Whatever your political persuasion, you have to admit at least one thing: The unexpected election of a former reality television star with no government experience to the most powerful job on the planet was a "black swan" event.
Brace yourself for more shocks in 2017.
The best way to make new money in the new year is to take the world as it is, not as you want it to be. That means you should tap into trends that will inexorably march forward, regardless of temporary economic cycles. Below, we pinpoint three stocks that will profit from grim global realities.
Severe weather incidents, terrorist attacks, armed strife, famine, environmental destruction, social unrest... The human race must contend with a wide range of apocalyptic dangers. Climate change only worsens the growing sense of global peril.
As President-elect Donald Trump puts together his cabinet, we're getting a better idea of what to expect in 2017 and beyond. Judging by the pedigree of his nominees, there will be no action on climate change, environmental safeguards will be dismantled, overseas conflict will become more likely, and political instability at home and abroad will increase.
That's why "disaster capitalism" is one of your best investment bets today. These three construction-related companies are leaders in helping beleaguered governmental and corporate managers on the front lines.
Texas-based Fluor is the largest and best diversified company in its sector, providing engineering, construction, maintenance, and project management services around the globe.
With a market cap of $7.58 billion, the company operates in five segments: Oil & Gas, Industrial & Infrastructure, Government, Global Services, and Power.
Fluor's revenue mix provides a measure of stability in an otherwise cyclical business. The resurgent energy patch, particularly shale development in North America, will drive upstream infrastructure work for Fluor. Remedial work from fracking pollution and mishaps also provide steady revenue for the company.
Fluor is a major player in nuclear power construction, remediation and decommissioning, which is enjoying a renaissance after several years of stagnation.
The average analyst expectation is that the company's earnings will grow 9.4% over the next five years on an annualized basis.
With a market cap of $2.49 billion, Tetra Tech provides consulting, engineering and technical services for the water, environment, energy, infrastructure and natural resources sectors.
Tetra Tech's clients include federal, state and local government agencies in the U.S., as well as commercial and international clients. The company also has a growing presence in the energy sector, for pollution prevention and remediation.
Founded in 1966 and headquartered in Pasadena, Calif., Tetra Tech prepares facilities, infrastructure and supply chains for the worst and comes to the rescue when the worst actually occurs.
For more than five decades, Tetra Tech has responded to thousands of chemical, biological, radiological, nuclear and explosive releases, as well as natural calamities such as hurricanes, tornadoes, floods, and earthquakes.
The company's services include search and rescue, as well as infrastructure repair. Tetra Tech is now involved in the establishment of tsunami warning centers commissioned by the U.S. government.
Tetra Tech's stock trades at a trailing P/E of 30.7 The average analyst expectation is that the company's earnings will grow 11.5% over the next five years on an annualized basis.
With a market cap of $44.62 billion, ABB is a global diversified powerhouse that's also a "go-to" company when emergency construction is needed. A manufacturer of electrical equipment for utilities and industrial customers, ABB operates through five divisions: Power Products, Power Systems, Discrete Automation and Motion, Low Voltage Products and Process Automation.
This revenue diversification bestows stability during economic downturns. But it's when the economy picks up that ABB really outpaces the broader market. ABB's stock is up 18% year to date, compared with a gain of about 11% for the S&P 500 .
ABB plans to spend more than $1 billion annually on research and development, as it combines conventional manufacturing capabilities with advanced technology. Management is positioning the company to reap long-term growth from the burgeoning demand for industrial robots. Remote- controlled devices and robots are especially useful in hazardous materials cleanup, such as contaminated nuclear power plants.
The stock trades at a trailing P/E of 27. The average analyst expectation is that the company's earnings will grow 6.2% over the next five years on an annualized basis.
Trump's shocking election as president has turned the investment world upside down. If you're looking for new (and safe) growth opportunities in these uncertain times, we've found a genius trader who turned $50,000 into $5 million by using his proprietary trading method. For a limited time, he's guaranteeing you $67,548 per year in profitable trades if you follow his simple step-by-step process. Click here now for details.
John Persinos is an investment analyst at Investing Daily. At the time of publication, he owned none of the stocks mentioned. Persinos appears as a regular commentator on the financial television show "Small Cap Nation." Follow him on Twitter.