A 30% Upside Opportunity in the 'Masters of the Universe'

 
Gold and silver are down since the election… But another group of metals has soared.
 
So-called "industrial metals" – aluminum, copper, nickel, and zinc – have been on an absolute tear.
 
Donald Trump's plan to pump $1 trillion into infrastructure spending means more demand for these industrial metals. As a result, the prices of these metals are soaring.
 
As you would expect, the share prices of the companies that mine these metals are surging as well. And history says they could soar as much as 30% over the next year.
 
Let me explain…
 
Despite a few rough years, 2016 has been good to industrial metals. The group as a whole is up 28%, with most of those returns coming in recent weeks. But we could see much higher prices from here.
 
You see, the Bloomberg Industrial Metals Subindex soared 7.5% in just five days last month.
 
That kind of move doesn't happen often. Similar five-day gains have happened less than 2% of the time since 2007.
 
Historically, these metals tend to keep rising after this kind of short-term spike. Gains of 21.6% were typical a year after these spikes.
 
That's enough to get my attention. But we have a better opportunity to profit from this idea right now: Buying the companies that produce these metals.
 
To test this, I looked at the underlying index of the iShares MSCI Global Metals & Mining Producers Fund (PICK). PICK holds the world's largest mining companies – like BHP Billiton (BHP) and Rio Tinto (RIO).
 
These are the "Masters of the Universe" when it comes to global mining. They're incredibly volatile, but buying them at the right time can mean incredible profits.
 
It turns out that the right time to buy them is after industrial-metal prices spike. The table below shows how PICK's underlying index has performed when industrial metals soar like we saw recently. Take a look…
 
 
3-Month
6-Month
12-Month
After Extreme
10.6%
21.4%
30.3%
All Periods
-0.4%
-0.8%
-1.6%
As you can see, this group of stocks hasn't had a good decade. They've actually lost 1.6% a year on average since 2007. But buying after spikes like we saw in November led to fantastic gains.
 
History points to 10.6% gains in three months… 21.4% gains in six months… and 30.3% gains a year after this occurs.
 
Those returns are better than what we can expect from the metals themselves. And a 30% return in one year is a fantastic opportunity.
 
My colleague Steve Sjuggerud currently recommends PICK in his True Wealth newsletter. And this is another reason why it's a trade you should consider putting to work in your portfolio today.
 
Good investing,
 
Brett Eversole
 

Source: DailyWealth

My Real 'Backstory' With Stansberry Research

 
Most people don't know this, but Porter Stansberry and I have been friends since we were kids…
 
He is the smartest person I know, so naturally he was the first person I ever hired when I was given the chance.
 
That was more than 20 years ago… And we've been business partners ever since.
 
We started out living together in a tiny efficiency apartment… I would tell you that we dreamed up Stansberry Research on our kitchen table – but back then, we didn't even have one!
 
Then we made it official 17 years ago by forming Stansberry Research.
 
We saw a simple opportunity in the investment-newsletter business…
 
The bar was set pretty low back then… As Porter says, practically everyone in the business "was a crook." The industry seemed to prefer to "churn and burn" subscribers rather than build long-term relationships with them.
 
Porter and I had a different idea…
 
We put our readers' interests first. We treated them the way we would want to be treated if our roles were reversed. We fulfilled the promises we made.
 
People laughed at us… They thought we were foolish for even trying to build a business this way… saying Porter and I were just "a couple of kids with foolish idealism."
 
It started out slowly. But now, 17 years later, our foolish little dream has become the largest company in our industry.
 
For years, we have invited our best subscribers to become "partners" with us…
 
I don't mean we tried to sell them a piece of our company or asked them to show up at our board meetings. Nothing like that.
 
Instead, we have offered them a chance to become something more than regular subscribers… We offered them a lifetime stake in our research.
 
Our "Alliance Partners," as we call them, have an incredible advantage…
 
My favorite Partner exclusive is our annual Alliance Conference. To me, this is the top event in our industry. It is free to attend for our Alliance Partners – but exclusive to our Alliance Partners only.
 
Normally, this offer of "partnership" is only available to the top 1% of our subscribers – and by invitation only. But we're opening it to you right now for good reason: We are about to raise the one-time entry fee by 70%.
 
As a Partner, you'll gain an incredible advantage… Instead of paying for our various research separately year after year, you'll get just about everything we publish today… every book… every report… every newsletter. Plus, you'll get everything we publish in the FUTURE, for life. And you'll never have to pay regular subscription fees again.
 
Porter and I plan to continue doing what we've done for 17 years with Stansberry Research – which is treat you how we would want to be treated if our roles were reversed. Treating you well over the long run, not just the short run.
 
We would love to have you on board with us for the long run as well.
 
So please, take a moment to look over all the benefits we've prepared for you… Find out whether or not our partnership is right for you, and let us know your decision. But don't delay… This offer expires at midnight Eastern time tonight. Get the full details here.
 
Sincerely,
 
Steve
 
P.S. I want to make sure you are aware that this offer is open TODAY ONLY. That's it. After that, the price is going up dramatically. So if you are interested, please check it out immediately by clicking here.

Source: DailyWealth

The Three Ways to Get Rich

 
Is it possible to begin with nothing and acquire wealth in America? Is it still possible today?
 
I've been studying that question for almost 20 years. And the answer is unequivocal: It is. It is still possible for ordinary, wage-earning Americans to become wealthy.
 
From my research, I have seen that there are basically three ways to get rich:
 
1.   Slowly (in 30 to 40 years),
2.   Quickly (overnight), or
3.   Surely (in seven years or less) – the way I recommend.
How to Get Rich Slowly
 
The Millionaire Next Door, a bestselling book from 1996, revealed that the typical American millionaires acquire their fortunes by scrimping and saving.
 
Just about anyone can get rich this way. You simply put a reasonable percentage of your income into an ordinary investment program for 30 or 40 years, and voila! You are rich.
 
The median income in America was $56,516 in 2015. If you invest 10% of that income ($5,652) at a compounded return of 10.2% (the S&P 500's track record from 1915-2015) over 30 years, you'll end up with more than $1 million.
 
This is due to the "miracle" of compound interest, but it is in no way miraculous. It is a certainty based on historical averages and simple math.
 
But there is a hitch: You have to start relatively young.
 
If you start, for example, when you are 50, you will have only $206,712 accumulated by the time you are 65. If you start when you are 60, well… you get the picture.
 
Getting rich this way doesn't require guts or brains. All you need is a commitment to work hard to make enough money to save every month… and the discipline to keep socking it away.
 
How to Get Rich Quickly
 
Acquiring wealth by scrimping and saving is a sure thing, but it does take a long, long time. Even if we have the time, most of us don't have the patience for it.
 
But getting rich quickly – the ultimate financial aphrodisiac – is it possible?
 
The answer: yes, but only if you are very, very lucky.
 
We hear about it all the time. A chicken farmer in Idaho discovers a Rembrandt in his barn. A barber in New Jersey hits the state lotto. And the one I like best – some guy made a million bucks by investing $5,000 in a penny stock!
 
These are the stories. But the odds of any of these things happening to you are incredibly slim.
 
I don't gamble because I know there are many other ways of entertaining myself that are less addictive and less costly.
 
How to Get Rich Surely
 
The strategy I recommend is faster and more fun than scrimping and saving. And it's much, much more likely to work than any sort of get-rich-quick scheme.
 
I'd like to illustrate my strategy by telling you how I once made more than a million dollars in the lottery – without buying a single ticket.
 
In the 1980s, my business partner had an idea. We would publish a magazine featuring stories of lottery winners and essays by crazy professors with theories about how to beat the odds.
 
At one time, we had 100,000 subscribers paying us $39 per year. You can do the math.
 
It didn't happen overnight. It took years and thousands of man-hours to make it work. It was the result of a good idea, lots of experience, and lots of hard work. And perhaps a touch of luck.
 
This is how you get rich surely. You don't sit around dreaming or throwing what little money you have at ideas. You work hard and smart to earn good money, and you put a large percentage of that money aside to build a business, acquire property, and invest in smart and safe opportunities when they arrive.
 
This is the way the great industrialists made their fortunes 100-plus years ago in America. And it is the way many entrepreneurs and professionals make their money today.
 
When I wrote Seven Years to Seven Figures, I interviewed eight people who had developed multimillion-dollar wealth in under seven years. I asked them exactly what they did. Ultimately, I was searching for a common denominator.
 
As it turned out, I came up with three things that they had in common.
 
They had all:
 
•   Learned a financially valuable skill,
•   Started a business in an up-trending market niche, and
•   Spent considerably less than they made and saved the difference.
This validates what experience tells me: If you are willing to put in the time and follow proven principles of wealth-building, you can become wealthy in a relatively short amount of time – even if you are broke or in debt right now.
 
Fortune magazine predicts that 1,700 people will become millionaires each day into the 2020s. If you get rich surely, the way I suggest, you could be one of them.
 
Regards,
 
Mark Ford
 
Editor's note: Mark has put his best ideas for getting rich surely – his 35-plus years of experience building businesses and investing safely – into the Wealth Builders Club. Its programs cover everything he has done to build a multimillion-dollar fortune, from getting above-average raises at work to rental real estate to collecting art. Click here for the details.

Source: DailyWealth

How to Become a World Champion

 
I don't know about you, but I'm fascinated by "world champions" – folks who have literally reached the top of their game.
 
I've been fortunate to meet a lot folks like this (in a variety of fields… namely sports, business, and music).
 
A lot of my own success comes from learning directly from them, and mimicking things they do.
 
I'm SO curious about them. How did they get there? What did they do differently that allowed them to come out ahead of all the others?
 
You can learn as much from their failures as their successes. Take my good friend Sean Poynter, for example…
 
Sean is a world champion… He won the International Surfing Association (ISA) World Championships in 2013 and 2015. His goal this year was to defend his title… but at the event a couple weeks ago, he lost.
 
I talked with Sean about this over Thanksgiving. (He grew up in a house 100 yards away from my house.)
 
We went out to lunch, and I asked him to give me one word to describe his successes in 2013 and 2015, and his failure in 2016.
 
He answered quickly: "PREPARATION." Here's what he told me…
 
In 2013 and 2015, I was prepared physically, mentally, and with my equipment. I had accounted for every possible situation, and I knew how I would react and handle. I was overly prepared. In 2016, I made a mistake…
Sean was competing in paddle surfing at the ISA World Championship in Fiji's legendary "Cloudbreak" surf spot.
 
Sean's career has been an extraordinary journey…
 
I remember seeing Sean out in the water during a hurricane when he was about 11 years old. He was tiny, even for his age – just a little freckle-faced kid. I thought, "Am I going to have to save this kid?"
 
Then I saw him catch a wave… And he surfed it like a man. He surfed it better than I did! This kid was going to be just fine in the ocean.
 
A couple years later, at age 14, he was invited by his sponsor Volcom to spend the winter on the North Shore of Oahu, Hawaii at the infamous "Volcom House." Situated right at Pipeline surf break, it was the most testosterone-filled surfing lineup in the world… the ultimate proving ground in surfing. And Sean proved himself.
 
When the Great Recession hit, all of the money disappeared from the surfing industry, and Sean lost his sponsorship. He came home to Florida in his late teens, trying to figure out what to do to continue a life on the ocean.
 
During that time, I introduced him to standup paddle surfing… I put him on the board for the first time and showed him the basics. He was instantly better than everyone else, just like in surfing when he was 11 years old. Seriously… a couple years later, he became the ISA world champion.
 
When Sean says he was "prepared" to be the champion, here's what he means…
 
As an example of physical fitness… When he went to spend a month in New Zealand specifically to train with some Olympic-level trainers, they asked him to do sit-ups until he couldn't do anymore… After he had completed 1,600 in the first hour, they told him he didn't have to keep going. The guy is fit!
 
As an example of mental preparedness… Early on, Sean worked with a sports psychologist/hypnotist to knock out self-doubt. I've seen it… When Sean has a 25% chance to succeed, he acts like he has a 100% chance. And when he fails, he gets back up and believes he has a 100% chance again.
 
For his equipment… He has possibly tested more prototype high-performance surf paddleboards than anyone in the last few years. He has his own pro model with what is likely the top brand in paddle boarding.
 
So what went wrong in 2016?
 
He was prepared physically and mentally… but equipment-wise, he made a costly decision. He didn't go with the "tried and true" equipment. Instead, he brought prototypes that he'd never ridden before, that were different than what he'd ridden in the past. And it cost him.
 
"You have to be overly prepared, in every aspect, to be the world champ," he explained. "This year's winner, Zane Schweitzer, deserved it. He was overly prepared in every way. And he earned it."
 
My relationship with Sean has been a ton of fun…
 
We paddled a "tag team" 32-mile race across the "Channel of Bones" – the open ocean between Molokai and Oahu in Hawaii. Sean was kind enough to include me in this race… even though including me ruined his chance to do well in the race. And we did a father/son surf trip together – with his dad and my son – that I will never forget.
 
Now, we'd like to bring a small group of DailyWealth readers in on the fun…
 
I asked Sean to host a group of readers in Mexico from February 15-19 next year… This way, in the heart of winter, you can spend a few fantastic days in your bathing suit, getting a sunburn.
 
Sean will be there. My friend and colleague Porter Stansberry will be there. And I will be there.
 
We'll talk about investing, of course. We'll talk about what it takes to succeed, of course. And we'll talk surfing, of course – Sean will be our surf coach each morning and afternoon…
 
It's the most exclusive opportunity we've ever offered to spend a few days with Porter and me without a heavy agenda.
 
We want to keep the group very small… We will likely limit it to about a dozen folks.
 
If you're no good at surfing, don't worry. There will be plenty to keep you entertained. And you'll still have a great few days with Porter and me in the sun.
 
If you're interested in joining us in Mexico, you can learn more about the program right here.
 
I hope to see you in Mexico in February!
 
Regards,
 
Steve
 

Source: DailyWealth

These Three Charts Mean More for the Market Than Any Politician

 
Trading and investing based on politics is a great way to lose money.
 
If you doubt that, look no further than last month's election.
 
"Experts" everywhere had promised for weeks that even if Trump somehow won, the market would tank.
 
Wrong. International markets fell hard overnight, but by morning, all was calm. The overall stock market closed within a hair of its all-time high.
 
Now, we're left trying to figure out how the economy will react to a president who has been notably vague on actual policy plans. That's not investing, or even trading… That's guesswork.
 
So what should we do now? Well, we can look past the political circus and get back to business. Today, we'll take a quick look at the state of the economy – and then see what that will do to the financial markets…
 
Oftentimes, the broadest and simplest economic stats can give you a powerful picture of the economy in just a few seconds.
 
For example, gross domestic product (GDP) growth measures the economy as a whole. Its quarter-to-quarter fluctuations are cited reverentially in the financial press, but they're mostly meaningless. What's important is that its overall trend over the past six years has remained positive and strong.
 
But… in the most recent quarter, real GDP grew at an annual rate of 2.9%. That's more than double the previous quarter. That's significant.
 
The reasons for the surge were important. Private inventory investment rose – meaning businesses were stocking up on goods that they expect they'll be able to sell. Exports picked up. Meanwhile, the results from the previous quarter were revised upward thanks to a big swing in nonresidential private investment.
 
Even if you're not interested in digging into the details, it's plain to see that despite any politician's claim of a stagnant economy, we've seen many quarters of rising growth.
 
Next up, inflation statistics…
 
We know that inflation eats away at our purchasing power. That's bad. At the same time, the presence of inflation signals a growing economy… If people are spending and buying things, they can drive the price up. You can call this "demand pull" inflation.
 
Just like Goldilocks, we're looking for a happy middle. Ideally, an inflation rate of 2% is generally considered an indicator of economic growth. It helps us maintain reasonable purchasing power while giving us a cushion to avoid deflation.
 
Today, inflation is ticking up, indicating growth. But it's still far from being something to worry about. Whether you use the Consumer Price Index (CPI) or the Federal Reserve's preferred measure, personal consumption expenditures (PCE), inflation checks in somewhere between 1% and 2% right now.
 
If you're looking for a sign of a healthy but not overheated economy, you can't do much better.
 
Finally, by looking at what manufacturers are doing, you can get an idea of what's next for the economy.
 
The ISM Purchasing Managers Index (PMI) tracks the sentiment of manufacturers. When the reading is above 50%, manufacturers are optimistic. Below 50%, they are pessimistic.
 
Optimistic manufacturers are usually looking to expand their operations. They invest in their businesses to take advantage of willing customers and good business conditions. More than any presidential plan, that's what drives the economy.
 
Today, the PMI is just over 53%, which is a good sign. As you can see from the following chart, the PMI does a good job of predicting where GDP will go. It leads the GDP numbers by just a little bit.
 
While the economy does drive the market over the long term, the two elements can move separately at times. So let's check in on stocks…
 
The market's positive reaction to Trump's election tells us a lot.
 
First, investors aren't afraid of risk. Ever since the 2008 financial crisis, shifts in investors' "risk tolerance" have played a big role in the market's direction.
 
At times, investors flee from anything with a hint of risk – dumping stocks and high-yield bonds and moving to government bonds, gold, and cash. At other times, they load up on anything promising big returns. Taking advantage of these shifts is sometimes called the "risk on/risk off" trade.
 
Today, stocks are rising, even risky ones. High-yield bonds saw major inflows – the iShares iBoxx High Yield Corporate Bond Fund (HYG) set a record by collecting about $700 million in new assets just two days after the election.
 
Trillions of dollars of cash are still on the sidelines, sitting in safe bonds with low and negative yields. With appetite for risk rising, that money could drive the market higher.
 
Ultimately, the stock market will survive. Focusing on high-quality, cash-generating businesses is still a great way to make money today.
 
Here's to our health, wealth, and a great retirement,
 
Dr. David Eifrig
 
Editor's note: I've put the best retirement hacks I've found – more than 250 in total, all of which you can use right now – into my book, Dr. David Eifrig's Big Book of Retirement Secrets. It's a treasure trove of well-researched ideas for living a life full of health, freedom, and abundance. Click here for the details.

Source: DailyWealth

Goepfert: 'Limited Upside at Best' in Weeks Ahead

 
"The spread between optimism and pessimistic indicators is getting stretched," my friend Jason Goepfert wrote this week. "Like really, really stretched."
 
Jason is a level-headed guy… He doesn't get overly emotional about the markets like this often. Instead, he sizes up investors' emotions for a living.
 
Jason is the founder of SentimenTrader.com. We've known each other for many years. He does some of the most important research on Wall Street, in my opinion.
 
While Jason doesn't often get worked up about the markets, it's clear that right now he's concerned about weakness in the stock market in the short term…
 
"Nearly 45% of our core indicators are showing extreme optimism," he wrote this week, "while 0% are showing pessimism."
 
Note he didn't say that 45% of his indicators are showing some optimism… He said 45% are showing extreme optimism.
 
So what does this mean for us as investors?
 
Jason thinks stocks will underperform in the near term. Specifically, he puts the likelihood of a positive return over the next two weeks at just 40%. And stocks could underperform for as long as a few months.
 
Here's exactly what he wrote (backed up by his charts and research):
 
In stocks, medium-term risk has increased. The spread between 'Smart' and 'Dumb' Money Confidence recently dropped below 40%, which has led to limited upside at best in the weeks, and in some cases, months ahead.
So if Jason doesn't like stocks right now, is there anything he DOES like?
 
Why, yes…
 
He actually likes some major asset classes over the next few weeks – ones that many DailyWealth readers have been chomping at the bit to buy but have been too afraid to pull the trigger on right now.
 
"[Asset A] risk is back down to a very low level, which has recently led to short-term rallies," he wrote in that same recent commentary, and "[Asset B] risk has declined to a similarly low level."
 
To be fair to Jason's paid subscribers, I can't share with you what Assets A and B are. But if you are interested in investor sentiment, I urge you to check out Jason's work.
 
Jason is the best in the business at analyzing investor sentiment. And right now, he's concerned.
 
I typically don't trade in short-term time frames like days or weeks. I don't believe I have any trading advantage in that time frame. But I do trust Jason's work.
 
If you have a position where you are expecting a big move higher over the next two weeks, I urge you to check out his recent research.
 
Personally, I still believe we have significant upside ahead. But if Jason is right, the next couple weeks could certainly be tough before a rally resumes…
 
Good investing,
 
Steve
 

Source: DailyWealth

Why You Need More of This Unpopular, No-Yield Asset

 
Keep it, and over time it will be worth less and less. It doesn't yield anything. And if you misplace it, it's gone forever.
 
For these reasons, it's easy to dismiss cash as an investor.
 
But in fact, cash is a good thing. And chances are, you'd be smart to have more of it in your portfolio.
 
Here's why…
 
1Cash helps you avoid market risk.
Any kind of investment involves risk. Asset prices rise and fall in value from day to day. Bad earnings reports, Donald Trump's latest utterings, something funny going on at the European Central Bank… an infinite number of unknowns and could torpedo your portfolio.
 
Not so with cash. Overlooking the long-term effects of inflation, in the short term, the value of your cash remains constant, no matter what is happening in the markets.
 
In today's markets, your cash doesn't yield much of anything. But most other supposedly "low risk" investments, like government bonds, aren't paying much either – some of them even have negative yields.
 
And sometimes, staying still – that is, not losing money – is enough.
 
2Cash protects your portfolio.
There are different ways to hedge, or protect, your portfolio. Hedging is important because it helps reduce losses when your investment strategy doesn't work out as planned.
 
An example of hedging is owning negatively correlated assets… One asset moves up when the other falls. But hedging can get complicated, and it can cost you a lot in broker fees.
 
And in the event of a financial crisis, even uncorrelated assets tend to move in the same direction – which is down.
 
On the other hand, holding cash is free and easy. It's the simplest way to hedge. While the state of investments is uncertain, cash keeps its value.
 
Let's say an investor has $50,000 in stocks and an equal sum in cash, for a total portfolio value of $100,000.
 
Then the stocks drop 5%, but the cash's value stays the same. This means that the investor has a paper loss of $2,500 on a $100,000 portfolio – or is down 2.5%.
 
But if the entire portfolio was in stocks, the loss would be $5,000, or 5%. Cash helped to hedge his portfolio, cutting his losses in half.
 
3Cash gives you "dry gunpowder."
Few things are more frustrating than recognizing an excellent investment opportunity but not having the cash to buy it.
 
Cash represents buying potential. It's there when you need to use it. Plus, when markets fall, the buying power of cash increases – you can buy more shares than you could the day or week before.
 
Legendary investor Jim Rogers once explained his approach to investing this way…
 
I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.
What he means is that when obvious investment opportunities come up, he takes advantage.
 
Cash helps you avoid market risk, protects your portfolio, and is there when you need it. That's why keeping a portion of your portfolio in cash makes sense, no matter what's going on in the market.
 
Regards,
 
Kim Iskyan
 
Editor's note: Kim is the founder of Truewealth Publishing, an independent investment-research company based in Singapore. Click here to sign up to receive his free Truewealth Asian Investment Daily e-letter in your inbox every day.

Source: DailyWealth

'Our Top Trade of 2017,' Says Top Wall Street Firm

 
I went "whole hog" on a trade in my monthly newsletters, investing in one particular country over the last month.
 
I'm talking about Japan.
 
You NEED to be in this trade. Let me briefly explain why…
 
About a month ago, I recommended Japan in my True Wealth Systems newsletter as my top idea. Not long afterward, I followed that up with a different Japan play, making it my top recommendation in my flagship True Wealth letter.
 
The reason was simple: We had EVERYTHING we wanted to see in a trade…
 
Everyone hated Japan – nobody was even paying attention. And Japan was cheap and in the start of an uptrend. That's what I want to see!
 
Just in the last week, the rest of the investment world has started coming around to my way of thinking…
 
For example, investment bank Morgan Stanley just went "whole hog" on Japan, according to CNBC.com. "Morgan Stanley 'double upgrades' Japan equities," the news service wrote last week.
 
Previously, Morgan Stanley had given Japan an "underweight" rating (which means "sell"). Now, it has changed it to an "overweight" rating (which means "buy"). It wasn't just Morgan Stanley… Nomura – Japan's largest brokerage firm – and investment bank JP Morgan have upgraded Japan, too.
 
My "untold" story about Japan is becoming less untold…
 
Part of my untold story was that Japan's government will likely purchase a huge amount of Japanese stocks in 2017. The CNBC story reiterated our thesis, saying:
 
Morgan Stanley… noted that the Bank of Japan was likely to continue its 6 trillion yen ($53.6 billion) in annual purchases of exchange-traded funds (ETFs) under its quantitative easing program. It also expected that Japan's Government Pension Investment Fund (GPIF), the world's largest public pension fund, could buy another $29 billion worth of Japanese equities…
Normally, I don't like government intervention… But in this case, the Japanese government buying stocks will likely protect our downside risk AND embolden local Japanese investors to buy stocks.
 
The optimal time to buy an investment is 1) when it's hated (or ignored), and 2) when it's starting an uptrend. Japan met this definition perfectly a month ago, as I pointed out to my paid subscribers…
 
Let me show you…
 
The stock I recommended back then is the WisdomTree Japan Hedged Equity Fund (DXJ). Take a look at these two charts.
 
The first chart shows the shares outstanding of DXJ…
 
As you can see, investors gave up on this fund from last summer until this fall – when I started writing about it. This chart was one clue that Japanese stocks were hated by U.S. investors.
 
Now take a look at this next chart. It's a one-year chart of DXJ. You can see that DXJ bottomed over the summer, and it's now in a strong uptrend.
 
This is the exact setup I want to see.
 
My paid subscribers got into this trade about a month ago. But there's still plenty of upside potential…
 
The major brokerage firms are just picking up on this now as their "big idea" for 2017. Japan still meets my investing criteria… It's cheap, hated (ignored), and in the start of an uptrend.
 
Get on it… now. DXJ is the simplest way to play it.
 
Good investing,
 
Steve
 
Editor's note: Steve and his research team have discovered a unique market signal called the "Nordic Cross." If you know how to spot this simple cross – even if that's all you know – you can capture every huge, 100%-plus gain in the market. Click here to learn more.

Source: DailyWealth

How We Just Made 19% in Two Months in This 'Boring' Trade

 
My True Wealth subscribers just pocketed 19% in two months – in boring Treasury bonds.
 
How did they do it?
 
Today, I'll share with you exactly what we did. It's a perfect teaching moment for how to set up a trade, when to get in, and when to get out…
 
The entire trade took place over three issues of my True Wealth newsletter…
 
1.   In mid-June, I introduced the opportunity. But the time wasn't right just yet.
 
2.   In mid-September, the uptrend appeared, so we put the trade on.
 
3.   In mid-November, our reason for being in the trade was gone, so we sold for a 19% profit.
Let me go through each of these in just a bit more detail…
 
In mid-June, I told True Wealth subscribers:
 
For the first time in, well, as long as I can remember – I finally expect a meaningful move higher in long-term interest rates.
 
Today, we are at an 18-year extreme in our advance-warning indicator. If history is any guide, then long-term interest rates are about to go higher…
 
In both 1998 and in 2012, our advance-warning indicator was a couple of months early. So we are not going to pull the trigger and bet on higher interest rates just yet. Instead, we are going to wait for the uptrend in long-term interest rates.
 
Buy the ProShares UltraShort 20+ Year Treasury Fund (NYSE: TBT) when interest rates start to go up.

Our advance-warning indicator was the activity of large speculators in the 30-year bond futures markets. It was hitting a record extreme, and ended up peaking in early July. That meant investors loved bonds… to a degree not seen since 1998.
 
When everyone loves an investment, it ultimately reaches a point where nobody is left to buy. Bonds were at that point.
 
By mid-September, we finally saw the trend in interest rates start to go up. So we bought shares of the ProShares UltraShort 20+ Year Treasury Fund (TBT) – which is a bet ON higher interest rates and AGAINST bond prices.
 
Our timing was pretty darn good…
 
"Global Bonds Suffer Worst Monthly Meltdown as $1.7 Trillion Lost," one Bloomberg headline said last week. According to the article, November was the worst month in global bond history, going back more than 25 years.
 
As you might imagine, the 18-year extreme in our advance-warning indicator disappeared completely.
 
Our reason for being in the trade was gone. So we got out of the trade in mid-November, for a 19% gain in two months.
 
We took what we were given:
 
1.   We saw an extreme setup in mid-June (futures traders LOVED bonds), but we waited.
 
2.   We got "confirmation" of our idea by mid-September (an uptrend in TBT).
 
3.   The "free money" was gone by mid-November (our extreme disappeared), so we got out.
That's how you trade. That's how you make 19% in two months – in something like boring Treasury bonds.
 
I hope you can learn from this… It's how we handle most of our trades and investments:
 
1.  Find a setup you like.
 
2.  Wait for the uptrend to confirm your idea.
 
3.  Get out when the setup (or the trend) is gone.
 
Doing this made us 19% in two months – in bonds. And it has worked for us for decades. It should work for you, too.
 
Good investing,
 
Steve
 
P.S. Saving My Life update: I enjoyed Thanksgiving with the family – maybe a little too much. I ended up a couple pounds heavier since my last weigh-in. I'm 230 pounds now. But I'm back on the program and hope to have a strong finish into Christmas.
 

Source: DailyWealth

One Way to Ensure You Won't Outlive Your Retirement

 
If you're worried about running out of money in retirement… you should be.
 
Consider this… Someone who is 65 years old today is expected to live to the age of 85. But when he was born, scientists expected him to only live to the age of 68. So right now, the average retiree is already 17 years "ahead of the curve."
 
As medical advancements continue, that gap could grow even faster… Already, life expectancy is increasing by an average of three months every single year.
 
Outliving one's retirement savings is the biggest fear of most people nearing retirement age. And it's a real concern.
 
More than half of Americans have less than $10,000 saved for retirement, according to the Credit Union National Association. And the New York Times estimates that nearly half of middle-class workers will be "poor or near poor" in retirement, living on a food budget of about $5 per day…
 
So imagine trying to milk those already sparse savings over 40 or 50 years.
 
The good news is that the solution to outliving your money isn't that complex. One type of investment offers real, guaranteed results…
 
I'm talking about annuities.
 
An annuity is a financial contract between you and an insurance company. In the simplest terms, you pay a large amount up front, and the company pays you back over the following years… either for a fixed number of years or until you die.
 
For example, a 60-year-old man can spend $200,000 today and, in return, receive $966 a month for life. That becomes a total of almost $290,000 in payments by the age of 85. The longer you live, the bigger the return on your investment principal.
 
Now, this can get more complex depending on how much of a payout you want and over what length of time. Annuities can be structured in many different ways. In the above example, the 60-year-old man chose what's called a "single premium fixed immediate annuity."
 
But many other variations are available…
 
First, answer these two questions…
 
1.   When do you want to start collecting income from your investment?
If you want to start your income stream now, you want an immediate annuity. If you want to save for the future and you can afford to wait to collect, you want a deferred annuity.
 
2.   Are you willing to accept investment risk, or do you want a guaranteed rate of return?
Variable annuities involve investment risk, but they offer potential higher returns. Otherwise, you can simply accept a fixed rate.
 
By selecting, combining, and adjusting these factors (and more), you can tailor the right annuity to your situation…
 
For example, a new retiree who wants a certain income stream right away might choose to invest in a fixed immediate annuity. Or, if you're saving for a future retirement, you might use a variable deferred annuity to participate in stock market gains while accumulating wealth you'll collect in later years.
 
Annuities can offer many unique benefits. One of the pluses of using a variable annuity is tax deferral.
 
Annuities aren't technically an investment… They are a contract you enter into with an insurance company (known as the "issuer"). This means you don't pay taxes along the way on your annuity's gains. Instead, your wealth will compound. (When you finally take your withdrawals, you'll pay taxes on those as income.)
 
Variable deferred annuities can also reduce market risk. If you retire at a down time in the market, you can end up with less than you had planned. But many variable annuities guarantee the safety of your invested capital, or even a minimum return if the market craps out.
 
There are also some downsides to consider. For example, annuities often have high fees to offset all of those benefits (although you can minimize the fees you pay by buying directly from companies instead of going through a salesman).
 
Annuities also lack liquidity. If you put your cash into one, you can't get it back whenever you want without penalties. If you buy an annuity that will pay for life, you may not get your money back if you don't survive long enough.
 
However, most annuities have a short period during which you can back out without penalties. After that, there are some circumstances under which you can make withdrawals (in excess of the income you're getting). And most annuities allow you to make special withdrawals if you need nursing home care.
 
The most important takeaway is this: Make sure you understand every detail of any annuity you purchase. You're the only one who knows what's right and what's best for you.
 
Annuities are an important and valuable tool for those in the right situation. For those folks, it may be the single best way to plan for retirement… and ensure they don't outlive their savings.
 
Here's to our health, wealth, and a great retirement,
 
Dr. David Eifrig
 
Editor's note: Annuities are just one way to generate safe, steady income in your retirement. Doc's High Income Retirement book features several other income-generating strategies you can use to immediately start collecting hundreds or even thousands of dollars in additional income every month. Pick up your copy right here.

Source: DailyWealth