In our Aug. 11 Private Briefing report "What Does This 'Mysterious Signal' Tell Us About CB&I?" we said we suspected that super-investor Warren Buffett would use the sell-off in Chicago Bridge & Iron to boost his stake in the Netherlands-based infrastructure specialist.
That's exactly what happened.
Here's why and here's how to profit by following the same techniques...
This Ominous Risk to Your Capital Is Growing
If there's one thing that concerns everyone it's a threat to their capital.
So you'll be interested to know that the risk of a new type of strategy to capitalize faltering banks keeps growing every day.
It's a strategy that's been tried before, with just enough "success" to be dangerous, and it puts your hard-earned capital at risk.
I've promised to keep you abreast on the evolution of this insidious way for governments to offload risk. Also I wanted to update you on how to protect yourself against these measures impacting your portfolio.
Today I have news on both fronts that's both unsettling and enlightening.But let's start right now at the beginning and look at how your capital may be at risk, and what's so alarming...
Blues for a Blue Chip: General Motors Needs to Go Further
Last year, GM sold 2.8 million cars and truck.
Many on Wall Street and in the mainstream financial media are saying this is a "buy" opportunity.
And The New York Times recently spun slightly increased sales as a huge victory for the company.
Now you know that I'm a GM guy. So you know that I'm not making this next statement lightly.
I just can't join along with Wall Street's talk of a turnaround.You should not look on GM's recall problems as a new buying opportunity. In fact, you should avoid this stock.
And today, I'm going to tell you exactly why adding GM to your portfolio right now would be a bad decision.It hurts to do so, but I feel I owe it to you...
Act on This Massive Profit "Spark" Ahead of the Big Boys
It's easy to see why investors pile into a company's stock on the heels of highly successful products, technologies, or services.
Investors rewarded Apple shares after their steady flow of innovative product launches, while Google shares have been on an almost uninterrupted rise since its 2004 IPO.
Even Facebook has recovered nicely after its initial IPO debacle.
In each of those examples it's tempting to focus on the products the company offers, to draw a direct line to their success. iPhones and the introduction of stylish touchscreen interfaces in the case of Apple, the aggregation and accessibility of all things data-related in the case of Google, or just mere self-indulgence in the case of Facebook.
What's important to notice, though, is that in each case we likely wouldn't be talking about them had it not been for shrewd leadership at the top.
For small caps, finding the right leader can prove a more critical "spark" to major profits... Full StoryRead More...
Stop This Threat to Your Income in Its Tracks
I really do hate to say this, but the government threat to your assets is growing... again.
We've seen it happen in Cyprus, where bank accounts were "raided" to bail-in the country.
We've seen it in Argentina, Poland, Hungary, and other nations where private pensions were nationalized to help the countries' ballooning debts and deteriorating sovereign credit ratings.
I even warned you that the new MyRA accounts could be a shrewd way to get at your savings, and that the IMF was floating the idea of a "capital levy - a one-off tax on private wealth..."
Well, now a French "economist" is using his best seller as a platform to advance a tax "plan" centered on your wallet... Full StoryRead More...
How Wall Street Plays the Dark Pools Game
Most people who are just "in the market" don't understand high-frequency trading (HFT) and dark pools.
My knowledge of HFT and dark pools dates back to the late 1990s, when I was trying to figure out how to get better executions on the large trades my hedge fund was generating. I consider myself a bit of an expert.So, for all of you who want to know more, I’m going to share some of that expertise…
Put Money in Your Pocket… And Send Wall Street on the Run
It was Sir Francis Bacon who gave us the truism that "knowledge is power."
And the 17th century English philosopher and statesman did so centuries before Wall Street was even conceived.
But the brokers, fund managers, and other pros who dreamed up the investment markets knew a good thing when they saw it. They embraced Bacon's maxim, launched the first U.S. stock exchange in 1790, and spent the next two centuries transforming this country's individual investors into scared vassals of the Wall Street elite.
And the big banks, brokerages, and other investment pros did this by never forgetting the simple precept that "knowledge is power."
I see this play out on an almost-daily basis thanks to the endless streams of impenetrable reports that come from the bankers in New York or our elected leaders in Washington.
Most Main Street investors lack the knowledge to "decode" these reports, so they also lack the power to respond in a constructive manner.Instead most of us just react - panic, really. Here's a better idea that will lead to profits...
This 13th Century Tool Can Make You Serious Money Today
Every once in a while, I like to circle back to some of the great questions I get from you.
Today, I want to dive into one from Suzanne P., who wants to know if “Fibos” can help her make money in the markets.
In a word, yes. But, you’ve got to understand what “Fibo” analysis is and how it works to make it profitable… Full StoryRead More...
These Basics Will Make You Big Money in the Markets
I'm always getting emails from folks telling me how badly they want to make money in the markets.
The problem is that a good many of these readers confess that they are literally just getting started.
So right now, I'm going to begin at the beginning - and show you how to make money in the markets from square one.
Today is all about stocks.
In future columns, I'm going to talk about bonds. After that I'll get into options, futures, and other derivatives (they're easy).
And finally I'll show you how they all - stocks, bonds, options, futures, and derivatives - come together every day.
When it's all said and done, I promise you will understand everything about investing and marvel at how simple it all is.
You'll know more than your friends - even more than most brokers. And you'll start "seeing" the money in the markets.
So, let's get started.
Here are the absolute basics, the things you need to know about stocks...Full Story
A Map to Turn Fear into Profit
Last Monday, I shared a chart with Money Map Report subscribers and suggested they may want to batten down the hatches because I saw a 30- to 40-point drop happening by the end of the week.
Now I want to share that same chart with you plus a new one - and encourage you to do the same thing.
The shellacking the markets took last Thursday is the most powerful warning sign we've seen yet that things are not what they seem in the financial markets. For lack of a better term, it's a bearish omen, despite Monday's recovery.
Today I want to talk about what that means for your money and what you can do about it in the name of protecting your money and, more importantly, the pursuit of profits.
Contrary to what you might believe, not all bears are bad news.Let's start with the chart....
Seize Massive Wins (Without Losing Sleep)
History is literally chock-full of compelling examples of small-cap stocks delivering 1,000% returns to shrewd investors who got in early.
With those kinds of returns possible, it's no wonder investors are so excited by small-cap stocks.
Unfortunately, though, in many cases that same excitement leads less disciplined investors to throw away all sense of risk management and proper portfolio structure in the pursuit of outsized gains - and that's a big mistake.
For every story of a $5.00 stock exploding and becoming a $50.00 stock, there are countless examples of companies flaming out, leaving investors with worthless shares.
That's why it's so important to have a risk-management strategy in place - and one that's tailored for small-cap stocks.
That way you can seize the great opportunities for massive wins... and still sleep easily Full Story.
The Best Play for a Scary Market
U.S. blue chips suffered their biggest drop in five weeks recently because the latest round of economic reports are fostering a lot of uncertainty about the prospects for continued global growth.
For most investors, it's been that kind of year.
But I continue to believe that the tech sector - especially here in the U.S. - still has a lot of fuel left in its tank.
Because I know a lot of you folks are concerned, I thought we'd take the time to alleviate some of those fears... and make some money along the way.
And the best way to alleviate fears is to initiate a plan of action.
So that's just what we're going to do.
Today I'm going to show you a strategy that will help you put the odds in your corner.
And I'm even going to give you a tech stock that will get you started.
When you're done reading this, you'll be ready to laugh at the next sell-off. Full Story Read More...
Triple-Digit Gains… With Easy "Insurance" Against Risk
How do single-day stock gains of 40%, 50%, 75%, even a 100% or more sound? If you're anything like me they sound pretty darn great.
Those kinds of gains happen almost every day, but the mainstream financial media would much rather focus on recent stories such as: FB jumps 14% on increased mobile revenue, GOOG rockets ahead 13% on higher top line, or TSLA up 8% on higher than expected sales of the Model S.
Small-cap biotech stocks can deliver triple-digit gains – or they can crash if clinical trial results disappoint.Here's how to limit your losses...
My "Sominex Strategy" for Big Profit in This Rocky Market
"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it." -Warren Buffett
It's tough to argue with the "Oracle of Omaha." And Buffett is right: Investor "folly" creates some of the biggest moneymaking opportunities you'll find in stocks.Just look at the whipsaw-trading we've been seeing in recent weeks...
We Found a Clear Path to Energy Profits, Even in Volatile Markets
It was quickly becoming OPEC's worst nightmare. By the mid-1980s, oil prices had begun to collapse.
What's more, renegade cartel members were selling more oil than their monthly quotas allowed, which merely made a bad situation even worse.
Ordinarily, that was a point when the Saudis usually would step in and cut their own exports.
But by then, the pricing situation had become untenable. Instead, the Saudis embarked on a bold new strategy.
First, they opened up their own spigots and flooded the market with crude. This taught those recalcitrant OPEC members a big lesson about lost revenues.To continue reading, please click here...