A Dramatic Shift in My 'Melt Up' Thesis

 
My "Melt Up" thesis just changed in a big way…
 
The Melt Up that's happening in the U.S. is crossing borders. It has officially gone global.
 
It turns out, the "big idea" in this Melt Up isn't limited to the U.S. And right now, the biggest gains will likely come from outside the country.
 
Let me explain…
 
In the U.S., technology stocks are leading the market higher.
 
This is exactly what happened during the last Melt Up.
 
First, let's take a broad look. The chart below shows the S&P 500 compared with the Nasdaq Composite Index during the mid-1990s…
 
As you can see, these indexes tracked each other almost perfectly for most of the 1990s. Stocks in general rocketed higher, and the S&P 500 and Nasdaq moved in unison.
 
But that changed in mid-1998.
 
This, of course, is when the Melt Up began. The Nasdaq began to outperform… and ended up crushing the S&P 500's return over the next 18 months…
 
Now, the S&P 500 did fine. Investors in the overall market made money… But the big profits came from the tech-heavy Nasdaq.
 
And I believe a similar breakaway is starting, right now, in a certain group of international stocks.
 
This is a group of exciting, high-growth companies… the kind we would expect to soar in a Melt Up.
 
These stocks have a history of tracking their overall market… just like the Nasdaq tracked the S&P 500 through most of the 1990s. But that has changed recently.
 
Over the last few months, this exciting group of stocks has dramatically outperformed. Take a look…
 
This is exactly what things looked like at the end of 1998. The Nasdaq began to outperform… And that move eventually resulted in a 200%-plus gain in around 18 months.
 
We're seeing a similar setup right now, outside of the U.S. It looks just like what happened during the last Melt Up in the late '90s.
 
I believe this is the beginning of the "Global Melt Up."
 
In short, U.S. stocks are soaring to new heights. But the story doesn't end there. A dramatic shift is underway… Right now, the biggest Melt Up gains will likely come from outside the U.S.
 
That means if you're solely invested in U.S. stocks right now, you'll still do well… But you will likely miss out on the biggest winners.
 
Good investing,
 
Steve
 
P.S. I can't share the exact group of stocks that are leading this breakout – and the coming Global Melt Up. It's a big story, beyond the scope of today's essay… But last night, I gave all the details in my emergency Melt-Up briefing. If you didn't attend, I urge you to listen to the full recording now. You can access it for free right here.

Source: DailyWealth

This Is NOT What a 'Melt Up' Top Looks Like

 
I've said it for years… The biggest gains will come in the final innings of the bull market.
 
My friend, the final innings have arrived. The big moment is here.
 
Yesterday, I explained my "Melt Up" thesis, and why I believe these final innings could lead to massive gains.
 
It's already happening… Stocks are up big over the last 18 months. But I don't believe we're at the top yet.
 
The reason is simple… Things don't look anything like they did at the top of the last Melt Up.
 
Let me explain…
 
During the last Melt Up, we saw the biggest gains in the tech-heavy Nasdaq Composite Index. It soared 200%-plus in 18 months as the Melt Up concluded. And prices hit truly ridiculous valuations along the way.
 
A lot of people point to today's valuations in the U.S. as a reason the recent gains can't continue. But here's the thing…
 
During the last Melt Up, valuations were already ridiculously high – before it all began.
 
The chart below shows the price-to-sales ("P/S") ratio for the Nasdaq during the 1990s. (This ratio is one of the best ways to measure real value in the stock market.) Take a look…
 
The Nasdaq's P/S ratio doubled from 1.5 to 3 in 1998-1999. It then roughly doubled again before finally hitting its peak.
 
This proves a powerful point… Valuations alone don't stop this kind of boom.
 
And that was just the broad index. The Nasdaq's top holdings hit even crazier levels…
 
The table below shows the Nasdaq's top 10 holdings at the end of 1999. Many of these are household names today. But back then, they were the most exciting and highest-growth businesses in America.
 
Importantly, as the table shows, these companies saw their P/S ratios explode during the last Melt Up. Take a look…
 
Company
P/S June 1998
P/S December 1999
Microsoft
17.3
27.3
Cisco
12.1
32.0
Qualcomm
1.3
26.5
Intel
5.0
9.3
WorldCom
5.3
3.9
Oracle
3.4
17.2
Dell
4.4
5.5
Sun Microsystems
1.7
9.2
Yahoo
86.2
190.2
JDS Uniphase
6.9
36.6
Median
5.1
21.9
 
These numbers are hard to believe, but they're true…
 
Microsoft was priced at a ridiculous 17 times sales when the Melt Up began. Its valuation increased nearly 60% from there. Qualcomm went from being dirt-cheap at 1.3 times sales to a true bubble valuation of 27 times sales.
 
Only one stock on this list – WorldCom – saw its P/S ratio decline during the Melt Up.
 
Most of them saw their P/S ratios increase by multiple times – and they eventually reached crazy levels.
 
This is all the proof I need that the Melt Up in the U.S. isn't over yet.
 
Valuations are high… But they're nothing like the last Melt Up. And that tells me stocks can still soar dramatically from here.
 
Good investing,
 
Steve
 
P.S. Big gains are still ahead… But this bull market is accelerating. That's why I want you to check out my free emergency briefing, TONIGHT, for a crucial update to my Melt Up thesis. I'll tell you which parts of the market will soar the most in the coming months… And Porter Stansberry will explain how you can still prosper, and even profit, when we finally enter the "Melt Down." Join us at 8 p.m. Eastern by clicking here.

Source: DailyWealth

Welcome to the Next Chapter of the 'Melt Up'

 
It was nearly two years ago… September 2015.
 
Stocks had just finished their first 10%-plus correction in years. But I was bullish.
 
I was preparing to give a speech at the Stansberry Alliance conference. It was titled "Welcome to the Melt Up."
 
I was worried as I got up on stage. I didn't know how the crowd would react.
 
I was about to give a speech that was against what everyone in the room believed.
 
They were all bearish – the speakers, the attendees, you name it. The stock market had fallen in August, and then again in September. These stock market declines had driven investors to an extreme in fear.
 
"Welcome to the Melt Up" was the opposite of what they wanted to hear. But it turned out to be exactly right…
 
Stocks have soared over the last two years… They've hit new high after new high.
 
Hindsight makes those gains seem obvious now. But calling for the "Melt Up" was a massively contrarian opinion in late 2015.
 
I was confident because I'd seen a Melt Up before…
 
The most recent major example was the top of the 1990s bull market. The Nasdaq Composite Index soared more than 86% in 1999 alone. Now that was a clear Melt-Up period.
 
Importantly, these huge Melt-Up gains typically begin after a time of extreme fear.
 
In late 1998, stocks had fallen dramatically in the wake of the Asian Financial Crisis, and we hit a fear extreme. Then, stocks surprised everyone and soared higher – the Nasdaq rose 200% in 18 months.
 
Take a look…
 
That's what a Melt Up looks like… a massive, blow-off top at the end of a bull market.
 
The important thing to remember is that Melt Ups usually begin after a period of extreme fear. And that's exactly what we had in late 2015 and early 2016…
 
Stocks fell in autumn 2015 and at the beginning of 2016. In both cases, the short-term downside was 10%-plus. And those were the first 10%-plus declines in stocks since 2011.
 
Investors had gotten used to consistent gains and easy money. But these declines showed a crack in the armor, and that caused a major spike in fear.
 
One simple way to size up fear in the markets is through the Volatility Index (the "VIX") – often referred to as the market's "fear gauge."
 
The VIX spiked during both of these falls. Generally, a VIX reading above 20 shows fear in the market. And in autumn 2015, the VIX rose above 40 – a level not seen since 2011. The VIX nearly hit 30 again in early 2016. Take a look…
 
This set the stage for what has happened since. It set the stage for the Melt Up…
 
We were late in the bull market… And stocks fell slightly, causing a major fear extreme.
 
The S&P 500 is up around 37% since its 2016 bottom. That's the Melt Up in action. But I don't believe it's over yet.
 
Tomorrow, I'll show you why… and which parts of the U.S. market could soar the most as the Melt Up concludes.
 
Good investing,
 
Steve
 
P.S. I believe the Melt Up is one of the most important investment themes in the world today. So tomorrow night at 8 p.m. Eastern, I'm hosting an emergency briefing with my friend and colleague Porter Stansberry. We'll walk you through the details of a new development in my thesis… And I'll share one of my favorite investment opportunities right now. Click here to reserve your spot.

Source: DailyWealth

We're up 35% in Four Months – With More to Come

 
My True Wealth Systems readers are up 35% in just four months on one trade…
 
How are we up so much? We made a massively contrarian bet.
 
In March, we placed a short-term bet on lower oil prices. We were so confident in the trade that we made it with "leverage" to increase our potential gains.
 
Oil prices have crashed in recent weeks. They fell by nearly $10 per barrel in the past month. And now, True Wealth Systems readers are up 35% on our trade in a little less than four months.
 
Today, I'll show you exactly how we did it… And why, despite the recent fall, oil prices could move even lower in the near term.
 
Let's get started…
 
True Wealth Systems readers are sitting on 35% profits, as I write. But our reason for entering the trade hasn't changed. Oil prices can move lower from here in the short run.
 
Here's why…
 
We originally bet on lower oil prices for a handful of reasons…
 
First, traders were incredibly bullish on oil prices. Specifically, the Commitment of Traders (COT) Report, which measures the actions of traders in the futures markets, showed oil traders had reached their most extreme level of optimistic bets – ever.
 
That gave us a massive contrarian opportunity. You see, when futures traders all make the same extreme bet, the opposite tends to happen. And that's exactly what was happening in March… Oil traders were all betting on higher oil prices.
 
On top of that, the economics for oil made no sense… Oil inventories were hitting multiyear highs. And oil rigs were coming back online. More oil was being pumped, despite plenty of existing supply.
 
The opportunity was obvious. So we shorted oil, with leverage, through the ProShares UltraShort Bloomberg Crude Oil Fund (SCO).
 
SCO is a simple fund, designed to return twice the opposite daily return for oil. So if oil falls 1% in a day, SCO will rise around 2%.
 
Oil is down 15% since our initial short, and we're up 35% on shares of SCO. Things have worked out perfectly so far.
 
Now that we're four months in, I have two important points to make:
 
1.  The extreme from oil traders HAS gone away. However,
   
2.  Oil prices can still fall further.
The simplest reason oil prices can keep falling is supply and demand…
 
Just look at the chart below. It shows the number of active oil rigs… And it has been rising for 23 straight weeks, which hasn't happened in three decades…
 
Rig counts have risen dramatically over the past year… And they're showing no signs of stopping.
 
More oil rigs working means that more oil is flooding the market. And increasing oil supply (all things staying equal) means that oil prices will likely keep going down.
 
On top of those increasing rig counts, oil inventories continue to approach record highs. In other words, we have a glut of oil… And drillers are fixated on pulling more and more out of the ground.
 
Today's supply-and-demand situation doesn't differ much from what we saw back in March when we first recommended shorting oil. But the extreme from oil traders is gone.
 
True Wealth Systems readers are up 35% in just four months. However, we expected to be in this trade a maximum of six months. And based on the current situation in the oil markets, we will likely keep our trade on for the full six months to maximize our gains.
 
Oil might run higher in the long run. But we're up 35% in four months betting the opposite way… And we don't think our trade is over yet.
 
We'll let you know when the situation changes.
 
Good investing,
 
Steve
 
Editor's note: Unlike oil today, stocks just keep going higher as the "Melt Up" continues… And everyone is wondering, "When will the bottom fall out?" This Thursday at 8 p.m. Eastern time, Steve will join Porter Stansberry to explain how to safely profit from the final innings of this bull market… and even make money on the way down. Click here to reserve your spot.

Source: DailyWealth

A Historic Change Is Underway in Chinese Stocks

 
Last Tuesday, the largest stock-index provider in the world – MSCI – made a historic announcement…
 
It announced a plan to finally include local Chinese A-shares in its benchmark emerging markets index.
 
This one move will ultimately cause hundreds of billions of dollars to flow into Chinese stocks in the coming years…
 
I've written about this story for months. And last Tuesday, I told you the day of reckoning was finally here. I was right… MSCI made the right decision.
 
I can't overstate the importance of this change. It's absolutely huge. And it will affect just about every investor on the planet – even if they don't realize it.
 
This is the start of a major shift around the globe. By the time the dust settles, up to $1 trillion could ultimately flow into Chinese stocks… simply because of last week's announcement.
 
Here's why…
 
Big investors (like pension funds and hedge funds) look to MSCI for guidance on their holdings. These big investors have "benchmarked" their investments to MSCI's indexes.
 
Until last week, big investors didn't need to invest in China's local stock markets.
 
MSCI had said that local Chinese stocks were too difficult for foreign investors to buy and sell. But China's efforts to open up its markets have finally paid off. For the first time ever, MSCI is including local Chinese stocks in its global indexes.
 
The plan MSCI announced was a little different than we expected. The original plan was to include 400-plus Chinese stocks. But that number shrank…
 
Instead of including 400-plus stocks, MSCI will include only large-cap and dual-listed stocks (stocks that trade in both Hong Kong and mainland China). This brings the total included to 222.
 
This is a smaller set of companies than expected. Our opinion is that by focusing on the stocks that are easiest to buy, MSCI was "lowering the bar" to allow China to qualify.
 
MSCI expects to add the 200-plus companies it left out sometime in the future. For now, here's what the plan looks like…
 
MSCI plans to move the 222 Chinese stocks it's including to a 0.73% position in its main emerging markets index after market close on May 31, 2018. China does have a few hoops to jump through for that to happen. But they're trivial.
 
This is just the first move. Ultimately, according to MSCI, the final weighting of local Chinese stocks will be about 18% of the index.
 
Long story short, this simple announcement could cause up to $1 trillion to flow into Chinese stocks over the next few years. It's absolutely huge news.
 
MSCI made the right decision. Large investors will be forced to buy Chinese stocks for years – starting in May of 2018. Make sure you get your money there first.
 
Good investing,
 
Steve
 
P.S. Right now, I believe most investors are missing an even more attractive investment opportunity… In fact, I bet not one in a hundred Americans has ever made this sort of investment before. Yet it could deliver gains of up to 500% as this bull market finishes its run. I'll be discussing this unique opportunity on Thursday during an emergency "Melt Up" briefing. If you're interested in hearing more, click here to reserve your spot.

Source: DailyWealth

Steve's Incredible Prediction Just Happened… Did You Listen?

The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
 
 Steve Sjuggerud has been keeping close tabs on oil prices…
 
In recent months, Steve has highlighted several bearish signs for crude oil, including extreme sentiment among oil speculators and persistently bullish behavior in energy stocks.
 
This week, he shared another. As he wrote in his latest True Wealth Systems Review of Market Extremes…
 
Oil prices have crashed in recent weeks… They're down nearly $10 a barrel in the past month. And our short oil trade is up big. We're sitting on 33% profits, as I write. But our thesis hasn't changed… Oil prices can move much lower from here.
 
You see, oil rig counts continue to increase. They just hit their longest streak of increases in three decades. This tells us supply and demand is still hurting oil. And lower prices are likely.

 
As Steve explained, the number of active oil rigs has now increased for 22 straight weeks. This hasn't happened in at least 30 years. It suggests U.S. oil production will continue to soar. More from the update…
 
More oil rigs working means more oil is flooding the market. More oil supply alongside consistent demand means that the price will likely keep going down. Rig counts have risen dramatically… and they're showing no signs of stopping.
Worse, Steve notes that oil inventories remain stubbornly high…
 
On top of those increasing rig counts, oil inventories continue to approach record highs. In other words, we have a glut of oil… and drillers are fixated on pulling more and more out of the ground.
 
Today's situation doesn't differ much from what we saw back in March… when we first recommended shorting oil. The supply-and-demand equation points to lower prices. And sentiment is still in our favor.
 
So while we're already up big on our short oil trade, the best could be yet to come. The smart bet today is to stay short.

 Meanwhile, Steve's bold China prediction is now a reality…
 
On Tuesday afternoon, global index provider MSCI officially announced it would add domestic Chinese stocks – known as "A-shares" – to its emerging markets index.
 
This is a big deal. As news service Reuters reported following the announcement…
 
China's stocks took a major step toward global acceptance, finally winning a long campaign for inclusion in a leading emerging markets benchmark, in what was seen as a milestone for global investing…
 
Inclusion in the index marks a key victory for the Chinese government, which has been working steadily over the past few years to open up its capital markets, investors said.

 Of course, this should sound familiar to regular DailyWealth readers…
 
It's exactly what Steve has been predicting for months. As he wrote in Tuesday's DailyWealth, before the announcement…
 
This afternoon, MSCI – the leader in global stock market indexes – will announce the results of its annual meeting. MSCI holds this meeting to decide on any changes to its index weightings.
 
Normally, nobody cares… But this time around, the changes should be historic. And they will likely affect you… I predict – for the first time in history – MSCI will finally include Chinese A-shares in its global indexes.
 
This is a big change. And it likely affects you, even if you don't realize it. You are about to start owning local Chinese stocks in your pension fund – for the first time ever.
 
You see, right now, roughly zero percent of American retirement assets are invested in local Chinese A-shares. But that will all change when MSCI includes local Chinese stocks in its indexes.

 Steve didn't stop there, though… For several months, he has also told readers exactly how this scenario would likely play out. As he explained in the May 7 Stansberry Digest Masters Series…
 
If MSCI announces a plan to include China in its emerging markets index, the first shift will likely happen a year later… MSCI wants to give these pension funds PLENTY of advance notice that they will need to be buying Chinese stocks.
 
It looks like MSCI will start out with baby steps as well… It will likely begin with 5% of the long-term plan for inclusion. That doesn't mean adding a 5% allocation to Chinese stocks. That means it wants to add 1/20th of its final allocation to China – a small number.
 
That means that in June 2018, the MSCI Emerging Markets Index will likely have roughly 27.6% of its total holdings in China – 21.5% in Hong Kong, 5% in China overseas listings, and 1.1% in Chinese A-shares.

 Incredibly, MSCI's plan looks nearly identical to Steve's prediction. As financial-news network CNBC reported this week…
 
MSCI will take 222 of the biggest names in their MSCI China A International Index (out of 448), and include them in their relevant global indexes in the middle of next year. These are the largest and most liquid names in the China mainland market.
 
Rather than giving a 100% market capitalization weighting to each stock, they are giving each stock an initial weighting of only 5% of its market cap. That will greatly reduce the initial weighting of the China mainland stocks…

And just as Steve expected, MSCI said it would continue to increase the weighting of these companies – assuming the Chinese government keeps meeting its expectations – all the way up to 100%. It also said it would consider adding more Chinese A-shares after that.
 
 While Steve's particularly optimistic about what's happening in China, he also remains bullish on U.S. stocks…
 
In fact, he expects to see a "Melt Up" – an explosive final "inning" of the long bull market –
that pushes stocks to unbelievable new highs.
 
However, this week, Steve told us something has changed about his Melt Up thesis…
 
In short, he says a new and unexpected "twist" has just emerged. While we can't share all the details yet, we can tell you that Steve is preparing a briefing to explain it all.
 
As always, it will be free for all Stansberry Research subscribers. Click here for the details.
 
Good investing,
 
Justin Brill
 
Editor's note: Steve's "Melt Up" thesis has changed in a big way… He and Porter will share all the details during a special free event Thursday at 8 p.m. Eastern time. Save your seat here.

Source: DailyWealth

Don't Follow the Crowd Into Energy Stocks

 
Energy investors are making a big mistake…
 
They're "bottom fishing" in the major oil and gas stocks… trying to catch the bottom.
 
This, of course, is a bad idea. Energy stocks have been crashing this year. But expectations are still high.
 
History tells us this kind of bottom fishing won't end well. The smart move is to wait for a better entry point before getting in.
 
Let me explain…
 
Bottom fishing can be hard to avoid… Instead of buying what's going up – what's in an uptrend – investors have a habit of buying what's falling.
 
It seems like a smart move…
 
You're buying what's cheap. You're buying what no one else wants. And heck, if you get lucky, you've got a remarkable success story to brag about.
 
But those success stories are rare… And trying to catch one can be costly.
 
The old saying is, "Stocks tend to trend."
 
It means stocks that are rising tend to keep rising. And stocks that are falling tend to keep falling.
 
What you don't want to do is buy a falling sector and just hope that you've called the bottom correctly. This is great when it works… But it's hard to pull off. And few can do it consistently.
 
Unfortunately, this is exactly what investors are doing in the energy sector.
 
Energy stocks are having a terrible 2017. Just take a look at the trend in shares of the benchmark Energy Select Sector SPDR Fund (XLE) this year…
 
The S&P 500 is up around 10% for the year… But the energy sector (measured by XLE) is down 14%. And it's down 32% from its 2014 high.
 
You'd think that investors would give up after that kind of performance. Major losses tend to scare folks out of their falling positions. But that's not the case today.
 
Instead, investors are bottom fishing in the energy sector…
 
We can see this by looking at XLE's shares outstanding. When investors pile into an exchange-traded fund like XLE, the fund creates new shares. So a rising share count tells us investors are putting money to work in an idea.
 
In this case, they're piling money into the losing energy sector. Take a look…
 
XLE's shares outstanding are up 16% over the last year, and they're up an incredible 166% since the beginning of 2014.
 
In other words, investors are refusing to give up…
 
They're trying to call the bottom. And they've been trying for years. But energy stocks keep moving lower.
 
Now, I'm not making a long-term indictment on the energy sector. We'll likely get a better opportunity down the road. But I want to see investors give up – and an uptrend emerge – before I consider buying.
 
That's not happening yet. The trend is still down… And investors continue to bottom fish. That makes energy stocks a bad place for new money right now.
 
Wait until the time is right.
 
Good investing,
 
Brett Eversole
 

Source: DailyWealth

Do You Have a Job or a Career?

 
Most people have jobs. They faithfully go to work each morning, do their best to execute their duties, come home tired, and look forward to weekends and vacations.
 
They do this to make ends meet, hoping something better will come along. And better things do come now and then, along with setbacks. But the drudgery continues. Week in. Week out. Forty years pass. Life has been half miserable. But it's time for retirement.
 
Retirement means getting out of job jail. No more hated work. It's now time for relaxation and fun…
 
Just kidding!
 
As it turns out, retirement today is this: After giving up a fairly well-paid full-time job, you take on several poorly paid part-time jobs (without benefits) to pay for your ever-increasing retirement expenses.
 
But it doesn't have to be that way…
 
You can spare yourself the misery by ditching the job early on and replacing it with a career.
 
What's the difference? A career is a life's vocation…
 
You work a job to make money. You work a career to build something you value.
 
With a job, you are always thinking about the time you won't be working. With a career, you are always thinking about it even when you aren't working.
 
The reason for this is a matter of focus. A job looks inward: "I do this to make money for myself." A career looks outward: "I am building something that others can appreciate or use."
 
The litmus test for determining whether you have a job or a career is this question: If you could afford to, would you do it for free?
 
You shouldn't work for money. You should work on having a career.
 
If you don't like your work but are doing it because you have to support yourself and/or a family, start working on a Plan B. Plan B is titled: "Doing Something I Care About."
 
Measured in mundane, day-to-day terms, having a career can be challenging since you are constantly focused on the work, and the work sometimes does not go as well as you might want. But even when the work is frustrating, it involves you in a way that is somehow satisfying. And when the work goes well, there's nothing like it.
 
If you have a job now, can you transform it into a career? Well, it may depend on what you are doing.
 
I have worked as a writer and editor for about 40 years. For more than half that time, writing was a job for me. I did it to make money. I worked hard at it, did it well, and did make a lot of money, which was great. But I never really enjoyed the "job."
 
That changed when I turned 50. I changed my priorities. Making money wasn't even on the list.
 
I began writing about topics I valued, like art collecting, language, and literature. I was also writing movie scripts, short stories, and poems.
 
Before, the "purpose" of the writing I had been doing was to sell products and services and thereby make a lot of money. After, the purpose of my writing was to teach readers what I had learned about making money. It was the same topic, but the intention was different. It had moved from me (inward) to them (outward).
 
So that is the first and main thing. But there are requirements for your work to be a career:
 
•  
The work should be challenging. It should require the best of you – your intelligence, your intuition, your stamina, and your care. Ideally, it should require both knowledge and skill and thus give you the opportunity to learn and improve forever.
 
•  
It should produce things or provide services that are enjoyable and/or useful to other people. This adds a social component to the experience.
 
•   It should be accretive. That is, the value of the goods or services you produce should increase as your career continues. (For example, I feel like the writing I've done on entrepreneurship, as a whole, is greater than the sum of its parts.)
Not everyone can make a career out of his or her job. An architect certainly could. Instead of designing commercial crap for the highest bidder, she could gradually develop her own style, one that she likes and that would serve people, and she could produce work over her lifetime that would endure for generations.
 
Think about it. Start creating your Plan B. Satisfaction comes from doing something you care about. And if you can make money for 40 years doing something you care about and creating something that has value to others – you have a career!
 
Regards,
 
Mark Ford
 
Editor's note: Few people know this, but Mark made his first million simply by replacing his job with a career. He has collected his secrets for finding a lifetime vocation – and excelling at it – in his newest program. If you're looking for a change, this is a great way to start getting paid to do something you love. Click here to learn more.

Source: DailyWealth

Build This 'Foundation Fund' to Smooth out Life's Surprises

 
The radio is playing as you drive down the road… You're thinking about your grocery list… And then, out of the blue, your car engine stutters and dies…
 
It's every car owner's most dreaded experience.
 
It happened to my assistant Laura last year. She put the key in the ignition… But the car wouldn't start. It sat there, a dead, 3,700-pound inconvenience.
 
It turned out several things went wrong at once with her 10-year-old car. Her total bill for the repairs, along with the tow service and renting a car for a full week, came to about $1,200.
 
Unexpected costs are part of life. But around 60% of Americans don't have enough in savings to cover even a $500 emergency. And the number that can't cover a $1,000 emergency expense is closer to 70%-80%!
 
Thankfully, Laura is in the minority. She has an emergency fund to lean on for exactly these kinds of unexpected bills…
 
I can't stress enough the importance of an emergency fund.
 
If you imagine your financial life as a house, an emergency fund should be the foundation. You want to make sure that in the event of an accident or job loss, you have the funds available to pay your expenses.
 
Typically, financial planners recommend having about three to six months' worth of take-home pay in your emergency fund. We've even seen some recommendations for as much as nine months' worth of pay saved.
 
Before subscribing to one of these simple rules of thumb, consider a few things before deciding how much is best for you…
 
1. Are you single or married?
 
Single folks with a reliable job don't need to save as much… But married folks where only one partner has a job (even a reliable one) should have more in savings. That's because in the event of a job loss, you'll have to pay bills for two folks instead of one. Married folks where both spouses have reliable jobs don't have as much risk.
 
2. What are your monthly expenses?  
If you don't know how much you spend per month, take time this week to sit down and figure it out. Include bills for your home (like rent or a mortgage, utilities, homeowners' association fees, property taxes, and insurance), as well as car payments, taxes, medical expenses, and living expenses (like groceries).
 
3. How secure is your job, and how quickly could you find a new one?
 
Some fields hire regularly, but others might not. Networking is a great way to increase your visibility, and keeping in touch with connections will help should you ever need to find a new job. Age can be a factor, too – although age discrimination is illegal, we know several folks 50 and older who've had difficulty finding a new job due to their age and being "overqualified."
 
4. What assets could cause you an unexpected cost?
 
Sudden problems like car or home repairs often require the use of an emergency fund. Some of the most common car or home repairs can add up to hundreds, even thousands of dollars. One important step is to understand exactly what your insurance will or will not cover. Likewise, know your warranty terms and how long they last.
 
5. Is your health in order?
 
According to the Kaiser Family Foundation, the average family health insurance plan deductible is about $1,500. Should a sudden accident or illness strike you or a family member, think about whether you could afford to cover the associated costs.
 
A good solution for this is to open a Health Savings Account (HSA). If you aren't able to open an HSA, make sure to factor these costs into your emergency fund.
 
Once you calculate your emergency fund, you can start putting any leftover money to work in other investment accounts that can make you money.
 
Having a solid foundation is key to having a solid house. The same principle applies to your finances – start with an emergency fund and grow from there.
 
Here's to our health, wealth, and a great retirement,
 
Dr. David Eifrig
 
Editor's note: You can't predict an emergency… But you can be prepared for one. That's why Dave wrote The Doctor's Protocol Field Manual – packed with lifesaving tips, secrets, and strategies. It's designed to help you survive – and even prosper – in the midst of any crisis. You can order a copy by clicking here.

Source: DailyWealth

Today's Announcement Could Change the Investing World Forever

 
Today is one of the most important days in the history of investing…
 
This single day could force big investors to make huge changes to their investments. And it's just the beginning…
 
This afternoon, MSCI – the leader in global stock market indexes – will announce the results of its annual meeting. MSCI holds this meeting to decide on any changes to its index weightings.
 
Normally, nobody cares… But this time around, the changes should be historic. And they will likely affect you…
 
I predict – for the first time in history – MSCI will finally include Chinese A-shares in its global indexes.
 
This is a big change. And it likely affects you, even if you don't realize it. You are about to start owning local Chinese stocks in your pension fund – for the first time ever.
 
You see, right now, roughly zero percent of American retirement assets are invested in local Chinese A-shares. But that will all change when MSCI includes local Chinese stocks in its indexes.
 
Here's what I mean…
 
Right now, 94% of U.S. pension funds that are invested in global stocks are benchmarked to MSCI's indexes. So if you're a teacher, a firefighter, or anyone else with a decent pension fund, you will unknowingly start owning local Chinese stocks for the first time… very soon.
 
Today's announcement from MSCI could trigger a massive change in global finance.
 
But it won't happen overnight.
 
Today's announcement is the first step of a massive shift into Chinese stocks.
 
It's the first roll of the small snowball down the hill.
 
To me, this decision by MSCI is a "no brainer"…
 
China is the world's second-largest economy and second-largest stock market. Yet China's local stock market is completely left out of MSCI's emerging market index.
 
This is a financial wrong that must be righted.
 
It makes no sense for the stock market in the world's largest emerging market to have a zero-percent weighting in the world's biggest emerging market index!
 
Of course, MSCI had its reasons for not including China. It has been difficult historically for investors to move money in and out of China. But that has gotten easier in recent years.
 
In short, MSCI put up several roadblocks for inclusion over the past few years… And China has checked all of the boxes. It has made it past the roadblocks.
 
That's why I expect MSCI to announce a plan to include Chinese stocks this afternoon, shortly after 4:30 p.m. Eastern time.
 
Normally, decisions about changes in indexes are boring and irrelevant. But today's announcement is different… Today's announcement – and the changes it causes – will ultimately have a dramatic effect on your money as U.S. investors start piling into Chinese stocks.
 
My advice all along was to get your money ahead of this decision. I said to buy China before the MSCI announcement… before the rest of the world wakes up to what I see.
 
The day of reckoning is here. And my advice remains the same: Own Chinese stocks.
 
Good investing,
 
Steve
 

Source: DailyWealth