Today’s letter is the result of more than two years of research, analysis, and on-the-ground due diligence in the U.S. and abroad. It encapsulates the ideas and the strategies that I would be telling to any person, as to how to self-assess their situation and take it to the highest level.
For one, the bull market in stocks, which has delivered big returns for nearly a decade, is nearing the end, in essence. I can smell it. The indicators show it, but before it tops-off, Wealth Research Group is still LONG the index because we anticipate a remarkable rally to finish this cycle, leaving a good taste in our mouths, as these rallies always do, before they pivot the other way.
One of the factors that investors, worldwide, like to cite as a reason to be bearish is because “Smart Money,” the hedge-fund managers, is bearish right now.
However, one look at the Smart Money Index and you’ll immediately notice that managed money continues to suck money from clients, yet produce horrendous yields.
Courtesy: Zerohedge.com
Right now, smart money flows are telling us that there is absolutely NO reason to panic because they are insanely bearish themselves, similar to their behavior in 2009, right about the time that they should have been BUYING big.They were insanely bullish and buying shares, hands over fist, at the top of the Dot.Com bubble and have lagged the market throughout this bull market. Don’t get emotional, when you are told that hedge-funds are scared – get excited.
So, for one thing, any talk of market tops is premature, as they’ve been since 2010, when the term “Double-Dip Recession” was so popular.
Right now, the majority of America’s best businesses are doing extraordinarily well, so much so that they almost have nowhere to go but down. This is the reason we get recessions, but not before we blow-off some steam, allowing euphoria to kick-in and the bull market to end as all of them do, with media coverage, with stories of rags to riches day-trading scenarios, and, finally, with lots of speculators getting hurt.
What comes after the bust, though? This is one of the most important questions to ask.
Once the market experiences its predictable sell-off, going down 20%-40%, as it just might, we must think about the day after. With higher real interest rates, with a massive budget deficit that will shrink for nothing (not for recessions and not in peaceful times), and with the continued aging and retirement stampede of the Baby Boomers, sellers in the next cycle will likely not demand 20+ P/E ratios to fork over their stocks, as they have been for the past 4 years.
Take a look:
Courtesy: Zerohedge.com
According to the way the Federal Reserve views future returns for stocks, we are in for a long sideways market, even a bear market.So, in light of this, and I totally agree with this assessment, the alternative investments classes will go nuts soon. I’m talking about, first and foremost, commodities, which have been hellish investments for several years, as the market kept defying gravity, climbing no matter what the economy was doing.
Secondly, the cannabis legalization will keep delivering monstrous gains.
Now that Jeff Sessions is out of the way and with three new states legalizing during the midterm ballots, Michigan, Utah, and Missouri, a cool 80 million Americans can consume all sorts of cannabis products. In the big picture, that is only a quarter of the population, so we haven’t seen anything yet, even though 33 states have approved medical use already.
But, investments are not enough. Most people can hardly afford to save a substantial sum of money in North America today. High-paying jobs are scarce, so investment wealth will play 2nd fiddle for the majority, as it did during this past decade.
Tens of millions do not participate in this bull market at all. For them, active income, creating multiple streams of income, means more than the direction of the markets.
BEATING THE WAGE PRISON
Millennials are entering the workforce in droves, but they need big help. Resume editors are charging $100 a pop, nowadays. Good ones write three a day, which tallies-up to nearly $100,000 a year in home-based income.This is just one great way for someone to get out of the rut and earn a fantastic living, from home, pumping-out resumes.
Millennials are in love with their pets, which means that dog-walkers are in high demand, and this will not change, nor will it be outsourced or be replaced by robots.
My good friend has a major service like this, generating over $1M a year, and he started less than five years ago.
These are just two of over 34 business ideas, which I have seen implemented successfully in the past three years, by people of all ages, regardless of their education level or prior experience.
What’s even better is that the start-up costs are negligible, at best.
Gains in the alternative asset classes of mining stocks and cannabis plays will be beyond belief, but to fully capitalize on them, you must increase your active income now, by getting creative, so that you can save-up and prepare for the starting gun.
Best Regards,
Lior Gantz
President, WealthResearchGroup.com
This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. Information contained in this profile was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
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