In January of 2017, the market was calling this the “easiest short position in history.”
Portfolio Wealth Global took the other side of that bet. I’m not a contrarian just for the sake of being one, but this was a great call for us, and many of you are up 91% in one year on one of the safest companies in the world, because of it.
AbbVie (NYSE: ABBV) is a company we featured exactly one year ago, and we just about doubled our money, which is why I’m selling half of my position and letting the rest of it ride. Essentially, the market is now paying for our position, since our original sum is securely tucked in our cash allocation, but we’re still long that same amount.
In other words, when you invest $15,000 into a stock and it doubles, it makes sense to sell 50% of it, since this means you’re still invested in it for $15,000, but you also have $15,000 cash back in your brokerage account.
AbbVie is the manufacturer of Humira, the best-selling drug in the world. The main patent on Humira expired when we profiled it a year ago, but it still has at least 75 other patents that protect the drug, with various expiration dates stretching through 2032.
That’s why the market though Abbvie’s doomsday has arrived, but I looked into it closely and deduced diffferently.
The stock market is absolutely hot right now, and with commodities looking strong and GDP numbers coming in at 2.6%, it’s not too over-heated.
Put differently, I expect the rally to continue into February and last throughout the year, with one or more one-day flash smashes, with the USD weakening and commodities strengthening further.
Mark Mobius, the 81 year old famed commodities money manager for Templeton Funds, who has been named one of the “Top 100 Most Powerful and Influential People” in 2016, just told Bloomberg that mining stocks are his No.1 play for 2018-2019.
It’s his last prediction before retiring next week, and his reasoning is that they are GROSSLY undervalued, while the spot price for the underlying commodities has been on the rise.
This Sunday, at 11AM CST, Portfolio Wealth Global will feature a company that is so undervalued right now that if it triples from here, it will still be cheap.
I’m getting aggressive in 2018!