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Editor's Note: As chance would have it, Roger, Keith's seatmate on a flight home two weeks ago, is an avid Total Wealth reader and Varney & Co. fan – which is why he recognized Keith immediately when they sat down and why he couldn't wait to pick his brain about what 2017 has in store for investors' money. Roger wanted to know how Keith knew to short Twitter when it was mere weeks away from its all-time high, how he anticipated the "rip your face off" Trump rally when others predicted meltdowns, and how he was so sure that companies like Raytheon Co. (NYSE: RTN) and Altria Group Inc. (NYSE: MO) would do so well in 2016. But most of all, he wanted a peek at Keith's crystal ball for 2017.
Turns out, my seatmate on a flight home last week is not only an avid Total Wealth reader, but also a huge Varney & Co. fan and recognized me when we sat down next to each other.
We proceeded to have a terrific and very exciting conversation about the markets in general as we settled in for the nearly 6-hour flight. Then, he asked the one question I couldn't resist answering any more than I could wait to share with you…
"Gimme five of the most outrageous opportunities you're tracking in 2017."
"First, you've got to set the stage," I began.
That means having a rough idea of where you're going and why. The vast majority of investors never bother, which is why they have trouble turning great ideas into cold, hard cash.
For example, millions of investors bet the wrong way headed into the elections and got caught flat-footed when Trump won. They simply couldn't see the alternative, let alone position their money for the possibility. Now they're in the unenviable position of having to play catch up, which means there's an estimated $2 trillion – perhaps even $3 trillion – on the sidelines.
At the same time, central bankers around the world refuse to give up the proverbial ghost. Despite a mountain of evidence that their policies don't work, they're still in an "accommodative" mood. That means free money for the masses, or at least damn cheap money and upward price pressure on the markets.
Plus, even if Yellen puts in all three of the planned increases she's talked about for 2017, the Fed Funds rate will still be a staggering 66% below its historic average. What's more, it'll still be the slowest interest rate normalization on record.
I think that's good for between $500 billion and possibly even $1 trillion over the next 12 months coming directly into the markets, and all of that has to go to work somewhere. What that means is that you're going to have a lot of money chasing relatively few quality stocks. So you want to own the "quality" stuff they'll be after.
The situation reminds me of the 1950…
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.