Donald Trump seems to have the Midas touch when it comes to the stock market.

On his initial promises to increase infrastructure spending, stocks like H&E Equipment (HEES) soared from $12.38 to a high of nearly $27.

On his promise to build a wall along the border of Mexico, related stocks like Martin Marietta (MLM) ran from $178 to a high of $242.

Even banking investments, like the XLF ETF, for example, exploded on the anticipated rollback of the Dodd-Frank bill.  In fact, the XLF ran from a November 2016 low of $19.64 to a high of $25.21.

Then, after signing a new executive order on cyber security in early May 2017, cyber security stocks, like FireEye (FEYE) jumped from $14.78 to $16.12 in one day.

But some of the most impressive stock moves we’ve seen recently were in America’s most powerful military stocks.  Virtually every major defense company sat atop record highs after President Trump signed a tremendous weapons deal with Saudi Arabia worth $350 billion over the next decade with nearly $110 billion to take effect immediately.

“This package of defense equipment and services support the long-term security of Saudi Arabia and the Gulf region in the face of Iranian threats, while also bolstering the Kingdom’s ability to contribute to counter terrorism operations across the region,” according to the White House, as quoted by CNBC.

Reportedly, the deal will include the sale of everything from tanks and ships, to missiles, helicopters, and THAAD missiles made by Lockheed Martin (LMT), which just ran from a recent low of $267 to $278.

Since the election these stocks have run up nicely and should continue to do so with the Saudi deal:

  • Raytheon (RTN) ran from $156 to $162.50
  • Boeing (BA) ran from $175 to $184
  • General Dynamics (GD) ran from $191 to $199
  • Northrop Grumman (NOC) ran from $243 to nearly $252

Even small-cap defense stocks, such as Kratos Defense & Security (KTOS) recently ran from a low of $9.50 to $10.50 on the news.

Better yet, the deal could lead to explosive jobs growth in the U.S., as well.

Commenting on the agreement, Lockheed Martin stated that the deal "will directly contribute to [Saudi Arabia's] Vision 2030 by opening the door for thousands of highly skilled jobs in new economic sectors."

In fact, according to Bloomberg, the Saudis could invest up to $40 billion just to assist with the U.S. infrastructure program.  Should that happen, related stocks – like HEES – could become some of the hottest stocks to own.

We’ll be sure to keep an eye on those very opportunities in The Cheap Investor.