How to invest with President Trump as your biggest ally

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Today’s issue in preview:

• How to invest with President Trump as your biggest ally

• We said to buy this now-booming industry. Did you act?

• How to turn Medicare into your own personal money machine

• Learn our Top Themes to buy now

How to invest with President Trump as your biggest ally

Credit: gorodenkoff

At a White House event last month, industrial firm Essar Group announced an $18 billion plan to build an integrated steel company, using iron ore from Minnesota and a massive new steelmaking plant in Iowa.

Once completed, Essar’s project will represent one of the largest investments ever in U.S. mining and steelmaking capacity.

It’s also another indication the “Made in America” megatrend is up and running and full of opportunity.

So, it’s no wonder Emerson Electric (EMR) reached a new all-time high this week.

Emerson is one of the largest and most important companies that most people have never heard of. It is the world’s largest industrial automation supplier, providing sophisticated equipment, software, and control systems that keep modern factories and industrial facilities running.

Its products include sensors, valves, flow meters, industrial software, and sophisticated systems that automate manufacturing processes. Emerson serves customers in energy, chemicals, pharmaceuticals, power generation, and advanced manufacturing. The company also owns National Instruments, a major supplier of electronic testing and measurement equipment.

It employs about 71,000 people and sports a huge-for-an-industrial-firm market value of $93 billion.

All this means Emerson is well positioned to benefit from a multi-year boom in U.S. manufacturing capacity expansion… which we call the Made in America megatrend.

Back in January, I made the case for investing in companies that supply critical equipment and services for building and operating today’s high-tech factories.

The bull case here is simple…

President Donald Trump – along with many business and military leaders – believes that the U.S. has outsourced far too much of its industrial capacity to China over the past 25 years. We outsourced significant portions of our semiconductor, appliance, medicine, weapons, and machinery production.

We outsourced the capacity to produce and process critical resources, such as rare earth elements.

The COVID-19 pandemic showed that depending on other countries for critical economic inputs makes the U.S. economy less safe and secure. To put it bluntly, it is very stupid not to make products critical to national security like AI semiconductors within our own borders… especially when we are in an economic and geopolitical “great powers” contest with China.

Trump has staked his legacy and reputation on greatly expanding our industrial base… and he’s working with business leaders to invest trillions to pursue this goal. Apple (AAPL), for example, has committed to invest $600 billion in U.S.-based manufacturing over the next four years. Nvidia (NVDA) says it will invest $500 billion in U.S.-based manufacturing over the next four years.

Drug giant Eli Lilly (LLY) said it has committed more than $50 billion in domestic manufacturing commitments since 2020, including four additional U.S. plants announced in 2025. Three of them were designed to manufacture active pharmaceutical ingredients (APIs). Lilly says it will be the largest domestic drug manufacturing investment in U.S. history.

In Money & Megatrends, we’ve capitalized on this “Made in America” megatrend with strong returns in robotics, factory automation, and machine component makers such as Cognex (CGNX), Ouster (OUST), and RBC Bearings (RBC).

Emerson reported second-quarter business results on August 4. It delivered a strong quarter, with accelerating orders, healthy 7% revenue growth, and expanding profit margins. Management raised its full-year outlook, citing robust demand for industrial automation, software, and measurement technology.

Driven by these good results and a belief that more are on the way, EMR stock has risen 58% over the past two years and reached a new all-time high this week.

The Made in America megatrend involves building huge amounts of new AI data centers, high-tech factories, and electrical infrastructure. Emerson Electric’s rising stock price indicates this trend is in full swing. We believe it has much further to run.

We said to buy this now-booming industry. Did you act?

Credit: Drazen Zigic

It looks like being bullish on the heart health business was a good idea.

This week, cardiac health firms AtriCure (ATRC), Heartflow (HTFL), and Kestra Medical Technologies (KMTS) reached new one-year highs.

AtriCure is a $3.1 billion company developing surgical devices and technologies that treat atrial fibrillation and other heart rhythm disorders, helping physicians restore normal cardiac function.

Heartflow is a $5 billion company using artificial intelligence and advanced imaging to analyze coronary arteries, identify blockages, and help physicians diagnose coronary artery disease.

Kestra Medical Technologies is a $1.8 billion company developing wearable defibrillators that continuously monitor heart rhythms and automatically deliver lifesaving shocks to patients experiencing dangerous arrhythmias.

Back in July, we published a bullish research note on the cardiac health industry. It stands to be a big beneficiary of the massive Boomer healthcare megatrend… which – as we noted on October 21 – has turned into a modern-day gold rush.

More than 10,000 Americans reach retirement age every day. The U.S. population aged 80 and older is projected to roughly double from 14.7 million in 2025 to 29.4 million by 2045.

This is the enormous Baby Boom generation entering the phase of life where healthcare spending skyrockets. For many boomers, a typical month involves going to see at least one doctor to have something looked at, removed, or treated.

This means many healthcare businesses are experiencing huge demand now – and will for the next decade.

Heart disease is the leading cause of death in America. In 2023, 915,973 Americans died from cardiovascular disease, including heart disease, stroke, hypertension, and heart failure.

Nearly half of U.S. adults have high blood pressure. About 47% of American adults have hypertension, the leading risk factor for heart attack, stroke, heart failure, and kidney disease.

U.S. cardiovascular healthcare spending is expected to soar. The American Heart Association projects total cardiovascular healthcare costs will more than triple to approximately $1.5 trillion annually by 2050.

A large industry with such a high likelihood of growing even larger is sure to offer significant business and investment opportunities. The cardiovascular health industry includes medical device makers, cardiology clinics, drug makers, diagnostic companies, and surgical supply companies.

The three firms listed above are enjoying strong revenue growth thanks to aging Boomers and their government-sponsored health care plans, which are spending heavily on cardiac health.

Another indicator that this industry is in a bull market comes via the strong stock price action of Edwards Lifesciences (EW). The company is a $52 billion giant of cardiac health.

Edwards is the world’s largest manufacturer of transcatheter aortic valves (TAVR). This is a widely adopted, multi-billion-dollar treatment category. EW’s second-quarter revenue reached $1.74 billion, up approximately 13.6% from the prior year. The stock has returned 31% over the past two years and is near an all-time high.

Unfortunately, the number of people who need cardiovascular treatment is already enormous, and it’s likely to grow substantially in the decades ahead. This is a structural, long-term reality baked into America’s demographics.

Every day, more Americans enter the age groups where the risks of heart disease, arterial disease, and atrial fibrillation rise dramatically.

Companies that provide the equipment, devices, supplies, and services needed to treat these conditions are positioned to benefit from this powerful, predictable, multi-decade megatrend.

How to turn Medicare into your own personal money machine

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Cardiac Health isn’t the only healthcare theme booming to new highs this week.

As we expected, many members of the Pharmaceutical Infrastructure industry group are surging to new highs as well.

This morning, key members of this theme – Thermo Fisher Scientific (TMO), Agilent Technologies (A), Mettler-Toledo (MTD), Revvity (RVTY), and Waters Corp. (WAT) – reached new one-year highs.

The Pharmaceutical Infrastructure industry group supplies the essential tools, technologies, equipment, and services that drug companies need to discover, develop, test, and manufacture new medicines.

These businesses produce everything from sophisticated laboratory instruments and diagnostic systems to drug-testing equipment, specialized chemicals, and advanced manufacturing equipment.

Back in September, we highlighted this group’s emerging uptrend and bright long-term outlook… which is being powered by the awesome bullish forces for the healthcare industry in general we cited above.

The fortunes of the Pharmaceutical Infrastructure group above are closely tied to the R&D and capital spending cycles of drug firms such as Pfizer (PFE), Eli Lilly (LLY), Biogen (BIIB), Amgen (AMGN), Gilead Sciences (GILD), Merck & Co. (MRK), and Novartis (NVS).

When drugmakers expand laboratory research, genomic analysis, testing programs, and manufacturing capacity, they require more analytical instruments, services, consumables, and bioprocessing equipment – the “picks and shovels” supplied by companies like Waters, Agilent, and Revvity.

We believe the new highs reached by the likes of these firms are harbingers of a healthcare megatrend that will generate large returns over the coming years: That thanks to advanced genomic sequencing, AI-powered data analytics, and other bleeding-edge innovations, the healthcare industry will move away from blunt “one-size-fits-all” treatments and move to more “personalized” treatments that are tailored to an individual’s genetic makeup.

This megatrend will drive strong drugmaker R&D spending and strong revenue growth for well-positioned “picks and shovels” firms above.

Also, consider that U.S. healthcare leaders and the U.S. government are very keen on increasing domestic drug manufacturing to reduce our reliance on foreign manufacturing.

The FDA says more than half of pharmaceuticals distributed in the U.S. are manufactured overseas, and only about 11% of API manufacturers are U.S.-based.

Since 2025, pharmaceutical companies have announced hundreds of billions of dollars of U.S. manufacturing and R&D investment. Commercial real estate investment firm CBRE tracked approximately $350 billion in announcements, although it estimates that roughly half of these were projects already planned or underway – an important caveat when interpreting the headline.

Add these two trends – the personalized treatment revolution and the domestic drug manufacturing boom – and you get serious fundamental tailwinds that will continue driving the bull market in many areas of healthcare, especially the “picks and shovels” providers of drug development and manufacturing. This new stock trend has further to run.

Market Notes

• Our March 27th recommendation to own the cybersecurity theme continues to pay off bigly. Rubrik (RBRK), Netskope (NTSK), Tenable (TENB), and AvePoint (AVPT) all hit new highs today as concerns over agent security increase.

• Hotel REITs Apple Hospitality REIT (APLE) and DiamondRock Hospitality (DRH) reached new highs again today. These are bullish economic signals.

• The biotechnology bull market Biotech giant Amgen (AMGN) reached a new all-time high today.

• The AI data center and factory building boom is on. Construction equipment rental firm United Rentals (URI) reached a new one-year high today.

• Big names on the new lows list today include Uber (UBER), Netflix (NFLX), and Boeing (BA).

• Healthcare diagnostics leader Labcorp (LH) surged 11% this morning to reach a new all-time high after reporting strong third-quarter earnings.

Regards,

Brian Hunt
Editor, Money & Megatrends

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