Steady Income Investments

This ‘Law’ Is Setting the Stage for Outsized Returns

By Matt McCall, editor, Early Stage Investor

Think of the extraordinary change someone born in 1900 could have seen over a long life.

As a child, they would have seen horses in city streets… and would have grown up to see those streets full of cars.

They would have seen the invention of the radio… the airplane… the fax machine… air conditioning… personal computers… and so much more.

I believe those of us who live the next 30 years will see a similar set of changes.

We’ll see the world change more rapidly than any other group of people in history.

The way we work, play, travel, bank, receive health care, and entertain ourselves will look completely different.

Large new industries will be created at a pace we’ve never seen before.

These new industries will demolish old industries at an unprecedented pace. And it’s all thanks to “The Law of Accelerating Returns.”

If you’re on the right side of this law, and you invest in the right stocks now, you could make multiple times your money… and set yourself up for a comfortable retirement.

Here’s how it works…

The man who predicted today’s massive bull market all the way back in 2009 has a new warning…

He says investors are making a common mistake right now that could end up costing them thousands of dollars.

You don’t want to fall into this trap.

Click here for more.

This idea comes from Ray Kurzweil, an American inventor and futurist. About 20 years ago, he began writing about the idea that the rate of change tends to accelerate in systems that evolve over time… like technology.

This is called accelerating returns – or “exponential progress.” And it differs from conventional progress in a massive way.

You see, conventional progress – the kind of advancement ingrained in the minds of most people – is like going for a walk. You take one step, you advance one step. After taking 10 steps, you are 10 steps away from where you started. Pretty simple, right?

Well, exponential progress – the kind that’s taking place in technology labs and businesses right now – radically changes the equation… And it radically accelerates the pace of change we see in the world.

That’s because exponential progress multiplies in power and scope with each step.

It’s critical for investors to understand this if they want to position their 2020 portfolios for outsized returns.

Exponential progress “snowballs” and builds on itself. It ensures that each new step is larger than the one before. Specifically, the progress made in one step is double the amount of progress made in the step that came before it.

For example, if you make exponential progress while taking a walk, you take one step. Now double that… and your second step is the equivalent of two regular steps.

Now double that again… and your third step is the equivalent of four regular steps. Your fourth step is the equivalent of eight regular steps, and so on.

By the time you get to the 10th step, your step is the equivalent of 512 steps!

And by the time you get to the 20th step, your step is the equivalent of 524,288 steps!

Walking doesn’t work that way, of course. But knowing the difference between linear growth and exponential growth instantly sets you apart from your fellow investors and gives you a huge advantage over them. It can set you up for huge outperformance over the coming years.

When a small number grows at an exponential rate, the first stages of growth aren’t incredible. The extraordinary growth happens at an “inflection point” in time… when the exponential growth begins to snowball at stunning rates.

This rapid development has stunning business and investment ramifications. The world around us is changing at never-seen-before speeds… And it’s catching many people off-guard.

For example, over the last few decades, it took an average of roughly 20 years for the typical Fortune 500 company to reach a market capitalization of $1 billion.

Founded in 1998, the company known as Google – now Alphabet (GOOGL) – reached a $1 billion market cap after just eight years, which was considered incredible.

By 2004, Facebook (FB) arrived on the scene… and hit $1 billion in just five years.

By 2009, Uber (UBER) emerged… and did it in under three years.

In 2012, virtual-reality firm Oculus was formed… and did it in less than two years.

As you can see, it’s taking less and less time to generate incredible wealth. And investors are enjoying the benefits.

Incredible industry shifts used to take 20 years or more to play out. Now, they are playing out in less than five years.

The stage is set for carefully selected, high-quality stocks to go up 300%, 500%, and even 1,000% over the next couple of years.

February 12th, 2020 could kick off the most profitable year we’ve seen in the last two decades in the stock market. But only if you put your money into a short list of stocks – immediately.

If think you’ve missed out on the biggest gains this bull market has to offer, click here to for everything you need to get ready for February 12th.

Editor’s note: This bull market is hitting its most “supercharged” phase yet… where select small, innovative stocks could help turn some investors into millionaires. That’s why Matt McCall is joining Stansberry Research tomorrow night at 8 p.m. Eastern time. He and Steve Sjuggerud will discuss what 2020 holds for the Melt Up – and which stock you MUST be positioned in today. You can watch it all online for free…

Click here for the details.

It’s Time to Bail on this Trade

By Jeff Clark – the editor of the Jeff Clark Trader

The price of oil is breaking down.

Yes, that’s a different tune than I was singing two weeks ago. But, back then oil was oversold. The price was approaching an important support level. And, in the world of commodity trading, the general rule is to “buy at support and sell at resistance.”

The 5G Master Key Presentation – Check out this research briefing now

Sometimes though, support breaks down and the price heads lower. That’s what looks to be happening in the oil market right now. Here’s an updated look at the oil chart I showed you two weeks ago…

Oil spent eight months in a wide trading range between $51 and $63 per barrel. Traders could have profited quite well by simply buying oil every time it approached support and selling it as it approached resistance. Now though, it looks like that pattern is changing.

Oil is breaking down. The price broke below $51 per barrel early last week. It recovered, and it bounced back up to finish the week at $50.32 – arguably within the range of its support line. So, there’s a chance that last week’s breakdown was more of a “fake-down,” and oil will snap back into its trading range.

But, I’m not taking that chance.

The whole idea of buying oil at its support line is to set up a low-risk/high-reward trade. If the price bounces, traders have lots of room to profit on the upside move. And, if the price falls, traders can exit the position for a small loss.

If you bought oil based on my comments two weeks ago, then you have a small loss and it’s time to exit the trade. Yes… there’s a chance oil can recover… and by selling now, you’ll get “bluffed” out of the move.

But, if the breakdown is real, then oil could be headed quite a bit lower. The next support line on the chart is down at $42.50. That’s a 15% drop from where oil closed on Friday.

In other words, with the price of oil now trading below the support line of its eight month long trading range, there’s a lot more risk to this trade than there was two weeks ago.

Oil traders should move to the sidelines.

Coronavirus Won’t Stop the Melt Up

By Vic Lederman, analyst, True Wealth

Let’s get this out of the way…

I’m not a doctor. I don’t study the spread of pathogens. And for the most part, I work with the same data everyone else does.

I’m also human. And that means that my first reaction to the news of coronavirus was probably a lot like yours… emotional.

Aside from wondering how to protect myself and my family, some of those thoughts were related to the markets.

“Could this be what finally pushes us into recession?” I questioned. “Will this cause the end of the Melt Up?”

These are normal concerns. And when news of the virus first broke… nobody had informed answers to these questions.

China, and the rest of the world, were just trying to figure out the basics. But today, our position is different.

We know a lot more about what we’re dealing with. We even have data to help us answer those questions.

But let me spoil today’s essay up front… Coronavirus isn’t going to stop the Melt Up.

February 12th, 2020 could kick off the most profitable year we’ve seen in the last two decades in the stock market. But only if you put your money into a short list of stocks – immediately.

If think you’ve missed out on the biggest gains this bull market has to offer, click here to for everything you need to get ready for February 12th.

Now as I already mentioned, I’m not a doctor. So, when it comes to protecting yourself or your family, listen to the experts, not me.

That said, when it comes to protecting your finances, I think I can help. And that’s why I’m writing to you today.

The problem is, headlines are persuasive. They encourage you to act on emotion rather than data.

I’m sure that some investors panicked out of the market as soon as the news broke. I hope that wasn’t you – because it would have been quite the mistake. Take a look…

Coronavirus first popped up in early December. And in fairness, it didn’t enter the global spotlight until mid-January.

At that point, fear did cause a few bad days in the markets. But look what has happened since… We’ve already stormed back to new highs.

Yes, we’re likely nearing the end of one of the greatest bull markets America has experienced. And fear – at least fear of coronavirus – hasn’t put a stop to it yet.

This is exactly the kind of behavior you expect to see in a Melt Up scenario. The Nasdaq is making new highs. Even in the midst of an epidemic, investors are eagerly buying innovative tech stocks – the kind that tend to soar in the final months of a great bull market.

So, is the coronavirus the end of the Melt Up? Right now, the data says no. The market has digested the news on coronavirus… And it’s still moving higher.

It’s not just tech stocks, either. The S&P 500 is making new highs too.

Is it possible this could take a dramatic turn for the worse? Sure. In finance-speak, we call that “tail risk”… a surprise event that could cause major losses in the markets. But unless you have the gift of foresight, planning your life around those events is a losing strategy.

For those of us not hiding out in bunkers, the answer is clear.

Stocks are still headed up. And we want to ride as much of the Melt Up as we can.

You don’t want to be on the sidelines as the market pushes to new heights. So, don’t let your emotional reactions to headlines dictate your investing.

As investors, we should strive to make the best decisions using the best data available. And right now, the best data we have is telling us the Melt Up isn’t over. Stay long.

For the first time, we’re starting to see it… It’s the final stage of the Melt Up. Sit this one out, and you’ll likely miss out on the biggest gains of this 11-year bull market.

A terrifying new trend is creating thousands of new millionaires (Barron’s estimates 20,000 to 200,000 so far) while at the same time destroying the financial future for many others…

Will You Be Left Behind?

That’s why on February 12, we’re getting you ready for the next phase of the rally – with a must-see online event. My boss Steve Sjuggerud will sit down with legendary stock-picker Matt McCall to reveal just how much higher this market could go… and a new way to take advantage of it.

You can watch it all for free – plus, you’ll learn which stock Steve believes will soar 500% before the end of the Melt Up. Get the details right here.

Dr. Steve Sjuggerud: Don’t Miss the Best Days of the Melt Up

By Dr. Steve Sjuggerud

I worry you are making a huge mistake with your money…

What are you waiting for?

If you’re not taking advantage of this bull market yet, that’s my big question for you…

If you are nervous about the stock market, then you’re not alone. Several investors I’ve talked to over the course of the rally were “waiting for a dip to get in at a better price.”

Then, when we got a dip, those same folks would get even more scared of the markets.

Now, we’ve been hitting new highs again. So let me ask you… are you nervous? Are you back to waiting for the next big crash before you put money to work?

This is a huge mistake.

Let me explain…

February 12th, 2020 could kick off the most profitable year we’ve seen in the last two decades in the stock market. But only if you put your money into a short list of stocks – immediately.

If think you’ve missed out on the biggest gains this bull market has to offer, click here to for everything you need to get ready for February 12th.

You probably know by now that I think a stock market Melt Up is just around the corner – where stocks make one final, dramatic push higher before a furious peak.

But the folks I have talked to are either trying to time it… or planning to sit on the sidelines.

My friend, trying to time when the Melt Up takes off could cause you to miss out on triple-digit gains.

You don’t want to wait until stocks start soaring… and THEN decide to get in.

Melt Ups are big and fast… The tech-heavy Nasdaq index alone delivered triple-digit gains in the final 12 months of the last great Melt Up.

Sitting on the sidelines and missing out on even a few big days during that time could’ve been deadly to your returns.

I’m telling you, don’t try to outsmart the Melt Up!

If you’re waiting on the sidelines for a buying opportunity, chances are, you’ll miss the good days. And as you probably know, you REALLY don’t want to miss out on the good days in the markets…

For example, if you had $10,000 in the S&P 500 Index over the past 20 years… but you happened to miss the best 40 days of market gains… you’d only be left with around $7,600.

If you kept your money invested the entire time, however, you’d have close to $30,000.

That’s right… Just 40 days meant the difference between losing $2,000 and making $20,000!

These results come from the investment-management company Index Fund Advisors. And you can see clearly what this means for your money today.

The table below shows what missing the best days of the market would have done to your returns over the 20-year period from the start of 1999 to the end of 2018…

The lesson is simple. Missing out on just a few big moves higher could mean not only missing triple-digit gains, but actually losing money.

And remember, this doesn’t include last year’s outstanding results. The S&P 500 Index as a whole soared 30% in 2019. You really didn’t want to miss the best days of that rally.

So if you’re still waiting for a chance to buy… or if you’re afraid to buy stocks at all… I don’t want you to miss out on what’s next.

This will likely be the last Melt Up opportunity for many people in their lifetimes. And certain stocks could return triple digits as the market moves higher.

People are always looking for a reason NOT to buy. Trust me, you can always find something.

There will be a time to be cautious. But that time is after the Melt Up.

We are not there yet. So again, I urge you – “make hay while the sun is shining”…

— RECOMMENDED —

Learn How You Could DOUBLE or TRIPLE Your Account in One Week!

Find Out How With The #1 Selling Trading Guide: Now Yours For FREE!

Let me tell you something else… I’m about to host a major online event on February 12, where I’ll share a HUGE change to my Melt Up prediction. You’ll find out how to take advantage of what’s happening in a totally new way… with much greater upside than I’ve ever shared before.

I’m even giving away the name of a stock that I believe will soar up to 500% in the months ahead. But to hear it, you must tune in on February 12 at 8 p.m., Eastern time.

I hope you’ll join me… because you need to take full advantage of this moment. Sign up for free right here.

Can the Market Go Five for Five?

By Jeff Clark – the editor of the Jeff Clark Trader

The S&P has closed higher for four days straight. And, it hasn’t been just a series of tiny gains. It has been four straight days of “rip your face off” rallies. The index has gained 120 points this week. That’s an average gain of almost 1% each day.

The question today is… “Can it go five for five?”

— RECOMMENDED —

The #1 Tech Stock for 2020

Silicon Valley’s most successful investor,
Jeff Brown, will reveal why 266 million Americans
will buy this device by the end of the year.

To find out more, take a look at this video.

Looking at a daily chart of the S&P 500 isn’t going to help answer that question. Patterns on a daily chart tend to play out over several days, or even several weeks. To get a better picture of the market’s potential action in the very short term (like for one day) traders should shorten their time frames and look at intraday charts.

For example, patterns on a 15-minute chart tend to play out within one or two days. So, traders who are trying to gauge what might happen in the market in just one day should focus on a 15-minute time frame.

We can look for the same patterns we look for on the daily charts – and trade the same way. But, the time periods are condensed.

For example, look at this 15-minute chart of the S&P 500…

This chart shows three wedge patterns: two bearish wedges in red, and one bullish wedge in blue. The bear wedges have negative divergence on the MACD momentum indicator – which is an early warning sign that a rally phase is nearing an end. The bull wedge has positive divergence – which is an early warning a decline may be ending.

The first bearish wedge – which started to form on January 17 – took three trading days to complete. The S&P broke down from the wedge, and traders who spotted this pattern on the intraday chart ahead of time had a nice chance to profit on the decline.

The 5G Master Key Presentation – Check out this research briefing now

Last Friday, as the S&P 500 market was falling hard on fears of the coronavirus, traders could have noticed a bullish falling wedge with positive divergence developing on the 15-minute chart. This was a good sign that the short-term decline may be ending.

You can see the large rally that emerged from that pattern.

Now we have another bearish rising wedge pattern with negative divergence. And, it looks to me like the S&P broke below the support of this pattern late yesterday afternoon.

So, if we’re trying to figure out if the market will rally for a fifth straight session today, based on this setup I’d have to say no. It looks to me like the market is poised for a brief decline.

Of course, I could be wrong. Technical analysis is more of an art than an exact science. But, that’s how I’m trading it.

The point to this essay, though, is to point out that if you’re looking to make ultra-short-term trades, then you need to use charts that fit the time pattern you’re trading. A one-year daily chart of the S&P 500 isn’t going to help you much in figuring out what the market is likely to do today.

Shortening your time frame and using intraday charts – like this 15-minute chart – will give you a better idea of the potential short-term direction.

This Method Beats the Market

By Grant Wasylik, analyst, Palm Beach Daily

There’s a simple strategy you can use to beat the market by nearly 4% per year – year in and year out.

You’ll need a strong stomach for it…

But if you’re willing to be a contrarian, I’ll show you how to take advantage of it to boost your portfolio’s returns.

Remember, in yesterday’s essay, I showed you a simple way to beat the market with the “bridesmaid” strategy.

Today, I have another one for you. It also comes courtesy of The Leuthold Group.

If you haven’t heard of The Leuthold Group, it’s one of the top financial institutional research firms in the world. (You can learn more about Leuthold here.)

Now, with the bridesmaid strategy, you buy the second-best performing asset class of the previous year. It’s a momentum approach that’s returned an annualized 14.8% over the last 47 years. In comparison, the S&P 500 only returned an annualized 10.5%.

The bridesmaid strategy can also work by sector. But today’s strict value approach can work even better. It’s just as easy – and profitable. And it all has to do with sector rotation…

One of the top news anchors in America just went on-camera to expose a huge story. When word spreads about what she’s uncovered — it could trigger an equally huge move in the stock market.

If you haven’t seen her interview… which details a sector of the market that could soar 37x in the months ahead, click this link to watch it now.

Click here to watch it

Go Low or Go Home

With this strategy, you buy the S&P 500 sector with the lowest price-to-earnings (P/E) ratio of the previous year. Basically, it’s bargain-hunting for profits.

Now, it might be difficult for some investors to buy the cheapest sector in the market. It’s usually the most-hated one as well.

But if you can stomach going against the crowd, the returns are worth it…

Leuthold studied 10 of the S&P 500’s sectors back to 1991. The lowest-performing sector returned an annualized 14.1% over those 29 years. In contrast, the S&P 500 returned an annualized 10.4% during the same period…

As you can see in the chart above, the sector with the lowest P/E ratio outperformed by the greatest margin.

So if you’d followed this approach, you would’ve outperformed the market by an average of 3.7% per year.

… A prediction that could mean the END for market giants like Google, Facebook, Amazon and more…

… And it has the potential to make early adopters as much as $1,000,000.

It’s all happening with the return of the world’s #1 tech futurist George Gilder.

Click Here, and you’ll learn how to get all of George’s best ideas.

Although it’s not foolproof, it sports a solid win rate. This “cheapest sector” strategy has bested the S&P 500’s returns in 18 of the last 29 years – 62% of the time.

It’s that simple.

Now, as Leuthold points out:

The strategy rewards only those bold enough to buy the absolute lowest P/E ratio. Sectors with the seventh-, eighth-, or ninth-ranked P/E ratios have all been long-term underperformers. Go low or go home!

So you must be willing to be a contrarian all the way.

With that in mind, let’s take a look at which sector had the lowest P/E ratio in 2019. It’ll be our best bet in 2020…

The 5G Master Key Presentation – Check out this research briefing now

From the Bottom to the Top

The table below ranks 10 of the S&P 500’s sectors by their December 2019 P/E ratios from highest to lowest. As you can see, financials ranked at the bottom…

Sector	December 2019 P/E Ratio
Health Care	28.9
Information Technology	27.9
Utilities	22.5
Materials	22.3
Industrials	22.1
Consumer Discretionary	20.5
Consumer Staples	20.5
Communication Services	17.5
Energy	16.2
Financials	14.0

(Note: Leuthold uses median trailing P/E ratios. And it excludes “real estate,” since it treats real estate investment trusts [REITs] as a separate asset class.)

So if you want exposure to financials, consider an exchange-traded fund (ETF).

You can use the Financial Select Sector SPDR Fund (XLF) or the Vanguard Financials ETF (VFH) for 2020. They’re the top two ETFs based on assets in the sector. And they have super-low expense ratios of 0.13% and 0.10%, respectively.

Be sure to remember this “cheapest sector” strategy when you’re rebalancing your portfolio at the beginning of each year.

And keep a contrarian mindset to buy the cheapest sector.

Why You Want to Own the “Bridesmaids” of Asset Classes

By Grant Wasylik, analyst, Palm Beach Daily

Legendary NASCAR driver Dale Earnhardt Sr. once said, “Second place is just the first-place loser.”

But what if probability showed that finishing in second place… would make him the statistical favorite to win the next race?

He might’ve changed his tune.

Well, in the stock market, second place is the odds-on favorite for next year’s first place when it comes to asset classes.

In fact, asset allocators would’ve been handsomely rewarded by following one simple strategy over the last 47 years.

It really couldn’t be much easier to follow… So in today’s issue, I’ll tell you what it is – and more importantly, why you should implement it in the coming days.

The man who predicted today’s massive bull market all the way back in 2009 has a new warning…

He says investors are making a common mistake right now that could end up costing them thousands of dollars.

You don’t want to fall into this trap.

Click here for more.

The Bridesmaid Strategy

It’s called the “bridesmaid” strategy. My colleagues at The Leuthold Group developed the method.

If you haven’t heard of The Leuthold Group, it’s one of the top financial institutional research firms in the world. (You can learn more about Leuthold here.)

Now, it’s crunched the numbers by measuring the performance of seven asset classes since 1973:

Large-cap stocks (S&P 500)
Small-cap stocks (Russell 2000)
Foreign stocks (MSCI EAFE Index)
Real estate (FTSE Nareit Composite REIT Index)
Commodities (S&P GSCI)
Gold
U.S. Treasuries (U.S. 10-year Treasury Bonds)

And according to its research, the previous year’s runner-up generally outperforms the other six the next year.

February 12th, 2020 could kick off the most profitable year we’ve seen in the last two decades in the stock market. But only if you put your money into a short list of stocks – immediately.

If think you’ve missed out on the biggest gains this bull market has to offer, click here to for everything you need to get ready for February 12th.

Here’s how the approach works…

You start with these seven major asset classes. And you observe each one’s returns from the prior year. Then, you buy the second-best performer (the “bridesmaid”) and hold it over the next 12 months.

And as you can see in the chart below, picking the “bridesmaid” hands you the highest return over the long haul…

This bridesmaid strategy has returned an annualized 14.8% over the last 47 years. In comparison, the S&P 500 has only returned an annualized 10.5% during the same timeframe.

Now, this momentum approach isn’t foolproof…

For example, gold finished second in 2018, making it the 2019 bridesmaid. Yet gold finished in sixth place last year. But on the bright side, gold was still up nearly 19% in 2019 – its best performance since 2010.

Remember, the long-term results matter most. And it’s hard to find active fund managers who beat their benchmarks in the long term.

In fact, S&P Dow Jones Indices reports that only 12% of all domestic funds beat the U.S. stock market over the last 15 years.

But the bridesmaid strategy has eclipsed the S&P 500’s returns in 31 of the last 47 years – for an impressive 66% win rate.

So let’s take a look at what history says is the best bet for 2020…

One of the top news anchors in America just went on-camera to expose a huge story. When word spreads about what she’s uncovered — it could trigger an equally huge move in the stock market.

If you haven’t seen her interview… which details a sector of the market that could soar 37x in the months ahead, click this link to watch it now.

Click here to watch it

The Top Choice for 2020

According to 2019’s returns, this year’s bridesmaid is REITs (real estate investment trusts)…

Asset Class	2019 Return
Large Caps	31.5%
REITs	28.1%
Small Caps	25.5%
Foreign Stocks	22.7%
Commodities	17.6%
Gold	18.8%
10-Year U.S. T-Bonds	8.5%

Since REITs were the silver medalist in 2019, they’re the top choice for 2020. It’s that simple.

If you’d like to get some exposure to REITs, consider an exchange-traded fund (ETF).

You can use the Vanguard Real Estate ETF (VNQ) or the Schwab U.S. REIT ETF (SCHH) for 2020. They’re the top two ETFs based on assets in the sector. And they have ultra-low expense ratios of 0.12% and 0.07%, respectively.

If you want to really benefit from this strategy, you need to act now. This is an annual rebalancing strategy. And we’re already in the second month of the year.

So if you want to implement the bridesmaid strategy, take a small position today and let it ride over the next 11 months. And be sure to keep this bridesmaid strategy in mind when you’re rebalancing your portfolio at the beginning of each year.

Profiting From the ‘Global Savings Glut’

By Dr. David Eifrig, editor, Retirement Millionaire

On February 14, 1962, America’s sweetheart opened up the most famous house in the world…

That was when First Lady Jacqueline Kennedy (later known as Jacqueline Kennedy Onassis) hosted the first televised tour of the White House.

She walked the CBS News correspondent through many of the rooms while explaining her work to renovate the home. She talked about preserving furniture of the past as a way to honor the history of the presidency and the country.

Around the world, 80 million people tuned in to watch.

Jackie loved beautiful homes. And it’s no wonder… After her mother remarried in 1942, she spent her youth at her stepfather’s stunning Virginia mansion known as Merrywood.

Merrywood boasts 23,000 square feet, indoor and outdoor pools, and a lighted tennis court. The house is an architectural gem, with a garden by renowned landscape architect Beatrix Farrand and sweeping views of the Potomac River.

So it’s a bit odd to see this piece of American history now owned by the Saudi Arabian government…

The man who predicted today’s massive bull market all the way back in 2009 has a new warning…

He says investors are making a common mistake right now that could end up costing them thousands of dollars.

You don’t want to fall into this trap.

Click here for more.

The Kingdom of Saudi Arabia bought the mansion in May 2018 from Steve Case, co-founder of AOL. The kingdom paid $43 million (the Virginia county values it at $23 million).

It’s not the only property Saudi Arabia owns in the U.S… or even on that block. The Saudi government owns five separate homes on the same side of the street as Merrywood. Two of those purchases were made in July 2018.

And it’s not just U.S. real estate Saudi Arabia is buying.

The kingdom paid an estimated $810 million for a stake in 891 European hotels in February 2018 and has pledged to invest $20 billion in Blackstone’s infrastructure fund.

Meanwhile, Crown Prince Mohammed bin Salman owns Chateau Louis XIV – a $300 million estate outside of Paris. And the long-running investment fund Kingdom Holding owns stakes in the Plaza Hotel and the Savoy hotel in London.

Huge piles of wealth are funneling into real estate deals like these all around the world. For example, Norway owns nearly 50% of a portfolio of 12 properties in New York’s Hudson Square. And prior to the trade war, China bought more U.S. residential real estate than any other foreign country.

It’s a result of the “global savings glut.” You see, there’s so much money out there (more than ever before) that it’s keeping interest rates low because investors need somewhere to keep their money.

Thanks to compounding, new economic activity, and population growth, global wealth reached $116.9 trillion in 2000… which more than doubled to $317 trillion in mid-2018, according to Credit Suisse’s “Global Wealth Report.”

This has led to massive mountains of capital. And investors worldwide are searching for a way to either earn returns or stay safe.

Sovereign wealth funds – pools of capital run by nation-states – grew from $500 billion across 24 funds in 1995 to $7.3 trillion across 93 funds in 2017. Over the same period, total assets held by U.S. banks grew from about $4 trillion to nearly $18 trillion.

All this money has chased stocks higher. And international investors have bought up bonds so that yields are near zero or negative in some cases.

My friend and colleague Steve Sjuggerud has written about this phenomenon here in DailyWealth. Here’s what he said in August…

In much of the world, lending your money to the government for 10 years offers no interest in return. Even worse, you have to pay the government to hold your money for those 10 years in a lot of places…

The better option, of course, is taking a bit more risk in the U.S. stock market. And that’s the thing I expect a lot of global investors will realize in the months ahead.

Real estate prices are also rising, as we’ve seen in these worldwide real estate deals…

Today, real estate prices in cities across the world are 45% higher than they were at the previous peak in 2007. After dropping to around $200 billion in the year following the 2008-2009 financial crisis, direct investment is at around $800 billion today.

And institutions like pension funds and other investment managers have steadily increased their allocations to include more real estate. In 1980, about 2% of institutional assets were in real estate. Today, it’s 10.5%.

Earning 5%-6% by renting out real estate sounds like a great deal compared with bond yields. This means the global chase for returns will keep pushing real estate higher… Invest accordingly.

February 12th, 2020 could kick off the most profitable year we’ve seen in the last two decades in the stock market. But only if you put your money into a short list of stocks – immediately.

If think you’ve missed out on the biggest gains this bull market has to offer, click here to for everything you need to get ready for February 12th.

This same trend is driving stocks higher… In fact, on February 12, Steve will air a huge prediction on just how high the Nasdaq could go by the end of the Melt Up. He’ll also show you how to know when this bull market will end – and, as a special treat for those who tune in, he’ll share the name and ticker of a stock that could rise 500% in the coming months.

It’s completely free to watch the event online. I hope you’ll mark your calendar… You can find more details right here.

Will the Coronavirus Trigger a Market Sell-Off?

By Jason Bodner, editor, Palm Beach Trader

The coronavirus numbers that have come out are shocking… Worldwide, there are over 20,000 confirmed cases, and over 400 deaths.

People are getting scared and nervous. And the markets are, too…

Stocks in China fell about 8% on Monday. The world’s second-largest economy is nearly shutting down due to the epidemic.
Other markets in the region are feeling the impacts as well. Japanese, Hong Kong, and Australian exchanges have also closed slightly lower.
And bracing for a decline in Chinese demand, global oil producers are scrambling to offset a sharp fall in oil prices.

The U.S. hasn’t been immune, either. The Nasdaq, Dow, Russell 2000, and S&P 500 all dropped about 2% last Friday – before recouping some of those losses this week.

But even though most investors are starting to panic, I’m still bullish.

You see, in the U.S. alone, there are 15 million flu cases with 8,000 deaths every year. But the flu isn’t in the news every single day.

And while the coronavirus mortality rate is a little bit higher than that right now, it’s feeling very similar to the avian flu, SARS, swine flu, Ebola, and other illnesses.

It’s simply a news story to get people ratcheted up and ultimately, scare them out of stocks. But these negative headlines don’t matter.

So today, I’ll share what’s really behind this market pressure – and how we’ll be able to profit as others get shaken out…

The 5G Master Key Presentation – Check out this research briefing now

Listening to the Big Money

As I told you last week, the cracks in the market are starting to show…

Since October, we’ve seen relentless buying in the market from big Wall Street institutions. Stocks have been going up nonstop.

But on January 21, that all changed. The sellers finally started taking control again.

And I know this because I spent half a dozen years and hundreds of thousands of dollars to develop my “unbeatable” stock-picking system that tracks big-money buying.

I used my experience from nearly two decades at prestigious Wall Street firms – routinely trading more than $1 billion worth of stock for major clients – to make sure it’s highly accurate, comprehensive, and effective.

It scans nearly 5,500 stocks every day, using algorithms to rank each one for strength. It also looks for the movements of big-money investors. And when it sees them piling into or getting out of a stock, it raises a yellow flag.

I put these yellow flags through another filter. If the flag turns red, it means the big money is selling. If it turns green, it means the big money is buying…

It’s that simple: When I see green, the big money is buying.

But here’s the thing: My unbeatable system doesn’t just look at individual stocks. It can track big-money buying and selling in the broad market, too.

And after signaling overbought conditions for weeks, it’s finally showing that Wall Street is starting to sell.

This means that the market reset I predicted just last month is in the works…

A major upheaval is in the works. And, soon, you’ll need to replace your cards with brand new ones

Powered by a hot new technology the World Economic Forum projects will grow 295,762% over the next seven years.

Teeka Tiwari, America’s #1 investor based on audited results, just released a video to reveal the single best way to play this coming change

Click Here for Full Details

Wall Street Wants Out

Just take a look at the chart below. It shows my system’s index of big-money buying and selling…

When the index is at 80% (see the red line above) or more, it means buyers are in control and markets are overbought. And when it dips to 25% (the green line) or lower, sellers have taken the reins, leading the markets into oversold territory.

As you can see, each time the index has signaled overbought levels, it’s quickly fallen back within a few days or weeks. This means that the big money is selling again – causing the markets and prices to fall, too.

And you can see in the chart above that the index has pulled back below the overbought level.

With the major indexes losing ground last week, it’s clear that the big-money selling is starting to happen again.

— RECOMMENDED —

The 3-Stock Retirement Blueprint:

How To Retire Rich With Just 3 Stocks

“This plan helped me retire at 42. Now, for the first time, I’m revealing how it works and I’m even giving away the names and tickers of the 3 stocks you need to get started.” – Millionaire trader, Jeff Clark

Yes, show me the 3 stocks.

History Repeats Itself

Now, I don’t have a crystal ball. But I used my system to go back through a decade of data to see what might happen next…

The last three times my system pinpointed similar overbought conditions – in February 2017, January 2018, and February 2019 – sell-offs occurred afterwards within days or weeks.

The Russell 2000 dropped 3.1%, 9.8%, and 7.8%, respectively. Since my system pinpointed overbought signals on December 27, it’s already dropped 5.3%…

And during the past 15 similar setups in the last 10 years, the sell-offs following overbought conditions lasted an average of just over three weeks. The iShares Russell 2000 ETF (IWM) lost an average of 5.5% each of those times.

So there’s still room for the markets to head lower. My system’s data is saying we should expect around a 5–7% sell-off.

But this will simply be a healthy pullback after weeks of big-money buying. As Wall Street takes profits and sends stocks lower, it’ll hand us a buying opportunity.

U.S. stocks are still strong. In fact, out of the S&P 500 companies that have reported Q4 2019 earnings as of last week… 69% have beat earnings estimates and 65% have beat revenue estimates.

And that’s just from the 45% of companies that have reported. So there are still several strong companies out there.

Again, I’m still bullish for 2020. But right now, let’s wait for the big-money selling to finish driving prices lower.

Expect some short-term volatility. And when the selling eases up, we’ll be able to buy some high-quality stocks on sale.

The Doctor is Bearish

By Jeff Clark – the editor of the Jeff Clark Trader

For as long as I can remember, the price of copper has been an excellent leading indicator for the health of the global economy. When copper is rallying, it suggests a healthy demand for manufactured goods – which leads to solid economic growth.

And, when the price of copper falls, it suggests that global demand is falling, and the economy may be weakening.

The 5G Master Key Presentation – Check out this research briefing now

It’s not a perfect correlation. But, it’s strong enough that copper has earned the nickname “Dr. Copper” – for its ability to anticipate shifts in the global economy.

And right now… the doctor is bearish.

Just look at this chart of the price of copper, and pay close attention to the action over the past month…

The price of copper peaked last April. Then it fell for the next six months as the United States and China tried to work out a trade deal.

Dr. Copper started sniffing out a trade deal in December, and the price of copper rallied sharply until the deal was signed in mid-January.

But, look at the decline in copper since then. The price has fallen 13% in just the past three weeks. In fact, copper has fallen for 13 straight days.

I can’t recall ever seeing copper behave this way before. But, steep declines in the price of copper tend to correlate with contractions in the global economy. So this action suggests we’ll see a slowdown in the economy.

It also suggests the broad stock market might be set for a decline as well.

Take a look at this one-year chart of the S&P 500, and note how it rises and falls with the price of copper…