Seriously, anything can happen in the coming months.
In the past six months, we’ve seen cryptocurrencies crash 70%-100% and stocks rally hard in January, then make a pullback to negative territory, carving a bottom, not rip-roaring higher over the summer, especially the NASDAQ, even though FED chairman, Jerome Powell, has been telling Congress that fiscal policies are unsustainable.
We’ve seen the dollar advance, precious metals collapse, playing with bear market pricing action, and a trade war, which has the potential to escalate.
We know that five stocks (FAANG) are forcing the rest of the market higher, but it is a fake trajectory.
This is a blizzard, and money managers will have to shuffle their portfolios to find value.
I actually love this trading action.
The reason this is extremely positive is that there are no rules right now, as to what is right or wrong. Asset managers won’t be blamed for making mistakes or changing their tune.
We know what’s cheap – it is the commodities sector. We also know that managed money doesn’t like commodities if they can find better value somewhere else, but if they can’t, believe me, they will go towards the cheapest asset class in the world right now.
One of the best things about turbulent periods is that they allow us to take a step back and look at the bigger picture.
Courtesy: U.S. Global Investors
Paradigm shifts occur in moments like this, and Portfolio Wealth Global sees this as well.
Personally, I continually find it very difficult to invest in undervalued businesses, but in 2018, I’ve been building long-term positions in: Applied Materials, Kimberly Clark, Southwest Airlines, and AT&T.
It’s true that most stocks will only deliver single-digit returns in the coming 10 years, due to higher interest rates, but these companies above, for example, will readily beat the index for the next five years.
You see, we’ve received emails asking to learn more about my overall investment strategy, and I plan to share, in detail and periodically, precisely what I do in my own life, on a day-to-day basis.
So, starting July 31st, and at the end of every odd month (September, November, January, March, May, and July), I’ll publish how I’ve been building wealth in the 60-day period, which just ended.
This will include business insights, mistakes and lessons learned, personal portfolio decisions, and general noteworthy bulletins.
I’m headed to Europe right now to gauge the sentiment and the challenges they’re facing with my own eyes. From there, I’ll be traveling east, towards the future Asia.
Bitcoin is surging for one main reason: people are afraid of national governments. This global medium of exchange is a gateway, which is why we like it.
In 2017, it helped us generate speculative mega-returns, and I’m thrilled to report one Ethereum millionaire, who took action when we covered the coin in April of 2017. She invested $35,000 back then and called it quits, while she was ahead, for a cool $1.1M!
This news came to me yesterday when I was responding to incoming questions. But this year has been much rougher. When speculations go south, cut losses. Do not get dragged along for gruesome rides.
Instead, cut the head off the snake. Then, monitor the company to see when the sell-off is exhausted, wait for the uptrend, and resume buying. Timing is super-difficult. If it were easier, the potential gains for small-cap companies wouldn’t be 500%-5,000% in a couple of years, but 7%-10%, like a traditional stock.
Research Partner, PortfolioWealthGlobal.com
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.