By: Samuel Rines, Macro Strategist – Model Portfolios
Key Takeaways
- The long-anticipated “infrastructure week” has finally arrived. This isn’t a fleeting moment, but a cornerstone of the administration’s agenda. “Build, build, build” and “dig, dig, dig” reflect a determined push to remove barriers and accelerate development. Expect this theme to underpin policies ranging from energy to technology, creating significant opportunities in sectors poised to benefit from infrastructure spending.
- Tariffs are back on the table, but with a twist. Negotiations remain ongoing, and nothing is set in stone. So far, the tariffs announced have been lower than feared, signaling a cautious approach. However, the administration’s focus hints at a broader geopolitical strategy, particularly regarding China.
- Energy policy under Trump 2.0 has a clear focus: critical minerals and liquefied natural gas (LNG). Sure, there is plenty of rhetoric around oil and the like. But that is superficial reading. The emphasis on LNG infrastructure and mineral extraction points to a broader strategy to enhance economic and national security while reducing reliance on foreign supply chains.
While renaming the Gulf of Mexico to the Gulf of America might not be directly investable (unless you’re betting on increased demand for updated maps), it underscores how swiftly some policies can shift via executive orders. It’s a reminder of the administration’s ability to implement incremental change rather quickly.
Moving to the investable topics, the declaration of an “energy emergency” goes beyond traditional oil and gas. The text specifically calls out critical minerals as a key component of the emergency. Critical minerals like copper, lithium and uranium are in the spotlight, with the policy aimed at removing barriers to resource development. This is a green light for “build, build, build” and “dig, dig, dig” projects, providing tailwinds for the much-maligned mining sector.
The energy emergency dovetails into the administration’s focus on Alaska—and the liquified natural gas (LNG) focus. While certainly a push for additional domestic energy production, the prioritization of pipelines and export infrastructure for Alaskan LNG does not solely benefit U.S. consumers. It is also a positive for Asian allies who are significant consumers of LNG. This dynamic could strengthen ties with nations like Japan and South Korea, while providing them a simple route in potential trade negotiations (“no tariffs if we buy your LNG”). This move complements broader energy security goals and positions the U.S. as a reliable LNG supplier.
Then comes the America First Trade Policy. Initial comments from President Trump highlighted Canada and Mexico, but the real focus is China. References to intellectual property theft, third-country circumvention and strategic adversaries underline the administration’s intent to recalibrate trade relations with China. Meanwhile, Canada and Mexico were primarily cited in relation to fentanyl and the upcoming USMCA review. Investors should brace for tariff-related headlines but focus on the substance of implemented measures rather than speculation.
The creation of DOGE (an executive branch initiative, not a formal agency) includes a critical component: modernizing federal technology. This involves upgrading tech stacks across agencies to improve interoperability and efficiency. The scale of potential spending on government tech modernization is substantial. For tech companies, this could be a lucrative opportunity as the government seeks to replace archaic systems with cutting-edge, modern solutions.
The early days of Trump 2.0 offer clear signals for the investment community. From infrastructure to energy and trade, the administration’s policies are designed to remove barriers and accelerate growth in strategic sectors. Investors should keep an eye on:
- Infrastructure and Materials: Opportunities in construction, mining and related sectors as the “build, build, build” agenda gains momentum.
- Energy and LNG: Long-term investments in LNG infrastructure and critical minerals development.
- Technology: Government contracts for modernizing federal systems could provide significant upside for tech firms.
The first few weeks of the administration are setting the tone for a policy environment that prioritizes domestic growth, energy security and geopolitical strategy. For investors, the message is clear: the opportunities are there for those looking beyond the headlines.
Originally posted on February 24, 2025 on WisdomTree blog
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