets.
Trump in his speech, by the way, has also asked for a bipartisan infrastructure push. He urged both the parties to come together in rebuilding America’s decaying infrastructure. Trump told Congress and government leaders that “I know that Congress is eager to pass an infrastructure bill, and I am eager to work with you on legislation to deliver new and important infrastructure investment.”
2 Funds to Benefit
With Trump vowing to boost defense budget as well as urging the Congress to rebuild America’s crumbling infrastructure, it seems investing in the following funds with significant exposure to such areas seems judicious.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Zacks Investment Research
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