Trump's Stock Picks Are Crushing the Market: Are These 4 Stocks a Buy?

"President Trump has taken an unprecedented step by directing the federal government to acquire equity stakes in publicly traded companies. This move aims to strengthen domestic supply chains for semiconductors and critical minerals amid geopolitical tensions. While the intent to secure U.S. interests is clear, such interventions raise concerns. Government ownership may distort corporate decision-making, prioritize political goals over shareholder value, and invite regulatory scrutiny. It also blurs lines between public and private sectors, potentially undermining market efficiency."

"securing a 15% stake for the Pentagon on July 10 through $400 million in convertible preferred stock plus warrants. It made the federal government its largest shareholder. The deal funds rare earth magnet production at Mountain Pass, California, critical for EVs and defense technology. MP stock has surged 160.9% from $30 to over $78 per share today, boosted by the deal and Trump's new 100% tariff threat on China, after Beijing tightened rare earth export controls."

"Is it a buy? Yes, it remains attractive. China's 90% supply dominance and trade tensions create a moat for MP Materials. Analysts had a $78 per share price target, supported by EBITDA growth from new facilities, but the new tariff regime could boost those targets higher. Despite lithium volatility risks, government alignment strengthens its case, and MP remains a buy for tariff-driven upside."

The federal government has begun acquiring equity stakes in public companies to strengthen domestic semiconductor and critical-mineral supply chains amid geopolitical tensions. Government ownership raises concerns about distorted corporate decision-making, politicized priorities over shareholder value, regulatory scrutiny, and blurred public-private boundaries that may undermine market efficiency. The so-called "Trump portfolio" has produced large gains averaging about 100%, largely driven by market euphoria and speculative hype rather than fundamentals. MP Materials received a 15% Pentagon stake via $400 million in convertible preferred stock and warrants to fund rare-earth magnet production; the stock surged on tariff threats, and analysts see tariff-driven upside despite commodity volatility risks.

Read at 24/7 Wall St.