Here's Why You Should Own More Real Estate Next Year

 
As we approach the end of the year, it's time to steel your resolve about ways to improve your life and your portfolio.
 
And adding real estate is one of the easiest ways to boost your income as we head into 2018.
 
Let me explain…
 
Given how essential and central real estate is to everything, you'd think that its importance would be reflected in the average stock portfolio.
 
Just consider this… You live, work, and sleep in real estate. The hotel where you stay on your vacation is real estate (not to mention the airport or train station that you use to get there). That tiny tech startup in the garage uses land. The stores you shop at use land. Wherever you live – that's using land.
 
Real estate underlies nearly everything in modern civilization. But you wouldn't know it from looking at the markets.
 
In fact, real estate – that is, everything from real estate investment trusts ("REITs"), to developers, to real estate holding companies – is hugely underrepresented in stock markets around the world.
 
For example, take a look at the MSCI All Country World Index ("ACWI"). This is one of the largest aggregate global equity market benchmarks available. It tracks large- and mid-cap companies across 23 developed markets and 24 emerging markets. And it includes nearly 2,500 stocks.
 
The chart below demonstrates how the MSCI ACWI is broken down by sector. As you can see, the three largest sectors are financials, information technology, and consumer discretionary (that is, nonessential consumer goods and services). Meanwhile, real estate is one of the very smallest slices of the pie – just scraping past telecoms with 3.1%…
 
The MSCI ACWI isn't the only index with such a small weighting toward real estate. In the S&P 500 Index, for example, it makes up just 2.9%.
 
"But wait," you might say. "I own my home – don't I have enough real estate?"
 
When it comes to personal wealth allocation, a lot of investors only factor in the physical real estate that they own – whether it's the roof over their heads or an investment property. And they'll think, "I'm covered with real estate – so I won't bother putting it in my stock portfolio."
 
This is understandable. But it's wrong. You see, your physical real estate returns are tied to whatever city or area you're living in.
 
And limiting your real estate investments to the home you live in is like limiting your stock investments to the companies located in your city. It's the opposite of diversification.
 
In fact, this is the epitome of "home bias" – the tendency of investors to gravitate toward their domestic market, rather than diversifying globally. (And in this case, it's literally "home" bias!)
 
Real estate stocks and other listed real estate securities offer you a couple of additional advantages, from an investment perspective, over the roof over your head…
 
One of the biggest is that they give you hassle-free income. Owning physical real estate has a lot going for it. But being a landlord can be a real headache. Chasing down tenants for rent, finding new ones when they move out, paying for repairs, taxes, and maintenance… it's time-consuming and messy.
 
But real estate holding companies (and REITs in particular) offer you a much easier way to be a "landlord." And the rent collection is automatic – dividends just slide straight into your brokerage account.
 
What's more, you can buy properties that you'd never be able to if you were investing on your own. Few of us will own a piece of a prime downtown Manhattan office building or a luxury mall in Beijing. But real estate stocks offer you an easy way to do just that.
 
So as we near 2018, take a look and see what kind of real estate exposure you have.
 
And if you're looking for reliable, dividend-paying stocks backed by real assets, then think about adding property companies to your portfolio next year.
 
Good investing,
 
Peter Churchouse
 
Editor's note: Real estate could be the best investment you ever make… And the real secret is that anyone can do it – if you use the right strategies. For the first time ever, Peter is sharing his top rules and strategies for making massive gains in real estate – including his five favorite ways to invest right now. Click here to learn more.

Source: DailyWealth

This Technology Will Change Medicine as We Know It

Editor's note: This week, we're interrupting our regular schedule for a must-read essay from our colleague and tech expert Jeff Brown. In the essay, Jeff shares a remarkable development that is poised to upend health care and could make early investors a fortune…
 
Grace Wilsey couldn't cry.
 
As a baby, she would lie limp in her parents' arms, staring blankly into the distance. Her seizures wouldn't stop and medical tests showed signs of liver damage. This was all before her second birthday.
 
Grace's parents were beside themselves, as any parent would be. They traveled the country visiting specialists. They ran numerous tests, but no one could diagnose Grace's condition.
 
"We've probably seen over 100 doctors," Grace's father said in 2014.
 
None of them could provide an explanation.
 
Then, when their daughter turned two years old, the Wilseys tried something else. They had Grace's entire genome sequenced.
 
A genome is an organism's complete set of DNA, including all of its genes. "Genome sequencing" is the process of determining the complete DNA sequence. Think of it like creating a "genetic roadmap," a complete blueprint of an organism's genetic material.
 
What the genetic sequencing uncovered was astounding.
 
Grace Wilsey had a condition known as NGLY1 deficiency. In short, the little girl's NGLY1 genes were mutated. They were like typos in her genetic makeup.
 
One of the gene mutations prevented the little girl from producing tears. At the time, the disorder was so rare that only six people in the entire world had been diagnosed with it.
 
Now that the underlying cause is well understood, no time is wasted. Specific therapies can be developed to deal with this unusual genetic mutation.
 
Rewriting the Rules of Medicine
 
The story I told you above is just one of millions. It is estimated that at least 280 million people worldwide suffer from some rare genetic disease. Many of them often live their lives undiagnosed.
 
But there is hope on the horizon. The method used by the Wilsey family, genome sequencing, is experiencing exponential growth.
 
The cost of sequencing a human genome has plummeted. The speed of the sequencing technology has grown exponentially. And thanks to breakthroughs in genetic-editing technology, we are on the verge of a complete transformation in medical care.
 
Soon, we'll be able to identify genetic diseases like cystic fibrosis or sickle cell anemia years before symptoms present themselves.
 
Millions of lives will be saved. Hundreds of billions of dollars typically spent on chronic medical care will be eliminated. And investors in a few key companies at the heart of this revolution stand to profit immensely.
 
Genome Sequencing for $100
 
The story of how rapid the improvements in genomic sequencing have been is one of the greatest examples of exponential growth – and exponential reduction in costs – in the history of technology.
 
One simple chart from the National Human Genome Research Institute explains it all. In it, we can see the progression in reducing the cost of sequencing a human genome from $100 million in 2001 all the way down to roughly $1,000 in 2016…
 
Overall, this progression is far faster than that of Moore's Law, which accurately predicted that the processing power of microprocessors (semiconductors) would roughly double every two years.
 
From 2001 to 2007, the speed and reduction in costs of genetic sequencing had been moving as fast as Moore's Law – roughly doubling in speed and halving in cost every 18 months.
 
But something amazing happened in 2008… Genetic sequencing began accelerating at a speed five times that of Moore's Law.
 
Now, unless you've been working in the technology sector for a few decades, it might be hard to grasp the significance of this. But I've worked as a high-technology executive for 25 years.
 
So take my word for it… Nothing in the world of technology to date has developed this quickly. It makes the developments in semiconductors during the last decade look slow. At this rate, the cost to sequence a human genome will drop to only $100 in the near future.
 
And that changes everything.
 
Health Insurance Starts to Get on Board
 
We are already starting to see early signs of engagement from the insurance industry at current price points, which are approaching $500.
 
As of November 1, UnitedHealthcare began covering whole exome sequencing for patients whose "clinical presentation is nonspecific and does not fit a well-defined syndrome for which a specific or targeted gene test is available."
 
In other words, if a physician knows something is wrong, but can't figure out what it is, UnitedHealthcare will pay to have the patient's whole exome sequenced. This will benefit more than 100 million Americans by providing coverage for this sequencing of rare or undiagnosed conditions.
 
Think of how much time and pain can be saved when a genetic sequence can tell us almost immediately what is wrong… rather than spending years and potentially millions of dollars pursuing ineffective or sometimes lethal therapies.
 
Genetic sequencing can often instantly identify the genetic cause of a disease so that physicians can focus on providing the most appropriate therapeutic regimen for the patient.
 
Current estimates put the global market for genetic sequencing at about $5 billion. But by 2023, that market is expected to expand to more than $18 billion. That's a compounded annual growth rate of roughly 20% over the next six years.
 
For investors, this is an opportunity that can't be ignored. One way you could play this emerging trend is by looking at life-sciences giant Thermo Fisher Scientific (TMO). It is one of the leading companies for genetic-testing equipment.
 
And remember, we're still in the early days. We'll likely see even more exciting ways to profit as genetic sequencing rewrites the rules of medicine in the years ahead.
 
Regards,
 
Jeff Brown
 
Editor's note: Another breakthrough medical technology that Jeff is following is genetic editing. It might sound like science fiction, but it's giving doctors the power to cure diseases like cystic fibrosis and Huntington's… permanently. And that's going to make early investors rich. Jeff just identified three small-cap companies that are leading this new technology… and will reap the biggest gains in the next few years. Get all the details right here.

Source: DailyWealth

This Will Cause the Next Stock Market Peak

 
We have a simple way to know when this boom will end…
 
It's an indicator that has predicted the end of every stock market boom over the past 30 years. I'm certain it will predict the end of this boom, too.
 
I will show you exactly what it is today. It's simple to follow. And it has been stunningly accurate.
 
This indicator tells an important story right now. It says the bull market can last for years… even into 2019 or 2020.
 
Let me explain…
 
If we want to know when the stock market peak will occur, we need to know when the next recession is on the way.
 
Recessions typically happen right after stock market peaks. So if you have an indicator that can predict the next recession, then you also have an indicator that can predict the next stock market peak.
 
Today's indicator does just that. It predicts recessions, well in advance.
 
The indicator is straightforward. It shows interest rates… specifically, the short-term interest rate that the Federal Reserve artificially changes (compared with most other interest rates, which are set by market prices and not controlled by anyone).
 
For the past eight years, the Fed has kept rates artificially low. And artificially low interest rates from the Fed have fueled the nearly 300% boom in stocks since the last bear market ended in March 2009.
 
But the Fed won't keep rates low forever. In fact, it has already started raising rates in recent years.
 
This, by itself, is not a bad thing. But if the trend continues, the outcome could be ugly.
 
You see, the folks at the Fed have caused the last three recessions – and the last three stock market peaks – by raising interest rates artificially higher than "normal."
 
Here's exactly what you need to know…
 
Each time the Federal Reserve has artificially pushed short-term interest rates ABOVE long-term interest rates (which puts us in an abnormal situation), the stock market has peaked, sending the economy into recession. Take a look:
 
The last three times that short-term interest rates moved above 10-year Treasurys were in 1989, 2000, and 2007. Those were the last three recessions in the U.S. The rate hikes in 2000 and 2007 led to major stock market crashes.
 
The Fed is responsible. It caused the recessions and the stock market busts by artificially raising interest rates too high.
 
So how close are we to this happening again?
 
The short answer is, not very close…
 
It could be as late as 2019 or even 2020 before the Fed's actions cause a recession and stock market bust.
 
Financial-news conglomerate Bloomberg regularly polls more than 40 economists about short-term interest rates… And based on estimates from those economists, short-term rates (controlled by the Fed) won't surpass long-term rates (controlled by the market) until 2019 or 2020.
 
Here's a look at the same chart with those economists' future estimates for short-term rates built in. (The estimate of the long-term rate is my own estimate.)
 
If the chart above is "about right," then it means some great things for us as investors.
 
This chart has called every recession and major stock market peak over the past 30 years.
 
In short, if this idea proves right again, then the exact end of the bull market will happen when short-term interest rates rise above long-term interest rates. (That's the moment when we should dramatically change our investments to be more risk averse.)
 
We are not there yet. Based on this, the current bull market could go on for years.
 
It could be as late as 2019, or even 2020, before we see the peak.
 
Don't panic and sell just because stocks have had a historic run. We still have plenty of time to stay invested in U.S. stocks. Take advantage of it while you can!
 
Good investing,
 
Steve
 
P.S. This bull market isn't over… And we may never see one like it again. That's why I've put together a "blueprint" to profiting from the final boom in stocks. In it, I share the ideas and investments that I believe will lead to the biggest gains as the market explodes higher. Click here to learn more.

Source: DailyWealth

A Major Change to My 'Melt Up' Script

 
"I have a huge prediction for you," I told the crowd at our Las Vegas conference for Stansberry Research customers this year.
 
I've made a habit of making bold predictions at these events.
 
At last year's conference, I said, "Little-known Tencent will become the world's largest company within five years."
 
Most people in the room had never heard of the Chinese tech leader. But this year alone, shares of the company are up more than 100%. And Tencent (TCEHY) is now the world's sixth-largest company.
 
Last year's prediction was a good one. But this year's could be even bigger.
 
Let me explain…
 
"This year's prediction," I said, is that "the stock market peak won't arrive until 2019 or even 2020." And I went further…
 
Even more important, the "Melt Up" isn't even in full swing yet… So I want you to take advantage of it now. Because when we see the flip side of the Melt Up… we could have many, many years of subpar returns – at best.
I know these ideas might sound a bit crazy.
 
How could the bull market have years left? And how could we NOT be near the peak yet?
 
These are good questions. The stock market is up around 300% from its lows in March 2009. That's one of the best eight-year runs in the history of stocks.
 
But it has got to come to an end – and soon – right?
 
I don't think so. We shouldn't be in too much of a hurry to write this market's death certificate. The reason is simple…
 
You know what the end of a great bull market looks and feels like.
 
The real estate boom that peaked a decade ago – that's what the end of a great bull market feels like. People thought home prices could never go down, and folks quit their day jobs to flip houses.
 
The dot-com boom that ended in 2000 – that's what the end of a great bull market feels like. Cocktail-party chatter shifted from sports to stocks, and my friends quit their "real jobs" and took stock options to join dot-com companies.
 
Today doesn't feel like those times – yet.
 
When this stock market boom ends, I expect it will end like previous stock market booms… with individual investors speculating in the most exciting, highest-volatility companies – especially tech stocks.
 
That's not happening today. The boring fuddy-duddy companies have led to the biggest gains in recent months.
 
We can see it by looking at the tech-heavy Nasdaq Composite Index versus the "old school" Dow Jones Industrial Average stock index.
 
The Nasdaq today includes tech leaders like Google's parent company Alphabet (GOOGL), online retailer Amazon (AMZN), and social media site Facebook (FB). The Dow doesn't – it has old-school businesses like industrial giant General Electric (GE), soda titan Coca-Cola (KO), and fast-food chain McDonald's (MCD).
 
Most people think that all the gains in stocks lately are from the Facebooks and Googles of the world. But it isn't true.
 
Just look at the Dow and the Nasdaq over the past six months… The boring Dow has delivered a total return of 15%. Meanwhile, the tech-heavy Nasdaq has delivered an 11% return.
 
That's right… The fuddy-duddy companies have beaten the big tech stocks! Take a look:
 
So what conclusion can we draw from this?
 
It's pretty simple: Yes, stocks have performed fantastically since March 2009. And yes, as I said in October, investors are finally getting back in the market. But no, we are not really seeing the classic Melt Up push yet – where the exciting tech stocks start to break away from the old-school businesses.
 
We are still not experiencing the final run-up – the time when the extraordinary gains should be made.
 
The big, fast gains are in front of us, not behind us. You haven't missed the Melt Up yet.
 
Not only that, but this bull market and eventual Melt Up could last through 2019 or 2020.
 
Don't write that off as a crazy idea… More than three decades of data prove it. I'll share those details in tomorrow's DailyWealth.
 
Good investing,
 
Steve
 

Source: DailyWealth

These Hated Stocks Are Setting Up for a Powerful Rally

 
Imagine the surge in oil prices if Saudi Arabia shut off 100% of its production… followed by a complete shutdown in Iraq.
 
That's effectively what just happened in one corner of the market… And it's one of the most bullish signals I've ever seen in commodities. Investors buying today could make a fortune in the years ahead.
 
Let me explain…
 
Two of the world's top producers just agreed to take a huge chunk of annual global uranium production off the market…
 
Early last month, news hit that uranium miner Cameco's (CCJ) McArthur River mine – responsible for around 10% of global supply – will shut down for most of next year, starting in January. Then, last week, leading global uranium producer Kazatomprom announced a 20% production cut for three years.
 
In total, these two cuts will remove more than 16% of uranium production from the market, starting in January.
 
That may not sound like a lot. But this change is big news…
 
You see, it typically only takes a couple of percentage points of global shortage or excess to cause massive price swings in commodities. For example, this year's OPEC production cut amounted to less than 2% of the total global oil supply. And most OPEC production cuts have historically taken between 2% and 6% out of the global supply.
 
Each time, these small production-cut percentages balanced the market and sparked huge price gains. That's why this setup is so promising.
 
Not only that, but uranium stocks have been left for dead. World-class miners have seen their stocks crushed in recent years. And that could lead to big gains when the market recovers.
 
Take a look at what has happened to uranium stocks since 2011…
 
Over the past seven years or so, uranium stocks have plunged nearly 90%.
 
Carnage like this is rare… But we've seen similar situations before. Early last year, coal stocks looked a lot like uranium stocks today – with 90% declines from their April 2011 peak.
 
Then, as capacity came off line and supply decreased, coal stocks rallied by 187%. Take a look…
 
And that was in a dying industry. We could be setting up for an even stronger rally in uranium… because uranium is still a growth market.
 
Demand for electricity is on the rise in Asia. The two most populous countries in the world – China and India – each view nuclear power as a much-needed source of cheap, clean fuel. According to the World Nuclear Association, China plans to increase its nuclear capacity 70% from last year by 2021.
 
Globally, the International Atomic Energy Agency projects a 123% rise in nuclear capacity by 2050.
 
Combine future demand with a major supply reduction, and we have the ingredients for a powerful bull market. Even if uranium stocks make up only a fraction of their decline since 2011, investors could see gains of 100%, 200%, or more.
 
The market is already responding to the production cuts. Since Cameco's announcement a month ago, the Global X Uranium Fund (URA) has leapt up around 30%.
 
That's a lot… But this is still just the beginning. Commodities markets play out over years and decades – not weeks and months.
 
Investors who buy in now can still make big profits. And URA is an easy way to take advantage of the opportunity.
 
Good investing,
 
Ross Hendricks
 

Source: DailyWealth

You Haven't Missed It – The Housing Boom Will Last for Years

 
It has been a slow grind… But the boom times are back in the U.S. housing market.
 
This is no surprise to anyone who's read DailyWealth in recent years. I've been pounding the table since 2011… telling everyone who would listen to buy a home.
 
Still, now that it's here, we have no reason to think this boom will end anytime soon.
 
New home sales recently hit a multiyear high. And supply and demand says prices can still move dramatically higher in the years to come.
 
Let me explain…
 
Make no mistake about it… We're smack in the middle of another U.S. housing boom.
 
October's housing data came out recently. New home sales hit a 10-year high… and increased nearly 19% over the prior year.
 
That means new home sales have hit their highest level since October 2007. And as you can see in the chart below, it has been a consistent climb since the bust…
 
New home sales have risen every calendar year since 2010. And that's nearly certain to happen again this year.
 
Still, sales are just getting back to "normal" levels today. October's new homes sales rate was slightly above the average since 1965. But the strong trend means we could see sales continue to move higher in the coming months.
 
It's not hard to figure out what that increased demand would mean for prices…
 
Supply of new homes is low. We have several ways to measure that. But the simplest way is to look at housing starts – the number of new homes being built.
 
Starts have been on the rise in recent years. Yet they're still significantly less than "normal" long-term levels…
 
Housing starts are increasing, but they're still low. That paints a clear picture for house prices…
 
We have low supply… and a 10-year high in demand based on new home sales.
 
What happens next is Economics 101. Low supply plus high demand equals dramatically higher U.S. housing prices.
 
I'm sure I sound like a broken record… I've been bullish on U.S. real estate since 2011. But the opportunity today is enormous…
 
Most folks think they've missed it… They think this boom will end like the last one did – and soon.
 
It won't.
 
You want to own housing and real estate now. The boom is here. But the fundamentals are healthy and stable.
 
That's why I believe we'll see years of upside before buyers have anything to worry about.
 
Good investing,
 
Steve
 
P.S. I want to tell you about my favorite way to profit from today's historic housing boom. It could be a once-in-a-lifetime property investment… And because I'm so passionate about this idea, I've put together a unique offer. Click here to learn more.

Source: DailyWealth

Is Bitcoin Killing Commodity Prices? Here's How to Beat the Pain…

 
Is the speculative money that's going into bitcoin coming out of commodities? It sure feels like it.
 
Last week, in my True Wealth newsletter, we hit our stops on commodities ranging from precious metals to cocoa – taking some small gains and small losses along the way.
 
Whether you are trading commodities or bitcoin, I urge you to use stop losses…
 
In short, before you enter any trade, you need to decide on the maximum amount that you are willing to give back – and you want to set that number up front and unemotionally.
 
Here are a couple examples from the trades we stopped out of recently…
 
Platinum hit a new low for 2017 last week. I recommended buying platinum in True Wealth earlier this year through the ETFS Physical Platinum Fund (PPLT). But I set a tight stop loss. We hit that hard stop on Thursday for a loss of about 3.6% on the trade.
 
We also hit our trailing stop on cocoa last week. I recommended buying cocoa through the iPath Bloomberg Cocoa Subindex Total Return ETN (NIB), and I set a 10% trailing stop when we entered the trade. Since cocoa went up after my initial recommendation (and since trailing stops rise along with your stocks), we ended up exiting this trade with a gain around 4.1%.
 
The important lesson is, I got these two trades wrong – but it didn't hurt me too badly. I stopped out before my losses got too big. I can easily live to fight (or trade) another day. No sweat.
 
What is your point of maximum pain?
 
What will you do when you get a trade wrong?
 
How much pain are you willing to take?
 
This applies to all your trades… especially on speculative assets like bitcoin.
 
What? You own bitcoin and you haven't decided your point of maximum pain? What are you thinking?
 
How much of your money are you willing to lose? It's real money.
 
Are you willing to lose 25%? 50%? 75%? 90%? All of it?
 
You need to decide this number – in advance – and stick to it.
 
I explained last week what I look for in a trade… I make sure the upside potential is dramatically larger than the downside risk I'm taking.
 
I strongly urge you to do the same.
 
Many commodity prices have hit new lows this year, while bitcoin has soared.
 
My losses in commodities don't worry me, though… because I set my downside risk so low.
 
What about you? What's your plan? How much money are you willing to lose?
 
Figure it out – in advance. Then stick to it.
 
Good investing,
 
Steve
 
P.S. If you're a True Wealth subscriber, we'll cover these two stop outs again in our issue this week. Remember, as we always say, it's important to mind your stops. And if your stop is triggered, sell the next day.

Source: DailyWealth

Use This Rare Indicator to Find Your Next Triple-Digit Winner

The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
 
 Nothing makes me happier than proving Porter wrong…
 
Back in September, Porter and I (Bryan Beach) took the stage at our annual Alliance Meeting in Las Vegas.
 
I was about to share a list of seven troubled businesses. But I wasn't going to recommend shorting or even avoiding them. Instead, I was going to tell the audience that these stocks would dramatically beat the market in the coming years.
 
Porter heckled me in front of the entire audience. And for good reason… these were terrible companies I would typically never recommend to anyone.
 
So why would I make an exception this time… in front of hundreds of our most loyal subscribers, no less?
 
 Months earlier, Porter had asked our team to do the impossible…
 
He asked us to build a model that could find cheap, out-of-favor stocks that reliably "rebound" 100% or more in a short period of time.
 
We sat down and got to work. We spent all year trying to spot these opportunities. And we finally did it… almost by accident.
 
 As we were conducting our research, we noticed something unusual…
 
We found an unusual chart pattern in a certain group of stocks – a group that we had initially ignored in our research. These charts all formed the same familiar triangle shape. We started calling this unusual pattern the "Golden Triangle."
 
So our team began back-testing…
 
We looked at hundreds of these Golden Triangle situations. These weren't companies you'd be excited to plow money into. They weren't high-quality, blue-chip stocks like Microsoft (MSFT) or McDonald's (MCD). Many of these companies had a black eye in one way or another. They faced legitimate headwinds and had well-publicized bad news.
 
But this same group of troubled stocks was also generating billions of dollars in free cash flow. And what we found was incredible: Two years after the Golden Triangle appeared, the average stock had gained 131%. (If you had held on even longer, you'd be sitting on average gains of 215% today… without a single losing trade.)
 
We quickly realized we had stumbled upon what Porter called "the single greatest investment strategy I have ever seen."
 
 I was thrilled to present this preliminary research to Alliance members…
 
There was just one problem… When we screened for current Golden Triangle opportunities in September, the results were worse than we had expected.
 
At the time, there were 55 such setups… And each was as troubled – or even more so – than those we saw in our back-testing. Worse, the list included more retail companies than almost any other industry.
 
We've been studying the "death of retail" since 2013. That's when we first covered the mass closures in locations of Sears (SHLD) and JC Penney (JCP) retail stores.
 
We recommended shorting JC Penney in August 2013. We shorted Simon Property Group (SPG) – the world's largest mall operator – a year later. And in 2016, we shorted Simon's primary competitor, GGP (GGP).
 
As you can see, we've been covering this story for years… and have told subscribers to stay away from all but the best businesses in this industry.
 
But it was ultimately the retail sector that convinced me we were on to something big. You see, around the same time we stumbled upon the Golden Triangle, an important shift was already underway…
 
 When we first started talking about the death of retail, it was a truly "contrarian" idea…
 
If you've been reading our work for any amount of time, you know that contrarian investing is one of our main focuses at Stansberry Research. At times, betting against the crowd can make you very wealthy.
 
Back in 2013, almost no one was even talking about problems in retailers… And the market shrugged off any concerns.
 
But early this year, that began to change. Stories about retail troubles began to appear all over the place. It was a hot topic on CNBC and other traditional media outlets.
 
And on Saturday, April 8, it became official.
 
That's the day that Wikipedia published an entry on the "retail apocalypse."
 
The death of retail had gone mainstream.
 
 Why is this important?
 
This event might appear insignificant. But when an idea is so pervasive that someone creates a Wikipedia entry on it, it's no longer contrarian. It's about as mainstream as you can get.
 
And once an investment thesis goes mainstream, the market tends to overreact. Folks bid up the prices of "hot" stocks and sectors to astronomical valuations. Meanwhile, stocks in hated industries (like retail) are ignored or heavily shorted. Their share prices plummet.
 
That's exactly what happened. The SPDR S&P Retail Fund (XRT) – an exchange-traded fund that holds a basket of popular retail stocks – fell 20% from last December through August. Suddenly, everyone hated retail.
 
While our long-term thesis hasn't changed, we knew what we had to do… We knew the contrarian thing to do would be to look for bullish opportunities in the retail "dustbin."
 
 That brings me back to my Vegas presentation…
 
When I stood on stage, I presented the crowd with a list of seven retail companies our Golden Triangle strategy had identified. And as someone who has been following the death of retail for years, I groaned at the companies on this list…
 
Company
Ticker
Description
JC Penney
JCP
Discount retailer
Tailored Brands
TLRD
Men's Wearhouse chain
L Brands
LB
Victoria's Secret
Foot Locker
FL
Mall-based shoe stores
Supervalu
SVU
Supermarkets
Ingles Markets
IMKTA
Supermarkets
Mattel
MAT
Toy company
As most readers know, JC Penney sells cheap clothes in dying shopping malls. But the rest weren't much better…
 
Tailored Brands (TLRD) sells Men's Wearhouse suits in mall parking lots. L Brands (LB) sells Victoria Secret, whose stores are all located, again, in these dying malls. Same with Foot Locker (FL), whose primary business is selling Nike products… And Amazon (AMZN) is closing in fast.
 
Supervalu (SVU) and Ingles Markets (IMKTA) are low-margin supermarkets. Guess who they're competing with? You guessed it: Amazon.
 
And Mattel's (MAT) fortunes historically rely on the Barbie doll. I have young daughters. We don't have a single Barbie doll in our house.
 
Granted, I hadn't done a deep dive into every company on that list.
 
 But still, I wasn't particularly excited about any of these names…
 
Porter was even less impressed. As he explained in Wednesday's DailyWealth, he refused to even consider JC Penney. But he didn't like any of these stocks. In fact, he even teased me about it on stage in front of Alliance members…
 
So hang on… You have a slide with a bunch of names that we don't like. And there's no slide with the names that we do like?
But the numbers didn't lie: These Golden Triangle companies had generated more than $1.6 billion in free cash flow during their struggles.
 
Despite my reservations about these businesses, our research was clear. This group of stocks was likely to dramatically outperform the market on average over the next couple years.
 
 So… how have these companies performed so far?
 
It has been roughly 10 weeks since that presentation. Let's take a look at those Golden Triangle stocks again…
 
Company
Ticker
Return Since Vegas
Annualized
JC Penney
JCP
-12%
-62%
Tailored Brands
TLRD
32%
160%
L Brands
LB
45%
224%
Foot Locker
FL
35%
175%
Supervalu
SVU
-11%
-54%
Ingles Markets
IMKTA
20%
99%
Mattel
MAT
17%
86%
Average*
18%
90%
* Returns as of earlier this week
As you can see, five of the seven companies are already big winners. In total, this group of retail victims is up 18% on average in 10 weeks – a period during which the benchmark S&P 500 Index is up just 7%.
 
But even the two "losers" in the group – JC Penney and Supervalu – are deceptive…
 
From the time of our presentation in late September through early November, JC Penney was down nearly 40%. But, as you can see, it has fought its way almost all the way back. Same thing with Supervalu… Just a few weeks ago, it was down 32% since Vegas. But it is now only down 11%.
 
 Remember, this is after just a little more than 10 weeks…
 
Our back-testing shows it generally takes two years for these stories to fully play out. And as I mentioned earlier, the hundreds of stocks we tested ended up doubling or tripling on average from the point of maximum pessimism.
 
History suggests that even L Brands – up 45% already – could still have plenty of room to run.
 
A few months from now, all seven could be showing healthy returns… And I look forward to telling Porter, "I told you so."
 
 Today, our Golden Triangle list features more than 60 companies…
 
These are businesses across more than a dozen different sectors – including retail, telecommunications, energy, health care, and more.
 
You may be familiar with a few companies on the list… But for the most part, they aren't household names. You won't see their CEOs on CNBC every week, or read about them on the front page of the Wall Street Journal.
 
That's exactly the point.
 
While the herd of stock market investors searches for the next Alphabet (GOOGL) or Facebook (FB), these Golden Triangle companies are flying completely under the radar. They've been left for dead.
 
Earlier this week, we finally pulled back the curtain for all Stansberry Research readers and discussed the Golden Triangle during a free live event. We explained why it took us almost two decades to uncover this secret… why these stocks have 100% upside (or more) over the next 12-24 months… and why Porter called it "our most lucrative discovery ever."
 
While it's too late for you to tune in, we've just put together a brand-new presentation detailing these rare Golden Triangle opportunities. Watch it here.
 
Good investing,
 
Bryan Beach
 
Editor's note: The Golden Triangle appears just 0.3% of the time among publicly traded companies… And once it appears, it has near-perfect accuracy and leads to 100% winner after 100% winner. We don't blame you if you're skeptical about these claims. But you owe it to yourself to watch this presentation to learn more about this incredibly powerful signal. Click here to learn more.
 

Source: DailyWealth

The Fastest Way to Grow Rich… And Not Risk Everything Else

 
When I was 33, I decided to become rich. And I made that my supreme and overriding goal.
 
This decision radically changed my life. I went from broke to kinda rich in about 18 months. I became a decamillionaire about six years later.
 
Having a single supreme and overriding goal gave me laser-sharp focus and shark-like ambition. Day-to-day business decisions – once complicated – were easy to make. I simply asked myself, "Which is the option that will bring me the most money?" Presto! The choice was clear.
 
It was also easier to make other kinds of decisions… When a conflict arose between my primary goal (like working all day Saturday) and something else (like spending the day with my family), I chose the former.
 
I didn't abandon my other duties. I did them as well as I could. But they were always secondary. And it was always noticed… by my family and my friends, and, late at night, by the other little selves that still lived inside my heart.
 
My strategy was ruthlessly effective. If I were restricted to a single piece of advice for wannabe millionaires, I'd have to offer that as my suggestion.
 
But you know – as I did even back then – that there are other ways of being rich. You can be rich in your relationships. You can be rich in good health. Or you can be rich mentally – knowledgeable and skillful, but also curious and eager to learn more.
 
If you want a life that includes these riches as well as a lot of money, you are probably going to have to do what I did when I turned 50. I created a rigid monthly, weekly, and daily protocol for spending my time…
 
Start by writing down every ambition, desire, and obligation that occurs to you. Then, sort your list into four categories that correspond to the four ways of being rich: money, relationships, health, and personal pursuits.
 
The next step is to narrow each category down to one broadly defined main goal.
 
My four main goals looked something like this:
 
1.  
My Primary Goal – I want to have enough money to support my desired lifestyle on passive income I get from my savings.
 
2.  
My Social Goal – I want to be a good father and husband, have lots of good friendships, and contribute in some meaningful way to the world.
 
3.  
My Personal Goal – I want to become a published writer, speak several languages, make a few movies, and become very good at Brazilian Jiu Jitsu.
 
4.   My Health Goal – I want to be in optimal health, both mentally and physically, so I can enjoy my other riches.
 
You may be thinking, "Aren't goals supposed to be specific? Shouldn't my financial goal be something like, 'Have a net worth of $1.2 million in 6.3 years'? Isn't that what the experts say?"
 
Yes, they do. But I believe they are wrong. Your long-term goals should be broad because you won't know what you really want until some time has passed. In other words, your goals will likely change as you gain experience… And that's a good thing.
 
Once you've established your four broad long-term goals, it's time to determine your yearly goals. Within each of the four categories, you might want to list two, three, or even a dozen. Under Personal Goals, for example, you could put down:
 
•   Write a book on fly-fishing.
•   Complete a course in beginner's Spanish.
•   Watch an average of no more than two hours of TV a night.
•   Learn to dance the Samba.
As you can see, these yearly goals are more specific than the long-term goals. But they are still fairly broad.
 
Now you are ready to create monthly goals. Again, they will be even more specific. For example, to achieve your yearly goal of writing a book on fly-fishing, you might set your first monthly goal as, "Write the first 30 pages."
 
Your weekly and daily goals will be even more specific. Weekly goal: "Write five pages." Daily goal: "Write one page."
 
The reason for this approach is that it's impossible to become wealthy in all four areas of life unless you can see very clearly – on a monthly and weekly basis – exactly how much work you have to do.
 
By setting your goals from broad to specific, you increase the likelihood of success by decreasing the likelihood of failure. (If you fail to write one page of the book on Tuesday, you can write two pages on Wednesday.)
 
Most people who try to achieve this balance notice that eventually, some tasks tend to crowd out others. And as time passes, they fall so far behind on certain goals that they give up on them entirely.
 
Will you have time to accomplish all your goals?
 
I believe you will. But you have to start off by being realistic. That means you need to recognize from the outset that of the four types of wealth, becoming financially wealthy will take the most time.
 
We all want to get rich by working four hours a week. But the reality is that you will probably have to spend the bulk of your time – as much as eight to 10 hours a day – pursuing your financial goal.
 
The good news is that it doesn't take nearly as much time to make progress on your three other main goals.
 
The main thing to realize is that getting richer in any way requires purposeful action. Desire is not enough.
 
Nobody else cares whether you have become richer in any of these categories. They will notice… But only you care. And only you can make it happen.
 
Regards,
 
Mark Ford
 
Editor's note: Mark has retired… But his ideas for building wealth are some of the best. Dozens of his protégés built seven-figure fortunes based on his lessons. That's why he has created a 30-day "master class" for folks who want to reach their goals and get richer financially in the next few years. Click here to learn more.

Source: DailyWealth

99% of Investors Don't Do This… Here's How to Be the 1%

 
The setup was perfect for one particular trade last month – so we pulled the trigger in my True Wealth newsletter.
 
So far, we're up 6%. And our potential upside is 30%. But that's not what's important today…
 
What's important is knowing what to look for in a trade.
 
Today, I'll start by explaining what I look for in a trade setup. Then, I'll use our True Wealth trade as an example, so you can see for yourself how it works.
 
Let me explain…
 
First off, you want to put the odds in your favor from the start.
 
This is not hard to do, but many people skip this step entirely…
 
Ideally, I want my potential gain to be at least three times my downside risk. For example, if I believe my upside potential on a trade is 30%, then I often set a hard stop loss at 10%.
 
That means if a stock is at $50, and you believe it has 30% upside (to $65), then you would plan to sell if it falls to $45 – no questions asked.
 
What? You think that's too tight? You're afraid you are going to get stopped out?
 
Then maybe your big idea isn't good enough.
 
I hate to break it to you. But that might be the case. If you want to use a wider stop, then you'd better find a stock with more upside potential.
 
Why do I do this? The main reason, as I said, is that it puts the odds in my favor… If I lose 10% on two trades but make 30% on one trade, then I still come out ahead.
 
Beyond putting the odds in my favor, the second thing I look for is this: Ideally, I want to buy what's 1) hated, and 2) trending "up."
 
In short, you want to buy when no one else is interested so the trade has room to move higher. But this isn't enough by itself… You need to know that the stock won't just keep falling. That's why I wait for the start of an uptrend. I wait for the market to confirm my idea… Then, I get in.
 
Now, let me show you what we did in our True Wealth trade…
 
Last month, I recommended buying the ProShares UltraShort Australian Dollar Fund (CROC).
 
This fund works as a leveraged bet AGAINST the Australian dollar. So in this case, we turned our second idea around… The Aussie dollar was overly loved, and the trend was down. That's what we wanted to see.
 
The easiest way to tell when an asset is overly loved or hated is to look at the Commitment of Traders (COT) report. It shows the real-money bets of futures traders.
 
As you can see below, based on the COT report, the Australian dollar recently hit its most loved level in more than four years. The last time we saw the Aussie dollar at these levels, it fell dramatically over the next six months. Take a look…
 
We also put the odds hugely in our favor on this trade… I told subscribers to take all profits once they're up 30%. But we entered the trade with seven or eight times the potential reward relative to our risk (around 4%).
 
We saw the Aussie dollar was overly loved… We saw the trend start to move in our favor… And we saw that we could set up a trade with good odds. So we bought.
 
The trade setup is still good today. Your downside risk is still about 4%.
 
But the point today isn't about making a bet against the Aussie dollar. Instead, I wanted you to see how I think about a trade…
 
Set your odds. Set your stop. Then, wait for trend to move in your favor before you act.
 
I would bet that 99% of investors don't do these basic things. I urge you to be part of the 1% that does…
 
Good investing,
 
Steve
 

Source: DailyWealth