That’s interesting…
From The Wall Street Journal:
Donald Trump and SoftBank Group CEO Masayoshi Son jointly announced Monday that SoftBank plans to invest at least $100 billion in U.S. projects over the next four years, as the president-elect seeks to project enthusiasm over his return to power.
Readers might be familiar with Masayoshi Son. As CEO of SoftBank, he gained a lot of attention for several of his private investments. Son was an early investor in ByteDance, the parent company of TikTok, Uber, and DoorDash. He also attracted the wrong kind of attention when one of his largest holdings – WeWork – crashed and burned before its IPO.
Son is also the man who made a similar pledge of $50 billion during the first Trump presidency. As he put it, Trump is a “double down president,” and Son wants to follow his lead this time around. It’s a bold move. Clearly, Son feels optimistic.
And he’s not the only one.
Nation of Optimists
Domestic business optimism is on the rise as well. That’s according to the National Federation of Independent Business (“NFIB”), a lobbying group for small businesses. The NFIB Small Business Optimism Index came in at 101.7 for November, the highest reading since June of 2021.
Its Chief Economist Bill Dunkelberg reports that small business owners “are eager to expand their operations, reasoning that:
The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners. Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures.
Large companies also seem enthusiastic. Cisco CEO Chuck Robbins, chair of the Business Roundtable, recently said that:
With Washington poised to consider measures that can protect and strengthen tax reform, enable a sensible regulatory environment, and drive investment and job creation, business leaders are energized by the opportunity to engage the incoming administration and Congress on policies that can further fuel our economy.
What’s so striking to me is how different the atmosphere is compared to the leadup to Trump’s first inauguration.
It Does Feel Different
I’ve known Donald Trump for over a decade, long before he was president. And I have to admit, things do feel different this time.
During his first election victory, he certainly had his support (I was an advisor to that campaign). But by and large, the atmosphere in December of 2016 was one of surprise. Among some circles, it was one of dismay. And since Trump had won the electoral college, but not the popular vote, there were plenty who said he won on a technicality.
Trump was also trying to get his feet under him those first few weeks. He would later admit that he underestimated just how many appointments needed to be made. And as the first elected president to never hold public office or serve in the military, he had a steep learning curve.
The result was that those early days were chaotic. The cabinet filled out slowly. The appointments were made slowly. And it would be several months before the administration got rolling.
Making matters worse was the litany of attacks. For a time, a good percentage of the American population thought the sitting president was a Russian asset (he wasn’t). It would be difficult to accomplish anything in that environment.
But that’s not happening this time.
They threw the proverbial kitchen sink at the man, and he won the popular vote anyway. This train is rolling, and people are getting on board.
Trump himself also seems different this time. I would occasionally see him during the campaign on trips to Florida. And he actually looks healthier, and less distracted.
Perhaps it’s thanks to experience, but he appears more focused. Here we are just over a month after the election, and the cabinet is pretty much set. The appointments are being made. Heck, he’s already attracting investments and making new allies among the Big Tech players.
I’m Optimistic, Too
Nobody knows what the future will bring. But I count myself among the optimists. If the Trump administration can even just move in the right direction on regulatory reform, tax policy, trade deals, or revitalizing the country’s manufacturing base, I have to believe it will be good for the markets… and the country.
I’m sure it won’t be easy. And I know there will be setbacks along the way. There always are. At Wide Moat Research, we’ll handle them as they arise. And we’ll stick to our mission to find great businesses that deserve your investment.
For the first time in a long time, the country does feel hopeful for what could come next. I do, too.
I believe there will be more millionaires minted over the next four years than at any time in the history of the United States.
Regards,
Brad Thomas
Editor, Wide Moat Daily