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G-X FTSE Andean 40 ETF

Market Correction

I Predicted This Market Decline Back in February, and We're Right on Target So Far

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I'm not one to toot my own horn, but I do just want to observe that so far, the bear market that I believe began in January is proceeding right on schedule.

I pointed out in early February that stock prices had inflated by an astonishing 24.9% over the 12 months ended Jan. 17, leading to an all-time record overbought reading on the Composite Liquidity Indicator (CLI). That upside extension even exceeded the degree to which the market was oversold versus liquidity at the February 2016 bottom. We therefore knew then that the market was in an extreme buying panic – a mania – from September through most of January. I said then, "That leaves a lot of room for a decline." 

And as it turns out, I was right.

The early February market break was the start of it and we are probably now in the second phase of that decline and in the very earliest stages of the first leg of a major bear market. The inflation rate of stocks has already dropped from that shocking 24.9% in mid-January to just 10.4% annual change in the week ended March 23.  I expect the 12-month rate of change to turn negative later in the year.

As I wrote in early February, "The level of overextension of stock prices from the liquidity trend reflects an extreme degree of risk of rapid deflation of the stock market bubble." That overextension has barely begun to be corrected. The risks remain high.

Let's take a look at my secret weapon, the CLI, and see what it's telling us about our next steps...

Technology

Five Profit Plays to Make Now Before the Trade Dispute Settles

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Say what you will about President Donald Trump – he's certainly been consistent on China.

During the 2016 campaign, he repeatedly promised to slash our trade deficit with the world's most populous nation. Last week, he said the goal is to cut that $375 billion yearly shortfall by as much as $100 billion.

This explains three moves he has made recently…

The first are the president's 25% tariffs on imported steel, most of which comes from China. We went over those a couple of weeks ago.

The second occurred earlier this month when the White House blocked Singapore-based Broadcom Ltd.'s (Nasdaq: AVGO) proposed $117 billion acquisition of Qualcomm Inc. (Nasdaq: QCOM), the wireless chip leader based in San Diego.

Then, late last week, President Trump signed an executive memorandum that would impose retaliatory tariffs on up to $60 billion in Chinese imports to punish Beijing for stealing American companies' intellectual property.

These three big moves have many on Wall Street doubting the wisdom of investing in any Chinese tech stocks in the current climate.

That's crazy. First off, all the media "noise" around tariffs and trade wars doesn't match the reality of the situation… the "signal" – which is that Trump's tough talk has gotten China and others to the negotiating table.

We've already gotten concessions from South Korea – and I bet Beijing will be close behind.

So, while others flee in fear, I've identified five Chinese tech leaders that I think will benefit – not despite Trump's moves… but because of them.

Today I'm going to show you why the time to act is now, and how you can make big money doing so...

Dow Jones

The Stock Market Has a Language of Its Own, and Here's What It's Saying

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If you're breathing a sigh of relief because the Dow Jones Industrials rose a whopping 669.40 points (or 2.84%) Monday, don't think you won't have to hold your breath again.

We're not out of the woods yet.

The market's jittery, to say the least. A super-solid move upward on a Monday, which handily erases an ugly drop the previous Friday, could just be what Wall Street calls a "dead cat bounce."

Here's where the dangers lie, how to play this rally if it continues, and how to tell if it's a head fake...

Washington

Tariffs and Trade Wars: Making America (and Markets) Great Again

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Good riddance, Gary Cohn.

The former Goldman Sachs Group Inc. (NYSE: GS) president and chief operating officer, who became Donald Trump's director of the National Economic Council, exited his position last week over a row about the tariffs he doesn't want the president to impose.

He's gone because he's wrong.

Steel and aluminum tariffs proposed by the president are long overdue; they're good for America and good for the stock market.

The reality of free trade agreements is that they aren't always what they promise to be, and big businesses frequently use them against American workers.

Donald Trump's tariff saber-rattling won't ignite trade wars.

Here's how we'll really see America become great again (and drive the stock market a lot higher)...

Oil

The Easiest Way to Find the Richest Oil & Gas Plays

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Multiples are one of the most popular "yardsticks" when it comes to finding undervalued oil and gas stocks to buy.

More often than not, that involves a hard look at the multiple of a company's earnings to determine whether or not a stock is fairly valued.

In the case of energy stocks, however, there is a more important multiple you need to understand. Much more important, in fact, and more reliable, too.

I generally use it to target oil and natural gas stocks, although the "yardstick" can be tweaked to apply to power producers, and even coal and uranium miners.

It's a way to cut through some of the fast and loose "games" management can play with its reserves, too, and to get a more accurate feel for a company's booked reserves and its trading price.

Ultimately, my yardstick takes into consideration the extractable reserves a company has in the ground and opens up a window into how that stock should trade.

I've used this measure time and again to bring home market-beating double- and triple-digit wins.

Once you understand how to use this yardstick, you can too.

It's easy - here's how it works...

Retirement

What Too Much Risk Really "Looks" Like and Why You Should Care

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Many investors think that having "too much" risk isn't a big deal…

… until it hits "home."

That's the case for 6.2 million American who have invested roughly $224 billion in Fidelity's Freedom Funds and who recently found out – the hard way – just how much risk the fund managers have taken on to boost performance… arguably, without telling them.

The Freedom Funds, in case you are not familiar with 'em, are Fidelity's largest retirement fund grouping and worth more than $1 billion a year in management and fee revenue to the Boston-based financial services company.

Based on "target dates," the Freedom Funds are supposed to be a one-size, easy-to-use investment that diversifies investments and automatically manages risks by reducing them as fund participants age.

When you're young, for example, you might choose the Fidelity Freedom 2060 Fund as a way to set it and forget it for the next 42 years. Somebody only two years away from retirement, by contrast, may opt for the Fidelity Freedom 2020 Fund.

The appeal is terrific.

Over time you're supposed to get great performance and decreasing volatility – risk by any other name – that ensures your hard-earned retirement funds will be there when it's time to call it quits.

Hence, the "targeted date" moniker.

Here's why I'm not a fan of target date funds - and you shouldn't be ether...

Trading Strategies

How to Build Your Nest Egg (and Travel to Mexico Like Me)

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By the time you receive this, I will be enjoying a long-anticipated "working vacation" on the beautiful beaches of Mexico, where fortunately I am staying at a hotel with very good broadband Internet.

One of the blessings of being a 10-Minute Millionaire is that I'm not tied to an office – I set my own hours and I'm able to travel with my family pretty much anywhere I like…

And one of the reasons that I (and hopefully you!) am able to do this is because I never touch my nest egg.

In this video, I'm about to introduce you to a new 10-Minute Millionaire strategy that I describe as a "solar system," with our nest egg at the very center.

If you organize your wealth in this way, you'll have discretionary income to use for travel, charity, and anything you like.

Meanwhile, your core wealth remains protected and growing...

Bonds

The Treasury Knows I'm Watching Them and They Don't Like It

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Today, I want to show you a very intriguing little piece of information. The Treasury knows that I'm watching their machinations, and they don't like it one bit.

If you'll recall, the TBAC (Treasury Borrowing Advisory Committee) is the shadowy "power behind the throne" that advises the Treasury on debt issuance. The Treasury very rarely deviates from their recommendations.

And their latest report was... interesting...

Bitcoin

Bitcoin Love vs. Bitcoin Hate (and What That Means for Your Wallet)

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While the iconic sitcom "Friends" was never a favorite of mine, whenever the reruns come on TV I do get a chuckle. Don't we all?

One of the funnier episodes, "The One with the List," comes early in the show, in the second season, where Ross has to make the almost impossible decision between Julie, his current girlfriend, and Rachel, his longtime secret crush who he's just found out also has a secret crush on him. (Oh, the drama.)

Ever the problem-solver, Ross decides to make a list of Rachel and Julie's respective pros and cons. Rachel has lots of cons: too into her looks, thick ankles, and "just a waitress."

Julie has plenty of pros: smart, driven, a paleontologist, and cute. She has only one con: "She's not Rachel."

Unfortunately for Ross (but hardly surprisingly), he soon finds himself without either girl – but with a very important life lesson learned: don't make lists about who to date. (Or, you know, don't live in a sitcom.)

In the spirit of that episode, I present to you my latest Bitcoin installment: "The One with the List." Let me take a swing at listing the pros and cons of the Bitcoin currency as it stands… and get started directing you towards some profit recommendations.

Let's get started...