Tech-Like Returns Without the Risk of Collapse

I’ve searched for an answer that helps investors reduce risk… without sacrificing upside. And I believe I’ve found it – with a class of investments called warrants.

I’ve searched for an answer that helps investors reduce risk… without sacrificing upside. And I believe I’ve found it – with a class of investments called warrants.

By David Forest, editor, Strategic Investor

You know something’s wrong when even corporate CEOs say their share prices are too high.

That’s what happened during the massive Airbnb initial public offering (IPO) last month. Airbnb’s CEO Brian Chesky said simply, “I don’t know what else to say.”

Chesky was speechless after Airbnb’s share price more than doubled the day of the IPO. That gave the tech darling an improbable $100 billion market capitalization – for a company that makes zero profits, and doesn’t return a dime to shareholders.

The “price-to-book ratio” is a common metric used to determine whether a stock is overvalued or undervalued. In Airbnb’s case, the stock now has a price-to-book ratio of 232x.

For comparison, stocks in the S&P 500 have a price-to-book ratio of 4x. Just four. Airbnb is 58 times more expensive.

You can see why a CEO might be speechless.

Some tech leaders try to put a better spin on these out-of-whack valuations. “Everyone is entitled to their opinion,” said DoorDash CEO Tony Xu recently, suggesting that valuations are just in the eye of the beholder.

But in the back of everyone’s minds – CEOs, analysts, and investors – they’re worried.

Because this is exactly what happened before the Dot Com Crash, one of the greatest stock wipeouts of our time.


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We’re Nearing Dangerous “Sky-High” Valuations

In March 2000, the tech-heavy Nasdaq 100 saw its price-to-book ratio spike to an all-time high. Warning signs were flashing of an impending crash.

The ratio for tech stocks then was 14x. Airbnb today is 232x. Tesla is 37.5x.

We all know what happened next. The tech rout started in March 2000, and eventually dropped stock prices nearly 80%. Investors lost a combined $5 trillion.

Price to book Chart

Many individuals saw their savings wiped out. Headlines like “I lost my pension in the Dot Com Crash” are a grim legacy.

I’m extra concerned this time around. In 2000, at least demographics were on our side.

Back in 2000, the average baby boomer – born in the middle of the boom, in 1955 – was 45 years old. Losing your savings at that age, you still had time to rebuild. Not pleasant, but doable.

Today however, the average baby boomer is 65 years old. Losing your savings in a crash isn’t an option. For a retiree, it would be devastating – almost impossible to come back from.

But selling out of tech stocks right now is tricky. They’ve delivered some of the best gains on the market recently. Tesla’s stock jumped 718% in 2020.

Those big returns are important. With Treasurys yielding almost nothing, investors are desperate for a way to grow their savings.

Investors today need a middle ground: a way to get tech-like returns… without braving the devastating risk of a collapse.

I’ve searched for an answer that helps investors reduce risk… without sacrificing upside. And I believe I’ve found it – with a class of investments called warrants.


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Tech-Like Returns… Without the Risk of Collapse

Warrants are a relatively simple type of investment.

They trade on major exchanges with ticker symbols just like regular stocks. And you can buy and sell them with a few clicks through almost any brokerage account.

But few investors take advantage of warrants. Most finance pros know about these investments, but many individual investors have never heard of them.

That’s a massive opportunity. Because warrants have much bigger upside than stocks.

Two warrants I recently recommended to readers of my Strategic Trader advisory returned 4,942% and 2,805% in 2020. They beat Tesla’s incredible performance by a wide margin.

Other warrants I’ve covered returned between 132% and 676%. All within the span of two years or less.

Those are phenomenal returns. But there’s another reason I’m really excited about warrants…


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Teeka Tiwari – America’s No. 1 Investor – just made an outrageous prediction.

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How to Get Outsized Gains From “Boring” Stocks

These unique investments allow investors to get outsized returns even from “boring” sectors. The kind that aren’t overvalued like tech… or at risk of a crash.

Here’s a chart showing the average valuation for the major sectors of the stock market.

Price to book II Chart

While tech is running hot, sectors like energy, utilities, and industrials are selling cheap. If you buy the average energy stock today, it’s 80% cheaper than tech companies, on a price-to-book basis.

That low valuation insulates us against losses in the event of a crash. In fact, sectors like utilities are widely viewed as defensive investments. They can weather the storm, and even profit during down markets.

The problem with these sectors is the stocks don’t deliver big returns.

In 2019, the Select Sector Index of utilities stocks gained 26%. Not bad. But it’s far from the hundreds of percent tech stocks like Tesla are delivering.

But with warrants, you can supercharge your gains even in boring sectors. The 4,942% gain I mentioned above was on a mattress company. It doesn’t get much more basic than that.

There are warrants on undervalued sectors like oil and gas, industrials, financials, and even consumer products.

In October, for example, I advised buying a warrant on a major energy company. It’s a large-cap, well-established firm. You’ve undoubtedly heard of it, and you might even use its products weekly.

It’s a business most investors would pass over as boring or outdated.

But the warrants on this energy giant are anything but boring. They’re up 243% as I write.

I believe that’s just the beginning for these warrants. In fact, this “boring” energy firm could be our next 1,000% winner. It could even do better than that.

Warrants allow us to make huge returns… on neglected sectors of the economy. And at the same time, they allow us to reduce our risk of being wiped out by a crash.

Now, I’m not suggesting you sell out of tech investments completely. Far from it. Almost everyone today has a portion of their portfolio in big names like Facebook, Google, and the like.

But I am concerned about the future for these stocks.

If you are as well, I urge you to look at my research on warrants. Moving even a small portion of your portfolio into these unique investments could protect you against financial devastation in a crash… while delivering gains just as good, or even better, than high-flying tech stocks.

Dr. Steve Sjuggerud #1 Stock for 2021: Stansberry Research’s Event

Dr. Steve Sjuggerud #1 Stock for 2021 Event is scheduled to take place on January 26th, when Austin Root – Director of Research in Stansberry Research will be sitting down with Stansberry’s top analysts, including Dr. Steve Sjuggerud and Dr. David Eifrig to share their big predictions for the year ahead and a complete playbook for how to come out on top of the wildest stock market in 10 years.

Dr. Steve Sjuggerud #1 Stock for 2021 Event is scheduled to take place on January 26th, when Austin Root – Director of Research in Stansberry Research will be sitting down with Stansberry’s top analysts, including Dr. Steve Sjuggerud and Dr. David Eifrig to share their big predictions for the year ahead and a complete playbook for how to come out on top of the wildest stock market in 10 years.

Buy This One Stock in 2021

What is Dr. Steve Sjuggerud #1 Stock for 2021 Event?

Two and a half years ago, Stansberry Research team published a book with an important message.

They called it The Battle for America: Why the Next Election Will Cause the Biggest Financial Crisis in U.S. History

And predicted:

  • The 2020 Presidential Election would be the ugliest of our lifetime…
  • The rise of Kamala Harris…
  • And a Democrat victory, on the promise of forgiving student loan debt… universal healthcare… and free money for most Americans.

Which brings us to today…

In mere hours, President Biden and Vice President Kamala Harris will begin rolling out a proposed $1.5 trillion in additional stimulus spending. They’re going to spend billions to speed up the nation’s vaccination efforts. And will move to cancel billions in student loan debt.

Stansberry Research predictions back in 2018 have been so accurate one reader asked if they had “divine vision into the future.”

Today, Stansberry Research are reaching out with an even more important message that we urge you to take seriously.

This has nothing to do with politics.

Whether you’re Democrat… Republican… Libertarian… or apolitical – this is something you need to pay attention to.

Because these policies – fueled by continuous money-printing, and a nation accustomed to government handouts – will have inevitable effects.

Today’s inauguration will have an effect on your money… your investments… your freedom… your very way of life.

And so our message to you today, is:

If you don’t have a solid plan in place, you need to be worried.


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The clock is ticking on the biggest financial event in 20 years.

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Whether your accounts are riding high right now… you’re nervous that you need to do better in 2021 to achieve your financial goals… you need a firm game plan for what comes next…

If you DON’T have a plan, or you’re not sure whether your plan is sturdy enough, we’d like to show you exactly what you should be doing today.

We’d like to give you the specific steps Stansberry Research recommend you take with your money – down to the cent, in order to be prepared for what’s around the corner.

And so on January 26th, Austin Root – Director of Research in Stansberry Research will be sitting down with Stansberry’s top analysts, including Dr. Steve Sjuggerud and Dr. David Eifrig to share their big predictions for the year ahead… and a complete playbook for how to come out on top of the wildest stock market in 10 years.

When is Dr. Steve Sjuggerud #1 Stock for 2021 Event scheduled to take place?

Dr. Steve Sjuggerud #1 Stock for 2021 Event has been scheduled to take place on Tuesday, January 26th, at 8 pm ET. It is important to note here that this event has limited spacing, so the sooner one signs up, the more likely they are guaranteed a seat.


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How to sign up for Dr. Steve Sjuggerud #1 Stock for 2021 Event?

To get access to Dr. Steve Sjuggerud #1 Stock for 2021 Event, all individuals have to do is enter their respective emails here. Upon entering, those residing in the U.S. (or have a U.S.-based phone number) will also be presented with the chance of becoming VIPs.

As a VIP, you’ll receive complimentary text message reminders leading up to the event on Tuesday, January 26th, to make sure you don’t forget to tune in. (The messages stop immediately after the event)

PLUS, when you sign up for this VIP Reminder Service, you’ll also receive a copy of a brand-new research report from Dr. Steve Sjuggerud.

In it, you’ll find the name of the stock he pitched last year… which went on to soar as much as 408%. That’s 5 times your money, in just 1 year!

But Steve says he’s even more excited about his #1 stock for 2021.