It’s official, the president-elect is going scorched earth.

A little over a week past the election, he’s put forth a string of cabinet picks that have, to say the least, raised a few eyebrows.

Senator Marco Rubio for Secretary of State. Marco’s a conservative “politician” who should have no trouble getting confirmed. 

Pete Hegseth for Secretary of Defense. A Fox reporter?!?! Turns out Hegseth is a decorated 20-year veteran who served in multiple forward areas. He’s also written extensively on the military. Guess you can’t judge a book by its cover.

Matt Gaetz for Attorney General. The head of the DOJ. Gaetz has been a hard core Trump loyalist from day one and has made his share of enemies on Capitol Hill. Watch the fireworks over this one!

And then there’s the department of Health and Human Services — HHS. 

Make America Healthy Again

The incoming 47th president just nominated none other than Robert F. Kennedy Jr. 

“He’s going to help make America healthy again. … He wants to do some things, and we’re going to let him get to it,” Trump said during his victory speech.”

RFK is a noted vaccine critic. We won’t debate the value of vaccines. By 1994, the polio vaccine eradicated the disease in the Americas. On the other hand, you have to admit there are many, many other required vaccines that don’t have nearly the same success.

Vaccine stocks trembled at the nomination. 

But that’s not all. RFK wants to go after the food industry as well. When the sugar lobby sponsored studies that effectively made fat the main culprit where heart disease goes, the American way of life started to change. 

We got sicker. 

And fatter. 

And required more — wait for it — pharmaceutical interventions to keep us healthy. 

We think RFK might be onto something. How much progress he’ll make remains to be seen. But this shake up in the health industry may be offering some opportunities for investors. One notable one… Adidas (OTC: ADDY.Y). 

Everyone knows Adidas. They’re the popular runner up to Nike. (Who’ve been having their own troubles over the past couple years.) And now with a focus on health coming back into the picture with this administration, they could well benefit. 

The company falls into the “consumer discretionary” category which typically performs better during good economic times. Their most recent earnings report (Q2 2024) beat estimates with earnings rising 11%. Additionally the company raised its guidance for all of 2024 expecting operating profits to reach €1 billion up from €700 million. 

Given the recent pullback, they have moved to a better valuation level.

Adidas v. Nike (1 Year)

And in addition to shoe sales, Adidas’ lifestyle and performance businesses are also seeing signs of growth.

Given these developments, Adidas could be worth a look to get your portfolio in shape.