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Trump’s Wall Provides Opportunity on Both Sides of the Border

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The infamous wall is really being built. Well, at least in theory. Donald Trump has promised a wall between the U.S. and Mexico since he announced his candidacy in June, 2015. And on Wednesday, he fulfilled his promise. Well, kind of. President Trump signed an executive order to expedite the building of his famous wall, but so far there are few details as to how that will actually happen? What’s next for the wall? And how can investors benefit from it?

Will Trump’s Wall Actually Get Built?

The border between the U.S. and Mexico is 2,000 miles long. And President Trump has promised his wall will be 35-40 feet high.

That’s a lot of concrete.

About 7 million cubic meters of concrete to be precise. Plus an additional 2.4 million tons of cement, according to investing firm Sanford C. Bernstein & Co.

What started as a promise by Trump that his wall could be built for $8 billion went up to $10 billion pretty quickly. Now that cost looks to be around $25 billion. And while Trump swears Mexico will pay for the wall, Mexico’s president, Enrique Peña Nieto adamantly swears that will never happen.

So who’s picking up the bill?

With no details presented by Trump, it looks like that cost falls squarely on U.S. taxpayers. But even if that happens to go through, there’s still the cost of maintaining the wall and the even bigger cost of manning the wall.


The U.S. Border Patrol is already short of being at full strength by 1,200 agents. And a wall without anyone to watch over it is worthless. So Trump would need to find funding for an understaffed, underfunded agency in addition to the cost of building and maintaining a 2,000 mile, 40 ft high, concrete wall.

Don’t forget about privately owned lands and environmental protection laws all along the border, not to mention that the landscape changes, with the Rio Grande changing depth and even direction throughout the year.

When you add it all up, the wall doesn’t sound extremely plausible. However, the fact remains that Trump promised a wall and now is working to expedite its construction.

Image 2 | Will Trump's Wall Actually Get Built? | Trump's Wall Provides Opportunity on Both Sides of the Border

Will the wall actually get built?
That all depends on who you ask, really. But one thing is clear, it’s time to invest in building. And right across the border is one of the world’s top cement producers in Mexico’s Cemex.

Cemex is the only North American company in the to 20 global cement producers. So if Trump wants to build his wall, it will need to be with Cemex’s help. That’s also good news for American factory workers, since Cemex has dozens of manufacturing sites in the U.S.and employs more than 10,000 U.S. workers. That means that if he were to leave Cemex out of the operation, he’d be hurting more than 10,000 U.S. middle class factory workers – his beloved fan base.

Watch the report from Sky News regarding the cost of Donald Trump’s wall on Mexican border:

Whether the wall gets built or not, it’s time to invest in Cemex. Shares of CEMEX, S.A.B. de C.V. (CX) have ticked UP on the news, and make a powerful value buy as the stock should continue to rise strongly.

 

Get the latest news regarding President Trump’s Withdrawal from the TPP right here.

 

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8 Comments

8 Comments

  1. Pingback: Trump's Wall Receives Massive Bidding Interest... But Can it be Built?

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  • greenlantern1 says:

    Trump put a hiring freeze upon federal America workers.
    So much for America building the wall.
    Trump’s cronies will build the wall.
    Just as they “built” his condos in Baja, Mexico!
    Americans will foot that bill!
    How?
    DEFICITS DON’T MATTER!!
    Remember Dick Cheney?
    Republican “economics”?

    • allen blaine says:

      greenlantern, back in 2006 when Obama and Hillary were both in the senate along with Nancy Pelosi and Joe Biden, with a bipartisan vote, passed legislation to build the wall. the only thing Trump did was to order the implementation of that law. Why did you not get upset at that time???

  • geneww1938 says:

    Trump’s team is brilliant and building the Border Wall is the smartest and greatest investment ever made by the USA government.!!! Even without repayment by Mexico.
    The 2011 Martin & Ruark “The Fiscal Burden of Illegal Immigration on US Taxpayers” “estimates the annual costs of illegal immigration at the federal, state and local level to be about $113 Billion; nearly $29 Billion at the federal level and $84 Billion at the state and local level”.
    Today’s and future costs are significantly greater. The $113 Billion did not include the cost of humans and illicit drugs trafficking, lost citizen’s wages, the society’s drug users and crime victims nor positive benefit factors as less crime from repeat deported criminals, safer streets and communities.
    The recent MIT and the anti-Trump Washington Post’s fact checker estimated the wall cost could be as high as $25 to $41 Billion for the entire border length.
    Reducing the annual costs by 10%, the worse-case Washington Post Wall Cost would be repaid within 2 to 4 years !!!
    When did any government (or any financial adviser) make an investment with a 25% to 50% return within the first year and that an annuity for life?
    It would be just a bonus if Mexico made any repayment

  • Art Brown Sr. says:

    Obama just might have given us one of those “Shovel ready jobs” by the way he acted over his eight years has prompted and promoted exactly this response.
    IF I were 20 years younger I would get in the line to be a part of the construction crew ( Labor and Welders Helper experience).

  • Les Morpions says:

    Mexican concrete is poor quailty, just like it’s government and society. Buying Mexican concrete would be putting cash into the pockets of corrupt government/cartel operations.

    Mexico is a cesspool from edge to edge. There is no part of Mexico that is free of corruption.

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