New Trade for December 7th, 2020

Stocks are mixed this morning with the S&P 500 and the Dow Jones Industrial Average lower, while the tech heavy Nasdaq is slightly higher.  

As president elect Joe Biden and the new administration fall into their rightful place, investors are looking to estimate policy changes that will affect the markets.  Today’s trade alert highlights one investment that will likely fare well as the Biden administration’s initiatives take hold.   



Real estate investment trusts (REITs) were an unintended casualty of the 2017 Tax Cuts and Jobs Act.  Trump’s signature tax reform lowered the corporate tax rate from 35% to 21%, which was great for traditional corporations, but it made special tax shelters like REITs less attractive by comparison.  REITs are not required to pay federal taxes so long as they distribute at least 90% of their profits as dividends.  

Joe Biden’s tax plan would raise corporate taxes back to 28% and would more aggressively tax foreign income.  It also is specifically designed to force large, profitable tech companies to pay more.  All of this bodes poorly for the stock market, but it would be a good thing for REITs, their special tax status might actually be appreciated again.  

Real estate also provides diversification.  While REITs are still stocks, they don’t always move in the same direction as the broad market.  And their above-average dividend yields are a nice shelter in a downturn.



Boston Properties (BXP) is arguably the king of office space: It owns prime properties in New York City, Boston, Washington D.C., San Francisco and Los Angeles.  It owns 51.9 million square feet and 196 properties, including Times Square Tower in New York City and the Prudential Center in Boston.  It also has 13 other properties under construction, according to S&P Capital IQ.

Office space is economically sensitive, and as the economy has slowed, so have office REITs, which have lagged the average real estate investment trust over the past year.  Indeed , BXP shares have delivered a total return of less than half the FTSE Nareit All Equity REIT Index in that time.

BXP is one of the best REITs to buy in a difficult segment of real estate.  Boston Properties’ high-quality holdings are a good place if you’re hoping the economy will rev up again — or if you simply want a stake in the nation’s hottest office markets.  The rapidly growing dividend is a nice draw too.  Currently the stock offers a 3.75% dividend yield.  

Where to invest $1,000 right now...

Before you consider buying Boston Properties, you'll want to see this.

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And it's not Boston Properties.

He bought Netflix at $7.78, Apple at $1.42, Amazon at $48 and Now he's going all-in on the one stock driving the next big tech trend that will make investors rich in 2022.

You can learn all about it on Mr. Tilson's Website, here.

Wondering what stock he's investing in?

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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

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NEXT:



Trump To Launch New Manhattan Project
That Could Make Early Investors A Fortune

As you know, the Manhattan Project in Los Alamos was a historic initiative that helped the U.S. defeat Hitler and make America the world’s undisputed superpower for generations to come.

But what you may not realize is…

The Manhattan Project was equally amazing for investors, too.

In fact, a small handful of tech stocks that helped Roosevelt and Oppenheimer launch the Manhattan Project soared for two straight decades, handing investors windfalls of 5,000% to 10,000%.

It was so lucrative… A mere $1,000 into each of these stocks would have turned into over $570,000.

A stake of $10,000 would have turned into $5.7 million.

So why am I telling you this now?

Because as you’re about to see here…History doesn’t repeat, but it often times rhymes.

And by April 30, a whole new Manhattan Project is set to begin:

Trump’s Manhattan Project.

Folks, I just spent six months investigating this…and what I found is shocking.

Trump is going to launch this new Manhattan Project on April 30 by Executive Order 001.

It will be a full-blown, balls-to-the-walls, do whatever it takes effort by the United States to control the most powerful technology ever conceived.

It will radically alter human history in a way we’ve never seen before.

And just like the original Manhattan Project… early investors will have a chance to become rich beyond their wildest dreams.

I believe a whole new generation of millionaires will be minted beginning April 30.

You could be one of them.

Click here and I’ll show you exactly how to position your money so you can claim your fair share of wealth that will flow from Trumps first big move.

Regards,

Ian King
Chief Strategist, Strategic Fortunes