How central banks can help you get rich...
How central banks can help you get rich... Don't worry if you missed the big stock rally, another is on the way... A safe way to own gold and get huge upside... Porter's radio show will teach you, entertain you, and probably offend you...
Did you miss out on the big stock rally of the past few years?
Don't worry... a similar rally is on the way.
I (Brian Hunt) will tell you where this rally will take place in a moment. But first, we need to cover a little history...
Since the stock market bottomed in early 2009, True Wealth editor Steve Sjuggerud has been one of the loudest bulls in our industry... and he has helped his subscribers make huge money in stocks and real estate.
Regular readers are familiar with Steve's "Bernanke Asset Bubble" thesis. In an attempt to stimulate our struggling economy, the Federal Reserve (led by former chief Ben Bernanke) has injected trillions of dollars of credit into the system.
While the Fed's "E-Z Credit" program hasn't produced strong economic growth, it has produced a big rally in stock prices. The benchmark S&P 500 stock index is up 71% in the past three years.
One of Steve's top ways to invest in the Bernanke Asset Bubble – a leveraged health care fund – is up 290%. Another leveraged fund Steve recommended is up 135%. His recommendation of private-equity firm Blackstone Group (which directly benefits from the Fed's stimulus) is up 159%... and now pays True Wealth subscribers an incredible 16% yield on their original purchase price.
The "Bernanke Asset Bubble" has been very, very good for Steve's readers.
In January, Steve urged readers to take advantage of the coming "Draghi Asset Bubble."
Mario Draghi is one of the most important men most people have never heard of. He's the head of the European Central Bank. This makes him the equivalent of Ben Bernanke (who was recently replaced by Janet Yellen) for all of Europe.
In December 2013, Draghi told the world he would follow Bernanke's lead... and keep interest rates low for "an extended period of time." This is central banker speak for "We're turning the fiscal pumps on... and we won't turn them off for at least several years."
Bernanke promised interest rates would stay low for a very long time. The result was a huge rally in stock prices... a recovering housing market... and an improving economy. Draghi is determined to get the same result in Europe.
This presents investors with a major opportunity to profit from rising European asset prices... similar to the bull market we had with U.S. stocks in 2011. As Steve told True Wealth subscribers in January...
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Although Draghi made his comments last year, the European economy isn't improving. That's why Draghi is making big news right now. At a recent conference, Draghi remarked that more stimulus could be on the way for Europe.
Remember, Draghi is desperate to get the same result Bernanke got with his stimulus. Draghi doesn't want a recession or a depression to happen on his watch. And he's willing to make monetary policy incredibly lax... which will pump up stock and real estate prices.
Draghi's comments have sent the European monetary union's currency (the euro) to its lowest level in nearly a year. Draghi's words are also boosting European stocks. Major European markets are up more than 2% today. We expect them to keep running higher.
Steve says asset bubbles won't just occur in the U.S. and Europe. These economies are so large and so important that their stimulus gets "exported" all over the world.
For example, Hong Kong, which is a special region of China, keeps its monetary policy linked to U.S. Federal Reserve policy. As Steve described in this DailyWealth essay, when U.S. monetary policy is loose, Hong Kong asset prices soar.
As you can see from the chart below, Hong Kong's stock market is responding as Steve expected it to. Hong Kong's benchmark stock index just shot to a new multiyear high...
As I pointed out, Steve's readers have literally made hundreds-of-percent gains from his research.
Steve's analysis of central bank policies and their effects on asset prices is so accurate, we should call his service the "How Central Banks Can Help You Get Rich Report."
Some of the world's most influential people are now using True Wealth as a sort of "playbook" to invest in today's world of central bank manipulation. The massive "E-Z Credit" policies are causing extraordinary moves in stocks, real estate, and gold. True Wealth is becoming the most trusted guide to knowing what will happen to these assets... before everyone else does.
We believe the current central bank policies will eventually be very painful for most people. But they can be very, very profitable if you know what their results will be. True Wealth is the ultimate guide for knowing how they will play out... and the moves you can make to protect yourself and profit (including the best, safest ways to make a lot of money in Europe and Hong Kong).
Right now, we're making an extraordinary offer for people interested in these ideas.
We've arranged for you to receive a great new book by Jim Rickards, who is one of the smartest financial guys in America today.
Rickards' book details exactly what has happened to our country's finances, and what's in store for us next.
We liked this new book so much, we purchased a large quantity of books from his publisher... and we would like to send a free hardback version right to your front door. All we ask is for you to pay $4.95 to cover the shipping.
We also commissioned Jim to write the "missing chapter" for his new book. This "missing chapter" is not available anywhere else on the Internet or in any bookstore.
It details the exact investments Rickards recommends you make right now to prepare for what he believes are huge changes coming to America and our financial system. These happen to be VERY similar ideas to the ones Steve covers in True Wealth. This missing chapter is worth as much or more than the book (which retails for about $20 everywhere else online).
Between Jim's book and Steve's monthly True Wealth issues, readers get a complete "playbook" on how to handle the current environment of massive central bank manipulation.
What will government intervention mean for stocks, bonds, real estate, commodities, and precious metals? What should you own? What should you avoid? And when will the moves take place? You'll get all of these answers in this set of materials.
This might be the most important financial information you read over the next five years... and you can claim your copy of the book free of charge.
To make sure as many people as possible are armed with this information, we're making an incredible money-back guarantee offer, which you can learn about right here. (This does not go to a long promotional video.)
Regular readers know gold is one of the assets you can buy to protect yourself from central-bank manipulation. That's why we encourage you to check out the latest edition of Porter Stansberry's radio show.
In just a few short years, Porter's radio show has become one of the most popular financial programs in America. I can almost guarantee that every show will entertain you, offend you in some way, teach you something extremely valuable, and provide actionable investment advice other people charge thousands of dollars for. There's nothing like Porter's show on radio, television, or anywhere else.
Last week, Porter welcomed investment legend Rick Rule to the show. During the interview, Porter and Rick discussed a unique "three pronged" way to own gold that offers safety... and huge upside. You're very, very unlikely to hear this unique strategy anywhere else. You can listen to the show, for free, right here.
New 52-week highs (as of 8/22/14): Apple (AAPL), Brookfield Asset Management (BAM), Dolby Laboratories (DLB), PowerShares QQQ Fund (QQQ), ProShares Ultra Technology Fund (ROM), ProShares Ultra Health Care Fund (RXL), and Steel Dynamics (STLD).
In today's mailbag, two subscribers write in to tell us about the success they've had following DailyWealth Trader editor Amber Lee Mason's advice. Send your thoughts to feedback@stansberryresearch.com.
"I'm writing this email to both congratulate you and thank you for your work on DailyWealth Trader. I look forward to opening your email to see the next trade you are recommending. I've made a fair amount of money off them, but the most valuable thing I've gotten from your emails is a much better knowledge of investing; position sizing, trailing stops, and letting the winners run and cut one's losses. I am a member of the flex alliance, but to be truthful, I don't spend much time looking at the other letters (other than Doc's).
"I am a numbers guy, and have kept record of all my options trades. Including the trades closing here in June, I've made 152 trades in the past 9 months. My averages are: I make 16.9 trades per month. The trades tie up $257,823 per month. I get paid $338.29 per trade in premiums. (My total per trade is $566.16, but that is due to me writing covered calls on stocks whose price moved up before I sold the call) Overall, as far as I'm concerned, I have 1 loser out of the 152 transactions. My loser (WTW) is similar to the one loser Doc had, which is a result of the stock price unexpectedly tanking due to some unforeseen event. I've detailed my 'losing' trades below. Again, thanks for the knowledge you've given me... I'm trying to share it with whoever wants to listen.
"5 of the trades (by themselves) lost money; In 1 case I bought a call instead of selling a call, in 3 cases I bought back the call and sold a call with different strike or expiration date. In these 3 cases, the rollover combined with the loss resulting in a profit. The last, and really only 'loser' I have is due to a Covered Call I wrote on Weight Watchers... Just before it tanked about 30%. I am cutting my losses and will eventually sell it if/when it gets called away due to the CC's I am selling against it." – Paid-up subscriber John Lockport
"I have been subscribing to DailyWealth Trader since April, and I have completed, or am about to complete (8/16) about 10 trades (covered calls) on your recommendations. And, with these trades, I am realizing returns anywhere from 14% to 31%! I have been a novice investor for over 20 years, and have always been led to believe that options are risky and complex, so I avoided them---BIG mistake! Thanks to the education and guidance from both High Income Retirement and yourself, my view of investing has completely changed. To think that I can trade for income with mostly WDDG, sit back and wait, and either pull my chips in or reinvest, is refreshingly simple. So many thanks to you and your Stansberry team!" – Paid-up subscriber M.D.
Regards,
Brian Hunt
August 25, 2014
How to get up-to-the-minute market commentary...
For several years, Jeff Clark's S&A Short Report subscribers have quietly booked profitable "scalp trades" by following his daily thoughts through his Direct Line blog.
In today's Digest Premium, Jeff shares some of his favorite funds... and explains the different ways he uses the Direct Line to maximize subscribers' profits...
To subscribe to Digest Premium and receive a free hardback copy of Jim Rogers' latest book, click here.
How to get up-to-the-minute market commentary...
Editor's note: For several years, Jeff Clark's S&A Short Report subscribers have quietly booked profitable "scalp trades" by following his daily thoughts through his Direct Line blog. In today's Digest Premium, Jeff shares some of his favorite funds... and explains the different ways he uses the Direct Line to maximize subscribers' profits...
We launched the Direct Line about five or six years ago as a free bonus for S&A Short Report subscribers. Before that, I (Jeff Clark) was sending out daily updates to subscribers back when the financial crisis hit. That seemed a little cumbersome, because any time I would write something up, the conditions would change within hours.I found myself writing something new every day. The editorial staff was happy to go ahead and publish everything I was writing, but I was burning them out and then having to revise some of the comments on an hourly basis. So we created the Direct Line as a mechanism that allowed me to communicate immediately with subscribers when I saw something happening with the market.
The Direct Line works in two ways. One, it helps me address things that are going on with current positions in the S&A Short Report portfolio. So if a news item hits that moves a stock up or down, I can immediately communicate with subscribers and let them know what I'm thinking about that position.I don't make official recommendations in the Direct Line. We still go through the editorial process to do that. But I let people know what's happening in the market, or in a particular sector, and how I think an opportunity might present itself.
The second way the Direct Line works is for folks who have time to sit in front of the computer and trade on a daily basis – folks who like to trade intraday moves in the market can use the Direct Line for "scalp trading." Scalp trading is short-term trading where you might put a trade on in the morning and sell in the afternoon.
For this, I focus a lot on the S&P 500. If the market opens way down, we may take some long exposure and bet on the market going back up. I try to make anywhere from 10-15 points on the S&P 500. That's not a lot. That's about 0.5%. But in a lot of situations, that works out to be 2%-3% on the ProShares Ultra S&P 500 Fund (SSO) or the ProShares UltraShort S&P 500 Fund (SDS), which are both double leveraged. Or it might be 15%-20% on an option price through one of those funds. If you can do that consistently a couple of times a week, those numbers really add up.
Recently, the market has been volatile to the downside. By fading a lot of those down moves and betting on little bounces higher, my Direct Line followers have had three or four scalp trades per week. Each one has generated about 10 points in the S&P. So the Direct Line is a way to constantly be in the action and "scalp" little profits here and there. The last way I like to use the Direct Line, as I mentioned earlier, is to talk about individual sectors where I see things starting to take shape but I'm not ready to make an official recommendation yet. It allows me to tell subscribers, "Hey, this is something I see going on in the market. Let's keep an eye on it and see what develops." It has been useful because, back in March, I became bullish on Chinese stocks. I wasn't ready to make an official recommendation yet. But I said, "Hey, look what's happening to Chinese stocks. There are things developing here. Let's keep an eye on this." By getting that dialogue going, it got subscribers ready.So when I recommended buying the iShares FTSE China 25 Index Fund (FXI) July $35 calls in late April, subscribers were ready. And by mid-June, we were out of the position for a 124% gain. By starting that dialogue early, it allowed S&A Short Report subscribers to be prepared for it.
– Jeff Clark
How to get up-to-the-minute market commentary...
For several years, Jeff Clark's S&A Short Report subscribers have quietly booked profitable "scalp trades" by following his daily thoughts through his Direct Line blog.
In today's Digest Premium, Jeff shares some of his favorite funds... and explains the different ways he uses the Direct Line to maximize subscribers' profits...
To continue reading, scroll down or click here.