I landed in Milan yesterday morning and wasn’t jetlagged. I didn’t get much sleep on the plane, as a crying baby kept us up all night. I don’t miss those flights with Micah. But when someone else’s kid cries, I smile and feel the father’s pain.

No, I was too excited about the Trump Triumph to sleep. After I took the train from Milan to Turin, Pam met me for lunch. Eataly is big in New York now, and we’ve got one in Turin. It was molto delicioso!

Pam told me how upset her American friends were over the election. I’m thrilled. And so is Pam. It hit me in that moment that we’re in an interracial marriage (she’s Asian), but we’re both Trumpians. But that’s easy to explain: we’re Catholic.

Let me elaborate.

The Catholic Vote

The funny thing about being in an interracial marriage is that you never think about it until something like this happens.

Pam and I rarely argue over cultural differences. Rice versus wheat is about as heated as that gets. And that’s because our religion ties us together, even if we’re not “holy rollers.” Catholicism, in and of itself, is a culture.

So, while Ann Coulter reached correct conclusions in her book, The Browning of America, not all of them threaten.

For instance, Coulter thinks lax migration laws have changed American culture over time. I agree, but that’s not necessarily bad. Look at California's electoral maps below, which have been making the rounds on X.

If you go to Google and type “California vote 2024,” you can hover over the red counties. Trump destroyed Harris in those counties. (I’ll talk about the rural vote later.)

California, once a traditional Republican stronghold, may turn red again soon. Once it does, I suspect it won’t vote blue for a hundred years.

I’ve been arguing with friends for years over this.

Sure, when families migrate, they’d love government help. And when those Democrats give it to them, those immigrants will vote for them.

Now, the second generation goes to school, gets a college degree, and goes to a white-collar job, thankful to his father, who may have been a truck driver.

The third generation, who speaks English natively and Spanish as a second language, doesn’t like it when freeloaders come over the same border as his hardworking grandfather did.

He’s a lawyer, or a tech CEO, or a financier. Oh, and he hates abortion like most Catholics do.

Democrats thought they were being clever by letting all those Mexicans in. But they sowed the seeds of their destruction.

How do we know this is the case? Anecdotally, we’ve seen this story before. They’re called Italians, only they came by boats over the Atlantic and had no access to welfare money.

But statistically, get this: first, from The New York Times:

Assuming those Hispanics are Catholic, the swing to Republican red was enormous.

And here’s the overall Catholic vote percentage:

58% to 42% - that’s a 16-point win, huge in political terms.

Picking the Catholic JD Vance as his running mate wasn’t merely intelligent, but a stroke of genius.

The Rural Vote

I left this out of my Wednesday piece, regretfully.

Rural voters were pivotal in handing DJT his victory.

According to Vox, Trump's campaign effectively mobilized rural voters, leading to higher turnout and wider margins in states such as Indiana, Kentucky, Georgia, North Carolina, and the big one, Pennsylvania. 

The New York Post noted that in another win for Trump, Wisconsin, rural voters' overwhelming support (57% to 37%) counterbalanced urban votes and gave him ten electoral votes.

Finally, from The New York Times:

Next, a quick word on the Fed.

Powell and the Fed Cut Again

I’m starting to think Jay Powell throws darts at a board like the rest of us.

Yes, nonfarm payrolls were abysmal earlier in the month. But another cut?

Powell thought it was necessary, as the FOMC cut another 25 basis points, bringing the rate band to 4.50% to 4.75%.

This bodes well for Trump, as he’s a low interest rate guy.

From Nick Timiraos (Nikileaks) at The Wall Street Journal:

“Recession odds have gone down,” said Steven Blitz, chief U.S. economist at GlobalData TS Lombard. Due in part to the Fed cutting rates with a solid economy, “the tailwind for Year One of the next president’s economy is going to be great.”

Blitz is among those who feared a few months ago that the Fed might hold rates at a high level for too long, putting pressure on vulnerable corners of the economy such as domestic banks and commercial real estate that might lead to a sharper slowdown in spending and hiring.

He now thinks the risks are tilted toward inflation proving to stay somewhat firmer than anticipated and running just above the Fed’s 2% target over the coming year.

“Without cuts, the next president would be inheriting what we used to call a growth recession, with positive GDP growth and rising unemployment,” said Blitz. Instead, he said the Fed may find itself in a few months forced to pause its rate cuts if solid growth tells policymakers that rates aren’t as restrictive as they think.

The Markets’ Reaction

It looks like we’re looking at a new bull market.

All three, the SPX, Nasdaq, and Russell 2000, have broken out. We’d expect this with a Trump victory.

But this is interesting: gold and silver miners have also done well.

My guys had a rip-roaring day yesterday, Hecla notwithstanding.

So inflation, with high growth, indeed is the new paradigm for Trump 47. The Everything Rally recommences.

Wrap Up

What a crazy week it’s been! Catholics and farmers have reshaped the American political landscape.

A Trump win, combined with an accommodative Fed, looks to lift the markets over the coming years. Sure, the economy isn’t fixed, but the important thing is to participate.

Sitting on the sidelines, with your cash in a bank, isn’t the risk-free move. It’s a guaranteed loss.

Have a wonderful weekend!