[vc_section][vc_row][vc_column][vc_column_text]Investors have felt tremors for the 1st time in almost 3 years these past two weeks – many are taken this pullback too emotionally and are calling the top, but that would be a mistake.
The markets have plenty of upside. In fact, the pullback just confirmed that we’re guaranteed to see a rally soon, but the sectors, which are set to outperform going forward, will not be the same as those, which delivered the largest gains thus far.
Before the technical oversold indicators flash that the worst is behind us, though, Portfolio Wealth Global doesn’t rule out another 5%-7% plummet, especially if bond yields keep rising.
2018 Strategy Update
Next week, on Tuesday, I will be releasing my detailed game plan for this year. We haven’t seen the last of these big corrections for 2018, and by executing a more sophisticated action blueprint, volatility can reward you big-time.
The tax cuts, both for the corporate level and for the private individual, will flow into stocks.
Once investors see that this correction isn’t the top, they’ll come back into the market, but their risk appetite will be even bigger; with each correction and subsequent rally, they’ll want even riskier plays because they sense that the top is near and they’ll want to squeeze as much profits as possible in the shortest period of time.
That’s why cannabis stock will have a huge year. Cryptocurrencies and blockchain tech will both surge ahead, as more clarity will be shown by governments, but what will truly move the needle is news releases from the powerhouses of tech, the major-caps, such as IBM, announcing their operations are concentrated on blockchain.[/vc_column_text][vc_single_image image=”16395″ img_size=”full”][vc_column_text]
In complete contrast, the federal government is in a world of trouble. Their costs of servicing the debts, with rising rates, is becoming an enormous hassle and might force the government to back-off some entitlement programs, but in terms of private wealth, we’re at the birthplace of a new golden cycle.
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This is the one, ultimate, and most determining factor in predicting the growth of any economy. In fact, the Russian economist, who figured this out, was so controversial that his views were banned in the Soviet Union era.
Just like in the ’80-’00 phase, when peak earners enter the workforce in droves, a growth boom occurs.
Yes, there are hiccups along the way, but at the end of the day, no central banker is powerful enough to block this tidal wave.
These 25-54 year olds prefer cannabis to alcohol, prefer open-source technology to centralized servers, are anti-war, and will want to finally live in homes, which are free and clear and drive electric cars to work.
All of these trends play right into our golden trio: Cannabis, blockchain, and natural resources.
We’re in the money – February will be one to remember.