Financial markets are complex.
They involve millions of people making independent decisions. Each person has different motivations and incentives... And that leads to a system that is inherently messy. It can be difficult to read, and even harder to predict.
You can simplify the complex system into an easy-to-understand idea, though.
You see, motivations and incentives might be different for each person. But broadly, they're the same: to make the most money possible, with the least risk.
When you look at the world through that lens, you see an overarching truth that explains why things happen...
Money flows to where it's treated best.
If an investment offers a higher return than other alternatives, money flows there. Prices go up, and future returns go down. Eventually, the opportunity disappears, and money will flow somewhere else.
Today, I’m joined by first time guest Ken Fisher. Ken is founder, executive chairman, and co-chief investment officer at Fisher Investments [15:43]. He’s also a prize-winning researcher and bestselling author.
Ken breaks down his process for finding the best investing ideas… and why he believes this bull market will continue higher.
In my educational segment, I share a fantastic example of why boots-on-the-ground research is critical [51:17]. One company is down over 40% in the last few months… But thanks to my field work, I already warned you about it. Now management is making awful excuses regarding its recent earnings miss…
And be sure to listen to my rant—which was triggered by dinner plates, of all things.
One of the biggest Social Security mistakes I see people make is claim their benefits too early.
According to the Center for Retirement Research at Boston College, 60% of seniors are applying for social security benefits before full retirement age.
If you turned 62 last year, your full retirement age will be 66 years and six months. Full retirement age will continue to increase in two-month increments each year until it reaches 67.
Even though you’re eligible to start claiming benefits at 62, it’s ill-advised. Monthly payments are reduced by 25-30% if you claim at 62, depending on your birth year.
In theory, claiming Social Security benefits should be straightforward — after working several decades, fill out an application and get a monthly benefit check for the rest of your life.
But, you and I know it’s not that easy. There are strategies to consider if you want to maximize your benefits, and there are several mistakes that could cost you thousands of dollars over the course of your retirement if you’re not careful.
By Jeff Brown, editor, Exponential Tech Investor
I just got back from Washington, D.C. And there was one topic everybody wanted to discuss…
“This is indeed a national security issue. We will not allow digital-asset service providers to operate in the shadows.”
That’s what Treasury Secretary Steven Mnuchin said about Facebook’s cryptocurrency, Libra, on July 15.
He added that the Treasury Department has “very serious concerns that Libra could be misused by money launderers and terrorist financiers.”
And Mnuchin isn’t alone.
Federal Reserve chair Jerome Powell said Libra “raises serious concerns regarding privacy, money laundering, consumer protection, financial stability.”
Even President Trump made his feelings about Libra known:
The concentration of corporate debt: The top 46.
The US Justice Department today approved the merger of T-Mobile, the third largest wireless carrier and Sprint Corp., the fourth largest wireless carrier. For the merger to go forward, they will have to sell Sprint’s prepaid brands to Dish. As for the rest, whatever this does to competition and rates for wireless services, one thing is for sure: It creates another US debt monster.
T-Mobile has $37.4 billion in short-term and long-term debt; Sprint has $39.8 billion. Combined they will have $77.2 billion in debt.
This includes only debt, not other liabilities, such as accounts payable, income tax payable, accrued payroll, or the catch-all “other liabilities.” Short-term debt is due within one year and includes long-term debt that matures within one year; long-term debt is due in over one year. “Capitalized leases” – this is a big item with Amazon – are long-term debt.
After the merger, the combined T-Mobile and Sprint, with $77 billion in debts, would move up to the 9th most indebted company in the US, just ahead of Walmart and behind CVS.
Bitcoin traders eat their wallets
Traders were scratching their heads on social media Saturday in the wake of the sudden losses, with BTC/USD crashing from $10,180 to $9,410.
At press time, the pair had recovered marginally to circle $9,500, while a lack of obvious factors left commentators struggling to understand the market.
As Cointelegraph reported, a return to $10,000 earlier came as a surprise after a similar uptick occurred in a matter of minutes.
Previously, regular commentator Josh Rager had eyed a break below $9,600 as a gateway to lower levels, with the potential for $9,000 to also fall.
Some had anticipated volatility continuing in the short term. On Twitter, the trader known as CryptoCohen sounded the alarm hours before the $800 losses.
“Could be a larger correction in play — could take a lot longer too — longer than many would expect/hope. But good things come to those who wait,” he summarized.
Bitcoin’s move meanwhile had a more predictable effect on altcoin markets, with tokens in the top twenty cryptocurrencies by market cap shedding up to 4.5%.
Who is the best public speaker in mining?
Most would say it’s Robert Friedland. But it’s not.
Without a doubt, that title belongs to Rick Rule.
Rick is quick witted and very fun. But it’s not until you get to know him on a personal level that you realize how smart he really is.
I first met Rick at the end of the January 2003 Cambridge House conference.
He literally spent hours with me after the show, in the hallway of the conference venue after everyone went home. Back then, I was full of drive and ambition and had found something I loved, mining.
Rick gave me his personal business card. I had zero business knowledge at the time, but I knew this guy was someone I wanted to work with.
I kept his card on my office wall until I called him 2 years later. I’d just came back from Serbia and had an idea on how we could pick up some past producing assets in Serbia and Kosovo.
Rick was interested.
By Greg Wilson July 26, 2019
So far in 2019, bitcoin is up 182%.
Meanwhile, the rest of the cryptocurrency market is up just 58%.
These other crypto projects are called altcoins. And when they rally together, it’s called alt season.
Now, a lot of people are asking, “When will altcoins catch up to bitcoin?”
It’s a good question—because when altcoins rally, they can create life-changing gains.
You see, as crypto investors rotate from bitcoin to altcoins, these coins can rise multiples higher. Gains of 100%, 500%, and even 1,000% or more are there for the taking.
So today, I’ll show you how alt season is rapidly approaching—and how you can position yourself for maximum profits.
China's "New Nasdaq" stock exchange started trading on Monday... And the average stock on this exchange soared by 140% – on day one.
The worst-performing stock was up more than 80% that day. And the best performer was up more than 500% at one point during the day.
I may have been the first person to really pound the table about the huge upside potential here...
"The Chinese Nasdaq Is Set to Launch in 2019" was the headline and lead story in my True Wealth Opportunities: China letter in late 2018. I have talked about my ideas on this to investors while giving speeches around the globe, from Beijing to a private conference at the New York Stock Exchange.
Importantly, though, I believe this is just the beginning.
Here is an excerpt from exactly what I wrote in late 2018 in True Wealth Opportunities: China...
There’s a major shift taking place right now in global trade. And it could have huge implications for U.S. and international markets alike…
Steve Koomar, publisher and editor of Vigilante Investor, joins me once again for a wide-ranging interview [12:39]. He breaks down everything you need to know about the new global trade alliances forming today—what Steve calls the “New Strategic Order.”
Steve also shares his thoughts on sectors such as oil and healthcare… and a few of his favorite ideas to invest in right now.
But first, don’t miss my opening monologue, where I explain why everyone should have exposure to the financial sector…
And in my educational segment, learn how to digest differing opinions when making investing decisions [48:11].
The dollar price of gold has been on a roller-coaster ride for the past six years. But the past six weeks have been a turbocharged version of that. Investors should expect more of the same for reasons explained below.
The six-year story is the more important for investors and also the more frustrating. Gold staged an historic bull market rally from 1999 to 2011, going from about $250 per ounce to $1,900 per ounce, a 650% gain.
Then, gold nose-dived into a bear market from 2011 to 2015, falling to $1,050 per ounce in December 2015, a 45% crash from the peak and a 51% retracement of the 1999-2011 bull market. (Renowned investor Jim Rogers once told me that no commodity goes from a base price to the stratosphere without a 50% retracement along the way. Mission accomplished!)
During that precipitous decline after 2011, gold hit a level of $1,417 per ounce in August 2013. It was the last time gold would see a $1,400 per ounce handle until last month when gold briefly hit $1,440 per ounce on an intra-day basis. At last, the six-year trading range was broken. Better yet, gold hit $1,400 on the way up, not on the way down.
On June 13, the Mississippi River dropped below flood stage for the first time in 85 days.
That smashed the previous record in Dubuque, Iowa by an incredible 51 days.
Cars were completely underwater. Streets were flooded. Highways were cracked, and acres of farmland were drowning.
Scenes like the one in the picture below, taken on May 2, 2019 in Davenport, Iowa, have been all too common in the Midwest in 2019:
Source: Kevin E. Schmidt, Quad-City Times, Associated Press
Whether or not you think this is the result of climate change… we can all agree that the weather is doing some wild things.
Between the rain, tornadoes, snow, and fires, one of the most important commodities sectors on the planet has been hit – hard.
And that’s agriculture.
Extreme weather is just one of the factors contributing to an impending record-breaking shortage. The others include a nasty pest decimating Chinese crops… and a deadly disease ravaging China’s pigs.
Global chaos is erupting in agriculture… just as prices hit a 42-year low.
Combined, it’s the perfect one-two punch that will lead to commodities prices rising to levels not seen in years.