Editor’s Note: As Chief Investment Strategist of Total Wealth, Keith believes in making his track record of recommendations easily accessible to all readers within seconds – and that’s why he’s compiled an Archives page. Here you’ll find links to every Total Wealth article Keith has published since Total Wealth’s creation on October 2, 2014, posted in reverse chronological order.
Category: Unstoppable Trends
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Most investors consider themselves fortunate to latch on to one really big trend in their investing lifetime. But imagine what happens when you latch on to two, three, or even four…
… at the same time, with the same investment!
That’s the situation we’ve got right now with one of my favorite Total Wealth recommendations.
Not only is this going to dramatically increase the potential returns I envision, but also it may render them entirely too conservative. And that doesn’t happen very often.
By unleashing a new set of products drawn from their existing research and development that taps into a fourth unstoppable trend. So if the idea of triple-digit potential appeals to you like it does to me, pull up a chair.
What I am about to tell you could reshape labor markets and, in the process, create an entirely new group of millionaires savvy enough to cash in.
Here’s the scoop.
CNBC’s Kate Kelly asked me last January if I was worried about smaller players in the energy sector “just plain going out of business.”
I replied that not only was I not afraid of the weaker players being swept away, I was counting on it.
As you might imagine, that raised more than a few eyebrows, considering oil had fallen by 51% from last summer’s highs to only $52/barrel at the time, and investors couldn’t hit the sell button fast enough.
But I had studied my history carefully and knew something everybody else didn’t – the strong always survive.
That sounds cliché, but I’m bringing this up for a reason because this tiny nugget of information – this perspective, really – has helped turn ordinary people into millionaires for years. And it will again.
I want you to be among them.
Here’s what everybody else is missing.
Many investors believe that growth and income are mutually exclusive – that you can’t have one if you want the other. So they don’t give a second thought to high-growth sectors that haven’t traditionally paid out.
It’s one of the costliest mistakes they can make, for the simple reason that the markets change constantly. Think about it for a moment. Just because a sector hasn’t paid dividends in the past and it hasn’t been attractive to income investors, doesn’t mean that it won’t be in the future.
Take, for example, Altria Group Inc. (NYSE:MO) and CNH Industrial N.V. (NYSE:CNHI). At the time I recommended them to Money Map Report subscribers, they were considered by the broader investing community to be staid investments with very little upside – about as exciting as watching paint dry.
My take was quite different.
Despite tremendous increases in regulatory pressure, global growth concerns, and doubts related to the markets themselves, I saw two companies tapped into our Unstoppable Global Trends and, by implication, the higher revenues, higher earnings, and higher stock prices that go with them.
I knew they were getting ready to grow.
The fact that most investors took them for granted was pure gravy, because it meant that the shares were cheap compared to the potential they represented. And now anybody who followed along is glad they did. Altria and CNH Industrial have returned 245% and 142%, respectively. Now I’m seeing history getting ready to repeat itself.
As usual, I’ve identified a few companies that people don’t traditionally think of as income generators to get you started.
Here’s what you need to know.
From the first moment it came to my attention, I’ve been as consistent as I have emphatic – EKSO Bionics Holdings Inc. (OTC:EKSO) is a “buy” despite volatility and price drift in recent months that have given many investors pause for two reasons:
- It’s entirely normal for a company Ekso’s size; and
- The company has continued to expand market share that will ultimately translate into higher earnings and share price.
Now there’s a third.
If you don’t get into the stock now, you could lose the “first mover” advantage that you’ve had so far. Worse, you could miss out on another double – Ekso’s second since I recommended it.
You see, EKSO’s just hit a landmark that tells me the incredible growth potential we’ve had to ourselves won’t be a secret for much longer.
Last October I wrote to you about one of the most exciting and potentially profitable “Unstoppable Trend” of all – Human Augmentation. At the time I noted that the sector will conservatively be worth hundreds of billions of dollars by 2020 because it’s expanding at a compound annual growth rate of 43.52% a year.
I think I may have understated things.
Recent research suggests that we need to move beyond technology to include biological upgrades, too. That means the target market potentially doubles right along with our profit potential.
That’s going to be fabulous for my favorite Human Augmentation recommendation: Ekso Bionics Holdings Inc. (OTC:EKSO). It’s returned 25% since I first brought it to your attention last autumn.
But you know what?
It’s also going to be great for the other Human Augmentation companies I highlighted in that very same report.
One of them has recently doubled, while a few others are up two, three, or twelve times the overall return of the S&P 500 this year.
When I began Total Wealth Research, I highlighted six “Unstoppable Trends” – each of which is backed by trillions of dollars – and promised that we’d check in on them from time to time in the pursuit of profits.
Today, I want to keep that promise.
Not only are all the “Unstoppable Trends” fully intact, many are actually getting even stronger. So are the companies we’re tapped into, especially when they’re in sectors being written off by the mainstream investment community.
For instance, I brought Williams Companies Inc. (NYSE:WMB) to your attention on January 7, 2015, as a way of playing the beleaguered energy sector. It’s returned 15.35% since then, or more than triple that of the S&P 500 over the same time frame.
Then there’s Kratos Defense & Security Solutions Inc. (NasdaqGS:KTOS),a small niche defense contractor positioned for huge gains by playing outside the mainstream defense contracting procurement ballpark. It’s returned more than 16% since I called your attention to a re-entry point on January 9.
Kyocera Corp. (NYSE:KYO), the Japanese tech giant I called out on New Year’s Eve as a means of playing the uneven stimulus that’s powering Japanese markets, is up 10.87%.
Thing is, I’m not telling you this to brag. What I want you to understand is that stocks backed by “Unstoppable Trends” have the potential to dramatically outperform the markets.
And that’s why you need to keep every single one of our trends at the top of your mind… so that you can tap into the potential created by trillions of dollars on the move.
Here’s what you need to know about each of our “Unstoppable Trends” today – starting with the biggest opportunity on the planet right now.
What if I told you that a two-millennia old economic pattern is about to reassert itself – and you can profit from not one but two Unstoppable Trends by getting in today?
Better yet, what if pundits were almost universally writing off what I am about to share with you, further clearing the way for savvy investors to enjoy the earliest windfalls and potentially the biggest gains, too?
Much of the media and many of the mainstream investment houses are ignoring this country. The IMF and Morgan Stanley are both forecasting dismal GDP growth in the next few years. Just last month, Bloomberg labeled its markets as being in an “amateur hour” phase.
So why is it that the elite are piling in?
For the same reason I’m telling you that it’ll be a winner – because they know like we do that the hoy-paloi is overlooking some key numbers – not to mention basic history. For 18 of the last 20 centuries, this juggernaut has been the world’s largest economy. And with more than 7% growth last year, it’s outpacing the U.S. to reclaim the title. Again.
What we’re seeing is a seismic shift not just of global power but capital – and that will mean enormous profits for people who see it ahead of time.
Analysts are getting it wrong. Now you can profit before they have time to wake up.
Here’s what’s really going in in the world’s fastest-growing economy.
New reports from the likes of the IMF and McKinsey hypothesize that global growth rates will drop by 40% or more over the next half century. The growth-killers they point to are an overabundance of debt, unequal wealth distribution, and an aging population.
Don’t fall for it.
For one thing, people have been calling for the end of things since, well, the beginning of things. The Internet and mass media merely magnify the rhetoric and give the legion of doomsayers a platform and make them harder for individual investors to ignore.
While we’re at it, let me remind you that this is the same crowd calling for the end of the financial universe as we knew it in March 2009… right before the S&P 500 took off on a 180% run higher. I sure hope none of you decided to sit that one out.
For another thing, every great crisis is, in fact, a realignment of opportunity. Weaker players get weeded out, stronger players consolidate their market share, and profits mount.
This is especially true when you understand why AND what one of the single most powerful Unstoppable Trends of all means for your money – Technology.
We’re going to talk about that today and share my take on an $8 stock with the potential to set you up for profits perfectly.
First, here’s the secret growth “engine” the doom-and-gloomers are missing.
Just over two months ago I unceremoniously kicked McDonald’s Corp. (NYSE:MCD) off my “buy” list noting that for the first time in more than 10 years that the company was no longer tapped into any of our globally “unstoppable trends.” Now, with the stock down another 7% since then, the Board has just kicked CEO Don Thompson off the menu, too.
Is this move enough to put Mickey D’s back on my list?
That’s a great question. It’s not for nothing that the stock is practically investment royalty. It’s established, it’s widely held, and it returned $6.4 billion to shareholders last year.
It’s also a logical question because a change in senior management can be a powerful catalyst for higher returns. ABB, for example, took off on a 1.359% run in the five years after Jurgen Dormann took over for former CEO Joergen Centerman. Similarly, Yahoo! Inc. has returned more than 190% since former Google exec Marissa Mayer took the reins and launched a series of bold acquisitions in the summer of 2012.
McDonald’s stock jumped 5% the day Thompson hit the pavement after a 25-year career and less than two years as CEO, so investors are naturally giving the stock a second look. They’re all wondering – “Is this the day McDonald’s turns things around?”
I’m getting quite a few questions lately regarding one my favorite companies, Ekso Bionics Holdings Inc. (OTC:EKSO).
As you know, the company is tied into one of the most dynamic Total Wealth Trends of all – and potentially the most profitable, too – Human Augmentation.
So I thought we’d revisit EKSO and, in the process, update some of the interesting stuff that’s going on.
But first, I owe you an apology.
I totally underestimated the company’s potential.
Let me show you why – and my new price per share.
Many investors expect “Super” Mario Draghi’s recently announced €1.2 trillion stimulus program to produce big market gains just like the Fed’s QE did here in the United States.
What they’re missing is that not all companies are going to benefit. In fact, the vast majority won’t.
How do you know if the one you want to buy is one of ’em?
…because it’s tied into one or more of the six unstoppable trends we’re following.
That’s what we’re going to talk about today.
Did you see the investing opportunity in the Golden Globe Awards last Sunday?
Not many investors did. It was easy to miss.
It wasn’t the dazzling fashion on the red carpet or the celebrities congratulating each other. What really struck me was a huge signal for money-making in our Technology trend.
Technology is easily our fastest-moving “Unstoppable Trend” – and the one with the most “sub-trends” and offshoots. We’re already doing great on one of those: Human Augmentation. Our target there is tiny Ekso Bionics Holdings Inc. (NYSE:EKSO), which quickly doubled and is still up more than 40% since I released my first report on it – with much more upside ahead.
But what I saw Sunday was a very pronounced shift in a Technology sub-trend that is going to be one of the biggest opportunities of the next 5-10 years. Billions of dollars are getting sucked out of one industry and into a new one.
- Sadly, though, most investors are going to make two mistakes: They’ll try to hold onto the past (and previous winners) rather than acknowledge the shift; or,
- If they do recognize it, they’ll plow their money into choices where the potential upside is limited because it’s already “baked in,” as the expression goes.
As an analyst known for making bold and unusual predictions in pursuit of profits, I am usually inclined to celebrate when my “calls” are proven right.
But when it comes to the proliferation of one of the six primary trillion-dollar trends we’re following – War, Terrorism & Ugliness (WTU) – I’ve got to be completely honest. There are times when I am uncomfortable with the human cost of being right.
That’s certainly the case right now, following the horrific assassinations of 10 journalists and two police officers earlier this week at the Charlie Hebdo magazine offices in Paris. In case you somehow missed the news, the killings were allegedly carried out by two brothers who had become radicalized Muslims in the Parisian ghettos of Gennevilliers acting in response to cartoons portraying the prophet Muhammad.
My stomach is tied in knots and I cannot help but reel in disgust. But I also cannot help but think.
The events in Paris reinforce a very important financial relationship that escapes 99% of all observers – the counter-intuitive nature of terrorism and what it means for your money.
And that’s what we’re going to talk about today. This won’t be an easy conversation to have, but it’s vitally important because most people get the nature of what we’re about to discuss completely backwards, and that leaves their investments vulnerable.
You see, in one of the great ironies of the financial world, terrorism actually creates far more opportunity than it destroys.
Let’s get rolling.
The really great thing about following our “Unstoppable Global Trends” is that there are many ways to invest in each of them. The possibilities are endless, as is the profit potential.
Take Demographics, for example.
We’ve talked a lot about what’s happening in Japan right now and the conditions there that make it the perfect “Anti-Trend” investment. Between the crushing debt, the aging population, the lack of a workable immigration policy, and decades of abysmal fiscal policy working against it, the country is in trouble – thus my recommendation to short the currency via ProShares UltraShort Yen (NYSEArca:YCS).
It’s returned more than 116% since the Japanese yen was at 76 to the dollar when I initially recommended it to paid subscribers. And it’s returned another 5% since November 26 when I brought it to your attention. Now it’s set for another leg up.
But it’s far from the only way to play Japan at the moment.
Holiday markets tend to slow up a bit, and this week is proving to be no exception, so I thought we’d change things up a bit by diving into the mailbag and tackling a few of the fabulous questions you’ve asked recently.
Of course, as is our way around here, I’ll follow each answer with some actionable investment advice you can put to work right now as well as specific recommendations for your consideration.
Let’s get rolling with three questions related to our “Unstoppable Global Trends” that are very much in the news right now… Energy, Technology, and Warfare.
Q: Will oil ever come back and is now the time to buy the big oil refiners? ~ Hank T.
A: Yes, global demand will ensure that. The only question is when, and that depends entirely on how much longer the Saudis want to play games. Worldwide demand is growing tremendously, and energy itself is going to see some $48 trillion worth of spending by 2035, according to the IEA and other estimates. (I think that figure is low, by the way, for reasons I’ll cover in an upcoming column.)
But I don’t believe that the big oil refiners are the way to go.
The smarter play would be going for the integrated midstream producers, explorers, and pipelines like Apache Corp. (NYSE:APE) or Northern Oil & Gas Inc. (NYSEMKT:NOG). The former has a really clean balance sheet and will likely to be a big beneficiary of the consolidation that’s now under way because of cheap oil, while the latter has hedged contracts at $90/barrel even though oil has now dropped to $55/barrel.
If you are really up for an adventure and potentially some dynamite returns consider the Open Joint Stock Company Gazprom (OTC:OGZPY). It’s the world’s largest natural gas extractor, has a lock on Europe, and is trading at perhaps the world’s smallest multiple of 1.73. Any shift going from terrible to less bad with regard to Putin is going to send this stock soaring.
Now – an update on our War, Terrorism & Ugliness stock…