By The Gold Report
Source: https://www.streetwisereports.com/pub/na/17321
Tom Beck of Portfolio Wealth Global believes the “Trump Trade” is overblown and recommends investors bulletproof their holdings.
The number one lesson I learned from Warren Buffett is that the market is not who to look to for advice.
There are more than 150 million Americans who own stocks, and 140 million of them will end up either losing money or making just enough to keep up with inflation.
The fact is that average investors are horrible at managing funds.
I want you to learn not to look to the market as a guide to making decisions, but only to principles that are proven to work.
Lior Gantz and I founded Portfolio Wealth Global in order to bulletproof your holdings by enriching your skill sets.
The stock market is, in essence, a market of stocks.
This means that as investors, we can choose to look at the market of stocks as expensive overall and search for specific bargains within it.
At the moment, the S&P 500 is made up of many overpriced stocks, which, if made private, would require 25-30 years in order to recoup your original investment with the proceeds.
This is a group of mediocre investments, at best.
Look at the Bears-Bears Ratio, which is an incredibly valuable contrarian indicator.
I learned in 2001 that when the headlines are pessimistic, it’s time to become aggressive, and I learned in 2008 that when euphoria occurs, it’s time to exit most of my trades, hold only my core assets, and invest in other discounted assets elsewhere.
What’s most visible in this chart is that moments of extreme pessimism have historically been the ultimate times to purchase stocks.
Today, I am warning you that prices could easily correct 15%-20%, and rising interest rates usually speed up market corrections.
It now takes the average American more paychecks than ever to participate in the stock market.
When the Federal Reserve raises interest rates, the amount of funds that get funneled from stocks to bonds is colossal.
People take on less risk when they can collect higher interest payments. Not only that, but companies borrow less when rates are higher, so growth becomes more moderate.
Portfolio Wealth Global has researched and profiled a number of companies that make money regardless of the economy—even between 2007–2009, the worst of economic times, they were able to be profitable and raise their dividend payments.
These are our Relentless Profit Thriving stocks.
They all trade above our suggested buy-up price, so Lior, the team and I are currently finalizing research on a brand new stock to profile.
Relentless Profit Thriving stocks are where 40% of my wealth resides, and I hold my positions and increase them if they become cheap.
Unless the stock becomes highly overpriced (they rarely do) or the company loses its competitive advantage (they rarely do), I hold these positions forever.
These are my Dynasty Positions.
We will release it to members of the free newsletter in the coming days.
I will be personally accumulating it throughout 2017.
With the markets ridiculously overpriced, it takes painstaking accuracy to find the undervalued stocks to own, and that’s exactly what we’ve done for you.
Tom Beck is senior editor of Portfolio Wealth Global. Known as one of the first millennial millionaires in the United States, Beck is a relentless idea machine. After retiring two years ago at age 33, he’s officially come out of retirement to head up Portfolio Wealth Global. He brings a vision of setting a new record for millionaires with his seven-year plan to accelerate any subscribers’ net worth who will commit to the income lifestyle. Beck delivers new ideas on the marketplace that were once only available to the rich. Traveling the world, he’s invested in over a dozen countries, including real estate.
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Charts provided by author with exception of DJIA 3-month chart.