2017: Big Changes Will Produce Big Profits for Savvy Investors

Keith Fitz-Gerald Jan 06, 2017
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[The First of Two Parts] – When I started Total Wealth, I told my publisher that I wanted plenty of “red meat” – meaning actionable information, insight and, of course, recommendations as opposed to the usual click-bait that runs rampant all over the Internet today and that you see in mainstream news rags. Anything less simply wouldn’t be acceptable.

Today I want to continue that vein of thought with a look ahead at 2017 and how I see profit plays related to each of the six Unstoppable Trends we follow developing.

As is often the case, these are opportunities other investors don’t see and simply cannot recognize ahead of time because they’re not part of the Total Wealth Family and they don’t have the advantages you do when it comes to analysis, trends, and tactics that can lead to huge profits.

So pull up a chair and grab a cup of your favorite libation…

…the profit potential is simply outrageous!

Here’s where to start.

How to Ride a Mature Bull Market

Millions of investors are worried that the stellar performance we’ve seen in recent months can’t continue. That’s understandable given how complicated the world is at the moment, but it’s bassackwards, to borrow one of my grandfather’s favorite terms.

Don’t get me wrong… I am not trying to be dismissive. You’re not alone if you are apprehensive right now. In fact, I feel the angst, too. I simply want you to try your best to put that aside, because the kind of ginormous profits I see ahead in 2017 dictate that you do so.

Worrying about things that can derail the markets is a natural reflex based on the past. The far better – and more profitable approach – is to think about where they’re going. That way you can put your money in the right places ahead of time instead of constantly chasing a train that’s left the station like most investors.

This year’s story continues to revolve around our proven three-step approach:

Put your money ahead of six Unstoppable Trends, each of which is backed by trillions of dollars in spending that Wall Street cannot hijack, the Fed cannot derail, and Washington insiders cannot stop.

Buy only the best companies making “must-have” products and services as defined by a combination of key metrics, including rock-solid balance sheets, experienced management, and brands that are “global challengers” – a term I’ll have more on in a moment.

Manage risk with laser-like intensity knowing that “letting your winners run” isn’t enough to ensure profits. You’ve got to “buy low and sell high” using well proven profit targets and trailing stops.

Let’s start with the investing backdrop itself.

I expect the markets to run sharply higher this year, but after a solid pipe cleaning that scares the pants off most investors who aren’t prepared to use it as an opportunity like we are. The potential for a correction is highest during the second half of 2017 when the inaugural bump has worn off and President Trump’s first 100 days have passed. In the meantime, managing expectations is critical and potentially very profitable, too.

If this week’s buzzword bingo is any indication, the fight over Obamacare is just the beginning of what will be a pitched battle between those who refuse to let go of the status quo and those who are keen to move on. It’s not a political exercise despite what the media will have you believe.

The dissent will be all about the money… it always is. And, that’s your opening.

Let me deviate from our forecast for a moment and give you an example that will put this into context. It’s important that you understand how and why this is so important.

Think about the big tech companies we talk about frequently: Alphabet Inc. (NasdaqGS:GOOG), Facebook Inc. (NYSE:FB), and Amazon Inc. (NasdaqGS:AMZN). They’ve all evolved to the point where it’s them versus everybody else. There isn’t a single company in the world that has not been impacted by their growth. Everything from strategy to big data to social media… it all feeds into a complicated equation.

For investors, this is fabulous because it means huge growth. For regulators around the world who are jealous that they can’t control what’s happening, though, this is a monster nightmare.

The E.U., for instance, is fit to be tied that they don’t have homegrown competition, so they’re warming up for everything from privacy claims to punitive taxation. I think they actually go so far as to label them “monopolies” in 2017.

Traders will freak when that happens because they’re prone to that sort of short-term emotional input. But thinking like we do and knowing what we know, local regulation does not stop an Unstoppable Trend. The world cannot live without what these three companies provide. Each will continue to attract capital as a result – not shed it. Ergo, you’ll have a spectacular entry point on your hands.

There are similar stories for every one of the Unstoppable Trends we follow: Demographics, Scarcity/Allocation, Medicine, Energy, Technology, and even War/Terrorism/Ugliness which, unfortunately, remains a growth industry at the moment.

I’ll be back next week with a look at the strategic implications driving each Unstoppable Trend as well as their relative influence on our strategy in 2017 versus 2016.

Until then, here’s a little taste of what’s ahead and a quick look at a stock with the potential to be one of this year’s great winners.

Ever heard of HEICO Corp. (NYSE:HEI)?

Most people haven’t, despite the fact that the Florida-based defense contractor is one of the world’s leading aerospace and defense mission critical manufacturers.

Founded in 1958 as a laboratory instrument maker, today it has a market cap of nearly $4.8 billion and generates almost 30% of that in sales annually or $1.3 billion. HEICO employs an estimated 6,400 people and has 60 production/distribution facilities in 20 states and 11 countries.

Acquisitions have driven growth in a low rate environment, but that tells me organic growth is about to take off, as is usually the case when costs are amortized and synergies take over. Bear in mind, that’s on top of the record net sales, operating income, and net income for Q4 and the full-year growth guidance it just reported.

There’s also President-elect Trump’s $1.6 trillion infrastructure plan and the corresponding boom in both defense and commercial aviation to contend with. I think that’s a cash “flusher” that will allow management to build on the 13% boost it just handed shareholders with its 77th consecutive semi-annual cash dividend.

In closing, I’m thrilled you’re here and will do everything I can to ensure the trust you place in me and my team is well founded.

Now, let’s go get’ em – the profits, that is.

Happy New Year!

Keith

10 Responses to 2017: Big Changes Will Produce Big Profits for Savvy Investors

  1. Avanell Savage says:

    How can I get started with $100.00

    • Keith says:

      Hello Avanell and that’s a great question because we all start somewhere.

      When you’re just starting out there are two things that you’ve got to get right above all else: 1) you’ve got to save until you can build up initial positions in “core” investments like the Vanguard Wellington, for example, and 2) you’ve got to resist the temptation to make speculative choices early on that could blow up your nest egg.

      Of course, reading Total Wealth is a good start, too!

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  2. Warren Beeler says:

    Thanks Keith,

    I have been investing food 66 years and have had a lot of successes and some failures and I have learned a lot from my failures.
    One of your recommendations [XXXX] J have more than doubled my money [ though it has fluctuated a lot lately due to a lot of institutional investors taking their profits to make investors see what a great job they have done for them.
    I think [XXXX] IS ON THE PATH TO AT LEAST HIT $135.00 THIS YEAR.
    May God bless you in all your efforts this year and may God bless your family and associates this 2017 year.

    BEST REGARDS,
    Warren Beeler

    • Keith says:

      Dear Mr. Beeler,

      Thank you so much for the your kind words. I am honored to have played a small part in that success. There is no doubt, though, that I would be the student when it comes from your experience. I hope we have the opportunity to cross paths and compare notes sometime.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  3. Paul says:

    Keith;
    I would like to know what your ideas are regarding the markets having an EL NINO effect for the coming years, with the “baby boomers” starting to reach the 70 1/2 years that have to start cashing in on their IRA’s and 401k’s? Do you think they could take the wind out of any surge in the markets? They have a lot of money in the markets and with the IRS taking a large chunk of their money with a fee if they don’t.

    Since I’m one of them, as the harbinger of the group I had to take my RMD lucky for me with the Trump rally it wasn’t so bad this year.

    • Keith says:

      Hello Paul.

      Thanks an interesting idea and the data is very compelling. However, I don’t think it holds water as long as the amount of capital chasing stocks continue to increase because that offsets the demographic decline.

      Merely shifting 10% from bonds back to stocks could be a $2.3 trillion input, for example, according to Societe Generale…and that’s with existing money. Factor in new capital and the figure could jump $3-$5 trillion.

      I’ll have more in an upcoming article that you may find helpful.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  4. Torben Riis says:

    How do you combine your optimistic future market view (‘sharply higher’) with your “On january 15 you’re going to get some devastating financial news” (bond crash)?
    Regards Torben

    • Keith says:

      Hello Torben.

      That’s a logical and very astute question. Capital ebbs and flows like ocean tides which means that you’ve got to be prepared for short term shifts that ultimately position you for much longer, bigger gains. The bond rotation is merely part of a much bigger equation and one with a positive ending.

      I’ll be with you every step of the way.

      Best regards and thanks for being part of the Total Wealth Family, Keith ๐Ÿ™‚

  5. Erle Phelps says:

    Hi Keith,
    You have mentioned in one of your reports the 26f program which I am interested in along with other reports. How would you advise me who has never actually traded on the market to get started? Can you recommend a step by step way to exercise the trade that you recommend in your report(s) to get started? Also any advice with regard to brokers and low fees? I am a retired senior, 70 yrs. young and am anxious to get started.
    Regards, Erle Phelps a total wealth member.

    • William Dahl says:

      Hello Erle,

      Keith has compiled an extensive report on the ten most exciting 26(f) profit opportunities he’s encountered for Money Map Report members. Members like you can access it here.

      In it, you’ll find brokerage firm information that will let you know how to access them.

      Best regards,

      William Dahl, Managing Editor

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