Money Morning - We Make Investing Profitable » Keith Fitz-Gerald https://moneymorning.com Global Investment News en Sun, 23 Feb 2020 05:06:42 +0000 Sun, 23 Feb 2020 05:06:42 +0000 "Future-Proof" Your Portfolio Today, and You'll Be Ready for Any Market Event https://moneymorning.com/2020/02/19/future-proof-your-portfolio-today-and-youll-be-ready-for-any-market-event/ https://moneymorning.com/2020/02/19/future-proof-your-portfolio-today-and-youll-be-ready-for-any-market-event/#comments Keith Fitz-Gerald Wed, 19 Feb 2020 10:00:01 +0000 Today I want to talk about something that's on a lot of people's minds at the moment - a concern I've heard from a lot of readers lately...

That is the prospect of a market crash in the weeks ahead.

Now, a crash is possible. The reasons why range from COVID-19 (the novel coronavirus) to the upcoming presidential election to another terrorist attack.

However, it's important to remember that nobody knows for certain what's going to happen. So do not let these - or any - uncertainties throw you off your long-term investing plan or cloud your thinking. Remember that making investing decisions based on emotion can lead to big losses.

What's best to ask is whether a market crash is probable. This allows you to prepare ahead of time for the unknown, which makes all the difference.

Take the coronavirus. Many analysts are calling it a black swan event, meaning it's unpredictable. But at this point, I think it's more like a "gray swan" - we know this thing is coming.

But the markets do not reflect this possibility. Even with Tuesday's market drop, major indexes are flirting with all-time highs. The melt-up that I told you was likely last fall seems unstoppable.

Well, I don't particularly like surprises. And this all leads to me to think there's another shoe out there getting ready to drop. Some folks may or may not share that opinion, but what we do share is the desire to future-proof our portfolios and our wealth.

So here are the steps to take to ensure both are protected...

The Markets May Be Uncertain, but You Don't Have to Be

There are three steps to take to "future-proof" your portfolio so you're prepared for whatever comes next.

The first thing you need to do is to make a short list of companies that you'd sell and those you'd keep if there's a sudden downdraft.

Mind you, this doesn't have to be complicated.

The easiest way to do this is to simply ask yourself which companies have the strongest performance and the clearest path to profits.

The answers will become self-evident pretty quickly when you line them up with my Six Unstoppable Trends and whether or not the companies that interest you make "must have" products or merely the "nice to have" variety.

Using this same logic, Apple Inc. (NASDAQ: AAPL) is a keeper at any price. Uber Technologies Inc. (NYSE: UBER) is one to toss.

The second step to take is to bring your trailing stops up nice and tight - probably even tighter than you're used to.

As a quick reminder, a trailing stop is an advanced options order that automatically tracks the prices of your options positions and then sells them automatically when their value declines by a predetermined amount from the highest price achieved.

If, for example, you identify a company you want to "throw" away and you're running at a 25% trailing stop as a rule of thumb, consider bringing that up to just 5% or even tighter to get out early if and when there's a rollover.

There may not be, so this strategy gives you the freedom to ride along to more profits. That's a win-win.

And finally, the third step to take is to get ready to buy.

Now, I know that catches a lot of people by surprise, but you really do want to play offense when things go south.

As I've mentioned before, when there's blood in the streets, buying is the single most powerful move you can make - even if you're scared to make it. While it may come across as counterintuitive, non-obvious advice, history shows that it's very, very valuable.

In fact, the late Sir John Templeton - arguably the greatest global stock picker of the century - had a term for what I'm talking about. He called it "buying at points of maximum pessimism."

With that in mind right now, I'm particularly focused on companies that do not have a lot of coronavirus exposure and which may be even stronger when the virus really takes hold. It's a pretty short list of firms, as you might imagine.

And if you'd like to find out what two of my favorite companies from that list are, you can click right here to join my Money Map Report service to join several hundred thousand savvy investors to gain an edge over Wall Street.

I'll be sure to keep a close eye on the market in the next several weeks in order to bring you the latest updates and ways to play it for the most profits while protecting your money at the same time.

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You Don't Need a Ton of Money to Build Your Wealth https://moneymorning.com/2020/02/16/you-dont-need-a-ton-of-money-to-build-your-wealth/ https://moneymorning.com/2020/02/16/you-dont-need-a-ton-of-money-to-build-your-wealth/#comments Keith Fitz-Gerald Sun, 16 Feb 2020 10:00:16 +0000 There's one important point that I make sure to remind my readers of often because it keeps them on the path to wealth when they're tempted to step out onto the sidelines.

It's easy to forget this or get discouraged during your investing journey. Even seasoned investors can have moments of doubt when they hit a setback. But the powerful truth is that it's completely real and achievable.

The message is this: It's absolutely possible to become a millionaire, even without a lot of money to start with.

And the key to turning a little into a lot is surprisingly simple.

Now, one hurdle to overcome is to not let yourself be "beaten" before you even start.

I've seen it happen. People fall prey to get-rich-quick schemes, fancy trading seminars, and all sorts of investing-related hooey that races across the Internet. Worse, they decide they're only going to "lose" so much in the effort to line up big profits.

Building real wealth takes diligent effort, focus, and discipline. There will be ups and downs. There will be losses along the way.

But don't believe anyone - even the voice inside your head - telling you that it's not possible. You can turn a little into a lot.

The answer isn't money. It's time.

Let me show you...

There's Always Time to Build Your Wealth

People tell me frequently that they're starting late, that they're uncertain what they can make with the time they have. They say they don't have "time" when it comes to building wealth.

But I beg to differ.

It's a valid concern. But it's a not show-stopper.

Think back to 2001, when the late Steve Jobs promised "1,000 songs in your pocket" using a never-before-seen digital music player he called the iPod. Millions of people couldn't wait to plunk down a cool $399 to get one.

Consider the alternative, though. Had you taken that same $399 and put it in Apple's stock instead, you'd be sitting on more than $93,000 in Apple shares today.

Look at these even smaller time frames...

Apple Inc. (NASDAQ: AAPL) doubled last year.

Alphabet Inc. (NASDAQ: GOOG) has tacked on 190% over the past five years.

Amazon.com Inc. (NASDAQ: AMZN) has chalked up 1,760% over the past 10 years.

Each of the companies I've just mentioned could easily double in the next 12 to 24 months, barring a major market reset. There's actually plenty of time.

You just have to know where to look.

The world's best companies are creating wealth faster than at any point in recorded history, and the markets reflect that.

It took 88 years for the Dow to first cross 1,000 points - back on Nov. 14, 1972.

It only took another fourteen years to go up another 1,000 points - on Jan. 8, 1987.

Fast-forward to 2017, when the venerable index crossed from 24,000 to 25,000 in just 24 trading days from Nov. 30, 2017, to Jan. 4, 2018, the fastest 1,000-point run in market history.

You can buy a single share of any of the companies I mentioned earlier any time you want if that's what you can afford. Ironically enough, Apple is trading at $322 a share (or $77 less than the original iPod) as I type. Alphabet is at $1,525 a share while Amazon is at $2,183.

Or, you can start by investing in a mutual fund like the Vanguard Wellington Fund (MUTF: VWELX), which offers you exposure to all of these names, plus another 41 holdings with high growth potential in the tech space. The initial investment is a low $3,000, and the expense ratio is an ultra-low 0.25%.

If you're after a new choice, one that you haven't thought about before, I urge you to check out Money Map Report. I just released a brand-new recommendation last week with the potential to triple in 36 months or less. Check out the recommendation and many more just like it.

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Two Easy Moves to Protect (and Grow) Your Portfolio During a Market Panic https://moneymorning.com/2020/02/02/two-easy-moves-to-protect-and-grow-your-portfolio-during-a-market-panic/ https://moneymorning.com/2020/02/02/two-easy-moves-to-protect-and-grow-your-portfolio-during-a-market-panic/#comments Keith Fitz-Gerald Sun, 02 Feb 2020 12:30:24 +0000 Contrary to what many investors believe about current market conditions, you don't have to let everything in your portfolio go to hell in a handbasket because of the coronavirus... or any other panic-inducing sound bite.

In fact, quite the opposite is true - and I'll show you why in a minute.

But it is a good time to make sure you have the right portfolio hedge in place.

To be clear, hedging isn't about betting the farm or placing all your eggs in one basket. What you want to do is to assemble a set of positions that will help take the sting out of any market correction while maintaining the profit potential that you know leads to big gains when the dust settles.

It doesn't matter how you hedge your portfolio - just that you DO it.

Today, I'll show you the simple, easy-to-make moves that can help protect AND grow your portfolio. Even if the selling continues...

Don't Get Caught Up in the Fear

Trying to keep up with the latest coronavirus news can give you one whopper of a headache.

Do yourself a favor and take a deep breath.

Not to make light of the situation, but big news like this comes and goes a lot more than you'd think.

What's changed is the speed at which it's reported.

The Spanish flu of 1918, for example, first surfaced in the spring of that year, but it didn't strike with a vengeance until fall. What's more, the pandemic was reported in waves, not all at once.

Yet, the markets charged on. Growth slowed, but it did not stop.

Many investors are surprised to learn that the Dow Jones Industrial Average sold off slightly but rallied into the summer of 1918 just prior to the second, more virulent flu breakout.

Then - and this is the important part - it began to rally in earnest, even as the third wave of mortality peaked.

Figure 1 Bespoke Investment Research
Fast-forward to today's computerized markets, and I think there's a good case to be made that we will have a repeat.

Today, though, the markets are far more likely to sell off ahead of time, in anticipation of what happens next rather than what's already happened.

But research shows that the financial markets actually spend about two-thirds of the time at or within 10% of new highs... meaning the drive to higher prices we talk about all the time is very real and can be very profitable.

Figure 1 Morningstar Direct, R: Performance Analytics, UBS as of Jan. 4, 2019
So, while it's tempting to sell everything because you're scared by one headline or another or you're simply letting your emotions get the better of you, that's not something you want to do if you can avoid it.

Missing opportunity is always more expensive than trying to miss losses. The data is very clear on that.

Speaking of which...

Two Easy, Powerful Moves to Protect Your Money

Most investors tend to think about their money in terms of all or nothing... as in they're either "all in" or "all out" of the markets.

The problem with that is they give up the possibility of a rebound if they head to the sidelines. Doing so may make them feel good, but there's a very real cost associated with doing so, because people who run for the hills forgo dividends and upside.

People tell me all the time that they'll "get back in," but very few actually do. That was the case in 2009 and again last year. You wouldn't believe how many investors now tell me they regret missing out on the greatest rally in recorded history... and that they still haven't gotten back in!

The better solution is to carve off part of your capital (about 3% to 5% of total investable assets is fine for most investors, but check with your financial advisor about what's best for you) and to buy shares in a specialized "inverse" fund that appreciates when everything else heads for the basement.

My favorite is the Rydex Inverse S&P 500 Strategy Inv Fund (RYURX), an inverse fund I've recommended for years as a hedge in my Money Map Report service. It's unleveraged and should move 1:1 with the S&P 500. The minimum is $2,500, and there's an expense ratio of 1.540%.

If exchange-traded funds (ETFs) are more your style, consider a choice like the ProShares Short S&P 500 (SH), which accomplishes the same thing.

Ideally, you want to choose an inverse fund that matches up to your personal portfolio - meaning you could choose ProShares Short Dow 30 (DOG) or the ProShares Short QQQ (PSQ) if you're keen to hedge against specific stocks in the Dow Jones Industrial Index or in the tech-laden Nasdaq, for instance, rather than those in the S&P 500.

Options-savvy investors have yet another group of tools available to them, ranging from simple directional bets using puts or calls to sophisticated spreads that give you some breathing room.

Now, what I like about options is that you can often get a lot of bang for the buck, meaning it doesn't cost you a lot to line up huge profit potential or hedge your portfolio. And there's no better place to start that journey than with my friend and colleague, Tom Gentile.

He's throwing a "Profit Party," and you're invited. With Tom's help, you'll get a shot at 30-plus money-doubling gains that can hand you over $150,000 in profits.

I'll let Tom get into the details with you - just click here to learn how you can join the party.

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China's Lack of Coronavirus Control Could Keep the Market Falling This Week https://moneymorning.com/2020/01/28/chinas-lack-of-coronavirus-control-could-keep-the-market-falling-this-week/ https://moneymorning.com/2020/01/28/chinas-lack-of-coronavirus-control-could-keep-the-market-falling-this-week/#comments Keith Fitz-Gerald Tue, 28 Jan 2020 10:00:19 +0000 I vividly remember flying into Hong Kong in 2009 when authorities started quarantining hotels on fears of the H1N1 virus - or swine flu - epidemic. The memories of the 2003 SARS virus were still fresh.

As I traveled through the area during that stay, I saw the surgical masks and armed guards present at a level well above what you were hearing about in the news here.

I'm reminded of that trip now that news of the new coronavirus hits U.S. markets. By Monday morning, more than 2,700 people had been infected, and at least 81 were confirmed dead.

I've spent a lot of time in that region regularly for many years. And one thing I feel watching all this news come out of China is that this is far more serious than they are letting on.

I'm not saying that to scare you. I only want you to be aware of what I see playing out, so you can be prepared. And with the right moves now, you will be.

The entire market is completely dominated by news of this virus and its spread, as well as the authorities' inability to contain it at this moment.

Bottom line: There's a lot of uncertainty, which has caused the market to currently fall about 1.5%. But based on what I see, that could turn into a 3% to 5% downturn - take a look...

China's Extensive Damage Control Efforts

China's keeping the real extent of the damage quiet because the country hates to lose face. The economy has accelerated, and the political control has consolidated, so China is going all out to control the news.

The main reason I see a further market drop ahead is that China has not yet got this contained. That means we don't know the full extent of the damage to China's economy - and therefore, the world economy. That's the uncertainty we're dealing with.

Traders are simply trying to get out of the way because they don't know what's coming next.

This is because the things we're seeing emerging despite the great Internet Wall there are far more serious than the news reports are letting on.

The downside move currently is 1.5%, but since China hasn't gotten it under control yet, we're going to be down 3% to 5% total, barring any kind of headline related to inoculation, a cure, or containment.

Now, is it just a question of containing the virus and getting a treatment/vaccine? And if we do all that, are we home free?

Well, you've got to do all that, plus allay the public's fears, because China functions very much as a group. If you clear the streets, you have to let people know it's okay to come back into them. China is a cash-based economy, and you've got to get the consumer engine moving again. That's the tricky part.

Another side of this is that Xi Jinping's authority is absolutely threatened by this because China simply cannot afford to have its reputation tarnished. Anything that embarrasses China is potentially a risk to the overall control structure and Xi Jinping in particular.

Back in 2002-2003 during the SARS virus scare, within a couple of months near the end of the outbreak, the market bounced back.

That will also be the case this time around because the underlying business case that we talk about so frequently - the numbers, the economics, the employment, the fact that the United States is currently leading the way in the global business environment - that is all going to be a net positive.

The question is how far it has to go before traders come to their senses and want to put their money back in.

Alibaba Group Holding Ltd. (NYSE: BABA) is currently taking a hit - as I write, it has dropped 6%, taking it down to $200 a share. Amazon.com Inc. (NASDAQ: AMZN) also fell $31, bringing it to $1,836 a share.

Not surprisingly, travel-related companies have been subject to the worst losses, including tour, airline, and logistics companies. Basically any company that feeds into the travel industry will be affected. This speaks to the very serious situation that's taking place right now.

Big Tech is also low because most of the stocks are very liquid, meaning they're owned by all the big pension funds and institutions, so it's basically just the function of the broader market looking for someplace to hide.

I'm thinking this is all overdone, because none of these companies are especially susceptible to the virus save Apple Inc. (NASDAQ: AAPL), which has got a big exposure in China.

What You Should Do Right Now

It's true that a lot of folks were expecting some sort of pullback or correction at some point. Well, this virus certainly became the catalyst for that expected sell-off. Naturally, whenever a market gets extended, it's like a big rubber band - it simply wants to pull back.

We've been overdue for that for about 30-45 days, give or take. The unknown factor here, however, is how far it will go. It's not over yet, so you should let it sit and sort itself out.

As history has shown us time and again though, if there's a silver lining, it's that this type of stuff tends to be a remarkable buying opportunity for the right companies once the dust settles. It just hasn't happened yet. We don't know how or when this is going to be contained.

So for right now, I would recommend holding off on loading up the truck - there's no reason to try to catch a falling knife.

We simply have too many unknown factors playing out here. Right now, the best strategy is to continue taking profits, raising cash, and looking intelligently at what you do want to buy once things settle.

I'll certainly be keeping a close eye on this situation in the coming weeks and making sure I give you the latest updates on the market and the best way to play it.

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You Can Laugh at Wall Street's "Sell" Warnings When You're Invested in These Stocks https://moneymorning.com/2020/01/25/you-can-laugh-at-wall-streets-sell-warnings-when-youre-invested-in-these-stocks/ https://moneymorning.com/2020/01/25/you-can-laugh-at-wall-streets-sell-warnings-when-youre-invested-in-these-stocks/#comments Keith Fitz-Gerald Sat, 25 Jan 2020 10:00:30 +0000 Millions of investors believe that they have to search for the one stock in thousands that's relatively unknown. And they've been led to believe that the cheaper it is, the better.

Not so.

The real way to make money from stocks is much different. But you might not hear much about it, because Wall Street doesn't want you to know it.

In fact, Wall Street wants you to drop good stocks like a hot potato... so they can pick 'em up and ride into the sunset with your money in their pockets!

Today, I'll show you what Wall Street won't, so you'll know how to make the kind of profits that will grow into substantial wealth...

Finding the Right Stock with the Right "Stuff"

The real key to investing is not finding the one unknown stock that can shoot your portfolio into the stratosphere. It's about buying large-scale companies connected to one or more of the six Unstoppable Trends we talk about frequently.

Not only are they tapped into trillions, but they can continue to grow exponentially for decades to come.

When you own companies like that, you don't have to sell when they hit new highs - but Wall Street tells you otherwise.

Take Apple Inc. (NASDAQ: AAPL).

The company is a cash cow, and contrary to what a lot of folks want to believe, it's just beginning to hit its stride.

The company has a deep "competitive moat" - a term Warren Buffett likes to use to describe a company's ability to remain competitive - and with an estimated 1.5 billion devices out there, that's something that won't go away anytime soon.

Apple's got a ginormous customer base of 1.5 billion "super customers" who want damn near everything the company produces and who will spare no expense buying... phones, watches, subscriptions, services, and more.

Profit margins are routinely above 20%, which means the company produces $712 million in sales a day, if my quick back-of-the-envelope calculations are in the neighborhood.

According to CEO Tim Cook, Apple may control as much as $313 billion of the healthcare data market within the next seven years.

My point is that Apple is a bargain at $317 a share.

In fact, I think it'll hit $400 by the end of this year, which is saying something, considering I told you it would double to $300 same time last year... and it did!

Of course, Wall Street is telling you otherwise...

This Market Won't Wait Around for You

Here's the thing.

This is a market where there's no time to go slow.

You have to be "in to win..." or you won't win.

It's really that simple.

Wall Street wants you to believe Apple is old news, and the pre-earnings reports about how the company will miss earnings, or sell only so many iPhones, are already starting to trickle across the Internet.

They're wanting you to sell or give up hope - if you haven't already - because that's how they clear the decks for themselves... by making you think this is complicated. That way, you'll need their "guidance."

What a load of nonsense.

Case in point: Analysts expect consensus earnings per share of $4.53 when Apple reports on Jan. 28, and - to my point - they've been wrong for a long time. Apple has beaten revenue and earnings estimates for the past four quarters and has a long history of "surprising" the Street to the upside.

I think the number tops $4.80, or possibly even $5 a share.

The time is NOW.

Missing out is simply something you don't want to do.

I believe short sellers, perma-bears, and folks who just can't move beyond the whole iPhone thing are going to pooh-pooh Apple leading into earnings. Their goal is to create a downdraft by convincing the weak money to sell.

That's a perfect opportunity to use one of my favorite Total Wealth Tactics - the LowBall Order - to pick up shares. I suggest you go hunting in the $300 per share arena - as in buy shares for $300 or less.

Or consider using the same dip to sell a "bullish put spread," which is a combination of options that will profit when Apple resumes its march higher, but strictly limits your risk in the meantime if it doesn't or I am completely wrong (which is possible).

This takes far less capital to do, gives you a degree of control, and keeps risk to razor-thin levels - which I like a lot at a time when the markets are overdue for a short-term pullback generally speaking, never mind our discussion on Apple today.

To that end, I'm actually working on a put-selling service at the request of my Total Wealth readers, and I'll be introducing that shortly for everyone who's interested! I'll have more in the weeks ahead - but that's in due time.

Click here, and you'll instantly be signed up to get updates on this service, along with my Total Wealth readers, and you'll get all my Total Wealth research delivered to your inbox for free.

In the meantime, if you're eager to trade Apple, you could use the same dip to buy just a few shares of Apple stock and potentially make out like a proverbial bandit. Many investors don't think this is "worth it" and tell me they'd rather have Apple's latest and greatest iPhone, iPad, or Apple Watch because "at least they'll get to use it."

Talk about shortsighted!

Let's crunch some numbers. An original iPod would have set you back $399 at the time. But had you plowed that $399 into Apple shares, you'd be sitting on a staggering $93,222 in Apple stock today.

Apple does a fabulous job with its money.

Make it yours!

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What to Buy as the Dow Nears 30,000 https://moneymorning.com/2020/01/17/what-to-buy-as-the-dow-nears-30000/ https://moneymorning.com/2020/01/17/what-to-buy-as-the-dow-nears-30000/#comments Keith Fitz-Gerald Fri, 17 Jan 2020 10:00:20 +0000 The Dow is pushing toward 30,000, up more than 1,000 points in the past 30 days - great news for all of us in the markets.

Of course, now I'm being asked more and more when the sell-off is coming...

Any time you get a big run-up like this, it's normal to expect a pullback. But here's the key takeaway on that: That is normal.

We want buying and selling. Corrections happen; we use them to get a better entry point into our favorite stocks, and enjoy the ride when they inevitably climb back up.

That's why, no matter where the market is, what we buy largely remains the same...

Anyone following along with my Total Wealth research service is familiar with the six forces of the investing world that never lose the power to move markets - the Unstoppable Trends.

These industries are always in demand and evolving with the times, and they never stop bringing profits to investors.

In other words: These are the stocks with the potential to dramatically outperform the markets.

Not only are all the Unstoppable Trends just as profitable as they were when I identified them 13 years ago, but many are getting even stronger - meaning the companies they support could make you even more money.

That's why I'm always looking to buy in these six areas - whether markets are at highs, lows, or somewhere in between.

Here's a look at the best plays these trends are showing us today - including the one I call "the biggest opportunity on the planet right now"...

Unstoppable Trend No. 1: Energy

Here's the thing: The Energy sector is growing increasingly stronger, even though it doesn't make headlines often.

It's easy to forget, but the demand for oil isn't falling. Heck, it's not even inching along. Instead, it's accelerating. Not even 1 in 100 investors understands this, which is why many energy companies are priced like they're going to be out of business a year from now.

Across the board, on a global scale, countries are demanding more oil.

And the fact is people need energy, water, sewage... all the stuff that allow us to live the lives we want. Many pay appealing dividends, which means you can earn a decent income in a permanently low-income world.

In fact, the Organization of the Petroleum Exporting Countries (OPEC) has seen demand rising steadily, even as "signs of stress" appear in the global economy. In the next five years, oil demand is expected to increase by 6.1 million barrels per day; in the longer term - through 2040 - this number is expected to increase by 12 million bpd, bringing global demand to 110.6 bpd.

Those numbers don't lie. We're still seeing the need for oil and other energy sources, and that's why we'll continue to seek out bargains in the oil and gas sector for years to come.

Unstoppable Trend No. 2: Demographics

The world's population is about to hit a never-before-seen milestone. According to the U.S. Census, the number of people aged 65 and older will outnumber children younger than four years old worldwide within the year. It will be the first time in recorded history that this has been the case.

More than that, it's estimated that one in five U.S. residents will be retirement age.

Of course, in some countries, like Japan, the future is already here. Japan's aging population has already had huge economic consequences - as America's will eventually - ranging from diminished productivity to soaring healthcare costs to strained social security programs.

This could mean surging profits for medical companies like Becton Dickinson and Co. (NYSE: BDX), and it will contribute to a complete global currency realignment, perhaps even breaking several major currencies, including the yen.

I'll be following the situation closely, looking for even more investments that could profit from the inevitable consequences of a Demographic revolution.

Unstoppable Trend No. 3: Medicine

U.S. healthcare spending racks up $3.1 trillion annually, thanks in large part to uncovered expenses and administrative and operational issues. In fact, the healthcare sector in the United States alone could be the world's fifth largest economy, if measured on its own, according to Consumer Reports.

More than 57% of Americans have been hit with insane medical bills, from a $540,000 charge for dialysis to a $33,000 broken leg and a $48,000 cat bite.

And these are charges insurance doesn't cover. With the average healthcare premium hitting $440 per month per person, you don't need to do the math to know that there's a lot of money in the health insurance companies as well.

Factor in the cutting-edge medical technologies and breakthrough treatments that are constantly becoming mainstreamed and implemented in all of the 6,000-plus hospitals across the country, the thousands of dollars that people pay for medications, both at the pharmacy and over the counter, and the tech companies working tirelessly to cut costs in wasted fees...

It's easy to see how the medical sector is backed by trillions of dollars - and how it's ripe with opportunities for investors like us.

Unstoppable Trend No. 4: War, Terrorism, & Ugliness

Speaking of which, my least favorite trend - War, Terrorism, & Ugliness - seems to be growing. Much to my dismay, it remains as pertinent as ever, both personally and professionally.

Whether you're considering the ongoing trade tensions with China or the now deteriorating situation in the Middle East, we'll certainly not be seeing a shortage of geopolitical turmoil anytime soon.

In fact, we'll likely be seeing even more money flowing into the defense sector as we close in on election season.

Like healthcare, the defense sector will benefit enormously from increased government spending and guaranteed contracts as governments gear up to defend against new and emerging threats. As the struggle against ISIS continues and efforts to prevent a nuclear Iran heat up, defense companies like Raytheon Co. (NYSE: RTN) will flourish.

I wish this weren't the reality we live in. But since it is, I say we take full advantage of the trillions in capital that is on the move to prepare our portfolios and our profits accordingly.

Unstoppable Trend No. 5: Scarcity/Allocation

Mention Scarcity/Allocation, and most investors immediately default to energy. I can't blame them, given the long gas lines of the 1970s, the politically elusive concept of energy independence, and the concept of Peak Oil - all of which have been driven into our consciousness over the past 40 years.

But Scarcity/Allocation is a trend that's powered not just by the lack of precious commodities, but also by the allocation of resources, including money itself. Consequently, it's a perfect way to play central bank meddling.

It's also front and center when it comes to global resources being more strained than ever before.

The World Bank, for example, estimates that every year, 24 billion tons of fertile soil are lost due to land erosion, while 12 million hectares (29.6 million acres) of fertile land are lost due to drought. This pattern will make companies like CNH Industrial NV (NYSE: CNHI) that deal in agriculture and improved farming methods more in-demand and even more prosperous than they are already.

But back to the money for a second.

People don't think this way, but money is a resource, too. That's why exchange-traded funds like the Proshares UltraShort Yen (NYSEArca: YCS) have such potential.

Unstoppable Trend No. 6: Technology

Unfortunately, most investors don't understand how to play the technology sector. They think they do, but what most folks are missing is the distinction between obviation and extinction.

For example:

Apple Inc. (NASDAQ: AAPL) is clearly a frontrunner, and I would be remiss not to mention it. We're talking about its potential all the time - its turn away from devices and into services, its foray into medical technology, its ties to Big Data... the company is changing the world.

Or Amazon.com Inc. (NASDAQ: AMZN) - the e-commerce giant has exploded to be so much more than a way to shop online. The company offers streaming services, food delivery, its own cloud storage network, electronics like the Kindle, the Fire TV Stick, the Fire Phone, and the voice-enabled smart speaker dubbed "Echo"... as well as selling everything under the sun. From jeans to textbooks to furniture, the online retailer is constantly evolving and following the flow to give consumers what they demand.

Microsoft Corp. (NASDAQ: MSFT), meanwhile, is leading the way as a pioneer of cloud technology, investing billions of dollars in the cloud computing field as it transforms from being a software-only company to one that hopes to command the emerging cloud-and-mobile future. Earlier this week, Microsoft announced the general availability of its new virtual machine instances for Azure, its cloud-based network. The company also just surpassed Amazon as the leader of the cloud technology race that both tech giants have been fighting to dominate.

I love these companies, but I am absolutely watching the score of tiny companies moving into the sector with baited breath... companies that could skyrocket and become "the next Amazon."

My job is to help you get your share, no matter what the company is - whether it's Apple, Amazon, or something much smaller. I've got an eye on the broader markets, not just a few stocks. And using these six Unstoppable Trends as a guide is the fastest, easiest way to find the best profits. But I've got something else for you - 76 things, to be exact - to make sure you're grabbing your share of the money and growing your income.

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How to Buy More Stock Without Spending More Money https://moneymorning.com/2020/01/02/how-to-buy-more-stocks-without-spending-more-money/ https://moneymorning.com/2020/01/02/how-to-buy-more-stocks-without-spending-more-money/#comments Keith Fitz-Gerald Thu, 02 Jan 2020 10:00:07 +0000 Many investors have convinced themselves the bull market is over. They'll start the year by selling and heading to the sidelines, using even the slightest market drop to justify their actions.

I can't think of a worse mistake.

Really, there are all kinds of ways to hedge volatility these days. No investor need fear a bear market - let alone suffer the ravages of getting financially mauled.

You can run flat or down markets to your advantage, and you can use the tactics I've covered for you here and in my Total Wealth research service.

Like lowball orders, which you can use to buy the stock you want at exactly the price you're prepared to pay - ideally at a huge discount. There's also position sizing as a means of limiting risk before you place a trade, trailing stops to protect your capital once you're "in," and free trades to help you maximize profits when it's time to sell.

Today, I want to introduce a new wrinkle. I want to show you how to buy more stock without spending more money.

It's a simple, easy-to-use tactic that's ideally suited for current market conditions - and best of all, one that could lead to profits of 2,426% or more.

That's enough to turn every $10,000 into a jaw-dropping $252,600 if you stay on "to the buzzer" (an old bull riding rodeo analogy meaning you stay on the bull's back for the full eight-second ride).

As always, I've got a few examples and stocks that can help you put what you learn today into action immediately. So let's get started...

How to Turn Three Decades of Losses into 2,426% Profits

Millions of investors lurch from investment to investment in a desperate search for the one stock that will turbocharge their returns. And, in doing so, they ruin their portfolios.

Stock selection, as it turns out, is only part of the mix.

If you want to earn the big bucks, you've got to make sure your money is working as consistently and efficiently as possible. What I mean is that you want to be making money with everything you own every day.

If you're moving from stock to stock, you may as well be playing roulette. The principle of gambler's ruin (the idea of running out of your money when you're going up against the house) will ultimately bleed your wealth dry.

When I say consistently and efficiently, I am talking about putting something into a place that will keep your money moving through thick and thin, that will keep you tapped into upside, and will ensure that you're constantly buying low and selling high.

The first step in this process is identifying undervalued stocks.

We talk about that a lot because that's the first step on the path to profits. You find something that's beaten down, yet still has a fortress-like balance sheet, strong sales, and growing revenue, and you buy it because it's tapped into an Unstoppable Trend.

The second is to keep your money moving by reinvesting it. That way you can capture the powerful upside bias inherent in today's financial markets - even in flat or down markets.

I know that sounds like a tall order, but actually it's a lot easier to do than most investors think.

Let me prove it to you.

Imagine buying 100 shares of ABC at $100/share for a $10,000 initial investment. ABC has a dividend yield of 2.31% - the average yield offered by companies on the S&P 500 at the moment.

A year down the road, you would have earned slightly more than $231 back in dividends (it's slightly more than 2.31% because of the minuscule short-term effect of compounding quarterly rather than all at once, yearly).

I know that doesn't sound very inspiring yet, but hang with me for a minute.

On year 2, you've got approximately $10,231 invested, and at 2.31% yield, that translates to $10,467. Year 3, $10,709. Year 4 brings $10,956 in capital working for you. By year 5, dividend reinvestment would have allowed you to purchase $11,209 in company stock, a figure roughly equivalent to 11.2% appreciation.

In the interest of simplicity, I've made two key assumptions:

  1. The stock stays completely flat, meaning that it doesn't get more expensive and result in your dividend payouts being able to buy fewer shares.
  2. The company never raises its dividend.

Now, you and I both know that's not going to happen - the best companies (like those we follow at Total Wealth) raise their dividends constantly as the markets fluctuate, which means your money is going to get more valuable over time... again, even if prices go down before they go up.

Just click here, and you'll instantly be signed up to get my Total Wealth research delivered to your inbox - and it won't cost you a penny. You'll receive the latest updates on moneymaking strategies and tactics, just like the ones I mentioned here.

Here's How to Play This

And that brings me to Lockheed Martin Corp. (NYSE: LMT).

The company is tapped into one of the biggest Unstoppable Trends of all: War, Terrorism, and Ugliness. What's more, its current 3.11% yield (as of the original date of this research) is higher than our example, and management has a history of dramatically increasing payouts.

So let's rerun the numbers.

Assuming the dividend increases by 10% annually and the stock remains flat, you'll have $14,231 in 10 years. That's a 42.31% return. It's not glamorous, but keep in mind that you would have earned $946 in dividends by year 10, which works out to an impressive 9.46% yield... just because you kept your money moving consistently and efficiently.

In 30 years, you'd be sitting on $218,208 and a 118.2% return. Most impressively, though, you'd be earning an eye-popping $65,666 in dividends just for that year ($49,249 after a 25% capital gains tax) that amounts to a 392% yield on your initial $10,000 investment!

Whenever I'm doing a presentation on this topic, it's usually right about now that the hands start going up... but what about a declining market?

Surely a stock that goes down by 5% each year for 30 years is a losing proposition regardless of the dividend, right?

Wrong.

Believe it or not, when the price declines by 5% each year, but the dividend payouts rise, you actually end up with more money than you'd have if the stock hadn't lost any value!

If there's a bell ringing in the back of your head, this is why I constantly talk about managing upside and the need to be "in to win."

Selling out may feel good, but doing so takes you out of the game. Being able to purchase more income-generating shares, year after year, and at cheaper prices, clearly outweighs the downside of 5% losses on principle each year.

Missing out on opportunity is always a far more expensive proposition over time than trying to avoid losses or a market correction.

Keep in mind that we're talking about 2,462% returns in a 30-year bear market.

To be clear, I'm not forecasting a 30-year bear market at the moment. What I want you to understand is that bear markets always represent opportunity if you know what to look for...

... high-quality companies tapped into our Unstoppable Trends making "must-have" products and services that translate into rising revenue, rising earnings, and - ta-da! - rising dividends.

The financial crisis of 2007-2009 didn't stop Altria Group Inc. (NYSE: MO) from raising its dividend payout by 17% during that time frame. It didn't stop Raytheon Co. (NYSE: RTN) from boosting its payouts 21%. And it didn't stop Lockheed Martin, which we used in our 30-year example, from hiking its payouts a stellar 80%.

The next crisis won't either.

All three companies, incidentally, are great choices under the circumstances.

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These “Big A” Stocks Can Put Your Grandchildren Through College https://moneymorning.com/2019/12/14/these-big-a-stocks-can-put-your-grandchildren-through-college/ https://moneymorning.com/2019/12/14/these-big-a-stocks-can-put-your-grandchildren-through-college/#comments Keith Fitz-Gerald Sat, 14 Dec 2019 10:00:21 +0000 You remember those FANG stocks? They were the stocks you couldn't afford not to own for years. There was, as we have discussed many times, simply no reason to leave 'em behind.

It's a different story now, though. Two of the four original FANG stocks are likely to fall precipitously next year, if not fail outright within the next five years.

You've got to reshuffle the proverbial deck if you want to stay in the hunt for big profits. And you want to start by investing in a group of very special companies that pay you to buy their stock.

I call 'em the "Big A's" - and they could return five times the broader markets over the next five years. They could also account for more than 50% of all stock market gains in the next decade.

The "Big A's" are where you want to line up big future profits now. So, let's get to it...

"Big A" Stock No. 1: Amazon.com Inc.

Amazon.com Inc. (NASDAQ: AMZN)'s story is one we've talked about many times. The company has gone from selling books to "whatever" the heck it wants.

Any industry with high margins and staid competition is at risk in a situation that is very much "Amazon versus everyone else."

The argument for Amazon is very simple and super profitable.

The company is perhaps the biggest single consumer data repository in recorded history, has developed unprecedented artificial intelligence, is one of the largest cloud data providers ever, and has a nearly unlimited cash supply.

I think the stock will double to $3,500 in less than five years.

"Big A" Stock No. 2: Alphabet Inc.

Founded initially as a search engine, the company is under terrific pressure from zealous regulators chasing the wrong horse. Don't fall for their shenanigans.

Like Amazon, Alphabet Inc. (NASDAQ: GOOG) is a company in transition. In fact, there are nearly a dozen businesses ranging from AI to apps to shopping, and from finance to medical research in place within it - none of which have been valued by the markets as of yet. But they will be.

I don't think the stock will double under regulatory scrutiny, but that's not a reason to avoid it. Quite the opposite is true, actually.

You'll want to buy Alphabet because Congress can't kill it. I'm betting that the company is a repeat of the Ma Bell breakup, which saw the companies split, build entirely new business ranges worth billions... then recombine.

I'm looking for $1,900 within two years here. Then a double for every component within five if the breakup actually happens.

"Big A" Stock No. 3: Apple Inc.

Unbelievably, many people still think of Apple Inc. (NASDAQ: AAPL) as a device maker. That's not only naïve, but a sign that whoever makes that statement is hopelessly trapped in the past.

The real key to Apple's success is a critical pivot into medical devices and personal information, where the margins are dramatically higher than any physical device it's produced since inception. I broke that story years ago, and the market narrative has just come to us.

The addressable medical market here in the United States alone may be three times the global iPhone market. Factor in big data, a move into financials, and subscription services, and you can easily see the potential like I do.

I called for a double at the beginning of 2019, something many analysts thought impossible. Many weren't so kind in their assessment of what I had to say.

Now, Apple is trading around $270 per share, up 71% in 2019 year to date.

I still think it hits $300 a share by Jan. 1, although, admittedly, the headlines leading into this year's election cycle could alter the trajectory a bit.

Don't get too caught up in that, though. I think the stock doubles again - and then some - within three years. Perhaps five to seven times in five years.

"Big A" Stock No. 4: Alibaba Group Holding Ltd.

That brings me to the most unlikely of the "Big A's" and a stock that many people either don't understand or - dare I say it - love to hate: Alibaba Group Holding Ltd. (NYSE: BABA).

The company is commonly thought of as the Chinese "Amazon," but that's a disservice. It's a much more dynamic, and far larger, player than that.

Like all of the other Big A's, Alibaba is involved in everything from retail consumer sales to big data, AI, and technology.

The key to Alibaba's success, though, is its reach. People just don't understand the volume Chinese consumers represent, so they underestimate it or dismiss it.

That's a mistake of colossal proportions when it comes to your money.

Take Singles Day, for example. Alibaba sold more than $38 billion worth of goods this year - a substantial increase from last year's already impressive record of $30.7 billion. The company hit $1 billion in sales in just 68 seconds and $10 billion in the first 30 minutes.

By comparison, U.S. retailers reportedly sold $7.9 billion combined last year on Cyber Monday, with total online sales over Thanksgiving Day and Black Friday approximately $3.7 billion and $6.2 billion respectively, according to Adobe.

Trade deal or not, there are approximately 700 million middle class consumers - nearly all of whom have smartphones and shop online - that can power Alibaba for decades. Even without its other businesses.

Three Ways to Get On Board Right Now

First, you can buy any of the Big A shares, individually or all at once.

Tuck 'em away in the Global Growth and Income segment of your portfolio. That's the "40" in the proprietary 50-40-10 Model I created for my Money Map Report subscribers. Even just a single share - if that's all you can afford today - will make a huge difference years from now.

Second, you can buy a fund like the Fidelity Contrafund (NASDAQ: FCNTX), which I also recommend as one of 10 "26(f)" investments for readers in the Money Map Report.

Or, third, if you're a bit more sophisticated and fancy an income-oriented trading approach, consider selling "bullish put spreads" every time one of the Big A's falters or there's a general downturn.

That's a blended, limited-risk option strategy using two put options that can help put some cash in your bank account over time as each of these stocks rises.

And of course, it's a favorite Total Wealth tactic. Just click here, and you'll instantly be signed up to get my Total Wealth research delivered to your inbox - and it won't cost you a penny. You'll receive the latest updates on moneymaking strategies and tactics, just like my blended, limited-risk option strategy.

In closing, I hear from investors frequently that these stocks are "expensive."

Not so. The reality is they're dirt cheap. I know that's hard to comprehend, especially with the market hitting new highs.

But let's think back to 1980.

Berkshire Hathaway Inc. (NYSE: BRK.A)'s stock stood at $300 a share, and people thought that was impossibly high. By 1990, a single share would have set you back $9,000. By 2000, it climbed up to $50,000 a share. Today, Berkshire trades at a jaw-dropping $328,650 per share.

Forget about the individual companies for a moment.

What matters here is that every single one of the Big A's is changing the world we live in. They're driven by trillions of dollars in spending that will happen no matter who is in the White House, which countries want to fight over trade, or even the Fed's next move.

They are the very embodiment of the Unstoppable Trends we prioritize, meaning they're best examined (and purchased) because they're forward-looking growth machines valued in terms of what they will accomplish, not what they already have.

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Here's the Ultimate Low-Risk, High-Return Trading Technique https://moneymorning.com/2019/12/02/heres-the-ultimate-low-risk-high-return-trading-technique/ https://moneymorning.com/2019/12/02/heres-the-ultimate-low-risk-high-return-trading-technique/#comments Keith Fitz-Gerald Mon, 02 Dec 2019 10:00:04 +0000 If you want to line up big profits, create income, and keep risk low in 2020, you're going to need a goal-specific trading tactic to get results.

I've got just the thing.

Today, we're going to talk about a trading tactic that you're going to love every bit as much as I do when you understand how, when, and why to use it. Moreover, you'll also understand which stocks are perfectly suited to help you build life-changing wealth.

You'll want to master this technique for three reasons, especially now, as we head into elections and volatility picks up:

  • You don't have to have a lot of money to make serious money.
  • You can rack up wins consistently when other investment techniques fail.
  • You can keep risks low - to razor-thin levels actually.

Best of all, it takes only a few minutes of your day to really see results...

Your One-Stop Shop for Power Trading Profits

It doesn't matter whether you're looking for growth, income, or some combination of the two. Getting there in today's markets will require new knowledge.

Knowledge that centers around what I call the five profit pillars:

  • Trade regularly to maximize winning potential: This trading method can produce significant results that often top win rates of 85% to 90% when used consistently even in conditions that cause traditional methods to break down or fail completely.
  • Limit risk: Many investors and traders swing for the fences without realizing the amount of risk they're taking. This trade limits that... to the penny... before you make your move. That means you're never going to risk blowing up your account by mistake.
  • Stay in the game: Many traders make the mistake of trying something once, then moving on if they don't get the results they want. This trade is like fuel for your wallet, in that you'll want to use it regularly because it can win consistently, in all sorts of economic conditions, over long periods of time.
  • Recognize that the markets have a very pronounced upside bias over time: The headlines, the trade wars, the election... those are all short-term influences at best. So, you want to constantly play to the upside even if you "feel" like the world is coming unglued.
  • Be strategic: This trading tactic is perfectly suited for investors who want a little more growth, higher income, or even the best of both worlds. Young or old, starting out or seasoned veteran investor, it doesn't matter, especially if you use it to complement an existing portfolio of conventional investments, even if you have a limited amount of money.

The bullish put spread (also called a "credit put spread") is a limited risk, yet a very powerful option trade capable of producing profits regularly, in all sorts of market conditions.

As the name implies, it's a "spread" - meaning there are two different options involved. Don't let that term put you off if you've never seen it before. A spread is simply Wall Street speak for something like a "value meal" at your favorite fast food joint, in that you get more than one item for less money at the same time.

You use bullish put spreads when you expect the stocks that interest you to be neutral or to move higher.

The "spread" consists of two options - in this case, put options - that have the same expiration date but at different strikes. And in this case, you put them on - meaning you establish the trade for a credit.

That means you're getting paid to trade as opposed to paying to trade. We'll come back to that in a moment with an example that'll help you sort all this out.

First, though, maximum profits are limited to the net credit received less any commissions paid, but - and this is really important - the risks are also limited. I like that a lot, especially at the moment when the markets are trading at or near new highs and many folks are worried about a correction, a downturn, or China pulling another fast one as we head into elections.

The Bullish Put Spread in Action

Apple Inc. (NASDAQ: AAPL) is trading down $5 as I type this, but I still think it'll hit $300 a share by year's end, in keeping with a forecast I made in January of this year.

This trade - the bullish put spread - is an ideal way to play the opening and use the short-term sell-off to your advantage while also generating some quick profits.

I suggest looking in the $240 to $245 area, an area of key support where there's a bunch of options activity, so you know the professionals are doing the same thing.

You'd simultaneously sell 1 AAPL Dec. 20, 2019 $245 put (AAPL191220P00245000) and buy another 1 AAPL Dec. 20, 2019 $240 put (AAPL191220P00240000) for a net credit of $0.50, or $50 per contract (in this example: $1.90 − $1.40 = $0.50).

These numbers are smaller than they would be otherwise, but I don't believe in cherry picking. I've deliberately chosen this example at a time when the markets are running higher so that I can show you it works even when many traders wouldn't think it would.

The profit and loss diagram is very simple to understand, something else I like a lot.

If Apple's stock price is at or above $245 by Dec. 20, 2019, when these options expire, you'll have captured 100% of the possible profit.

Some people calculate returns on the total amount of capital held in reserve, but that's splitting hairs to my way of thinking. But just in case you're interested, that's a return of 10% in under 30 days, or 121.66% annualized.

Could Apple stock drop further?

Yes, that's always a possibility - and a fair question with a great answer.

If you buy 100 shares of AAPL stock, you're spending $26,230 at current prices. But this trade only requires $500, which is calculated by taking the difference between the strike prices and the credit received, less commissions ($245 − $240 = $5).

The most you can lose if this trade blows up completely and Apple's stock tanks is $500, versus $26,230 or your entire enchilada if you buy 100 shares of Apple. That, to return to the graphic above, would be when the price is at or below $240 at expiration. It's worth noting, though, that you'll keep all of the initial premium you received, meaning you actually have only $450 at risk plus any commissions (which, given the recent race to zero by brokerage firms, may not exist at all).

Are there caveats?

Sure.

  • Heroes or Zeros: The bullish put spread works because of a combination of time decay and price movement, meaning that the price changes rapidly as expiration approaches and volatility increases. However, win rates can and do approach 80% or more even if the markets go against you, assuming you pick strike prices properly. But, like any trade or investment, it can lose.
  • Early Assignment: Options traded in the United States are subject to something called early assignment, meaning that anybody who's sold an option short will have no control over when he or she has to fulfill that obligation. Generally, this is a function of dividends and prices being below one or both strike prices - again, it's something that rarely happens if you've picked your strikes properly. Thankfully, this isn't a big deal, and it sounds a whole lot scarier than it actually is because you can close the spread to eliminate the risk of assignment.

In closing, I hear from a lot of investors and traders alike who think they can't do something like this.

I disagree.

The beauty of a trade like this one - the bullish put spread - is that anybody can do it with a little practice. Young or old, newbie or seasoned veteran, it doesn't matter. Even if you don't have a lot of money to start with.

True, there might be some learning involved, but I can help with that. In fact, I'm planning to.

I've heard from many of my readers in recent months that they'd like the ability to tap into growth consistently and generate income along the way using a limited-risk, high-reward trading technique.

Your wish, as the old saying goes, is my command. Just click here, and you'll instantly be signed up to get my Total Wealth research delivered to your inbox - and it won't cost you a penny. You'll receive all the latest updates on how you can steadily produce income and profits using the limited-risk, high-reward trading technique. Plus, I've got a number of exciting new services and series in the works that you won't want to miss out on.

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As the 2020 Election Ramps Up, Here's the One Chart Investors Need to See https://moneymorning.com/2019/11/18/as-the-2020-election-ramps-up-heres-the-one-chart-investors-need-to-see/ https://moneymorning.com/2019/11/18/as-the-2020-election-ramps-up-heres-the-one-chart-investors-need-to-see/#comments Keith Fitz-Gerald Mon, 18 Nov 2019 10:00:59 +0000 By this time next year, we'll have elected a new president of the United States. Whether you elect a Democrat, Republican, heck, even a Martian from outer space, things are going to change... big time.

And what I'm going to tell you today isn't for everybody. It's for investors who want to make gobs of money because the truth of the matter is that profits trounce politics every time.

If you're one of millions of Americans who are worried about power changing hands - or not - you're not alone. People are beginning to feel the pressure of political, economic, and financial chaos based on the coming year, and the big changes we could see as a result of the upcoming election.

Right now, the focus is on the Democratic Party - namely, who will be the nominee to stand up to current U.S. President Donald Trump. Both Joe Biden and Elizabeth Warren are polling as front-runners, and both of them have policies that will shake up the political, economic, and financial environment that Trump has cultivated.

A lot of people on both sides of the aisle view the election as a negative influence simply because we're in the middle of a market melt-up and any sort of change - whether it's the change of presidency a year from now or even the (slowly rising) threat of it - can tip the markets and send us into a full-scale recession.

It'll be full-blown chaos.

But the thing is, there's loads of money to be made here, and I won't let you miss the huge profit potential being created as voting comes down to the wire.

Let me explain...

The (Profitable) Tides of Change

Millions of investors are scared stiff when there's change in the air. Longing for the "good old days," they fear deviating from what they know because that means they'll have to change their ways.

But that's actually not true. The only change they'll have to make is in what they think they know. That's where the big profits are hiding - and where 99 out of 100 investors go off the rails.

I joke with audiences around the world that "We're all born with common sense. It's just 'bred' out of us as adults."

Chances are good that you already know this instinctively. I usually see a sea of heads nodding from stage when the irony of what I've just said dawns on them.

Again, you're not alone. What's more, there is a logical explanation.

Humans are much more prone to stop reaching for the stars as we get older because we've convinced ourselves that we "know better." We can't help it - it's simply human nature. It's in our DNA.

But what we want to be doing is flipping that around - at least when it comes to our money, anyway.

That's because history shows beyond any shadow of a doubt that the biggest opportunities are always created during periods of huge chaos. War, famine, political strife, financial crisis... it doesn't matter.

The key is learning to recognize that the angst that comes with each of these things is actually the signal you're looking for when it comes to lining up the huge profit potential you deserve, but which most investors will never have.

Fortunately, this won't be difficult. As I've shown my Total Wealth subscribers (you'll get the chance to subscribe in a minute), three principles are at work:

  • Capital is a creative force that's constantly flowing forward.
  • Money flows like water to where it's treated best.
  • Success constantly replaces failure, and there's expansion each time it does.

500 Years of Market History Can't Be Wrong

Now it's time for the fun part - and why I couldn't wait to share this with you.

I know what comes next based on 500 years of market history. And now, so will you: profits.

Not some of the time. Not part of the time. Every time.

The following chart comes from Kieron Nutbrown, who is the former head of global macro trading at First State Investments in London, and I want to share it with you because it goes a long way toward putting current conditions in perspective.

I totally understand that you probably don't have 500 years to wait... I get that a lot whenever I share this chart or one like it that brings a much larger perspective to the table.

More often than not, though, that's usually code speak for risk management, and that's an entirely different subject.

What I want you to understand is that fear of uncertainty and change always creates opportunity - which is why you've got to constantly look for it instead of trying to hide from it like many investors are at the moment.

That's why I've poured so much effort into researching what I call the "Unstoppable Trends." They're driven by trillions of dollars that will flow... no matter who wins or loses next November.

You can click right here to automatically and instantly subscribe to my Total Wealth research - they're absolutely free, and you'll learn everything you need to know to profit from the Unstoppable Trends: demographics; scarcity/allocation; medicine; energy; technology; and war, terrorism, and ugliness. Every dollar you'll make in the next 10 years will come from here.

Many of the best choices, including dozens of companies we've talked about here, have already scorched the broader markets simply because they make "must have" products and services we cannot live without.

What's more, they will continue to do so often moving directly against expectations everybody "knew" to be true. Only we'll know better.

Raytheon Co. (NYSE: RTN), VMWare Inc. (NYSE: VMW), and Medpace Holdings Inc. (NASDAQ: MEDP), for example, have all turned in triple digits over the past three years - 202%, 262.90%, and 300%, respectively - even though the bet was that President Trump would eviscerate the markets across the board if elected. Every sector was at risk - defense, technology, medical, you name it.

But in the past three years, the markets have continued to rise. The S&P 500 is up 42.81%, the Nasdaq Composite rallied 61.82%, and the Dow Jones is up 39.32% - and that brings me to a point I often make: The markets have an upward bias.

In one short year, we could have a new president (or not), and either way, we will have a new set of opportunities, made all the more profitable by the simple fact that most people will be totally unprepared to deal with them.

And it's not just me saying so. You've got 500 years of market history on your side.

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The "Unstoppable Trends" Offer the Richest Opportunities on the Planet Right Now (and They Always Will) https://moneymorning.com/2019/11/11/the-unstoppable-trends-offer-the-richest-opportunities-on-the-planet-right-now-and-they-always-will/ https://moneymorning.com/2019/11/11/the-unstoppable-trends-offer-the-richest-opportunities-on-the-planet-right-now-and-they-always-will/#comments Keith Fitz-Gerald Mon, 11 Nov 2019 10:00:36 +0000 When we spoke last week, I shared with you that it took me thousands of hours of research and work - wait, make that "blood, sweat, and toil" - to isolate what only seems obvious in full hindsight: the six Unstoppable Trends.

They are energy; demographics; medicine; war, terrorism, & ugliness; and scarcity/allocation.

From ancient China to medieval England to Renaissance Italy to modern America, each one of the Unstoppable Trends has been making people with the foresight to line up behind 'em filthy rich.

I'm convinced they'll continue to do so throughout the 21st century and well beyond.

Why?

Well, each one of these trends is backed by trillions of dollars and unfathomably strong momentum; each one is resistant to the kinds of government and banking monkeyshines that have gone on in one form or another for centuries.

Heck, some of the Unstoppable Trends even thrive on that stuff!

Now, I normally keep these recommendations reserved for folks who get my free Total Wealth research, but today, I want to give everyone the chance to pursue the uniquely profitable opportunities the Unstoppable Trends offer.

Let's jump in...

The Unstoppable Trends Are Beating the Market... as Usual

As I said, the momentum behind these has continued more or less unbroken for centuries, but for us in 2019, it gets even better.

You see, not only are all the Unstoppable Trends intact, many are actually getting even stronger. That means the companies riding them are also getting stronger.

The best example of this is Apple Inc. (NASDAQ: AAPL). I told you last year that this company would double by 2020. It's already rallied 63.29% on the year, well on its way to what could be a fully realized 100% gain by the end.

It's beating the S&P 500 by an astounding 2.9x.

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Now, granted, I talk about Apple a lot - it is the perfect example, after all. But today, I'm going past just the big tech stocks. We're going to talk about all six of our Unstoppable Trends. And let me tell you, I've even made a point that every dollar you make in the next 10 years will be on this list.

Thing is, I'm not telling you this to brag. What I want you to understand is that stocks backed by Unstoppable Trends have the potential to dramatically outperform the markets.

And that's why you need to keep every single one of our trends at the top of your mind... so that you can tap into the potential created by trillions of dollars on the move.

Here's what you need to know about each of our Unstoppable Trends today - starting with the biggest opportunity on the planet right now.

Unstoppable Trend: Energy

It's probably the most misunderstood of all our trends today. We rarely talk about it on Total Wealth anymore, but that's not because we don't see the sector ripe with opportunities.

Here's the thing: The energy sector is growing increasingly stronger, even though nobody's talking about it.

It's easy to forget, but the demand for oil isn't falling. Heck, it's not even merely increasing. Instead, it's accelerating. Not one in 100 investors understands this, which is why many energy companies are priced like they're going to be out of business a year from now.

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Across the board, on a global scale, countries are demanding more oil.

And the fact is people need energy, water, sewage... all the stuff that allows us to live the lives we want. Many pay appealing dividends, which means you can earn a decent income in a permanently low-income world.

In fact, the Organization of the Petroleum Exporting Countries (OPEC) has seen demand rising steadily, even as "signs of stress" appear in the global economy. In the next five years, oil demand is expected to increase by 6.1 million barrels per day (bpd); in the longer term - through 2040 - this number is expected to increase by 12 million bpd, bringing global demand to 110.6 bpd.

Those numbers don't lie. We're still seeing the need for oil and other energy sources, and that's why we'll continue to seek out bargains in the oil and gas sector for years to come - and why you could potentially collect royalty payments as long as the pumps keep flowing.

Unstoppable Trend: Demographics

The world's population is about to hit a never-before-seen milestone. According to the U.S. Census, the number of people aged 65 and older will outnumber children younger than four years old worldwide by 2020.

It will be the first time in recorded history that that has been the case.

More than that, it's estimated that one in five U.S. residents will be retirement age.

Of course, in some countries like Japan, the future is already here. Japan's aging population has already had huge economic consequences - as America's will eventually - ranging from diminished productivity to soaring healthcare costs to strained social security programs.

This could mean surging profits for money-doubling medical companies we've talked about, like Becton, Dickinson & Co. (NYSE: BDX), and it will contribute to a complete global currency realignment, perhaps even breaking several major currencies - including the yen.

I'll be following the situation closely, looking for even more investments that could profit from the inevitable consequences of the "Demographic Revolution."

Unstoppable Trend: Medicine

U.S. healthcare spending comes to $3.1 trillion annually, thanks in large part to uncovered expenses and administrative and operational issues.

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The healthcare sector in the United States alone could be the world's fifth largest economy - smaller than Germany's, bigger than the United Kingdom's - if measured on its own, according to Consumer Reports.

More than 57% of Americans have been hit with insane medical bills, from a $540,000 charge for dialysis to a $33,000 broken leg or a $48,000 cat bite.

And these are charges insurance doesn't cover. With the average health insurance premium hitting $440 per month, per person, you don't need to do the math to know that there's a lot of money in the health insurance companies as well.

Factor in the cutting-edge medical technologies and breakthrough treatments that are constantly becoming mainstreamed and implemented in all of the 6,000-plus hospitals across the country, the thousands of dollars that people pay for medications both at the pharmacy and over the counter, and the tech companies working tirelessly to cut costs in wasted fees, and it's easy to see how the medical sector is backed by trillions of dollars - and how it's ripe with opportunities for investors like us.

Unstoppable Trend: War, Terrorism, & Ugliness

My least favorite trend - War, Terrorism, & Ugliness - seems to be a growth industry. Much to my dismay, it remains as pertinent as ever, both personally and professionally.

Most prominently, we've been following trade tensions with China and the back and forth with tariffs... and a trade deal that won't ever happen, for better or for worse. There is, of course, the overarching implication that China could use force if they wanted, particularly in the tense South China Sea, where the United States and one small company I know are racing to neutralize any Chinese edge.

Either way, the White House made sure we're prepared with a $717 billion defense budget for the year.

Like healthcare, the defense sector will benefit enormously from increased government spending and guaranteed contracts as governments gear up to defend against new and emerging threats. As the struggle against ISIS continues and efforts to prevent a nuclear Iran heat up, defense companies like Raytheon Co. (NYSE: RTN) will flourish, and as more and more countries sign on to fight, overseas defense firms like Leonardo SpA (OTCMKTS: FINMY) will, too.

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I wish this weren't the reality we live in. But since it is, we're compelled to take full advantage of the trillions in capital that are on the move to prepare our portfolios and our profits accordingly.

Unstoppable Trend: Scarcity/Allocation

Mention the words "scarcity" and "allocation," and most investors - particularly baby boomers - immediately envision energy. I can't blame them, given the long gas lines of the 1970s, the politically elusive concept of energy independence, and the concept of Peak Oil - all of which have been driven into our consciousness over the past 40 years.

But scarcity/allocation is a trend that's powered not just by the lack of precious commodities, but also by the allocation of resources - food, water, raw materials, and commodities, even including money itself. Consequently, it's a perfect way to play central bank meddling.

It's also front and center when it comes to global resources being more strained than ever before.

The World Bank, for example, estimates that every year, 24 billion tons of fertile soil is lost due to land erosion, while 12 million hectares (29.6 million acres) of fertile land is lost due to drought. This pattern will make companies like CNH Industrial NV (NYSE: CNHI) that deal in agriculture and improved farming methods more in-demand and even more prosperous than they are already.

But back to the money for a second.

People don't think this way, but money is a resource, too. That's why exchange-traded funds like the Proshares UltraShort Yen (NYSEArca: YCS) have such potential.

Unstoppable Trend: Technology

Of course, no discussion on the trends would be complete without a reference to technology.

Unfortunately, most investors don't understand how to play it. They think they do, but what most folks are missing is the distinction between obviation and extinction.

For example:

Apple Inc. (NASDAQ: AAPL) is clearly a frontrunner, and I would be remiss not to mention it. We're talking about its potential all the time - its turn away from devices and into services, its foray into medical technology, its ties to Big Ddata... the company is changing the world.

Or Amazon.com Inc. (NASDAQ: AMZN). The e-commerce giant has exploded to be so much more than a way to shop online. The company offers streaming services, food delivery, its own cloud storage network, electronics like the Kindle, the Fire TV Stick, the Fire Phone, and the voice-enabled smart speaker dubbed "Echo"... as well as everything else under the sun. From jeans to textbooks to furniture, the online retailer is constantly evolving and following the flow to give consumers what they demand.

Microsoft Corp. (NASDAQ: MSFT), meanwhile, is leading the way as a pioneer of cloud technology, investing billions of dollars in the cloud computing field as it transforms from being a software-only company to one that hopes to command the emerging cloud and mobile future. Earlier this week, Microsoft announced the general availability of its new virtual machine instances for Azure, its cloud-based network. The company also just surpassed Amazon as the leader of the cloud technology race that both tech giants have been fighting to dominate.

I love these companies, but I am absolutely watching with bated breath the scores of tiny companies moving into the sector... companies that could skyrocket and become "the next Amazon," or companies that present truly compelling angel investing potential.

Of course, the next Amazon could very well be... Amazon.

My job is to help you get your share, no matter what the company is, whether it's Apple, Amazon, or something much smaller.

I've got an eye on the broader markets, not just a few stocks - you can click right here to automatically, instantly subscribe to my Total Wealth updates. They'll never cost you a cent, and you'll hear from me on the Unstoppable Trends at least three times a week.

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Here's What Gives You Your Unbeatable Investing Advantage https://moneymorning.com/2019/11/04/heres-what-gives-you-your-unbeatable-investing-advantage/ https://moneymorning.com/2019/11/04/heres-what-gives-you-your-unbeatable-investing-advantage/#comments Keith Fitz-Gerald Mon, 04 Nov 2019 10:00:38 +0000 I've been in global markets for 37 years now as an analyst, trader, and consultant, and if there's one thing I've learned, it's that personal success - to be clear, I'm talking about big, life-changing profits - comes from something a lot of investors fail to grasp.

The single most important thing you can do as an investor is to realize that wealth is a choice... but getting there is a skill.

Let me repeat that: Wealth is a choice, but getting there is a skill.

You have to work at it, just like studying for an exam or going to the gym. You don't pass Nuclear Physics 201 without significant effort any more than you'll look like Arnold Schwarzenegger without lifting weights.

Unfortunately, too many investors fixate on shortcuts or "magical" systems - things that somehow promise fast, easy returns but that all too often end in frustration and loss.

The way to really "get there" is to put in the work and learn. But as I'll show you in just a second, it doesn't have to be anywhere near as difficult or expensive as you might think.

In fact, just being aware of that simple fact puts you far out ahead of the crowd of investors...

Most Investors Make It Difficult for Themselves

Take the Unstoppable Trends I talk about all the time.

They've been minting millionaires in one form or another for centuries now - and certainly more millionaires than any trend not on this short list. There are just six of 'em worth your time and money: demographics; scarcity/allocation; medicine; energy; technology; and war, terrorism, and ugliness.

Understanding the difference between "must have" products and services and "nice to have" alternatives was another major breakthrough.

The distinctions all seem perfectly clear now, even obvious, but that wasn't always the case. Figuring these things out, quantifying their impact, and identifying opportunities took years of toil - thousands upon thousands of hours of work and research.

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It might not surprise you to learn that a great deal of that effort was spent learning how to separate the noise from the worthwhile signal.

Most investors fall prey to too much information.

They get bogged down with thousands of indicators, hundreds of thousands of search results, and millions of data points. They want to make things more complex when making them simpler is the key to profitability.

You don't need, for example, to scan the markets looking for divine intervention or a flash of inspiration from some super-computer operating at "Star Trek"-like warp speeds.

And you sure as hell don't need to finesse every trade or investment.

What you do need, though, is to understand that the noise is what everybody else focuses on. Get rid of that, and suddenly everything becomes crystal clear.

You can invest by identifying opportunities others don't see or understand before the crowd figures out they're even valuable. Then, use the skills and tactics we talk about in Total Wealth regularly to grab your share of the profits.

And if you're not getting my free Total Wealth research every week, by all means click here and subscribe automatically. There's no charge whatsoever.

This Illustrates My Point Perfectly

To use an example we talked about last week: People are still thinking about Apple Inc. (NASDAQ: AAPL) as an iPhone-driven stock. Whenever the herd's "iSales iExpectations" don't get met, the stock gets hammered.

So what if Apple sells fewer iPhones? What the crowd doesn't get is the numbers that show fewer iDevices sold also reflect unprecedented growth in services, in medical devices, and in Big Data and AI. The margins there are extraordinary.

Unprecedented growth means unprecedented opportunity... but all most investors can fixate on is that Apple missed an arbitrary target in a metric that's growing less important by the month.

And so they sell the stock.

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You can take advantage of that by using simple trading tactics like the "lowball order" to buy shares whenever Apple dips. The great thing about a lowball order is that you name the price you want to pay. It could be ludicrously, insultingly low if you want it to be; in this market, it won't be long before a stampede of panicked investors obliges you... and you own a great stock at an unthinkably low price.

What's more, you can rebalance your portfolio - often in 90 seconds or less - whenever prices rise to a threshold that makes sense. Some people use percentages; others use dollars. The point is, again, it's your call.

If an investment doesn't go your way?

No big deal. When you set trailing stops like I recommend, most - if not all - of your principal is protected. That gives you the breathing room you need to take a loss in stride and determine what there is to learn from it.

Remember, we're talking about a skill you develop over time... something you practice. So, figure out what went wrong, and then get right back up and get back in the game.

The profits will come if you do the work and develop the skills.

End every investing day with a victory, even if it's a loss, because that's what you build upon - the victories.

Robert Herjavec: Indisputable Proof That Anybody Can Get Rich Through Angel Investing

When Neil Patel launched the Angels & Entrepreneurs Summit, he had only planned to invite a small group of guests to join him and guest "Shark" Robert Herjavec... but then Neil revealed something truly shocking.

During this clip (about halfway through the event), he reveals indisputable proof that anybody can transform their life through angel investing.

We knew we had to show this event to everyone - the information is just too valuable to keep under wraps.

Follow Money Morning onFacebook and Twitter.

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How to Turn Setbacks into Investing Success https://moneymorning.com/2019/10/28/how-to-turn-setbacks-into-investing-success/ https://moneymorning.com/2019/10/28/how-to-turn-setbacks-into-investing-success/#comments Keith Fitz-Gerald Mon, 28 Oct 2019 09:30:49 +0000 Today, we're going to talk about something unusual - and, at first glance, perhaps even uncomfortable - but stick with me: It's a conversation that'll make you a stronger, more consistently profitable investor.

I'd like to put failure on the table this morning.

Most investors want desperately to succeed - it's easy to understand why.

Unfortunately, in the absence of a disciplined, risk-managed plan, the mad dash for "success" all too often leads folks to fall for glitzy advertising, hype, and - honestly - complete crap... much of which, unfortunately, comes from the newsletter industry.

Chances are you know exactly what I'm talking about.

But here's the secret...

If Someone Tells You They "Can't Fail"... Run the Other Way

You can't just keep doing the same stupid things with your money if you want to truly live an extraordinary and very profitable life.

You've got to tap into your subconscious and into your deepest fears first.

You've got to FAIL - preferably hard, and often.

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I can find dozens of people who will tell you all about the amazing successes they've had. Heck, go to any "motivational" conference in the United States - you can't swing a wet towel without hitting 10 of these smoke-and-sunshine peddlers.

They clog your e-mail with spam, touting the most ridiculous of half-baked schemes. Frankly, their ideas are irresponsible - and downright financially dangerous.

The truth is, really successful, profitable investors have no trouble whatsoever talking about their failures.

They know you can't hit home runs every time you step up to the plate, that you can't set a land speed record every time you visit the Bonneville Salt Flats, and that you cannot book a 1,000% gainer every time you plunk down your money.

Failure happens. It's inevitable. For everyone.

The difference between those who fail and fade away and those who fail and go on to become fabulously wealthy is that these folks learn from their failures. If a trade or investment goes against 'em, they consider the loss a kind of "tuition" at the School of Hard Knocks.

What they don't do is fail once and slink away with their tail between their legs like the dog that swiped the steaks. They get right back up, learn from what went wrong, adjust their approach (if necessary - bad luck happens), and then do it all over again.

Sooner or later (usually sooner), they get it right and reap unimaginable benefits.

We've done the exact same thing...

How to Fail "Up" into Outrageous Long-Term Profitability

I'm in touch with my paid subscribers to services like the Money Map Report every week - and folks who get my trading research services like High Velocity Profits and Straight Line Profits hear from me several times a week.

When I research a trade recommendation for my subscribers, I follow it like a hawk, and folks hear from me about how it's doing. I'm in touch when the stop is triggered, if applicable, with the exact reasons why the recommendation hasn't done as well as I'd expected. In other words, that's a failure we can learn from and grow on.

And of course, I'm in touch when my subscribers have a chance to take a nice, market-crushing win off the table.

My point is, we'll take a victory laps just as readily as we'll take the spinouts - and fortunately, we've got a lot more of the former than the latter!

Many people thought the firestorm of negativity that enveloped markets nearly a year ago and caused the S&P 500 to tumble a nerve-jangling 15.74% last December was the beginning of the end, the mother of all failures.

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I told you that it was the start of something great, and I've recommended great companies like Visa Inc. (NYSE: V), VMWare Inc. (NYSE: VMW), and MongoDB Inc. (NASDAQ: MDB) that have all produced 100%-plus winners in the months since.

If that's "failure," I'll take it.

Now, we're headed into another tumultuous presidential election, and expectations are for a massive market failure.

Good!

Because the people who don't understand what we've just discussed, who don't get the importance of failing hard and failing often, will get left behind.

I think the market's next move could give us five times the profits - or even more. And I'd hate for anyone to miss out on a run like that.

Time to get some!

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A 409.28% Advantage – Practically No Matter What the Markets Do Next https://moneymorning.com/2019/10/21/a-409-28-advantage-practically-no-matter-what-the-markets-do-next/ https://moneymorning.com/2019/10/21/a-409-28-advantage-practically-no-matter-what-the-markets-do-next/#comments Keith Fitz-Gerald Mon, 21 Oct 2019 09:00:01 +0000 Achieving higher returns is easier than you think. All you need is the right portfolio structure.

There's no question that having the right stock picks is important, which is why we talk about those frequently - but that's only part of the proverbial equation.

Folks who blindly leap from stock to stock, for example, are in for a rude awakening, even if they're investing in the big winners like Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL), Apple Inc. (NASDAQ: AAPL), and Raytheon Co. (NYSE: RTN) that we've covered together.

That's because the risk associated with their money changes.

Sadly, most folks are completely blind to the potential, so they leave a lot of money on the table that could be - rather bluntly - in their pockets. Heck, in your pockets.

As always, I've got a recommendation for you that makes an ideal cornerstone investment for any investor interested in both the truth and higher returns.

Today's the day you stop leaving money on the table...

Why Stock Selection Isn't Enough

Like many investors, I grew up thinking that individual stocks were the way to go. Certainly, everything I read as a young man coming into finance reinforced that notion: Forbes, Money Magazine, and Kiplinger's, just to name a few.

Then I arrived at Wilshire Associates in the late 1980s with a newly minted diploma in my hands and quickly learned how money really works.

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My boss, a hyper-focused and brilliant guy named Larry Davanzo, told me in no uncertain terms that portfolio structure was something I'd better come to understand if I wanted to be successful - and with billions on the line, he wasn't kidding. So, I spent hours in my cubicle burning all kinds of midnight oil - and plenty of weekends, too.

Like many professionals at the time, I focused much of my attention on a 1986 study by Gary Brinson, L. Randolph Hood, and Gilbert Beebower called the "Determinants of Portfolio Performance." It examined quarterly returns from 91 pension plans over a 10-year period from 1974 to 1983 and concluded that asset allocation accounted for 93.6% of the volatility of quarterly returns.

The implication was huge; if performance comes primarily from asset allocation, then why bother with actively managed stocks and portfolio management?

It was the start of a badly flawed (and disproven) line of thinking that's still embodied today in the concept of passively managed portfolios advocated by well-known, well-intentioned people like Jack Bogle and Burton Malkiel - but that's a story for another time.

Something didn't sit well with me, and it took me years to put my finger on it, not to mention do the math to prove it.

The 1986 study focused almost entirely on rebalancing to the exclusion of market opportunity. That meant the original research had almost no discussion regarding active management nor assumed risk as valuations changed.

In other words, the authors assumed that money was simply "along for the ride" rather than in the driver's seat. It also meant that the role of diversified stock pickers was almost completely ignored.

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Over the years, I continued to play with this thought. Others - like Roger Ibbotson and Warren Buffett, who are considerably smarter than I am - did too.

Ultimately, I developed this revelation into a risk parity model now known as the 50-40-10, which I pioneered and advocate today as part of our sister publication, the Money Map Report.

It's based on the notion that specific levels of risk are divided equally across the entire portfolio as a means of achieving the optimal asset concentration needed for higher returns. Traditional allocation strategies, by comparison, are based on having fixed percentages in specific asset categories... stocks, bonds, real estate, metals, etc.

The advantage of a risk parity approach is that you can easily measure the contribution of every investment to your overall portfolio's risk and, by implication, manage that change over time. You cannot actively do that with conventional models, and you sure as heck cannot do that passively as is taught in universities worldwide as part of the Efficient Markets Hypothesis.

If you're into math, here's one variation of a formula you can use to calculate your own risk parity model drawn from a great primer on the subject, "An Introduction to Risk Parity" by Dr. Hossein Kazemi of the Isenberg School of Management at UMassAmherst:

If you're not into math, have no fear. I've got you covered.

What you need to know is that it doesn't matter whether you have a few thousand dollars to your name or hundreds of millions. You can make the 50-40-10 work for you and your money.

Here's what it looks like - a pyramid.

Think of the model like the food pyramid you may remember as a kid.

The bottom layer - the 50 - is chock full of stuff your mom told you to eat because it's good for you, even though you thought it tasted like wall paper paste. These are "foundational" investments chosen for their ability to withstand market volatility while giving you a rock-solid base from which to pursue growth.

The middle layer - the 40 - is the stuff that tastes good and makes you want seconds because it helps you grow. These are typically global companies with fortress-like balance sheets growing top- and bottom-line numbers, making "must have" products and services tapped into the Unstoppable Trends we talk about frequently. Most typically have above-average yields, too, making them a super choice for income-oriented investors.

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The top layer - the 10 - is the beer and chips, or the chocolate mousse, depending on your palate. It's the much higher-risk stuff that can make you fat if you eat too much - but when used in the right way, can really put a smile on your face, not to mention some serious bling in your wallet. They're usually oriented around a specific catalyst that our research has uncovered. Examples include new patents, contracts, buyouts, spinoffs, etc.

I like the pyramid illustration because it's simple. One quick look, and you know which side represents the bottom, which represents the top, and, of course, the middle. Visually, you understand quickly and easily that the higher you go "up" the pyramid, the more limited your choices become. (Try climbing one sometime, and you'll see exactly what I mean.)

Even better, the pyramid forces you to "eat" healthier choices when it comes to your money - just like a balanced meal. So you have discipline injected into your investment process automatically. You can't tuck into the soda, the mousse, or the chips if you're minding your money, for example.

I bring this up because many investors wind up with far too many speculative investments on their financial plate. They get caught up in their emotions when they buy things. Not surprisingly, they almost always find out the hard way that they've been speculating when they should have been investing whenever the market hiccups.

That's primarily because their risk is disproportionately concentrated even though their allocation may be spot on, according to conventional Wall Street thinking. Ask anybody who lived through the dot-com crash and the financial crisis how that worked out when everything went down at once and conventional diversification models failed... completely.

Here's an Unbeatable 409.28% Advantage

I hear from people all the time that the sky is falling, things are terrible, and there's nothing to invest in. And I couldn't think of a better way to allay their fears than to use data from the worst financial periods in modern history.

So, I constructed a hypothetical $10,000 portfolio using just 11 investments and split them up according to the 50-40-10 model. Then, I let it run from Aug. 1, 2000, to Oct. 1, 2018, and rebalanced annually on the first trading day of every year using publicly available closing prices from Yahoo Finance and Kitco Precious Metals to keep things simple.

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I chose those dates very deliberately because that time frame includes several wars, recessions, market crashes, terrorism, and even a global collapse, just for good measure.

And the results?

The S&P 500 returned 103.36% from Aug. 1, 2000, to Oct. 1, 2018, while the 50-40-10 returned a healthy 512.64%. That's a 409.28% performance advantage over folks who "bought the index" or otherwise invested passively, as is all the rage right now.

Past performance is no guarantee of future performance, and all investing, as they say, involves risk. I have nothing against people who are worried. That's very normal, albeit emotional input.

What I want you to understand is that history shows, beyond any shadow of a doubt, that there is a way around every market obstacle.

Speaking of which, I get asked a lot how the model has fared over the more recent past. Usually, the thinly veiled (and cynical) implication is that "things will be different this time."

No... probably not.

Until you let go of the concept that spreading your money around willy-nilly using Wall Street's classic approach to diversification and the Efficient Market Hypothesis is the way to go, you are at the mercy of unseen risks, not to mention emotional hang-ups. Both can override what you logically understand about the world we presently live in.

Risk parity - and the 50-40-10 model in particular - can help ensure you never miss another market move ever again while still protecting your capital from getting carried out feet first when the markets pitch a fit. But only if you get on board.

Speaking of which, there are all kinds of ways you can assemble a 50-40-10 model for yourself, and we talk about those frequently in the Money Map Report - along with specific recommendations that align perfectly with the goals in each piece of our portfolio.

If you're not a subscriber, you can get started with a core holding like Vanguard Wellington Fund (NASDAQ: VWELX).

Created in 1929, the Wellington is the nation's oldest balanced fund, and it offers exposure to both stocks and bonds across all economic sectors. We get to hold some of the most valuable companies at a fraction of the price, thanks to the shared nature of the fund. I particularly like Vanguard Wellington because of the low fees and low expense ratio of 0.25% - extremely affordable for investors just getting a foot in the door.

It's also a great "foundation" around which to build your own 50/40/10 portfolio.

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Here's the First Step to Getting Rich in the Market (and a Stock to Help Get You There) https://moneymorning.com/2019/10/14/heres-the-first-step-to-getting-rich-in-the-market-and-a-stock-to-help-get-you-there/ https://moneymorning.com/2019/10/14/heres-the-first-step-to-getting-rich-in-the-market-and-a-stock-to-help-get-you-there/#comments Keith Fitz-Gerald Mon, 14 Oct 2019 09:00:40 +0000 So, it seems I unknowingly struck a nerve last Monday, when I proved just how powerful our investing edge is. I was talking about booking profits that are "not just pocket change, but life-changing, 'holy smokes, I can't believe this is happening' money."

Our customer service lines lit up; our inboxes were packed to the gunwales. And I heard from more than one person personally, all asking the same thing...

"Hey, can we really do this?"

My unequivocal answer, in a word: "YES!"

And it doesn't matter a bit where you are in your investing journey. Whether you're about to invest a dollar for the first time, whether you're working toward retirement, or whether you're working on your first or fourth million.

You can have bigger, better, safer, more consistent profits. And here's how...

Make the Decision to Be Rich

I've worked with people from every economic stratum you can image - blue-collar, white-collar, no-collar - Ivy League, Prairie League, no league at all, and everything in between.

I have seen people from every walk of life, from the very bottom to the very top, be successful and bag huge, life-changing profits, accumulating previously unimaginable wealth.

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Surprisingly, this isn't about where you start, it's about making the choice to be wealthy.

Seriously - here's what I mean by that.

We plan for everything in our lives except success. Deciding that you want to be rich gives you a huge advantage because now that you know what you want, you can find out what you have to do, learn, accomplish, study, and implement.

You can take on any challenge if you know where you're going.

You often hear, "it's never too late to start," but it's absolutely true: It's never too late to start building wealth.

So my advice today is this...

Don't spend your time thinking about what you've been through in your journey to get where you are right now. The rearview mirror is useful only inasmuch as it allows you to analyze past missteps when that's called for. Look forward: Think about where you're going and what's needed to get there.

And absolutely spend some time visualizing the wonderful things that'll be waiting for you there when you arrive.

And now I'll name a stock that I think will help you get there.

Buy These Shares Any Way You Can

There's no doubt in my mind, Apple Inc. (NASDAQ: AAPL) is a fantastic place to start investing if you haven't already.

Indeed, my paid subscribers have already had the chance to double their money - and then some - on these must-own shares. And I don't think that's a one-time deal.

At first glance, it seems expensive - 100 shares will set you back a cool $22,572 at current prices, and that's not including the fees. Buy just a few shares separately if you have to, or latch on through a "26(f) program" choice, like the one I've recommended in our sister service, the Money Map Report. You can even use options trading to potentially leverage small-dollar positions and control outsized portions of the stock. (Here's how you can learn to do that - and watch it happen in real time, to boot.)

Just don't get left behind. Because believe me, that'll seem downright cheap when Apple moves to new highs en route to $300, then $400 a share.

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In fact, I see $265 by Christmas, based on better-than-expected iPhone sales of nearly 190 million units this year, but another 200 million in 2020 and 2021 as 5G comes into play.

It's all very well and good for Apple to sell 190 million iPhones, but as I've said before, the "iPhone factor" that analysts constantly (and wrongly) fixate on will actually become less and less important to Apple's overall big picture as time goes on.

It's Apple's big "pivot" into medicine, by which I mean medical devices, that will really move the needle on this one.

Remember, it was earlier this year when Tim Cook himself went on CNBC and said, "Improving people's health will be Apple's greatest contribution to mankind."

I don't think he was talking about iPads and iPhones when he said that.

The way I see it, Apple has been "quiet, a little too quiet" on the medical device front lately. I think we're about due for a major announcement - that would fit Apple's past behavior pattern to a T.

You absolutely, positively want to own this stock before that announcement. Whatever you do, don't get left behind.

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How Terrible Headlines Can Bring Extreme Profits https://moneymorning.com/2019/10/07/how-terrible-headlines-can-bring-extreme-profits/ https://moneymorning.com/2019/10/07/how-terrible-headlines-can-bring-extreme-profits/#comments Keith Fitz-Gerald Mon, 07 Oct 2019 09:00:22 +0000 Unless you've been camping out in the deep backwoods for the past two weeks or so, you know the news cycle is overwhelmingly negative at the moment.

I'm hearing from lots of folks who fear the worst is dead ahead, like a brick wall we're headed for at 90 miles per hour.

It's understandable. How many more headlines can we read about impeaching the president? About the trade war, about the war on success, before we go mad?

I think a good chunk of the world is there now, frankly.

Maybe you feel the same. And if so, you're not alone. I feel the angst, too.

That said, I sure am relieved we don't do politics around here, that we deal with money! Money is a different animal: It's simpler. It's profitable. And it's fun... or at least it should be, anyway.

No matter how bad things get, no matter how atrocious the headlines become, no matter how disgusting the political vitriol will get, money will always be on the move.

Today, right now, is the perfect opportunity to talk about how we can set ourselves up to grab our fair share...

Money: It's Always Growing Somewhere

Over the summer, we began to hear alarmist reports (go figure!) of an economic "slowdown" underway in places like the European Union, China, and to an extent, here in the United States, too.

As hysterical as the reports were, there's an element of truth to them; these vast economies are slowing down, though with China's GDP projected to grow "only" 6.267% this year, I'm sure not worried.

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But as globally oriented investors looking at worldwide profit opportunities, it's critical to remember that growth may slow, but it will most definitely not stop.

In fact, there are global, up-and-coming economies that are growing at breakneck speed. Ghana, in West Africa comes to mind, where growth is expected to top 8.7% this year. I'm not suggesting we dive in headfirst there, but it certainly proves my point.

And even in the Eurozone, where GDP is slowing overall, Ireland is on pace to beat 4.1% as it benefits from corporations scrambling to insulate themselves from Brexit chaos. That underscores another powerful thesis of ours that there's always, always, always opportunity in chaos.

I know it, you know it, and, more to the point, the world's best companies know it. That is precisely why they will continue to plow ahead - and we will continue to invest so that we can tap into that.

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That's been the case during two world wars, multiple conflicts, economic boom and bust, presidential assassinations, prior trade wars, the Asian Currency Crisis, the dot-com bust and recovery, and the global financial crisis of 2007 and 2008... even the Nixon and Clinton impeachments.

Take Amazon.com Inc. (NASDAQ: AMZN), for example...

It's one of my favorite stocks for a reason - several reasons, actually.

The company has a virtually unlimited supply of cash and is tightly integrated with consumers at a time when it's making a very concerted three-pronged, all-guns-blazing approach into cloud computing, advertising, and e-commerce.

These are all high-margin businesses growing at between 45% and 50% a year, no matter who lives at 1600 Pennsylvania Avenue, no matter what monkeyshines Wall Street pulls or what the Fed thinks it knows about rates.

AMZN is going for about $1,700 a share right now, and many people think it's expensive, even risky. The investing public is nervous because of looming anti-trust regulation, or the threat of clueless government regulators trying to break the company into pieces.

Did I mention many people think it's expensive?

So what! That's what they said at $100, $500, $1,000 a share. I think it should be $2,500 or even $3,000 within the next two years, which makes it unbelievably cheap in my book.

Same story with Apple Inc. (NASDAQ: AAPL). The company has made a proper bet on 5G, services revenue is exploding, and the pivot into medical devices in the American market alone could be three times the global iPhone market every stuck-in-the-past analyst is so mistakenly focused on.

I think AAPL will hit $400 in two years if the broader markets aren't held back - and even if there's some short-term selling now.

Besides, you can use near-term market pain caused by uninformed and skittish investors who fear a fall to your advantage.

The important thing right now is to make sure your money is lined up with one or more of the Unstoppable Trends we follow. Doing so puts trillions of dollars at your back... instead of in your face.

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Then, make sure you've invested only in "must-have companies" like the two I've just mentioned. These are the firms that are making products and providing services the world cannot live without... as opposed to "nice to haves" like Peleton or WeWork (which just withdrew its offering) that aren't worth the paper their stock certificates are printed on.

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And finally, keep a razor-sharp eye on risk management "just in case" the markets have other ideas. In which case, you can calmly, rationally regroup and - importantly - safeguard your profits and your capital while others panic in the heat of the moment.

Don't Lose Sight of This

I could do this all day. But of course, we're not here to talk about money for the sake of talking about money.

We're here because we want to win, and we want the big profits that come with doing that. Not just pocket change, but life-changing, "holy smokes, I can't believe this is happening" money.

I think investing is about changing your life. It's essential, and I don't mean that in a plain-vanilla sense either.

I'm talking about investing with an edge - the kind of success that causes others around you to do a double take...

... and you to smile ear to ear.

We're in this together, and I will be with you every step of the way!

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Here's How the Markets Will React to a Trump Impeachment https://moneymorning.com/2019/09/30/heres-how-the-markets-will-react-to-a-trump-impeachment/ https://moneymorning.com/2019/09/30/heres-how-the-markets-will-react-to-a-trump-impeachment/#comments Keith Fitz-Gerald Mon, 30 Sep 2019 09:00:24 +0000 I have to admit - I wasn't too surprised that congressional Democratic leaders roiled markets last week when they announced a formal impeachment inquiry into U.S. President Donald Trump.

Love him or hate him, I wish politicians would give it a rest.

As Chief Investment Strategist, I care about one thing and one thing only: helping you invest profitably. I'm here to help you grow and protect your money.

And the markets care about one thing and one thing only: how likely impeachment proceedings are to succeed... and what a President Mike Pence administration might look like.

OK, technically that's two things - no matter.

Let's run through the possibilities. They're not as scary as they might seem...

Here's What Matters to Global Investors and Traders

Stock markets are, by their essential nature, forward-looking, future-discounting "organisms." They're always looking ahead, which means there's not likely to be much crying over yesterday's spilled milk.

Every day, I talk with traders all across the planet, and, overwhelmingly, they're already focused on what a Pence administration would look like and how that might impact the bets they've made on manufacturing, productivity, labor, prices, and much more.

My trading contacts want growth very simply because growth is great for their money - and yours, too, no doubt.

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From an investment standpoint - and it doesn't matter if they're personal fans of this president or they hate his guts - what these traders don't want is some sideshow that distracts everyone from moving ahead. And I don't care if it's impeachment, investigatory hearings, or ordering a pizza, congressional proceedings are by nature... big, noisy, neon-lit sideshows.

So what's that mean?

It means, in the short term, profits will suffer, and so will the markets. The two are intrinsically linked.

People are already drawing comparisons to the Clinton impeachment back in 1998, but I think the real comparison is the lead-up to Richard Nixon's resignation in 1974; he of course resigned before he could be impeached and removed.

Then, as now, the market had peaked. In the case of Nixon, it peaked a full eight years earlier, in 1966.

This time around, we saw the peak just 11 weeks ago.

Whatever Happens, Be Prepared with This

The stock markets of 1974 were already under pressure from the 1973 Arab-Israeli War and ensuing oil embargo and "oil shock," which saw a barrel of crude soar 300%, from $15.30 to around $61.10 (in 2019 dollars). And of course we had rising unemployment, stubborn "stagflation," and the collapse of the so-called "Nifty Fifty" stocks. (Yep, I remember those!)

This time around, the big indexes aren't all that far off all-time highs, and we're not far from full employment (as the Fed defines it, at least), but we've got the U.S.-China trade war, spiraling geopolitical chaos, hyperpartisan dysfunction on a good day in D.C., and a potential bank liquidity crunch lurking under the surface.

And while Nixon was accused of implementing a cover-up of the Watergate burglary, the concern this time around is that the president may have withheld military aid - U.S. taxpayer dollars - to Ukraine in order to make that aid contingent upon a Ukrainian investigation of former Vice President and current Democratic presidential candidate Joe Biden and his son Hunter's dealings in Ukraine - which is a whole 'nother kettle of fish.

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Let me be clear: I have no idea what happened and no opinion one way or another, so we'll take that off the table. I simply don't have the luxury of taking a partisan position in my capacity as Chief Investment Strategist.

I'm concerned with what traders from New York to Sydney are concerned with: What the heck does any of this mean for your money?

There Will Be Opportunity in the Chaos - There Always Is

I think traders will sell off ferociously if the impeachment proceedings move from fanciful conjecture and 2020 election posturing to the possibility of real transgressions.

Other than that, they will be a well-publicized sideshow characterized by unprecedented and exceptionally vicious headlines, name-calling, posturing, and finger-pointing - from both sides, to be clear.

That's why you want to make sure you are constantly focused on protecting your profits and your capital. You do that by setting specific, hard profit targets and harvesting gains when you hit 'em. Conversely, you jettison the losers when they bump up against trailing stops you have in place at all times.

There's never a great time to be sentimental about your stocks, but ruthless adherence to profit targets, trailing stops, and overall investing discipline will be critical in the weeks ahead.

Investors who don't do that, who think, "Well, it hit my stop, but maybe if I just hang in there a little longer..." will be bulldozed, chewed up, spit out, steamrolled, and laughed at for good measure.

You don't want to be "that guy."

If you're a paid subscriber to Money Map Report or High Velocity Windfalls, this should sound very familiar. We've been gradually tightening up both profit targets and trailing stops for months ahead of the possibility of more volatility.

If you're not a Money Map Report or High Velocity Windfalls subscriber, you're not out of luck. You can click on those links to learn how to subscribe, but you can also carefully review your all holdings (and I do mean ALL of 'em) right now with an eye on which ones you're going to keep, which ones you're going to sell if the markets force your hand, and, importantly, which ones you're going to buy more of if the markets give you that opportunity.

Right now, I'm particularly interested in defense, medical technology, and traditional "Big Tech." They're the companies and sectors that can protect margins and grow despite the possibility of political turmoil. And, quite literally, I think that's "worth" a lot at the moment.

The bull can continue to run - there's plenty of support for still higher highs ahead - but we have to be prepared for some of the herd to step in the you-know-what when and if the stampede gets going!

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A Quick Note on How to Play Stocks in an Uncertain World https://moneymorning.com/2019/09/24/a-quick-note-on-how-to-play-stocks-in-an-uncertain-world/ https://moneymorning.com/2019/09/24/a-quick-note-on-how-to-play-stocks-in-an-uncertain-world/#comments Keith Fitz-Gerald Tue, 24 Sep 2019 09:00:25 +0000 Like you and millions of other investors, I've been following the conflict in the Middle East closely; as the past week has shown, events there have the potential to impact multiple global market sectors.

And, not surprisingly, I've got a couple of important observations that could play a pivotal role in protecting your profits and your capital.

One of the most significant things, in my view, is what didn't happen: Markets didn't collapse. Not all that long ago, markets all over the world would've fallen through the floor the instant news of the attacks in Saudi Arabia broke. This time around, however, the markets displayed remarkable resilience. This strength is important to keep in mind.

Also important, though I'm sure you and I wish it weren't: There will be more attacks. The region is just too chaotic to count on peace breaking out.

And, most importantly for our chat today, there will be strength in specific stocks if the conflict boils over again. That's what we're going to talk about now - how to concentrate your money to protect your capital and your profits...

Last Monday's Winners Prove My Point

Service sector choices like VMware Inc. (NYSE: VMW) and Adobe Inc. (NASDAQ: ADBE) rose more than 3% last Monday. Mark my words: They will rise again if there are more attacks, because service companies like these don't require unilateral global growth to do well.

Defense stocks we talk about frequently are also great choices right now, including longtime favorites (and, not coincidentally, massive Money Map Report winners) like Raytheon Co. (NYSE: RTN) and Lockheed Martin Corp. (NYSE: LMT). Those jumped nearly 4% on the day.

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And finally, think carefully about how you handle "normally" staid, solid stocks like Procter & Gamble Co. (NYSE: PG) or Clorox Co. (NYSE: CLX). They're likely to get hit as higher gas prices begin to hit consumers' wallets if the situation deteriorates.

Speaking of which, there's a lot we don't know that's going to come out in the days ahead, and those answers - whatever they might be - could have important, instant ramifications for some of the stocks we own.

I'm particularly keen to learn how a country like Saudi Arabia - the world's third largest defense spender - failed to protect critical national infrastructure from attack. It's impossible to say for sure right now, but that answer could very well be an opportunity in disguise. I'll keep watching.

In the meantime, I'd encourage you to take this opportunity to make sure your portfolio risk-management is up to Money Map Report spec, that you have 25% trailing stops in place where applicable, and importantly, that you have a shopping list and some capital to match available in case what has been a remarkably resilient market starts to slip on any troubling news.

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The Three "Big If" Sectors Every Forward-Looking, Profit-Oriented Investor Should Own Today https://moneymorning.com/2019/09/04/the-three-big-if-sectors-every-forward-looking-profit-oriented-investor-should-own-today/ https://moneymorning.com/2019/09/04/the-three-big-if-sectors-every-forward-looking-profit-oriented-investor-should-own-today/#comments Keith Fitz-Gerald Wed, 04 Sep 2019 09:00:09 +0000 The end of summer or any change of season is a natural time to look back and reflect; I know I made plenty of happy memories this summer with family and friends - and I hope you did, too.

As rewarding as that can be, we should take care that "looking back" doesn't become the almost permanent condition of "focusing on the past."

Millions of investors are focused on the past right now, for a number of reasons: They're thinking about past earnings or past performance, or they might be apprehensive about the future, say, with the feeling that things were "just simpler back then."

Especially when it comes to how they view current headlines.

I don't blame 'em, though.

It may feel comforting, but that focus puts those investors at a huge disadvantage - because it's the future that matters, both in terms of how we live our lives and how we make our money.

These investors have essentially been conditioned to believe that life moves because of what's already happened. So they see the financial markets the same way and, not surprisingly, get stuck in a rut - an expensive one, at that.

That's too bad, especially right now. Here's why...

Every Risk Is an Opportunity in Disguise

You cannot have one without the other. And yet, the warped perception of risk and the propensity to look backward instead of forward will compel tens of millions of investors to leave trillions of dollars on the table.

And because we're armed with the proper perspective - not to mention a risk-balanced approach to investing - it'll be a supremely easy job for us to walk in and take that money for ourselves.

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To that end, I want to talk about three "if sectors" poised for big gains behind some pretty big "ifs" - if there's a recession, if stocks lurch lower, or if there are more tariffs thrown around in the trade war.

Or, best of all... even if none of that stuff happens.

"Big If" Sector No. 1: Health & Medical Care

People will get sick and injured whether the good times are rolling or all hell is breaking lose. They'll still need medicine - and as we age, frankly, we need more of it. Providers and practitioners will all urgently require instruments, supplies, medicine, and data security, to name just a few needs. If it's involved in healthcare, there's a great investing case for owning it. They're all great investments. On the top of my mind is Becton Dickinson & Co. (NYSE: BDX), a company we've talked about before, which provides medical devices, instruments, and a whole lot more.

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"Big If" Sector No. 2: Technology

Tech has been revolutionizing our lives since humans figured out how to make fire and fashion flint tools. Eons later, and the big tech firms are only beginning to hit their stride. I know there are challenges for firms like Facebook Inc. (NASDAQ: FB) and others that have a cavalier attitude toward the customers that put them in business to begin with, but that doesn't change the fact that the genie is out of the bottle. The way I see it, cybersecurity stocks - even "old line" stalwarts like Cisco Systems Inc. (NASDAQ: CSCO) - are the smart play here because of how long our data will survive out there in the "wild"... even if we're not thrilled about that fact.

"Big If" Sector No. 3: Utilities

There are more than 7.72 billion people alive today. At present growth rates, it's likely another 18 people will be born in the time it takes you to read just this one sentence alone. And come what may, every single one of 'em will need food, shelter, energy, water, and sewage services - all the "stuff" that allows folks to live the life they want, to have switches and taps work when you flip them to "ON." I can't foresee a situation in which we wouldn't need utilities.

Utilities are easy to own, too. Many pay very appealing dividends, giving you a decent income in a permanently low-rate world. One utility we own in the Money Map Report model portfolio has returned 114.6% and counting, and all indications are that the board is planning to pay out a delectable $1.25 a share in cold, hard cash this month. (NOTE: Learn how to get the Money Map Report and access its model portfolio right here.)

There's One More "Big If"

I've recommended great companies in all three sectors to my paid subscribers over the years and have, in fact, got a few new recommendations on tap, too.

Many have resulted in triple-digit winners - as in, they've helped readers following along as directed chart a path toward 100%, 200%, 300%, or even more on their money.

Through thick and thin, up and down - it doesn't matter.

The right companies can make a world of difference to your wealth, even under economic conditions that stymie most investors...

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What Every Investor Needs to Know About China Right Now https://moneymorning.com/2019/08/26/what-every-investor-needs-to-know-about-china-right-now/ https://moneymorning.com/2019/08/26/what-every-investor-needs-to-know-about-china-right-now/#comments Keith Fitz-Gerald Mon, 26 Aug 2019 09:00:54 +0000 Some of the investment trends we talk about are electrifying - like a company that's a step away from curing a terrible disease, for instance, or one that's developed a technology that's set to improve hundreds of millions of lives and boost bottom lines.

Other times, like today, the implications are nowhere near as pleasant or uplifting to consider. In fact, in a world where "war, terrorism, and ugliness" are unstoppable trends, the implications can be, well, ugly and unsettling, to put it mildly.

But it's important that, as globally oriented investors, we grapple with these issues head-on, or we risk being caught off-balance by them. Because we do live in a world where vast, multitrillion-dollar economies are intricately connected, and a world where news - good or bad - can circle the planet in two seconds flat.

U.S. financial markets have largely shaken off the mass unrest in Hong Kong, but for reasons we're going to look at in a moment, that could change in a heartbeat.

And my job as Chief Investment Strategist is to make sure we're ready when and if that happens...

China Has Been Here Before... in 1989

I can't help but be shaken by what's happening in Hong Kong, even though, as I said, U.S. markets have largely shaken it off.

I recall Tiananmen Square in 1989 vividly. And frankly, I fear Beijing may be approaching another Tiananmen Square moment - a "2.0" situation, really.

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Westerners believe that Beijing won't risk the reputational hit that would follow armed intervention, but I beg to differ; nobody thought that in 1989 when protesters took over Tiananmen Square, either.

But as I noted on FOX Business Network this past Wednesday morning, Beijing's calculus is very different.

It's so different, in fact, that Beijing may prefer violence over any perception whatsoever of political weakness - or weakening of its all-important territorial integrity.

There's no doubt in my mind: Chinese President Xi Jingping faces unprecedented challenges if Hong Kong spirals out of control. There's a risk of a financial hit, given that 60% of China's outbound trade goes through Hong Kong. And of course, there's the ongoing trade dispute with the United States and a slowing domestic economy.

Very few people understand what I am about to tell you...

Why China's Global "Face" Matters

It rarely makes big news in the west, but powerful, popular global brands, like Zara, Marriott, Qantas, Delta Airlines, Calvin Klein, Coach, ASICS, Givenchy, to name a few, have all blundered into implying, be it with a t-shirt slogan or, often, website dropdown menu, that Hong Kong or Macau or Taiwan or Tibet were somehow somehow, contrary to the official government position, "separate from” or somehow less than integral parts of, China.

These companies found out in a hurry that China's very sensitive to perceptions of its territorial integrity.

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All of them have had to perform very real, very elaborate online and media apologies for these faux pas to quell the furious backlash from China's "netizens" - and, by extension, China's government.

With the protests and chaos in Hong Kong, the stakes are a lot higher.

China sees the unrest in Hong Kong as a direct challenge to its sovereignty and to the unchallenged territorial integrity it portrays to the world. The prospect of outside influence and loss of face are among the most feared of all "inputs" into the vast political structure that is the Communist Party of China.

Mark my words: China will not hesitate to weaponize nationalism against Hong Kong and the "Hong Kongers" it has identified as driving the protests. There will doubtless be any number of people who disappear in the dead of night when this is over.

Global investors, however, will face a different set of challenges from all this.

How Hong Kong's Problems Impact the World Market

I think the IPO market, that has until now relied on Hong Kong's stability and its rule of law, will slow down. Alibaba Group Holding Ltd. (NYSE: BABA), for example, has reportedly delayed a widely anticipated $15 billion Hong Kong Stock Exchange listing as a result of political instability.

Other Chinese companies like Tencent Holdings Ltd. (OTCMKTS: TCEHY) and Xiaomi Corp. (OTCMKTS: XIACF), which are listed on the Hong Kong Stock Exchange, may feel the impact as external financing dries up; some 60% of foreign direct investment flows through Hong Kong.

Hong Kong has enjoyed a de facto position as "a New York backup," and with $5 trillion in that market, it's easy to understand why. But for how much longer depends almost entirely on President Xi and whether or not he prioritizes political unity going forward over the economic gains he's known for - and on which he's staked much.

In the meantime, keep in mind something we talk about all the time: Chaos always creates opportunity.

What's happening in Hong Kong is no different, and the stocks that trade there will come under pressure, which will be, of course, a great time to add to 'em.

Mainland Chinese consumers will continue to favor choices like LVMH Moet Hennessy (OTCMKTS: LVMUY) and Japanese cosmetic maker Shiseido Co. Ltd. (OTCMKTS: SSDOY), which trade at around $78 and $80, respectively, as of Friday afternoon.

Or, consider an exchange-traded fund (ETF) like Franklin Templeton's relatively new Franklin FTSE China ETF (NYSEArca: FLCH). It invests in mid- and large-size Chinese companies that could explode higher with any sort of rebound whatsoever should the situation in Hong Kong be resolved, or should a trade deal be struck in the United States. FLCH is tiny, with assets of "just" $39.58 million according to Franklin Templeton, but it has an admirably low expense ratio of just 0.19% that's appealing for any speculative money you've got sitting around.

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