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: Featured Tactics
Filter by Date:
On the heels of Monday’s vicious 1,000+ point “dip” and Wednesday’s subsequent 619 point “rip ” higher, many investors are asking one question – will the rally stick?
The media certainly seems to think so:
…Relief Descends on US Stock Market with Best Rally Since 2011 – Bloomberg
…Dow, S&P Enjoy Biggest Percentage Gains in Four Years – MarketWatch
…Chinese Stock Index Jumps 5.3% as Asian Stocks Rise – Yahoo!Finance
I’m not so sure.
I say that because the answer depends on a question nobody’s asking.
Today I’m going to tell you what that question is and why it’s so very important. Then, I want to spend a moment putting current conditions in perspective. And, as always, I’m going to do my best to give you a playbook for profits no matter what happens next.
Let’s uncover some answers together.
Not all investors lose money when the markets get carried out feet-first. There are a savvy few who pocket some really terrific gains by capitalizing on chaos… and they don’t even have to time the markets to do it.
Not if you understand how to use one of my favorite Total Wealth Tactics – the Lowball Order. A great choice under normal market conditions, it’s ideal at the moment.
We’re going to talk about what a Lowball Order is today and how you set one up ahead of time. Then, as always, I’m going to give you a few recommendations covering several of today’s most popular stocks.
I think you’re going to be thrilled by how easy Lowball Orders are to use, especially when you realize that you don’t have to sit in front of your screen all day to bank the big bucks with the best of ’em.
For lack of a better term, Lowball Orders are like a “profit-trap” you lay in advance.
Here’s how to conquer market madness and profit at your leisure.
When I started Total Wealth I promised you that it would be a two-way street, meaning that information would flow both directions – from me to you and from you to me.
Today I want keep that promise by answering a question from J. Stockhausen that’s on a lot of people’s mind at the moment…
…will the markets “crash” and what investments can you use to take advantage of the chaos?
It’s important stuff because panic is definitely creeping in around the edges. I’d be lying if I said I didn’t feel the angst just like you do. You’re not alone.
But here’s the thing. Unlike most investors who are going to let panic take over, we know that the first step in building Total Wealth is to take emotion out of the equation. And, instead, to focus on navigating the situation:
No investor ever has to suffer the ravages of a bear market if they’re prepared; and,
There is always opportunity in chaos if you know where to look.
So today let’s talk about how you do that and, as usual, take a quick look at three specific investments you can put to work immediately if the U.S. markets fall further, the euro comes unglued, and/or China’s markets have not yet bottomed.
Here’s how to protect yourself from a correction – and profit when everybody is losing.
I committed the equivalent of financial heresy in late December 2013 and again in January 2015 when I said Twitter (NYSE:TWTR) was a bug in search of a windshield and recommended shorting the stock. The blogosphere went nuts and I was taken to task by Twitter-lievers.
Since then the stock has fallen 63.31% from a high of $74.73 to a low of $27.04. It’s rebounded slightly in recent trading and the rally cry has begun anew…
…Twitter Interim CEO Dorsey Buys More Shares In Show of Faith – Reuters
…Twitter Rebounds: Here’s Why You Should Be Buying Shares – Bloomberg
…Jack Dorsey and Other Twitter Insiders Make Show of Support – The New York Times
Don’t buy it for a New York minute.
The company still has serious problems, and the narrative you’re hearing is intended to do one thing and one thing only… separate you from your money.
We’re going to talk about that today because knowing what not to buy is every bit as important a Total Wealth Tactic as knowing what to buy.
Here’s why Twitter stock is still a disaster waiting to happen.
Despite what the markets seem to think and many news sources would have you believe, China’s move to devalue the yuan by 1.9% is not an act of desperation intended to prop up a failing economy. It’s not a surprise. And, it sure as heck is not the end of the financial universe as we know it.
Instead, it’s a brilliant move that singlehandedly changes the investing landscape and creates a fabulous new set of profits if you’ve got the guts and the smarts to make your move.
Today we’re going to talk about why and, as always, what makes the situation so very appealing and so potentially profitable at the same time.
As always, I’ve got a few specific recommendations to get you started.
Apple Inc. (NasdaqGS:AAPL) lost another 3.2% yesterday on more than double the usual volume, making many investors wonder if it’s time to throw in the proverbial towel. It finished the day down 14% from the $133 a share high it set in February, and paper losses now tally $133.4 billion.
To put that in perspective, Apple’s just lost more than McDonald’s, which carries a $95 billion market cap, is worth.
I can’t help but think this is great.
Stocks like Apple rarely, if ever, take a break like this. That means you’ve got one whale of an opportunity on your hands, and a unique chance to buy in when everybody is running the other way.
Today we’re going to talk about why, and the best Total Wealth Tactic to play a situation like this.
The secret is capitulation – and it could mean a double-digit discount for you in one of the most promising sectors in the world.
I’ve brought several high-profile “shorts” to your attention since we started Total Wealth, and I hope you’ve racked up some big gains by following along.
First, there was Twitter Inc. (NYSE:TWTR) (here). It has fallen 40% from the recent highs of $52/share (in April) and was down 14% this morning after earnings, now trading around $31/share. This trade still has a long way to go, given how poorly run the company is, not to mention the revolving C-suite door. It’s probably worth less than $10 at best.
Then there was Shack Shack Inc. (NYSE:SHAK) (here). I warned you within hours of it hitting a post-IPO peak of $96.75/share (in May) that the thing was a dud. It fell 50% to a low water mark of about $48. It’s back up to $61 or so as I write this, which means there’s plenty of fresh money for the taking and an entirely new group of shareholders for whom hope is an investment strategy. I still see it valued at no more than $0.66, using industry metrics.
Now I want to bring another opportunity to your attention.
This stock is even more insanely valued and has metrics that suggest it’s an even better, more profitable trade.
Right now it’s trading at $41/share and is probably worth no more than $1.36.
If you’re looking for max profits, here’s my next target…
CNBC’s Sara Eisen asked me last Tuesday if I was still bearish on one of Wall Street’s favorite stocks, even after it had already fallen more than 45% since I warned you last May that it was a bad investment.
“You know this environment, Keith,” she told me. “People are paying up for growth companies. The bulls would say this has great brand presence, great brand awareness, and is continuing a careful and steady expansion in the U.S. and abroad.”
All excellent points, I replied… but not one of them changes the fact that a tiny company taking share from huge competitors in a non-growth market does not make it a growth stock.
Then I went for the jugular…
…if this company traded in line with its biggest competitor, the company’s stock price would be only $0.66 a share, or 98.22% less than Goldman Sachs suggests.
Here’s why this stock’s bulls are still in for plenty of heartburn.
Gold prices crashed Monday as panicked sellers drove the yellow metal to its lowest level since 2002. More significantly, they broke the $1,130/oz “floor” which had previously been regarded as a solid support level – a key indicator to me that the downdraft wasn’t over.
So I wasn’t surprised to see gold prices finish yesterday’s U.S. trading session modestly lower – but that doesn’t mean I was any less excited, either.
You’re seeing an enormous opportunity being brought forth by the perfect storm of economic and financial events. Some of these events we’ve known were coming, and some are seemingly random.
Either way, they’re creating an opening you haven’t had access to in years.
Here’s what you need to know about what really caused gold’s plunge this week – and the opportunity no one can know when you’ll have again.
When I started Total Wealth, I made you a promise that we were not only going to cover the events of the day and the opportunities they create, but also the specific tactics you need to maximize profits and build Total Wealth.
Today I want to keep that promise with a look at the single most powerful Total Wealth Tactic of all.
It’s simple, easy to use, and takes only an extra second or two to put in place.
Before I tell you what it is, though, I want to tell you why it works…
- …because the tactic I’m going to share with you today puts YOU in control.
I know that’s hard to imagine given that you’re trading against the likes of Goldman Sachs, JPMorgan, and other firms with billions of dollars, but it’s absolutely true.
Moreover, it doesn’t cost a penny, can save you money, and can dramatically increase your odds of success.
Get this right and you’re immediately in command of your own financial destiny.
Faced with the prospect of an imminent rate hike, many investors have given up on real estate investment trusts (REITs), mistakenly assuming that they’ll underperform as the cost of money goes up.
I can’t think of a more expensive mistake.
Contrary to what a lot of people believe, REITs have historically done well when the cost of money is increasing. Between 1994 and 2013, for example, there were nine time periods when interest rates rose by more than 1% (or 100 basis points in trader speak) as measured by the 10-Year U.S. Treasury note. Six out of nine of those times, REITs provided positive returns.
Put another way, REITs made money when the markets experienced rate increases that were four times larger than the 0.25% boost the Fed is reportedly contemplating. Of course, positive isn’t good enough when it comes to Total Wealth.
I want you to have the opportunity to really put some numbers on the board.
Here’s your path to profit while everyone else disregards history.
One of the promises I made when I started Total Wealth was to keep you ahead of the curve and certainly ahead of the Wall Street herd.
It’s why you subscribe and, frankly, a responsibility I take very seriously.
Fortunately, we’ve got plenty of great examples of how this has worked out.
For example, The Wall Street Journal reported in February 2013 that the country’s biggest investors – including George Soros, Kyle Bass, and Daniel Loeb – were making billions in betting against the Japanese yen by capitalizing on the fact that Tokyo had to weaken it to save that nation’s economy.
That’s great but as Bill Patalon noted in his Private Briefing, I told subscribers about that trade a year earlier in a move that allowed anyone who followed along to double the returns those same Wall Street heavyweights achieved. At the time, that was 44% versus the 20% being lauded by the Journal.
Today I want to share another example with you and use it to highlight two very important Total Wealth Principles.
Understand what I’m about to share with you and you’ll never get burned again by false media narrative. More importantly, you’ll learn how to recognize an Icarus-like trajectory for what it is – and, hopefully, make a lot of money in the process.
Here’s what you need to know.
I’ve made no bones about my feelings when it comes to quantitative easing, or “QE” for short.
Plainly put, QE violates the very principles of capitalism – namely that there is success and failure- and it’s akin to monetary drunk driving. Rather than letting dead companies die, the Fed has created legions of financial zombies that will ultimately come back to bite everybody in the rear end.
Still, I’m glad to have the Fed’s meddling for one reason and one reason only – because learning to harness QE can be one of the most profitable Total Wealth Tactics of all.
Especially when it comes to finding companies like we did recently in our sister publication, the Money Map Report and right here in Total Wealth.
The first was a relatively unknown biotech firm that popped more than 50% in just eight short weeks while the latter was none other than the Williams Co Inc. (NYSE:WMB), which has returned a slightly lower but still impressive 41.9% since January.
Today I want to share two more companies with you that are poised for exactly the same sort of take-off under very similar circumstances.
You’ve got to act quickly, however. That’s because the window of opportunity will close with a thud when the first whiff of a rate hike hits.
Here’s how to profit from the Fed’s actions.
President Obama announced last week that he’s directing the Department of Labor to mandate higher overtime pay for anybody making $50,400 or less per year. Coupled with rising minimum wage standards, that’s given many people reason to cheer.
Yet, this is absolutely the last thing you want to see as an investor.
To be clear, I think anybody who wants a job should have one and that it should pay well. So let’s get that off the table right away.
What matters here is that the President’s actions just doomed millions of hardworking Americans to the unemployment line and, at the same time, just made it harder for every retailer – large and small – to turn a profit.
It’s the latest in a long line of reasons why every investor should think twice about holding retail stocks.
Greece actually missed its payment last night, exactly as we thought it would. And in doing so, it became the first Eurozone country to ever default on its debt. Some say that the country is in “arrears,” but that’s splitting hairs.
At this point, “everybody” wants quick resolution.
Things are so bad that nearly 14,000 people have contributed to a crowdfunding page started by a 29 year old Londoner, Thom Feeney, on Indiegogo.com. As of yesterday, donations totaled $245,000.
There’s a joke making the rounds on trading floors that Apple is going to buy Greece using some of the $230 billion in cash it’s got socked away… and that the Cupertino giant will have change left over.
If you’re so inclined, you can make a €3 donation and get a postcard from none other than Greek Prime Minister Alexis Tsiprias himself. So far 2,652 people have done so, according to CNBC.
One person even proposed giving away a private Greek island if a wealthy benefactor wanted to pony up the entire €1.6 billion… but subsequently had to withdraw the offer because the Greek government didn’t sanction the deal.
All joshing aside, though, the Greek Crisis isn’t over. Not by a long shot.
And that means you need these three Total Wealth Tactics to ensure your money doesn’t get “Greece-wacked.”
Here’s what you need to know to keep your money safe.