Remember when your biggest investment worry was whether to buy the dip on Tesla? Those were simpler times. Now we’re living in an era where the U.S. government has basically become the world’s most powerful day trader – and they’re not even trying to hide it.
Meet what savvy investors are calling the “President’s Portfolio” – Uncle Sam’s not-so-secret strategy of taking equity stakes in companies deemed “critical to national security.” Translation: Washington picks winners, and those stocks go absolutely bonkers.
The Numbers Don’t Lie (And They’re Insane)
We’re talking about gains that would make crypto bros weep with envy:
• MP Materials (MP) – This rare-earth mining company jumped over 200% in two months after the Defense Department decided to invest. Two. Hundred. Percent.
• Intel (INTC) – The chip giant climbed 90% in two months once the feds took a 10% stake. Not bad for a company everyone thought was dead in the water.
• Trilogy Metals (TMQ) – This one’s my favorite. An Alaskan metals firm that soared 200%+ in a single day on news of White House involvement. That’s not investing, that’s alchemy.
The pattern is so obvious it’s almost embarrassing. Government announces investment → stock price goes to the moon → retail investors scramble to catch up. It’s like having the ultimate insider trading ring, except it’s completely legal and happening in broad daylight.
Why This Actually Makes Sense (Sort Of)
Look, we can debate whether the government should be picking stock market winners, but here’s the thing – they’re doing it anyway. The logic is sound: America needs a secure supply chain for everything from rare earth minerals to semiconductor chips. China’s been playing this game for decades.
The difference is that when Beijing invests in a company, you need a PhD in geopolitics to figure out what’s happening. When Washington does it, they literally hold press conferences.
The Bigger Picture (It’s Wild Out There)
This government stock-picking spree is happening against the backdrop of what many are calling an AI bubble. And honestly? It might be. We’ve got startups burning cash faster than a Tesla in Ludicrous mode, and companies like Oracle showing razor-thin margins on AI services that should be printing money.
But here’s the thing about bubbles – they can stay irrational longer than you can stay solvent. Just ask anyone who bet against the dot-com boom in 1998 and watched it run for another two years.
What This Means for You
The smart money isn’t fighting this trend – they’re riding it. The government is adding roughly one new holding per month to their “critical infrastructure” portfolio, building what amounts to a supply chain arsenal.
For regular investors, the strategy is surprisingly simple: follow the money. Keep an eye on which sectors Washington might target next. Mining companies, battery makers, chip manufacturers – anything that sounds vaguely “national security-ish” could be the next rocket ship.
Just remember – when the music stops, it stops fast. But until then, Uncle Sam’s stock picks are the hottest game in town. And unlike most government programs, this one actually seems to be working.