Why the Market Will Move Dramatically on Tuesday
A genuine secret to wealth, success, and happiness... How do some people become so successful, while most never really get anywhere?... Without this one thing, you won't get very far in any endeavor... Why the market will move dramatically on Tuesday... Your last chance to get 'in the room' with the world's greatest investors next week...
In today's Digest, I (Porter) am going to share what I believe is the genuine secret to wealth... success... and happiness...
The real secret. No, there's nothing to buy. And you don't have to spend years trying to master this, either.
Let me show you...
In about 2003, a young man approached me from Iowa...
He was in his early 20s. He was in good shape, and it was clear he was a hard worker. His clothes were tightly pressed and in good order. He had been raised the right way – he had good manners and was confident, but not arrogant or overly assertive in a pushy salesman way. If there was a single word to describe him, it was determined.
He wasn't educated... at least, not in the formal sense. He never went to college. He claimed to have a high school diploma. And maybe he did. But most of the time, it sounded like English was his second language. Words like "funner" and "gooder" were part of his unique style.
We met at an investment conference. He had driven his car from Iowa to Baltimore to meet Steve Sjuggerud, whose investment research he had been following. The young man told me an unusual story.
He had grown up on a 100-acre dirt farm... His family was hardworking, growing corn and beans, and raising pigs. The experience taught him that hard work was part of life. After high school, he took a job with a construction company. He developed a specialty: He could dig a foundation (mostly for billboards) in virtually any kind of soil, whether it was frozen tundra or the swamps of Louisiana.
For several years, he traveled with construction crews all over the country doing the kind of work few people had both the brains and the brawn to master. By doing only the most difficult jobs, he was able to command much higher than average fees.
And... by saving nearly all of his income and investing in the tech-stock boom of the late 1990s... he had become a very, very wealthy young man.
To this day, I've never met a more successful, completely self-made man who has accomplished more before his 25th birthday...
Oh, don't get the wrong idea. He had made plenty of painful mistakes along the way. In fact, the reason he had taken off from work and driven halfway across the country to meet Steve was because he lost a large part of his fortune when tech stocks crashed in 2000-2002.
Having learned a valuable lesson, he was interested in Steve's trailing-stop loss philosophy and wanted to learn how to maximize the protection the strategy offers. He was also interested in many of Steve's investment ideas, and before putting a lot of money to work in Steve's recommendations, he wanted to look him in the eyes and get a feel for his character.
After meeting Steve, this young dynamo made one of the most important decisions of his life. He said...
Steve, I want to learn everything I can from you. Would you let me come work in your office? You don't have to pay me anything. And I'll do whatever kind of work you need done, from sweeping the floors to programming Excel spreadsheets. Whatever it is, it won't be as hard as digging foundations... I'm sure I can get it done.
For the next few years, this young man learned everything from my partner he could...
Then he moved to Baltimore and worked with me for about a decade. Along the way, he helped us launch some of the most successful products in the history of the financial-newsletter business, like our DailyWealth e-letter, which has been read by millions of people around the world for more than 12 years.
He went on to work as the top consultant in our industry, making millions of dollars helping other publishers understand how we built Stansberry Research and helping them improve their results.
In addition to his incredible career, this young man from a dirt farm in Iowa also married a beautiful blonde woman. They have two children... and live comfortably on an estate in South Florida.
Oh, by the way, he still says stuff like "funner" all the time. And he thinks that people who go to college are stupid, unless it's for a profession (like to be a doctor or an accountant).
How does a guy like this become so successful?
How does someone become so incredibly, massively successful... while most people spend their entire lives toiling without really ever getting anywhere? My friend from Iowa's story is extreme. But it's not unique. It's not really even that uncommon. I see it all the time, in fact – mostly at our investment conferences.
For example, last week a highly decorated veteran approached me at our show in Las Vegas. He had flown back from the Middle East, where he now works for an elite military contractor. (He brought me a gift: A very special American flag that was flown on a classified mission on September 11 this year. I'm not allowed to tell you anything more about it.) This young man is in his early 30s.
Like my friend from Iowa, this veteran grew up the hard way, on a farm in Oregon. He skipped college. He joined the Air Force. He learned how to fix airplanes. And he figured out right away that the best planes to work on were the super-secret spy planes.
He acquired these skills. And he now gets paid a lot of money to make sure that our spy planes don't ever crash. He's overseas all of the time, which means he can save a huge percentage of his income. His savings have gone into some of our most successful portfolios, like Steve's True Wealth China Opportunities and my team's Credit Opportunities.
And if you don't mind, I'd like to tell you one other story: mine...
I dropped out of college on three separate occasions. I simply couldn't stand the pointlessness of learning something without having an application that was linked to the knowledge.
I was also terribly bored. So I started a small business. For a reasonable price (like $1,000), I would write a "research paper" for my wealthier fraternity brothers. The subject didn't matter. I wrote English term papers. I wrote a Master's thesis. I even wrote a technical paper for an architecture student.
And I guaranteed the paper would get an "A" or a "B" or I'd give them their money back. My papers always got "As." One of my papers, for an English major, even won a literary award and was published in a major magazine. It didn't take long before I was spending all of my time writing papers for other students (which paid well) and ignoring my own classes (which paid nothing). Little did I know that I was getting the best possible training for my future career: researching companies and technologies and writing newsletters.
One summer, an old surfing buddy of mine who had heard about my side career called me out of the blue and told me about the research firm he was working for, a small outfit called Welt Research down in Delray Beach, Florida. "Why don't you come down here?" he asked. "See if what you've been doing for college students can work for investors, too. After all, investors can afford to pay a lot more than college students, for the right information."
As you know now, that's what I did...
One thing led to another, and after about three years in the industry, I found myself writing one of the most prestigious newsletters in the industry and working directly for one of its leading tycoons, Bill Bonner.
I had different ideas than Bill did about the financial markets. (As you know if you've ever read his work, Bill is convinced that most of modern finance is flimflam and at that the whole world is about to come to an abrupt end. While I share his concerns about our paper-money system, I'm convinced that owning great businesses is both the best way to protect your wealth and the best way to grow it.)
We agreed to part ways on very friendly terms, with Bill putting up a tiny amount of money to help me start my own company. The total startup capital? Less than $50,000. (We've never put any additional money into the company.)
That tiny seed capital, and the support of our subscribers – especially our Alliance members – has seen our company grow and grow and grow. Today, our business is probably worth something close to $1 billion. Our leading brand (Stansberry Research) and our affiliates serve more than a million subscribers in almost every country in the world.
And it all started with me writing term papers.
Talk to anyone who has been incredibly successful...
Besides determination, you'll find at least one other trait they all have in common. I first learned this secret from my Iowa friend. We were working on a project together late one night and getting frustrated and tired. We started barking at each other – as often happens when really determined people try to work together – and he looked at me and said...
You don't get it. Oh man, I can't believe you haven't figured this out yet, Porter.
I thought you were smart. Jeez.
Well, it's really simple. The hardest part of life is finding the right information. When you start trying to figure things out it can take a really long time until you find something that works... you've got to try lots of sources until you can find the right one. But once you get the right information, then it's easy.
Think about that for a minute...
Think about the value of having the right information. Whether that's the right strategy for trading... the right technique to build a foundation... the knowledge to fix airplanes... or the right market research to sell a product. Having the right information isn't half the battle... It's the entire battle.
Have you ever seen the classic Wall Street Journal advertisement about the two brothers? One reads the Journal and grows wealthy. The other doesn't and toils endlessly without much reward. There's more than a little truth to that advertisement, which is why it has run for 50 years or so. Without the right information, you're not going to get far in any endeavor.
I hope we've helped you find the right information for your investments...
We work hard to do so. It's our only goal. But what about the other critical areas of your life? How's your health? Are you able to hit your goals in regard to your athletic ability? What about your personal life? Do you find your friendships rich and engaging?
Do an inventory of your entire life today – health, wealth, wisdom, romance, sports, and hobbies. Would you define yourself as a big success in all of these areas?
If the answer is "no" and if you want to become more successful, then start by getting the right information. With the Internet, it's easier than ever to find honest reviews about various information sources. (By the way, when it comes to health information, I highly recommend a book, The 4-Hour Body by Tim Ferriss. He's a complete information junkie and studies all kinds of different health and workout routines to figure out what really works.)
Here's another tip: As a financial publisher, I've spent more than 20 years searching for the best minds in finance. I've studied the work of almost everyone out there. If you're looking for the right information in finance, trust me, I can point you in the right direction. Obviously, I have a lot of confidence in the team I've built, including Doc Eifrig, Steve Sjuggerud, Dave Lashmet, Dan Ferris, etc. There's no doubt that these men do outstanding research and that their approaches to investing really work.
But I have to tell you that we don't compare with my friend Jim Grant...
Jim has been writing his newsletter, Grant's Interest Rate Observer, since 1983. His first subscriber was billionaire (and Soros Partner) Jim Rogers. His network of friends includes nearly every major hedge-fund manager in New York, all of whom read his newsletter.
If you're watching the market next Tuesday, you'll see how powerful Grant and his network are. You see, next Tuesday, the market is going to move dramatically – at least for a handful of stocks.
How do I know? There are only a few people in the world whose words and ideas can move the market... and not just a little bit... a lot.
I'm talking about investors like Jim Chanos, probably the most famous and accomplished "bear" investor in the world.
You might have heard Chanos' name because he manages several billion dollars. But he's an unusual investor. Instead of looking for companies whose shares are likely to go up, he seeks out firms that are about to implode.
He has been right – famously right – so many times that when he names a new short target, the stock usually crashes. He shorted energy-trading firm Enron before its fall... and drug company Valeant Pharmaceuticals (VRX). These stocks collapsed 90% or more... and cost most investors billions and billions in losses. It's these stocks that Chanos finds and warns about.
The same thing is true about Marc Cohodes...
His former firm Rocker Partners was the most renowned bear firm on Wall Street for decades.
Although Cohodes is now "retired," he still manages his own money... and once or twice a year he comes out and announces a new target – a new stock that's sure to collapse.
Last year, he told me about a Canadian mortgage bank – Home Capital Group (HCG.TO) – that he was certain was cooking its books. He explained, in a huge report that was nearly 100 pages long, how its management team had a long history of defrauding investors. Most investors didn't have this information and continued buying the stock. It was trading around $30 a share a few days later... and then crashed – practically overnight – in April, dropping all the way down to less than $6 a share.
This isn't unusual. It happens practically every time Cohodes speaks in public. And like Chanos, I know that Cohodes is going to speak next Tuesday in New York. His speech will move the markets. Something is going to get whacked.
That's what will happen this coming Tuesday...
All day long, you'll see CNBC reporting on what has just been said at Grant's conference. But of course, by the time you hear about it on CNBC, the big move will be over. The journalists will be arguing about whether the big move down is "justified." That's a moot point, isn't it? Not if you're in the room when they're speaking. Not if you're able to get this information long before the crowd.
That's why Grant's meetings are the most important investment conferences of the year. (He holds one in the spring and the fall.) If you agree with me that having the right information is the most important key to success, you'll start attending these meetings. We never miss them – someone from our team is always there. Likewise, I never miss an issue of Grant's newsletter. It's the only newsletter I don't publish that I read consistently.
You've probably never read an issue because it's an expensive newsletter – $1,175 per year. And you'll probably never attend this conference either, because it's expensive, too – $2,150. Even participating online will cost you $1,750. And Grant never discounts his newsletter or his conference. He never advertises. He doesn't have to: Everyone who matters in finance already knows that he's the leading source of information, and everyone reads him. Everyone goes to his conference.
For about 10 years, I've been trying to persuade Grant to let me invite you to his meeting and read his newsletter. He's always said no. He actually told me he doesn't want any more subscribers because he's concerned about dealing with the public. He doesn't want the hassle. So I've agreed to handle any of the customer service issues with this special offer.
Here's the deal I've put together for you: For the cost of one annual subscription ($1,175), you'll get online access to the Grant's Fall Conference next week (on Tuesday), plus you'll get his newsletter (two issues per month) for an entire year.
Take a look at the back issues of his newsletter on his website. If you decide for any reason that this information isn't right for you, just call us to cancel and we'll give you a full credit toward any Stansberry Research product you want. In other words, I'm willing to guarantee that you'll love Jim Grant's newsletter. All you have to do is cancel before Tuesday's conference.
But this is your last chance...
There's a "hard deadline" at midnight on Sunday. Grant's staff will spend Monday processing these orders and finalizing the conference access codes. After midnight on Sunday, this deal will disappear forever.
And for anyone who orders now, there's an additional benefit that's worth $1,750. Click here to see this special, once-only offer.
One more thing...
Dave Lashmet has been studying a new Alzheimer's drug for several years. Investors have been very skeptical. I was very skeptical. But Dave has explained again and again why this new drug is different from all of the other drugs that failed previously. He's convinced it will become the first and only successful treatment. Obviously, that would mean billions and billions in profit... and a huge move up for the stock in question.
Today, for the first time, another major firm (Morgan Stanley) finally began writing about the same drug... and saying many of the same things Dave has been saying for years. We're likely in the early stages of a huge run in this particular stock, on the basis of this drug's move through the clinical trial process. And... if I'm right... you might double your money on this company's stock in the next three or four months. Again... it all comes down to having the right information.
I know we publish a ton of stuff... so I just wanted to point this particular idea out for everyone. (Subscribers to my Investment Advisory can read the full story from this special report we published in July.)
New 52-week highs (as of 10/5/17): American Financial (AFG), Allianz (AZSEY), Boeing (BA), ProShares Ultra Nasdaq Biotechnology Fund (BIB), iShares MSCI BRIC Fund (BKF), Berkshire Hathaway (BRK-B), CBRE Group (CBG), Global X China Financials Fund (CHIX), CME Group (CME), Eaton Vance Enhanced Equity Income Fund (EOI), iShares China Large-Cap Fund (FXI), Huntington Ingalls Industries (HII), iShares Nasdaq Biotechnology Fund (IBB), Intel (INTC), ETFMG Prime Mobile Payments Fund (IPAY), iShares U.S. Aerospace and Defense Fund (ITA), KraneShares Bosera MSCI China A Fund (KBA), Lockheed Martin (LMT), iShares MSCI China Index Fund (MCHI), Microsoft (MSFT), PNC Financial Warrants (PNC-WT), ProShares Ultra Technology Fund (ROM), Sanofi (SNY), ProShares Ultra S&P 500 Fund (SSO), Tencent (TCEHY), ProShares Ultra Financials Fund (UYG), Verisign (VRSN), ProShares Ultra FTSE China 50 Fund (XPP), and Direxion Daily FTSE China Bull 3X Fund (YINN).
I'd love to know what you think about this thesis – that the hardest part of success in life is getting the right information. Let me know if that has been true for you, too, by e-mailing us at feedback@stansberryresearch.com.
Regards,
Porter Stansberry
Baltimore, Maryland
October 6, 2017
