Something All the Best Investors Do
A shortcut to success... Stack the odds in your favor over and over... A breakthrough years in the making... Outperforming the market by 10-fold... 161 trillion outcomes... Porter on 'every investor's dream'... This isn't a recession...
When I heard this piece of investing wisdom today, I knew I needed to share it...
It comes from our friend and Stansberry's Investment Advisory lead editor Whitney Tilson in the brand-new free presentation that we debuted earlier today. He said...
This is what all of the best investors do: find situations in which their downside risk is low, yet the upside is uncapped.
It takes some people who invest in the stock market many years, and painful losses, to learn this lesson... if they aren't scared out of the market first. It took me (Corey McLaughlin) years to learn it myself...
And even if you already understand the value of this lesson, it's still not an easy plan to execute and then stick to. What Whitney unveiled today, a breakthrough from Stansberry Research years in the making, offers a simple solution.
But let me back up for a second... What Whitney said probably doesn't sound as sexy as "buy AI stocks!" or any other popular trend of the moment. But it's an essential framework to understand if you want to truly make money in the markets over the long run...
This is what all the best multibillion-dollar hedge funds do...
They don't try to just get lucky only once, like winning the lottery. They don't just buy something that "sounds good" but that keeps them up at night because they don't really understand it. (Well, some might try, but they don't stay in business long.)
No, that's not the way to do things, as folks who have been successful in the markets for a long time will tell you... Longtime subscribers may have learned this lesson long ago. But we always have a lot of new readers... and today, this piece of advice bears repeating.
Put the odds in your favor – over and over again.
Whitney, a former hedge-fund manager himself with decades of Wall Street experience, talked about it during the free presentation that debuted today. We urge you to check it out.
In short, Whitney revealed details about what may be the biggest development in the 25-year history of Stansberry Research. It allows individual investors to put this essential lesson into action, again and again, over the long term, with market-beating results.
This strategy, new to almost all but our most loyal Stansberry Alliance subscribers, has outperformed the market by up to 10-fold since going live behind the scenes at our company – even through the 2022 sell-off.
Even during last year's rally, it crushed the S&P 500 Index, gold, bitcoin, and some of the most popular stocks like Apple, Netflix, Alphabet, and Amazon by a wide margin...
About this breakthrough...
It might feel like there's no way for the regular Joes and Janes to get an edge on the fast-moving market these days, especially as rapid developments in technology let Wall Street firms employ ever more powerful algorithmic systems.
Well, our team has spent years coming up with a solution for the everyday investor to even the playing field...
This breakthrough analyzes nearly 5,000 stocks, simulates 1,000 different portfolios, and computes 161 trillion outcomes. Using filters developed by our editors and analysts dating back two decades, it determines precisely which stocks are most likely to double your money, with limited downside risk, and how much of each to buy.
This is stuff that is simply impossible for most people to do on their own.
Wall Street firms spend millions of dollars to develop similar tools, and you might ordinarily need as much as $2 million to access them. Over the past several years, we've invested in creating our version... We've tested and fine-tuned it... and the results have been astonishing.
As Whitney said during the free broadcast, which you can watch a replay of here...
There's simply nothing like this available anywhere else in our industry.
Our founder Porter Stansberry also joined the broadcast...
This breakthrough really started with him years ago, though he didn't know it at the time. It builds on his research into the best "capital efficient" companies that can compound your wealth over time with relatively low risk. As Porter said...
I think the dream of every investor is to figure out why some stocks go up so much and others inevitably don't, or worse, go down. And how can you tell which one that's going to be?...
This is one way of studying the market to find the high-quality businesses that are trading at the most attractive prices. From there, your job as an analyst or investor gets a lot easier...
Check out the presentation for yourself right here.
Just for tuning in, you'll get a pair of free recommendations... more details on what Whitney calls our stock "X-ray"... his newest prediction for 2024... and information on how to access this hedge-fund-quality research that's usually only available to Wall Steet firms' multimillion-dollar clients.
As for today's action...
Earlier this week, we looked ahead to today's release of Uncle Sam's first fourth-quarter GDP estimate, saying the data would likely influence the broader market in the short term (whether you believe the numbers or not). As I wrote in a couple of recent Digests...
Mainstream economists (who need to drink more) are expecting annualized GDP growth of less than 2% for the fourth quarter of 2023... Any big surprises in these numbers could quickly change the prevailing market narrative...
In recent quarters, these reports have tended to excite enough investors by continuing to show enough growth (and not recession). If we see the same tomorrow, I wouldn't be surprised if Mr. Market keeps on acting the way he has lately.
That's what we saw today for the most part.
This morning, the Commerce Department reported GDP for the fourth quarter of 2023. It came in at a 3.3% annualized growth rate, beating those sober economists' expectations by a substantial margin. This puts GDP for 2023 at a 2.5% full-year gain.
The same economic report showed inflation easing (dropping to 1.9% for the quarter) and consumer spending holding up (growing at a 2.8% rate for the quarter).
That doesn't lend any credence to an economy in or near recession... or one in which the Federal Reserve will decide to cut interest rates sooner than later. So the "Fed pause" trade continued.
The major U.S. indexes finished in the green, with the benchmark S&P 500 higher for a sixth straight day and making another new all-time high.
The Nasdaq Composite Index lagged but still finished slightly higher. Tesla (TSLA) shares dragged that tech-focused index down, plunging 12% following an earnings report last night in which the company said sales growth for its electric vehicles in 2024 "may be notably lower" than last year.
(I told you yesterday it was now the "Magnificent Six.")
Tomorrow brings another key data point: the latest look at the Fed's preferred inflation gauge, the personal consumption expenditures ("PCE") index for December. The expectation is to show continued disinflation. We'll watch how the market reacts.
New 52-week highs (as of 1/24/24): Applied Materials (AMAT), Advanced Micro Devices (AMD), Amazon (AMZN), ASML (ASML), Berkshire Hathaway (BRK-B), Dell Technologies (DELL), Dorchester Minerals (DMLP), Alphabet (GOOGL), Microsoft (MSFT), Neuberger Berman Next Generation Connectivity Fund (NBXG), ProShares Ultra QQQ (QLD), Invesco S&P 500 Equal Weight Technology Fund (RSPT), VanEck Semiconductor Fund (SMH), Spotify Technology (SPOT), ProShares Ultra S&P 500 (SSO), Textron (TXT), ProShares Ultra Financials (UYG), Visa (V), Vanguard S&P 500 Fund (VOO), and W.R. Berkley (WRB).
In today's mailbag, yet more feedback on Argentine President Javier Milei's speech at the World Economic Forum in Davos last week and our reporting about it... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.
"I was just catching up on my reading when I finished your article 'A 25-Minute Case for Freedom' dealing with Javier Milei's speech at the WEF in Davos. I listened to the YouTube video and was amazed at his directness.
"In your article you said, 'I've heard from more than a few readers in recent years who believe the U.S. should abolish the Federal Reserve, like Milei wants to do with Argentina's central bank.' I would LOVE to see that happen here in our country but do not see it happening any time soon. But, the Berlin Wall fell and the USSR came tumbling down shortly after. I suspect a similar situation would have to manifest here for the Fed to be put out of business – though it would probably be one of the best things to happen to restore freedom in the land.
"I have been reading The Creature From Jekyll Island (G. Edward Griffin; Third edition: May 1998) and have learned a LOT about the Fed as a result. I am 62 years young and have been a directly involved investor for only about 15 years and an options trader for about 7. I had a lot to learn... and still have a lot more to learn about this 'game.'
"Ten years ago I knew practically nothing about the Federal Reserve System (as it relates to investing/trading that is!). Now, I wish to echo the cries of others who desire to 'Abolish The Fed!' It would not be nearly enough to merely 'Audit The Fed!' The central bank is incompatible with truly free market capitalism and the freedoms which once were held to be precious..." – Subscriber Douglas H.
All the best,
Corey McLaughlin
Baltimore, Maryland
January 25, 2024