These Stocks Are the Real Winners of the “Big Beautiful Bill”
Grab your surfboard and get in the water...
You’ve heard me talk about it for months: the “stimulus wave.”
Well, it’s no longer a thesis. It’s happening.
The first big step was Trump’s “Big Beautiful Bill,” a sweeping package of tax cuts, infrastructure spending, and deregulation that passed the House in May. And while the headlines focused on the tax cuts—and the bond market panicked about the deficit—Wall Street mostly cheered. Stocks ripped higher.
And if you’ve been following my work, you know this was exactly what we expected… even if Elon Musk called it an abomination.
But what’s coming next is arguably even more important: the financial plumbing behind this stimulus wave.
Because tax cuts are flashy. Easy to sell to voters. But the real fuel for the next leg of the bull market? That’s coming from something much quieter—and far more technical: the Fed’s treatment of the SLR and the Treasury’s potential return to bond buybacks.
And there’s one stock in particular that will benefit from this.
What is the SLR?
The Supplementary Leverage Ratio (SLR) is a rule that limits how much risk big banks can take. Think of it like a financial seat belt. It forces banks to hold a certain amount of capital against all their assets—including risk-free ones like U.S. Treasuries.
Now during COVID, the Fed temporarily relaxed the SLR so banks could load up on Treasuries without getting penalized. This allowed banks to act as a shock absorber during extreme volatility. When the emergency ended, those exemptions were removed.
But now we’re hearing rumblings that the Fed and Treasury are considering bringing those exemptions back—or even permanently changing the rule.
That’s big news, because if banks are no longer penalized for holding Treasuries, they can start buying them in bulk again. That’s like opening up a massive new pool of demand for U.S. debt—at the exact moment the government is issuing more than ever.
It’s a form of stealth QE. No one calls it that. But functionally, that’s what it is.
Treasury Buybacks are Ramping Up
This one’s even simpler.
For the first time in more than two decades, the U.S. Treasury is buying back its own debt.
Why? Two big reasons:
Liquidity smoothing. Older bonds—known as “off-the-run” Treasuries—don’t trade as often and can clog up the system. By buying those back and replacing them with newer, more liquid bonds, the Treasury can improve market functioning.
Managing borrowing costs. By supporting bond prices, these buybacks can also help prevent yields from spiraling too high. That’s good for the government (lower interest payments) and good for investors (more stability in credit markets).
It’s also a subtle nod to Wall Street that the government has no intention of letting yields spiral out of control—even with record deficits. Think of it as yield curve control… just not in name.
And I expect this dynamic to benefit a handful of stocks, one of which I’m buying today.