Why Biden’s Rail Plan Is Unlikely to Happen

When I lived in Baltimore, I would often take the train to New York City.

It was cheap, relatively fast, and very relaxing.

But I’ve always found train rides relaxing.

I’m not sure if it’s the rocking back and forth or the rumble of the tracks, but on many occasions, I’ve had to be woken up by the conductor after arriving at my stop.

I also love the trains in Europe — particularly the high-speed rail systems that run so efficiently and are so clean and convenient that there’s really no better way to travel around the continent.  

Unfortunately, we don’t have the same modern-day rail systems in the U.S.

While many countries in Europe, as well as Japan and China, rely on a strong, modern rail system for personal and commercial travel, in the U.S., we just don’t have that option.

Truth is, aside from the Northeast Corridor, the rail system in this country is an embarrassment. Even the Northeast Corridor, while suitable for me, wouldn’t be considered good enough to put in a museum of railroad relics in other first-world nations.

But President Biden wants to change all that.

Under his proposed infrastructure plan, Biden wants to address the mile-long repair backlog that Amtrak’s been sitting on for years. He also wants to extend more service to cities and modernize the Northeast Corridor.

In theory, I like this idea.

But in practice… well, I’m willing to bet it never happens.

Rail Dreams Deferred

Look, I don’t mean to be a downer.

I think this country could benefit greatly from some upgraded rail infrastructure that would include modern, high-speed train networks. But I don’t see how it’ll ever happen.

Given the partisan divide in this country and the most recent failure of California’s high-speed rail venture, which ended up being a money pit of epic proportions, I just don’t see any situation where this would get the support it needs to actually happen.

And make no mistake: What Biden has planned for rail would take decades to achieve too. At best, Biden’s a one-term president, and if a Republican gets into office after him, any kind of rail development would come to a screeching halt, as rail investments tend to go over with Republicans about as well as Rachel Maddow tweets regarding social justice warriors and gun control.

This isn’t a criticism, by the way — just another observation of truth that investors should not trivialize, particularly if you think you’re going to get rich from Biden’s rail plan.

At best, it’s just pocket change.

To be fair, I do expect to see the Northeast Corridor get a major upgrade.  

And that’s because the Northeast Corridor is the only thing that keeps Amtrak relevant as a sizable percentage of this nation’s workers rely on it to get to and from work.  

If the Northeast Corridor came to a grinding halt, billions could be lost in economic activity, and that’s not hyperbole. That’s a fact.

But outside of that, I wouldn’t put too much faith in this idea that a revitalized U.S. rail system is going to mint millionaires, as some analysts would lead you to believe.

Sure, companies such as ABB (NYSE: ABB) and Siemens (OTCBB: SIEGY) could definitely benefit. But any contracts that come from this rail revitalization plan won’t translate into big gains for you.

And really, that’s what we’re primarily focused on here at Energy and Capital: making you the most amount of money possible, typically in the shortest amount of time. Which is why I want to share this with you today…

Beating Warren Buffett

My good friend and colleague, Brit Ryle, created an algorithm a few years ago that, quite frankly, has helped me make a lot of money.

Now, to be honest, I don’t fully understand how it works. All I know is that it uses a set of formulas that identify mathematically undervalued stocks. Brit takes that information, finds the sweet spot, and locks in a buy trigger.

The one I’ll never forget was his call on PetroChina (NYSE: PTR).

It was the first time I made an investment based on his algorithm…

And it was one of the most impressive gains I’ve ever witnessed in my nearly three decades in this business.

Based on Brit’s algorithm, he set his buy at $20.

But it didn’t take long for that thing to explode, getting as high as $246 a share by the time folks decided to cash out.

That’s a gain of 1,230%.

And what makes this particularly interesting is that Brit made this call a full six months before Warren Buffett decided to take a position too.

Folks, I don’t know anyone but Brit who’s been able to beat Warren Buffett to the punch.

Now look, you can certainly try to play the Biden rail revitalization plan to make a few bucks, but you’ll sure as hell get a lot more bang for your buck if you dismiss the pocket change with that and just use Brit’s algorithm, which you can get access to here.

Again, I really don’t know much about how these types of algorithms work. But what I do know is that Brit’s algorithm has helped me make a lot of money — and in a very short amount of time. And honestly, that’s all I care about.

So if you’re looking to take your wealth-building strategy to the next level, I strongly recommend you start using Brit’s algorithm today.

To a new way of life and a new generation of wealth…

Jeff Siegel

Check us out on YouTube!

@JeffSiegel on Twitter

Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

Want to hear more from Jeff? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.