Stock Market Wealth

IT’S GETTING CRAZIER: Bulls Irrational – THIS BURST WILL HURT!

by | Stock Market Wealth

Stock Market Wealth

IT’S GETTING CRAZIER: Bulls Irrational – THIS BURST WILL HURT!

by | Stock Market Wealth

At times like these, EVERYONE gets a spanking in the markets, no matter how smart or talented. You cannot be an investor in the public markets, own fantastic businesses for the long-term, watch as their value go NUTS and not expect a mean reversion, a reversal, a resumption of NORMALCY, at some point.

Buyers overpay in certain instances when they get euphoric, and they underpay – or worse, LIQUIDATE without regard to fundamentals, when they undergo moments of HORRIFYING FEAR.

Just as you were willing to sit and watch as your assets got priced for perfection (and then some), be willing to experience the opposite.

Remember, your CHIEF GOAL is to own businesses that compound over your lifetime, and to own as MUCH of them as possible, assuming that you pay fair prices for them, since that will make you WEALTHIER. Bottom line is that owning the S&P 500 over a 30-yr period multiplies every $50,000 risked into $380,612, statistically.

Obviously, this isn’t the case with CYCLICAL stocks – commodities, biotech, cannabis, blockchain and other boom-and-bust industries – which don’t compound as SURELY or as FAST as traditional dominators. With cyclical stocks, you want to buy on PESSIMISM and sell on OPTIMISM.

This is what we’ve been doing with gold stocks for the past 3-4 years. There have been short spurts of optimism, but overall, we’re still in the depressed valuations part of the cycle – we are ACCUMULATING.

Higher prices are likely to come next, since the Toronto Venture Exchange is down 83% since 2007; the carnage will stop and U-TURN soon!

What I believe is happening is that central banks have reached the ENDGAME in terms of their ability to raise interest rates EVER AGAIN. That means that credit will not contract, financial conditions will not tighten and easy-money is not going away, under this current dollar system.

Therefore, stocks will continue to remain expensive, in general, and gold has a real chance to do SOMETHING SPECIAL, starting now and into the next 4-5 years.

93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.

Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!

Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!

    LIMIT ORDERS: THE ART OF STAYING DISCIPLINED!

    When trading small-cap stocks, which are defined as any companies under a $500M market cap – many of which belong to the natural resources industry – it’s important to have CLEAR BOUNDARIES that you set for yourself on how much to pay.

    For one, see what the major shareholders have paid for their shares, by looking at the recent private placements. That will show you what the big-wigs, the institutional money and the millionaire accredited investors are valuing the company for.

    I love doing that, since it shows me at which price point the CEO has been able to negotiate with very sophisticated investors to risk their money.

    Secondly, in any brokerage account, there’s a way to buy shares for a certain limit price. That way, if a specific stock POPS or GAPS higher, you can avoid the temptation to chase it, by setting a software restriction. I ONLY buy in that way, personally. Recently, I’ve bought shares in a company that I WAITED 41 months to reach the P/E ratio that I was willing to purchase it for.

    Thirdly, I never invest more than 3% of my portfolio in any small-cap company and I don’t lose more than 50% of that, EVER. Instead, I set a stop-loss, so that if a trade goes south, I lose 1.5% of my portfolio (3% * 0.5). On the flip side, if it goes well, my goal is to exit after it triples or more. The risk is 1.5% of the portfolio, while the upside is 6% – that’s a risk/reward ratio of 4:1.

    Lastly, I am adding two stocks to our watch list: Citigroup (C) has revolutionized its business model and could potentially double in the next 3-4 years, SIGNIFICANTLY outperforming the general indices. The second company that I’m currently looking into and which could deliver higher-than-normal returns is UGI Corporation (UGI). While typically a boring utility stock, it suffered from a rough quarter and shares came down by 20%, which is rare for it. The comeback could be a great rebound trade.

    This Sunday, I’m going to publish highly controversial analysis with SERIOUSLY important data, so stay tuned.

    KEEP CRUSHING IT IN 2020!

    Best Regards,

    Lior Gantz
    President, WealthResearchGroup.com

    Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!

    Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!

      Legal Notice:

      No matter how good an investment sounds, and no mater who is selling it, make sure you’re dealing with a registered investment professional. Use the free, simple search at investor.gov This work is based on public 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. 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. Never base any decision off of our advertorials. WealthResearchGroup stock profiles are intended to be stock ideas, NOT recommendations. The ideas we present are high risk and you can lose your entire investment, we are not stock pickers, market timers, investment advisers, and you should not base any investment decision off our website, emails, videos, or anything we publish. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. 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. Never base any investment decision from information contained in our website or emails or any or our publications. Our report is not intended to be, nor should it be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell securities, or as a recommendation to purchase anything. This publication may provide the addresses or contain hyperlinks to websites; we disclaim any responsibility for the content of any such other websites. Please use our site as a place to get ideas. Enjoy our videos and news analysis, but never make an investment decision off of anything we say.

      Please read our full disclaimer at WealthResearchGroup.com/disclaimer

      Wealth Video Hub

      SILVERBULLION.SG: SILVER NOW CHEAPEST EVER, RELATIVE TO GOLD – HUGE ALERT!

      HARRY DENT MUST-LISTEN: (1) $60T Meltdown, (2) Deep State Bullshit, (3) ARMAGEDDON NO LESS!

      BEN PERRIN: Gold Vs. BTC, Stocks vs Crypto, Halving And Wall Street ENTRANCE!