SOMERSET, PENNSYLVANIA—It felt like a carnival.

Live music filled the air, burgers and brats were on the grill, and people lined up for amusement park rides.

But I’m not taking a day off to play.

I’m at my last stop on my Rust Belt Tour—Somerset, Pennsylvania.

At The Palm Beach Daily, we travel the world to pull back the curtain on what’s really going on in the economy.

Right now, I’m traveling through Pennsylvania coal country to see if the economy is struggling as bad as the mainstream media would have you believe.

In Somerset, I got my first whiff of President Trump’s “America First” policies directly leading to positive changes in the economy.

Corsa Coal invited me to this sleepy community of 6,000 to attend the grand opening of its Acosta mine.

Corsa estimates the mine will create 70–100 jobs over the next 15 years. Another 200–500 support jobs could come to the region.

That’s a huge deal… Not only for Corsa Coal, but for the entire industry.

Coal mining is one of the most regulated industries in the world. But President Trump is taking an ax to those regulations.

And that will kick-start some mining companies. That’s why I’m here today…

Public Enemy No. 1.

Over the past decade, the media, politicians, and environmentalists have been calling for the death of coal. As a result, the industry has been struggling.

Since 2012, the number of coal miners has dropped from 91,600 to 66,000—a 28% decline.

And production has decreased from 1.1 billion tons to about 900 million—an 18% drop.

During the Obama administration, many regulations targeting the coal industry were passed.

The most controversial was the Stream Protection Rule. The rule was meant to protect waterways from coal mining waste.

And while that’s a noble goal, industry officials said the rule would be costly to implement and cut thousands of jobs.

One of President Trump’s first actions was to repeal the rule.

At the Acosta mine’s grand opening, rumors swirled that the president would be in attendance… However, it turned out he couldn’t make it.

But Trump did record a video message that was played at the event:

One by one, we’re eliminating the regulations that threaten your jobs, and that’s one of the big reasons you’re opening today: less regulation.

(You can watch the video right here.)

Here’s a view from atop the Acosta mine pit

To be clear, this mine was going to open no matter who got elected president.

But Corsa Coal CEO George Dethlefsen said easing regulations under President Trump will be a tailwind for the industry.

“Now the Environmental Protection Agency is balancing economic interests versus environmental interests,” he said. “How we staff the mine and how the shifts run will be different.”

George said Trump is a big supporter of the steel industry, too. And coal is a major component of the steelmaking process.

“Trump also helps the cost side of the equation. That makes a difference in how we run our mine,” George said.

With much of the regulatory uncertainty removed, George said he can now hire more people.

Here’s a view from inside the pit

“Make Coal Great Again”

At the grand opening, Corsa Coal hung a sign saying “Make coal great again.”

And we agree.

If you want an easy, one-click way to buy coal, consider the VanEck Vectors Coal ETF (KOL).

KOL was up over 100% in 2016. But the coal industry has been so depressed over the past five years, there’s still room for coal stocks to go higher.

For coal stocks to reach their previous highs from 2011 (before burdensome regulations were piled on), KOL needs to rise over 300% from today’s prices.

KOL is the best way to get broad exposure to the industry.

Meanwhile, we’re looking at coal companies to add to our America First portfolio. So stay tuned…

Regards,

Nick Rokke, CFA
Analyst, The Palm Beach Daily

MAILBAG

Palm Beach Confidential editor Teeka Tiwari’s cryptocurrency portfolio has been on a tear, including one pick up over 8,035% in four months. And his readers couldn’t be more pleased…

From Robert N.: I started your Palm Beach Confidential service in April. So far, l was able to raise $6,000 to put into bitcoin. I have $2,000 of it still in bitcoin. The rest I have put into the trades you advise. Most of the positions have been below $400.

As of today, when I checked, they are worth over $18,000. Over 300% increase. So you were correct in stating that a small investment would bring a tremendous upside.

You may want to remind your subscribers who don’t have a huge amount of capital to invest that even small positions will bring great rewards. I was skeptical when you first stated it. I wanted to see if you were right or not.

It took a lot of learning on my part to get used to trading these coins and currencies. But it was well worth the effort.

From Karen W.: Dear Teeka. I want to thank you for all the work you put into Palm Beach Confidential. It is mind-boggling the number of cryptocurrencies out there… and all the research you do to bring us the best ones. Your work allows us to dip our toes in these strange waters and see what we can do. I hope you get to catch up with your wife and family in between all your trips. I wish you all the best!

From Lacsap K.: Dear Mr. Tiwari, I want to thank you from the bottom of my heart for your awesome recommendations! I have been subscribed to many high-end publications over the years… but you are the only one that was worth the money for a man with minor means.

With all the profits I’ve made from your recommendations, I will pay off my credit card and other debts… and still have some left for a small car and a nice vacation. You have truly changed my financial life. Thanks so much! Now a subscriber of yours for life.

From Rick H.: I subscribe to The Palm Beach Letter and Palm Beach Confidential. It’s only been a couple of months but I’m already a huge fan. On one recommendation alone, PBC has already paid back its cost. Thanks to you all!

And a reader wants more information on the U.S. pension crisis…

From Robert S.: I’m writing about your June 12 essay, “Three Things Every Pension Member Should Do.” I read the essay and it contains no such steps to check on the status of my pension, just a vague statement to watch the news. When I read the essay, I expected the link to contain a list of three specific steps to take to analyze the health of my pension’s fund.

Why the obfuscation? A deliberately false lead-in like this makes me doubt the quality of any of your recommendations.

Nick’s Reply: Thank you for the note, Robert. The essay you referred to had three steps to take today to protect yourself in case your pension plan
fails. Above those recommendations, Teeka explained how pension plans hide the fact they are underfunded.

To check the health of your pension plan, you need to read your plan’s annual report and look for the funding status. You want to see this status over 100%.

But more importantly, you want to see the expected rate of return. Most pension plans erroneously put this number at 7.5%. With their current investment mix, this will never happen. We think the proper expected rate of return for pension funds in today’s environment is 4.5%.

If you’re a Palm Beach Letter subscriber, you can read our full pension special report right here. It includes several safe-haven assets you can use to protect yourself from the pension crisis.