“It pays to watch closely what’s happening in Washington.”

For example, I’ve long argued that much of the public funds spent to combat climate change are wasted.

Yet I was surprised to recently learn how much money is wasted.

An evaluation by the Berlin-based Mercator Research Institute of more than 1,500 climate policies in 41 countries found that only 63 actually worked to reduce greenhouse gas emissions.

That’s about 4% of them.

Still, I’ve recommended several clean energy companies that have delivered great returns, due in part to generous but ill-advised government subsidies.

The lesson: It pays to watch closely what is happening in Washington.

You might wonder why, if I generally avoid talking about politics, I’m doing so now?

The truth? It’s vital that investors understand how politicians – and especially political campaigns – undermine the pursuit of your investment goals and negatively influence your view of the economy and the nation.

Most voters – or at least most partisans – believe that politics is about principles… and platforms… and policies.

And it is. But for the politicians, it’s mainly about something else: winning.

Politics is about gaining, holding, and wielding power.

It’s a battle of ideas. It’s also a zero-sum game. In every election, someone is going to win. And someone is going to lose.

The stakes are huge. Our lives, our economy, and our country are enormously affected by the policies that are debated, voted on, and signed into law in Washington.

Politics is war. And, as we’re told from an early age, everything is fair in love and war.

For example, the presidential incumbent claims credit for everything positive that happened on his watch, no matter how tenuous the connection.

(Yes, policies have consequences. But there is no lever in the Oval Office that controls inflation, interest rates, commodity prices – especially gasoline – economic growth, business developments, scientific innovation, geopolitics, the performance of the financial markets, and even the temperature of the Earth.)

Incumbents – or their successors – will also claim that every negative development during their term was caused by circumstances beyond their control – or, better yet, by their opponents and their party – no matter how clear and direct the connection to the incumbent’s own actions and policies.

The next step is to define the opposition… in the most unflattering light possible.

Deride their character. Undermine their experience. Highlight their past mistakes. Point out their flip-flops on the issues. Warn voters about their real or perceived shortcomings and their dangerous intentions.

And be sure to insist that this is the most important election of our lifetime.

Just like the one four years ago. And the one eight years ago.

Some of the brickbats – especially the ones based on past votes and current proposals – are fair game and well deserved.

But a lot of today’s politics is nothing more than fearmongering about the dystopian future we will all face if the other guy (or gal) gets elected.

This is where investors get scared and nervous and often flee volatile but high-returning stocks for the safety of lower-returning cash.

They usually end up regretting it.

YOUR ACTION PLAN

I don’t want you to be scared and nervous, and the numbers don’t lie – politicians are some of the most profitable people on earth.

Which is why I’m showing how you can make massive potential gains by following along with their trades.

Click here to see how congress members are getting rich off Trump’s trade war.

Good investing,

Alex

FUN FACT FRIDAY

Magnificent 7 tech stocks through the first half of 2025: While 2024 was a strong year across the board for the big tech groups, 2025 has been more varied. So far, Meta Platforms (META), Microsoft (MSFT), and Nvidia (NVDA) are the only three companies up so far in 2025, with Meta leading the way up 19.2%, MSFT up 11.6%, and NVDA up 5.5%, respectively.