Hello Reader,

You still hear a lot about people speculating and not too much about people investing right now. We’ve had two giant bubbles—bitcoin and cannabis stocks—in the course of a single year. There is a strong whiff of late cycle about the whole thing.

It also feels like we’ve been in this bubbly environment for a long, long while. It’s tough to navigate.

If you’ve managed to avoid the excesses, good job. To be a good investor, you must be willing to stand alone. And staying away from the worst speculation has been a pretty lonely position this year for individual investors.  

Still, You’re in Good Company
 

Berkshire Hathaway’s cash level has stayed above $100 billion for five straight quarters. Buffett isn’t buying anything except his own company’s stock. Say what you want about him, the guy has pretty good instincts.

Of course, you’re not Warren Buffett.

And you’re (probably) not sitting on $100 billion in cash…

And you may not have the luxury of sitting around waiting for the investing environment to return to some sort of normality, at some undetermined point in the future, before you can start making money.

So What Can You Do?
 

Jump on board the bubble bandwagon and hope you don’t injure yourself in the process?

Or…. figure out how to make money away from all the fevered speculation and crowded trades?

If you picked Door #1, I can’t help you.

Door #2, I can help with.

I have spent my entire career looking for things that were out of favor, in the expectation that they would come back into favor.

If I were to do up a P&L sheet of the last couple of decades, I can guarantee you that my biggest wins were trades of this kind.  

And over the last few months, I’ve been working on a way to get my best ideas, best instincts, and best trades into your hands.

I’ll be telling you about it more soon.

But for now, remember one thing—you don’t have to throw yourself way out on the risk curve to get more and bigger returns. You don’t have to chase bubbles. Basically, you want to buy stuff that everyone hates, but not just because everyone hates it.

Here endeth the lesson.

Jared Dillian

P.S.– I’m talking about bigger returns here. Step #1 is always, always have the bulk of your portfolio invested in getting you rich in a slow, safe, sustainable way (That’s what ETF 20/20 is for). Only then can you go after bigger returns, with a smaller slice of your portfolio. Anything else is irresponsible.