Early Bird (You Know the Rest)
- The 5’s skeptical? Who… us?
- Tim Sykes says “crash-proof” your portfolio
- 1 in 4 American households has Alexa
- Mike Burnick: Amazon $10,000
- How to harness rising interest rates (Hint: It’s not bonds)
- Getting the edge on e-sports
- Birdwatchers ask: "Does this bird feeder make me look stupid?"
Editor’s note: You’ll notice we’re getting an early start at The 5 today so you can take full advantage of the offer below that closes at 3 p.m. EST today.
“I mostly invest in penny stocks,” says our trading expert Tim Sykes. “I realize that doesn’t seem to be consistent with [The 5’s] overall theme…”
Tim goes on to say The 5’s mostly “skeptical of credit-inflated markets and central banks” and that we attract “gold bugs” — among others — who’re hedging against the next crash.
Who… us? Skeptical?
“The strategy that I’m talking about is perfectly consistent with that mindset,” Tim says. “In fact, I’d argue it naturally supports it.”
Here’s how: “Because it doesn’t tie up your money in ‘buy and hold’ investments that are highly vulnerable to a crash.
“You’re in on Friday and you’re out on Monday… in and out before a crash can erase your wealth.”
And because markets are closed on weekends, Tim calls his strategy “crash-proof.” (And really, one could argue the safest market is a closed market… heh.)
“With this strategy, you might never have to worry about getting wiped out in a market crash again.”
Understand, Tim’s not saying to get your broker on the horn and liquidate all your investments.
“Not at all,” he says. “But to help protect against a crash and diversify your portfolio, I strongly suggest you consider allocating a portion of your assets toward this powerful weekend strategy.
“On weekends I’ve made $9,177, $20,000 and $28,540. I even made an unheard-of $69,962, with very little work.
“Can you see now why I don’t have to worry about a market crash?” says Tim. “Or why I love my weekends more than ever?”
And it’s not just Tim.
When he first started trading with this strategy, he challenged a friend to try it. While his friend was credulous, he followed Tim’s recommendation to place a trade on Friday.
Tim says his friend “spent the weekend at the beach with his wife and kids. On Monday, he got out of the trade and walked away with more than $37,000.”
Now, for his students who adhere to Tim’s weekend-trading strategy, “Trades like this happen all the time.
But this can’t possibly be safe, right?
“This strategy is so safe,” Tim says, “that the government even allows you to do it inside your IRA.
“The bottom line is that this strategy protects your nest egg against the coming crash,” says Tim, “while at the same time allowing you to potentially collect thousands of dollars on the weekends.”
“But if this is such a great opportunity, you ask, why isn’t everyone on Wall Street doing this?”
The long and short of it is, he says, “They can’t!
“When the big players on Wall Street invest in companies, they don’t invest just a few thousand dollars like you and I might do,” Tim continues.
“Big investors like pension funds, hedge funds and mutual funds normally invest hundreds of millions of dollars in a single company.”
Tim’s strategy trades in microcap companies with valuations roughly between $50 million and $300 million.
“That kind of institutional money would be enough to buy 20% or more of all the existing shares.
“And that’s a problem for the big dogs on Wall Street because SEC regulations make it very difficult for these funds to establish positions of that size in any single company,” Tim says.
Generally speaking, Wall Street investors tend to stay away from investing in these “penny stock” companies… but they’re perfect for Main Street investors looking to get an edge on the institutional guys.
“This opportunity doesn’t require any special financial knowledge,” Tim says. “It doesn’t require much of your time. And it doesn’t involve any complicated financial instruments like options or futures.”
And Tim’s quick to point out this isn’t a get-rich-quick scheme. “Anyone who says you can become an overnight millionaire is a fraud,” he says.
“It just requires an open mind, patience and a willingness to learn how to get rich in the market.
“With some effort and the skills I can teach you,” says Tim, “I believe it’s one of the few remaining ways for the little guy to get rich sooner rather than later.”
[Ed. note: Tim’s weekend strategy has blown the lid off the trading game.
And he wants to teach everyday investors like you how to make their dreams come true.
One of Tim’s dreams? To throw the opening pitch at a Dodgers game. That one came true… and he’s got the video to prove it. (You’ll have to watch it to see how he fares.)
He’ll also show exactly how you can place a trade on Friday, relax and enjoy your weekend and come back to the open market on Monday to potentially thousands of dollars.
Every single week.
Take a look. You’ll see all the money this service has already made for people around the world.
Click here to watch before the video gets taken down TODAY at 3 p.m. EDT. That’ll give you enough time to act before the market closes today.]
Now for abbreviated market notes…
Yesterday’s markets ended down, supposedly because Trump is serious about the $200-million in new tariffs on Chinese goods.
The markets are set to open down again with the Dow positioned a shade under 26,000.
Gold, on the other hand, looks slightly up at $1,210.
“Amazon is dominating the voice-activated home assistant category, with a 70% market share,” says our income expert Mike Burnick.
If you haven’t heard of it — or don’t own one — Alexa is the “voice” of Amazon’s smart home assistant Echo.
And this is crazy: Alexa resides in almost a quarter of American homes. (In much the same way Rosie resided with the Jetsons… heh. If only Alexa could walk Astro…)
Amazon’s pretty hush-hush when it comes to Echo’s official sales stats, but CEO Jeff Bezos said, “Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don't see positive surprises of this magnitude very often; expect us to double down.”
“Echo was initially used for things like playing music and answering questions,” Mike says, “but is morphing into a helpful appliance that is going to generate mountains of cash for Amazon.
“Echo users do a lot of shopping at Amazon.
“According to Consumer Intelligence Research Partners, the average Echo-using household spends $1,700 a year at Amazon compared with $1,300 for the average subscriber to Amazon Prime.
“That means Amazon customers who are dedicated users of Echo spend 30% more online with Amazon,” says Mike, “delivering a nice boost to the company's bottom line.”
Doubling down, indeed…
“But the biggest explosion is going to come from the internet of things [IoT],” Mike says, “which will link just about every electronic device that you own to the internet.”
And Amazon wants Echo/Alexa to be at the center of IoT in your home.
With that said, Mike foresees Amazon skimming off your spending to other companies.
Here’s an example:
“Alexa: ‘You are overdue for an oil change. Would you like me to schedule an appointment at Jiffy Lube for you?’
“You: ‘Alexa, schedule an oil change for me this weekend.’
“And Jiffy Lube (just an example) will pay Amazon a small commission on the money you spend there” [emphasis added].
Imagine Amazon ringing that cash register with a myriad of companies?
“Alexa, buy Amazon shares when, er, if they dip.”
“That doesn’t mean you should rush out to buy Amazon stock today,” Mike says.
“Amazon looks expensive at over $1,800 a share and at 75 times earnings, but I think the investment world is grossly underestimating the grand slam that Echo is going to become.
“I expect Amazon to go much, much higher,” he says.
“If you think it's overpriced, take another good look at Amazon the next time its stock takes a tumble.”
“I’ve been warning all year about the fact that interest rates are headed a lot higher from here, and inflation too,” Mike continues.
And JPMorgan’s CEO, Jamie Dimon, agrees with Mike’s way of thinking.
“I think rates should be 4% today. You better be prepared to deal with rates 5% or higher — it’s a higher probability than most people think,” Dimon said at CNBC.
“The reason that Dimon expects interest rates to rise is a very strong economy.”
Heh… it’s the economy, stupid.
- Unemployment is below 4%
- GDP is at 4.1% for the second quarter
- Economic stimulus has come in the form of tax cuts and a government-spending extravaganza.
Not to mention: “Business sentiment is almost at the highest level it’s ever been, consumer sentiment is at its highest levels,” Dimon said. “If you look at how the table’s set, consumers are in very good shape.”
On the strength of which Dimon believes the bull market could stick around for another two–three years.
“One thing is certain,” Mike says. “The wrong way to invest for income today is with long-term bonds.
“The right way to invest for income is with dividend-paying stocks and other bondlike equity investments, including REITs and MLPs.”
The simplest way to do that?
Mike says, “Through mutual funds or, better yet, ETFs like the Vanguard REIT Index ETF (VNQ).”
That’ll get you an average of about 3.5%.
“Among individual REITs you can earn much higher yields,” says Mike. “Consider NYSE-listed Ventas (VTR), which owns and operates health care facilities in the U.S. with an indicated yield near 6%.”
“Another subsegment of this sector is REITs that invest in commercial and residential mortgages.”
Mike’s recommendation? “One ETF in this space that looks really attractive is iShares Mortgage REITs ETF (REM), which pays you a juicy yield of 11%!”
“Not too long ago,” Greg Guenthner says, “video games enjoyed a small but loyal fandom of nerdy middle school kids.”
And the idea that pasty, pudgy lil’ Johnny — hunkering down in Mom and Dad’s basement — could make a living playing video games was preposterous (albeit Johnny’s pipe dream).
Take a look at this Far Side comic printed in the 1980s, anticipating the year 2005:
Several things about the comic scream 1980s. Mario Bros.? “Help Wanted” ads? Newspapers?
But one thing’s actually pretty prescient…
“Video games are more popular than ever,” Greg says, and “the e-sports revolution is making the world’s top players a fortune.”
That’s right, folks, he said e-sports. (And we thought it was a little much to call NASCAR a sport.)
“Heck, Amazon.com recently purchased Twitch, a livestreaming platform where — I am not making this up — fans watch other people play video games.
“It doesn’t stop there,” Greg says. “In fact, some experts predict that video games are set to become the next major American spectator sport.”
In Arlington, Texas, this summer, they broke ground on a 100,000-square-foot arena to host live e-sports competitions. Once complete, it’ll be the largest venue of its kind in the U.S.
“As you’ve probably already guessed, there are more than a handful of investing angles when it comes to playing the e-sports revolution,” Greg says.
“Most of the public companies operating in the gaming industry make consoles, chips or software,” he says. “Almost all of them are bigger, well-known firms.”
Take, for example, Activision Blizzard (NASDAQ:ATVI), a software gaming giant with a market cap over $55 billion.
“There aren’t too many undiscovered investments in this fast-growing niche,” Greg says, “But it just so happens that you have access to a backdoor e-sports play”… if you’re a member of The Seven Figure Formula.
One such company that’s part of the Seven Figure portfolio provides the control-panel optics gamers love.
“As the market for high-end gaming products grows,” Greg says, this company’s “set to grab a major slice of the display pie.
“That’s bullish for the stock,” he says, “and has the potential to hand us insane gains as this trend takes off.”
Moment of Zen: “Jeff Driscoll of Dubuque, Iowa, makes and sells all kinds of… strange hummingbird feeders,” says Boing Boing.
Including this one that lets bird lovers get up close and personal with the pint-size marvels:
According to Mr. Driscoll’s Etsy page: “This little feeder is made to attach to the beak of a hat or visor to give you a close-up view of your hummingbirds.”
We had to read that again — “beak of a hat”? Aka brim? (One can only surmise true bird lovers call it a beak… heh.)
“The end is shaped like a paper clip, allowing you to easily slide it on the hat.
“Three red berries were added to the feeder to help attract the birds, and a perch for landing is on the end.
“It will not take long for birds to get comfortable and feed from your… hat. This 10-inch feeder is very practical and will provide an up-close experience for you bird lovers.
“Hat needs to fit tight on your head to support this feeder.” No floppy hats, please.
The price, you might ask? All this for $13.95.
That’s a bargain considering a similar product — a face-mask feeder that lets you get even closer to hummingbirds…
… sells for $79.95.
And the mask just makes you look weird… heh.
The 5 Min. Forecast
P.S. Don’t forget: Time’s ticking on your opportunity to make profits like $9,177, $20,000 and even $28,540.
All by booking a trade Friday, enjoying your weekend and cashing in Monday (OK, Tuesday with the holiday this week)…
P.P.S. The markets are closed Monday for Labor Day — The 5’s taking off too. We’ll catch up with you Tuesday. In the meantime, enjoy your holiday weekend!