A mantra that works... Doc wants to steal it... Flipping the market on its head... This is not a panic... The skeptics have questions for Eric Wade... You just might be a crypto investor... Cheap, hated, and in an uptrend... Longtime subscribers know this has been the mantra of True Wealth editor Steve Sjuggerud for more than two decades... And it works... for long-term investors and for short-term traders. Finding assets that are cheap, hated, and in an uptrend and owning them until the trend stops is one of the best ways to beat the markets over the long run. We could name off many examples, but here's a recent one that comes to mind... During the depths of the pandemic, when the U.S. and many other countries were still in "lockdown" mode, people weren't driving as much... and airlines were mothballing their planes. Overall, folks were using much less oil. But, in November 2020, Steve wrote it was time to get bullish on energy – specifically, oil. It was a seriously contrarian view at the time, which he acknowledged in that month's issue of his signature True Wealth newsletter... "Steve, why on earth would I want to invest in oil? It's been a poor performer for years." Look, I hear you. Oil has lost almost half its value since peaking in 2018. And it's been absolutely clobbered in the past year. States in the U.S. are still on lockdown. And the travel market is down dramatically as folks stay at home to fight the pandemic. While the economy is starting to recover, the U.S. is still in a recession. So why am I so excited about investing in the energy market today? It's because buying energy stocks during a crisis can lead to life-changing gains. I'm not kidding... Buying this sector when the economy is in shambles can lead to hundreds-of-percent gains very quickly. It has happened time and time again. In that issue, Steve noted that the energy market fit his bill for a good investment: It was cheap and hated, and a certain group of oil-related stocks within it were in an overlooked uptrend. Plus, conditions were in place for higher oil prices, too... Again, this was well before most of the world became aware of it. So in November 2020, Steve recommended buying a basket of specific oil companies to hold over the next two years. A few months short of that time horizon, the position is still open and subscribers who followed Steve's advice are up roughly 80%... This thesis works. It's so good, Doc wants to steal it... In fact, as another of our longtime editors – Dr. David "Doc" Eifrig – put it in the June issue of his Income Intelligence newsletter, "cheap, hated, and in an uptrend" is so good that it's... The best six-word summation of how to beat markets I've ever seen. Doc said if Steve and his colleague Brett Eversole hadn't created and used the phrase... he'd likely steal it for himself and repeat it to you every month. Short of doing that, in his latest issue, Doc put his own twist on the concept... To be fair, you can cheat a bit on the first two. You don't always have to buy dirt-cheap. And you don't have to buy only when everyone truly hates an asset. But the big one is the third factor, Doc says... Ignore the trend at your own peril... With this in mind, in this month's issue of Income Intelligence, Doc and his research team offered up a simple "game" to see if a particular set of assets might be cheap, hated, or in an uptrend today... You'll notice that they used a pair of simple technical indicators that we've mentioned recently, a 200-day moving average (200-DMA) and a 50-day moving average (50-DMA), rolling daily measures you can apply to any asset to see its long- or short-term price trend. As Doc wrote... So with your cheap-hated-uptrend lens, how does this asset class look? It appears to have come down from high valuations and has started to establish its trend upward. Now we must admit we've employed a bit of trickery. Please forgive us. Because that is an inverted chart of the S&P 500. Anyone who read Friday's essay by our colleague Dan Ferris should now know the potential power of "inverting" your thinking to make decisions. This is another example, as Doc said... Does inverting the chart change your opinion? We find this to be a useful exercise. Because as "bullish" as that chart is, it should make you think this looks more bearish... I (Corey McLaughlin) don't know about you, but after seeing this comparison, the second chart sure does look more bearish to me... and it's the one to pay most attention to since it's "real" – it's the S&P 500 Index. Even after a 5% rally over the past two weeks, the U.S. benchmark for stocks is still trading below its 50-DMA, which today is around 4,045. That means the index is clearly not in an uptrend... As we've said before, don't let any bear market "relief rallies" fool you. The S&P 500 would still have to gain about 24% to get back to where it started the year... So even if you think stocks are cheap today (debatable) and think they are generally hated (probably true), stocks are definitely not trending higher despite this past week's movement. If you're in it for the long run, we recommend waiting for a longer-term trend. This might not sound promising to you... But Doc still has a few ideas on what you can do today to protect and grow your wealth. For one thing, Income Intelligence also includes his exclusive Intelligent Retirement model. This is his recommended alternative to the conventional 60/40 stock-bond allocation, which he updates every quarter. The Intelligent Retirement model beat the old 60/40 standard by about 12% over its first year. And I can tell you that today, it suggests owning two major asset classes that aren't stocks. This month's issue of Income Intelligence also includes a breakdown of inflation – and why it's not slowing down at all... and shows how several different "equity risk" analysis methods are all pointing to the same key conclusion... There are reasons for this sell-off. It's not a market panic. It's a repricing of what we should consider paying for stocks. Existing Income Intelligence subscribers and Stansberry Alliance members can read the full issue right here. And they can find Doc's latest Intelligent Retirement allocation here. You won't find a more comprehensive view on generating income anywhere else, and it's paired with Doc's great ideas in general. If you don't already have access to Doc's Income Intelligence newsletter but are interested (and you should be), click here to learn more and get started with a subscription today. Switching gears, Eric Wade's myth-busting didn't convince everyone... In our Masters Series essays over the weekend, Eric, editor of our Crypto Capital newsletter, shared parts of his latest monthly issue. In it, he explained why he remains bullish on bitcoin and other cryptocurrencies in the long term... despite the sector's dramatic volatility and unflattering narratives this year. For anyone interested in cryptos at all, both essays (here and here) are good reading. But we're going to talk today just about Eric's essay from Sunday – "Debunking the Biggest Myths About Bitcoin" – and a couple notes we received in response. In short, not everyone was convinced about what Eric had to say. This is not surprising given the sentiment around cryptos today – and the fact that bitcoin, the world's headline crypto, is down roughly 70% from previous highs to near $20,000 per coin today. But, as Eric will explain to close out today's Digest, this is all evidence of his big idea about cryptos... Investors are fleeing the crypto market en masse right now for a variety of reasons, including emotional ones. This is setting up potential opportunities to take advantage of low prices and what Eric says is the "inevitable rally to come." Let's get to the questions and answers... I sense the comments and questions we received are likely on the minds of more subscribers than just those who asked them... So, I sent these questions to Eric yesterday. As you'll see, he took the time to answer in thorough fashion, as he always does. We'll start today and continue tomorrow with the Q&A. Up first is Catherine M., who wrote in with concerns about cryptos being hacked and being reliant on the power grid and the Internet to work. She said... Color me a skeptic, but I don't think even cryptocurrencies will be permanently immune to hacking. Every clever cybercriminal out there is dedicating his considerable creativity into the problem because the potential rewards are just too big. In the meantime, those who would be our overmasters are doing their level best to push us into digital currencies, because then they can turn our legitimate lives off and on based on their whims, and once again, they will get their dirty fingers into crypto currencies, mostly by buying back doors into them from the developers. The other factor no one is discussing is what happens when the power grid fails. (All those electric vehicles that are getting thrust down our throats will crash the system for sure.) What good is that cryptocurrency, that is totally dependent on the existence of the web, when there is no web? So, no thanks. I want truly invisible money. After physical coins change hands, you lose the audit trail. It is not in my bank account, it is not on my charge cards, and it doesn't vanish when the power goes out or the web goes down. I will still be able to buy groceries and fuel even if I am just a filthy eater. Here's Eric's reply in full, beginning with the idea that... You just might be a crypto investor... Thank you for writing in. You might want to sit down for this... but I (Eric Wade) think you might actually be a crypto investor. A huge part of the cryptocurrency industry not only embraces skepticism but encourages it and uses it for fuel. With that said, physical coins certainly have properties that digital coins aren't able to replicate. On the other hand, digital coins can be sent around the world easier than physical ones can... so they both have their own abilities. The thing about hacking... As for hacking, what we're seeing is that the blockchains themselves are pretty much unhackable... so cybercriminals look for other weak spots in the way that a cat burglar comes through your window, not the brick wall. Cybercriminals attack passwords or poor browser habits such as clicking on the wrong link or opening attachments, the same way banks and other online services are usually compromised. And I'm also glad that you're skeptical about back doors put in by developers. So are we! You'd likely be very pleased to know many cryptocurrencies and blockchain projects are open-source, meaning anyone can see, reuse, and adapt the software code. And the crypto community is mostly in agreement with you that back doors are unwelcome. But crypto is not monolithic... so some projects are not open-source, and some may like governments and regulations and maybe even back doors. But the fact that YOU can choose to avoid those is the power of our industry. As for the power grid... There's no doubt that digital currencies would suffer without electricity – just like everything from medical equipment to HVAC systems to mobile phones... But many crypto developers have taken this into consideration and tested out ways to conduct transactions as varied as ham radio, dial-up Internet, satellite connections, paper and pen, and even SMS text messaging. The last thing I'll say is that the cryptocurrency and blockchain industry shares most of your exact concerns. You could be one of us. Obviously, no digital coin can score 100% on every possible use, but I think they're more like what you want than you think they are. Bring your skepticism and be part of helping us build this... You would be welcomed. We'll pick up the rest of this conversation tomorrow. Having the 'Capacity to Suffer' In the latest episode of the Stansberry Investor Hour, Dan Ferris welcomes Steve Gorelik of Firebird Management, who manages the firm's value, Eastern Europe, and Russia investments... As you can imagine, they have plenty to talk about. The big question Dan asks Steve, who is originally from Belarus, is how he has been handling his funds amid the Russia-Ukraine war... And Steve shares his thoughts on Russia's investment prospects and the ruble's volatility. He also talks about how to navigate a year like 2022 and notes the value in having the capacity to suffer, take a loss, and not be afraid of what's happening.
Click here to watch or listen to this episode right now. And to catch all of the videos and podcasts from the Stansberry Research team, be sure to visit our Stansberry Investor platform anytime. | Recommended Links: | 'Country Boy' Makes Surprising $54 MILLION in Two Years Besides his wife, no one knows the true story of this subscriber from Middle America... not even his kids. It's all thanks to ONE investing idea that doesn't involve stocks... options... bonds... or anything like that. And he's living stress-free even through this market crash. So what's this investment (name and ticker) that made him a millionaire? And why is it positioned to still SOAR from here? Until tomorrow, click here for the full story. | |
---|
Interest-Rate Hikes Won't Save You It didn't work in the '70s and it won't work now. In fact, if history serves as a guide, then nearly two DECADES of runaway inflation could be on the horizon. The good news is there's a straightforward, one-step plan to protect yourself. Just do NOT delay... because when the next inflation report releases, you might be kicking yourself for not paying attention sooner. Click here for your inflation protection plan. | |
---|
| New 52-week highs (as of 6/27/22): Bristol-Myers Squibb (BMY). In today's mailbag, more feedback on real estate, stemming from our colleague Dan Ferris' comments in yesterday's mailbag... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "Dan, contrary to what you say, I'm in the housing business, and I did indeed see it [the housing crisis] coming a mile away. I was telling everybody I knew in 2005, 'Save your pennies, because there is a big deal estate sale coming!' When they questioned me, I would tell them prices were going to drop through the floor, and if they built their cash NOW (in 2005-2006), they would be in position for life-changing gains. I finally took my own advice and sold all of our real estate, and moved our money out of overvalued California to a state where the Case Shiller index showed real estate was UNDERVALUED, a place called Texas. "Three years later, I brought a bit of that money back to California and bought properties that had dropped 60 to 70 percent. I made lots of money from this, but eventually sold all three, because the politics and courts there are hostile to business. "But it was Stansberry that warned me about the coming real estate doom! I owe an awful lot to Porter, Steve, Dan, Tom (remember him and his 12% Letter?), and Doc. What a great education y'all gave me, and in a fun, well written manner. "Thanks so much!" – Paid-up subscriber Tim S. All the best, Corey McLaughlin with Eric Wade Baltimore, Maryland and Southern California June 28, 2022 Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open positions across all Stansberry Research portfolios Stock | Buy Date | Return | Publication | Analyst |
---|
MSFT Microsoft | 11/11/10 | 947.8% | Retirement Millionaire | Doc | MSFT Microsoft | 02/10/12 | 814.6% | Stansberry's Investment Advisory | Porter | ADP Automatic Data | 10/09/08 | 773.1% | Extreme Value | Ferris | HSY Hershey | 12/07/07 | 523.2% | Stansberry's Investment Advisory | Porter | ETH/USD Ethereum | 02/21/20 | 444.3% | Stansberry Innovations Report | Wade | AFG American Financial | 10/12/12 | 432.3% | Stansberry's Investment Advisory | Porter | BRK.B Berkshire Hathaway | 04/01/09 | 393.6% | Retirement Millionaire | Doc | FSMEX Fidelity Sel Med | 09/03/08 | 289.2% | Retirement Millionaire | Doc | NTLA Intellia Therapeutics | 12/19/19 | 274.7% | Stansberry Innovations Report | Engel | ALS-T Altius Minerals | 02/16/09 | 263.0% | Extreme Value | Ferris |
Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio. Top 10 Totals |
---|
3 | Retirement Millionaire | Doc | 3 | Stansberry's Investment Advisory | Porter | 2 | Extreme Value | Ferris | 2 | Stansberry Innovations Report | Engel/Wade | Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio Stock | Buy Date | Return | Publication | Analyst |
---|
ONE-USD Harmony | 12/16/19 | 1,188.9% | Crypto Capital | Wade | ETH/USD Ethereum | 12/07/18 | 1,080.6% | Crypto Capital | Wade | POLY/USD Polymath | 05/19/20 | 1,066.1% | Crypto Capital | Wade | MATIC/USD Polygon | 02/25/21 | 762.6% | Crypto Capital | Wade | TONE/USD TE-FOOD | 12/17/19 | 469.4% | Crypto Capital | Wade |
Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio. Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios Investment | Symbol | Duration | Gain | Publication | Analyst |
---|
Nvidia^* | NVDA | 5.96 years | 1,466% | Venture Tech. | Lashmet | Band Protocol crypto | 0.32 years | 1,169% | Crypto Capital | Wade | Terra crypto | 0.41 years | 1,164% | Crypto Capital | Wade | Inovio Pharma.^ | INO | 1.01 years | 1,139% | Venture Tech. | Lashmet | Seabridge Gold^ | SA | 4.20 years | 995% | Sjug Conf. | Sjuggerud | Frontier crypto | 0.08 years | 978% | Crypto Capital | Wade | Binance Coin crypto | 1.78 years | 963% | Crypto Capital | Wade | Nvidia^* | NVDA | 4.12 years | 777% | Venture Tech. | Lashmet | Intellia Therapeutics | NTLA | 1.95 years | 775% | Amer. Moonshots | Root | Rite Aid 8.5% bond | 4.97 years | 773% | True Income | Williams |
^ These gains occurred with a partial position in the respective stocks. * The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. |