The Next Great Big Tech Stock Opportunity And How to Find It

The Magnificent Seven big tech stocks have had a phenomenal five-year run…

The S&P 500 is up nearly 80% since 2019, including the bear markets in 2020 and 2022.

But these seven big-tech stocks have all had triple-digit returns.

For instance…

Alphabet (Nasdaq: GOOG) is up over 150%.

Microsoft (Nasdaq: MSFT) is up over 216%.

Tesla Motors (Nasdaq: TSLA) is up nearly 1,300%.

And Nvidia (Nasdaq: NVDA) has beaten them all, up 1,800%.

Right now, these companies are starting to show some signs of slowing down.

Year-to-date, they’ve been all over the board:

Big Tech Performance

Listen, these are great, industry-leading companies. These companies should still beat the market over time.

But from here, it’s hard to see Tesla going up another 1,300% — or getting another 1,800% rally out of Nvidia.

They’ve simply become too large.

For investors who want to make big returns in the future, it’s time for some new leadership…

And to look for the companies that we’ll be talking about as the new Magnificent Seven stocks in the next 5 to 10 years.

Today, we’ll look at how this natural process has played out before … and the key metrics investors can use to find the market’s next Magnificent Seven.

The Past Is Prologue: The Common Trends Behind All Magnificent Stocks

Markets don’t exactly repeat themselves. But they sure rhyme.

Each generation has its version of the Magnificent Seven.

Sometimes it’s more names, sometimes it’s less.

In the 1920s, when homes were being electrified, and new gadgets were hitting mass consumer markets, companies like General Electric and the Radio Corporation of America (RCA) soared.

In fact, RCA shares soared 200-fold before their peak!

RCA Stock

In the next market boom of the 1960s, a group dubbed the “Nifty Fifty” became a basket of must-own stocks.

Many of these were centered around the latest aerospace and computer technologies, with individual companies like Xerox soaring 865X!

Finally, in the 1990s, internet companies like Cisco, Qualcomm and Microsoft became synonymous with the tech boom.

As I mentioned a few weeks ago, Cisco was the big winner, soaring over 69,259% in the 1990s.

In each of these cases, investors didn’t decide whether or not to own these stocks.

Rather, they decided how much of each to own.

All these market darling stocks have a few similarities. For starters, they were generally associated with new technologies.

Big market winners come from companies that are at the center of where the economy sees the fastest growth.

Next, when these companies started their run, they weren’t necessarily household names.

However, as the underlying technology became more mainstream, the companies behind those trends became a part of everyday life.

Finally, they had small market caps that could soar significantly higher in the span of a few years.

If we’re starting another generational shift, there are three key things to look for when looking for the big winners that could become the next magnificent Seven:

No. 1: A company that’s AI-focused.

Most or nearly all of the revenue of the next great generational stock should come from emerging technologies.

Today, that’s AI-related applications, pure and simple. We’re still in the early stages of implementing AI technologies, such as AI farming tools.

But there’s far more to come. We’re just scratching the surface of what AI can do to increase productivity.

One estimate puts the opportunity at nearly $15 trillion in additional global GDP by 2030.

That means more opportunities that the right companies can exploit for big profits.

No. 2: It’s still relatively small.

A decade ago, no company had ever had a $1 trillion valuation. Today, three of the magnificent seven stocks do. And over time, more will join the list.

Today’s investors should look for smaller stocks, because that gives them more room to run. For our purposes, let’s use $100 billion as a cutoff.

That’s still plenty large. But companies valued at $100 billion can hit $1 trillion by soaring 10X.

For a company like Nvidia to soar 10X from here, it has to go to over $20 trillion. Given its big run already, that seems unrealistic in just a few years.

But a smaller company could easily soar 10X.

No. 3: An unusual or unique edge.

Of course, not just any company will do. You’ll want to invest in stocks that have unique products or services that competitors can’t touch.

Warren Buffett calls this concept a company’s “moat.”

A moat is simply an advantage that keeps a company going, even when competition attacks it.

In today’s data-driven age, that means patents and copyrights on specific technologies or software.

Today, the moat around data can change quickly, so it’s crucial to work with a company that has a massive edge and a big lead over competitors.

Investors who can find a company that fits into these three categories likely have a big winner on their hands in the years ahead.

With these criteria, you can weed out companies that are too large, not focused on AI and lack the necessary edge to compete successfully.

The Top Future Magnificent Seven Opportunity Today

Money & Markets Chief Investment Strategist Adam O’Dell has just put together research on a company that checks those three criteria.

It’s a company that could genuinely be one of the next magnificent seven plays.

Here’s how it fits in with the three criteria:

No. 1: It’s a company whose AI-related software services are already creating over $600 million in annual revenues. A recent study ranked this company No. 1 in AI, data science and machine learning. That’s exactly the center of the AI revolution.

No. 2: Right now, this company has a market cap of under $50 billion. That means it could soar 20X and become a $1 trillion company in the years ahead. Investors could see every $5,000 invested turn into $100,000.

No. 3:  Finally, this company has built a network of government contracts that gives it an edge over other potential AI software plays. That network is backed by over 1,370 active patents that other companies have to pay to use — or go without.

Companies that meet these three criteria are rare. But that’s a big reason why they’ll succeed … and make for the market’s next generation of winners.

Adam O’Dell’s research shows how this next market winner was built by a tech titan, who was one of the original investors in PayPal … and no, it’s not Elon Musk.

Investors who buy now can own a piece of these companies before they become household names like Microsoft, Xerox or RCA once did.

Plus, as these firms grow, they’ll become candidates to replace has-beens in market indices.

That’s another factor that will help push the Dow to 100,000 by the end of the decade.

Adam’s research goes into far more detail on the opportunity to own the next generation of magnificent stocks. However, Adam sees a big change coming on May 5, so you’ll want to act now.

Aaron James

CEO, Banyan Hill, Money & Markets

The Accelerated Income System: A Radical Solution to the U.S. Retirement Crisis

Maybe you’ve heard this one…

A frog falls into a pot of boiling water, and jumps right out. It’s scalded and shaken, but alive.

Then another frog falls into a simmering pot of water as it slowly comes to a boil.

The frog doesn’t notice the change in temperature.

At first it just feels like a nice, warm bath.

By the time he realizes he’s being boiled alive, it’s already too late.

No, this is not the O’Dell family’s secret recipe for Frog Stew.

It’s a metaphor for America’s ongoing retirement crisis — a crisis that most investors and government officials seem like they’d rather ignore.

But it’s a serious crisis all the same.

Facing the Facts: America’s “Phantom” Retirement Crisis

According to a recent study, people believe they need $1.46 million to retire comfortably.

A 54% increase from 2020, when people thought $951,000 was the “magic number.”

The problem is … the average adult only has $88,400 stashed away.

When you consider that the Bureau of Labor Statistics says the average retired American spends $4,345 per month — around $52,000 per year…

And, according to the Social Security Administration, the average benefit is a paltry $1,800 a month…

At that rate, retirees are destined to run out of money within the first two years…

And will have to go back to work during their golden years.

  1. Rowe Price calls it “unretiring.” About 20% of retired Americans have already had to do it.

One in eight retirees are planning to go back to work this year… and more than a third of retirees are considering it.

You can see we are looking at a very real retirement crisis in America.

It’s a whole new kind of challenge.

One that calls for radical new solutions, and new strategies for maximizing safe income.

Fortunately, my colleague Mike Carr has just the answer…

Accelerate Your Income in 2024 (and Beyond)

If you’re not a financial professional, chances are you’ve never heard of a “box trade.”

Box trades are often used by hedge funds and Wall Street mega-funds to lock in steady cash flow for their investors.

Mike’s newest strategy delivers the same consistent money-making potential to Main Street investors.

The results are nothing less than transformative.

Mike’s strategy already has a 95%-win rate over the last year…

Only making trades between Wednesday and Friday of each week…

Collecting profits within 48 hours each time.

It’s truly a shocking new system — and has the potential to revolutionize retirement accounts, as Mike explained in his special video presentation.

But I want to tackle the subject from a different angle today…

I want to show you how Mike has not only created a remarkable income and retirement tool … but an absolute market-crushing machine.

Mike Carr vs. the World (or at Least Wall Street)

Consider this: Over the last year, Mike’s new “Accelerated Income” system displayed the power to grow a portfolio by 199%.

We’re talking about the ability to turn a $10,000 account into almost $30,000…

A $100,000 account into $300,000.

Now, here’s the thing. For the average person, these are just numbers.

So I wanted to draw them out a little and lay them out in the full light of day for you to really grasp what an achievement this is.

For perspective, the market has moved up sharply in a historic rally over the last year. We’re talking about a 24% gain.

Mike’s system had the power to crush this by more than 800%.

Accelerated Income Potential Growth of $10,000 Investment over 1 Year

But that’s only part of the story. Below is a chart I had our team pull together of Mike’s Accelerated Income system’s potential … versus some of the top fund managers in the world.

Accelerated Income Potential Growth of $10,000 Investment over 1 Year with Additional Investments

You can see clearly … nobody else would have come even close.

That’s the firepower you stand to add to your trading arsenal — all of it built on the back of Mike’s proprietary system.

Mike just released a brand-new webinar to show you precisely how returns like these could be possible using his system…

How it had the power to deliver 199% growth over the last year…

Nailing a 95%-win rate…

And capturing 24- to 48-hour profits from companies like Nvidia, Netflix, Adobe and Enphase.

Once again, this is a radical new solution to America’s growing retirement crisis.

And if you’d like to hear more about it, watch Mike’s special video presentation here.

To good profits,

Adam O’Dell

Chief Investment Strategist, Money & Markets

Navigating War Weekend News & Market Volatility

On April 13, millions of people around the world were glued to their screens — war in the Middle East.

Iran had launched an attack against Israel. It would be hours before impact. The world watched as it wondered about the initial attack and any potential counterattack.

Attacks like this can be the first stage in a war. The tragedy of war is always unimaginable. It’s almost always unprecedented as new weapons or tactics take the horror of the battle to new levels.

As investors, we understand that. Our first thoughts are always to the innocents trapped in misery. But our thoughts also drift to the impact of war on the markets.

Many Wall Street pros weren’t surprised by the timing of Iran’s attack. There’s an old saying that “wars start on weekends.”

History lends some support to this idea…

Wars That Began on Weekends

  • World War I started on a Sunday, with the assassination of Archduke Franz Ferdinand.
  • World War II began on a Friday when German forces invaded Poland.
  • The U.S. entered the war after Pearl Harbor was attacked on a Sunday.
  • The Korean War started on a Sunday.
  • The action that escalated U.S. involvement in Vietnam, the Gulf of Tonkin incident, was on a Sunday.
  • The first battles of the Yom Kippur War were on a Saturday.
  • After 9/11, the U.S. response in Afghanistan began on a Sunday.

These are just some examples. We saw no tactical reason for many of these events to occur on weekends. Some were simply accidents of history.

But they still highlight a major uncertainty many investors overlook — the risk of news over a weekend impacting the market.

Why Holding Over the Weekend Is a Risk

When markets are open, big investors can instantly assess the situation. They can buy or sell based on the news. This maintains an orderly market.

However — if bad news unfolds over a weekend — we tend to see an overreaction at Monday’s open. The initial wave of selling is often followed by additional selling as traders adjust the risk profiles of their portfolios.

This adjustment process can continue for days — creating pullbacks, and even bear markets.

Now, you might be thinking that I’ve selected just a few examples of this happening. But I have data that backs this pattern over a long period.

Over the past 10 years trading the SPDR S&P 500 ETF (NYSE: SPY), if you’d bought the Friday close and sold the Monday open, you’d have lost money. This is at a time when stocks were almost continuously in a bull market.

The S&P 500 Index opened higher 54% of the time. But the average loss was 1.2X the average win. This resulted in a significant loss.

The largest loss was more than 10% in March 2020, and we had five losses of more than 5%.

Over that time, the biggest weekend gain was just 3.9%. This shows how fear grows sharply over the weekend while greed builds slowly.

This is an important lesson for short-term traders. We want to minimize exposure to news risks over the weekend to increase our chances for success.

My new Accelerated Income System follows a special kind of “box” trade that avoids weekends entirely — and the results have been incredible.

My subscribers have already enjoyed a 95%-win rate with these trades over the past year.

These are low-risk trades we never hold for longer than three days, and the steady gains allow us to compound for a significant return over the next 12 months.

We just opened access to this strategy today — and I explain how you can start using it to grow your account in my presentation right here.

Michael Carr's Signature
Michael Carr
Editor, Precision Profits

Gold’s New All-Time High Is Just the Beginning

On February 5, I predicted gold would head higher…

It wasn’t a popular prediction.

The metal was hitting its prior highs near $2,135 per ounce but failing to break through.

If you were just looking at the chart, you may have thought that it was about to break lower instead.

However, the breakout I expected happened:

Spot gold price

After getting to that $2,150 point, prices flatlined for a moment before continuing higher.

The metal topped $2,400 in trading last week amid rising global fears.

Today, prices are pausing again, but the uptrend is clear.

Gold was already beating the stock market this year before it pulled back. Now, gold’s outperformance truly shines.

With this breakout in mind, I want to revisit my prediction and see how the factors behind that prediction are playing out.

Fair warning: I do not think we will ever see gold this cheap again.

Now that the metal has broken higher, I expect it to keep going higher.

The good news? It’s not too late to hedge your portfolio with gold.

And there’s better news…

Because of how this prediction is playing out, I see several other related opportunities ahead in the commodity space.

The Trends that Moved (and Will Move) Gold Higher

Back in February, I saw gold trending higher for several reasons.

No. 1 on my list?

Global tensions.

As I noted at the time: “Unfortunately, we seem to be inching toward more global violence, not less.”

That was before Iran directly attacked Israel with a fleet of drones and ballistic missiles. And Israel’s response on Friday.

Meanwhile, Russia has entered its third year of war with Ukraine.

America and Europe are uniting behind Ukraine. Russia is deepening ties with China, which is still inching toward a potential invasion of Taiwan.

In short, the lines are drawn for a potential global conflict. And the powers involved control thousands of nuclear weapons.

I wish these trends weren’t at play. Because they are, it makes sense to be a gold buyer here for safety.

But that’s not the only reason.

In February, I pointed out that the federal debt continued to grow.

The U.S. debt clock topped $34.6 trillion.

For a country that isn’t at war (yet) or in a recession (yet), Congress has continued to run annual deficits of over $1 trillion.

That’s like stepping on the economy’s gas pedal — fueling inflation.

Even though the Federal Reserve speedily raised interest rates from 0% to 5.25% in under 18 months, inflation looks sticky.

From a peak of over 9%, inflation’s latest read was 3.5%. That’s nearly double the Fed’s target of 2%.

However, the Fed can only tap the brakes so hard when Congress is stepping on the gas.

Frankly, the likely outcome from all this is stagflation, the combination of a stagnant economy with high inflation.

In fact, you may have seen some charts like this one in recent months:

Inflation Tracking Chart

The first time I saw this chart, I found it haunting. There’s an eerie overlay between the inflation of the 1970s and the 2020s.

The early 1970s saw soaring inflation from the OPEC oil shock. The early 2020s saw soaring inflation as we fought off a pandemic with stimulus checks.

While history doesn’t always repeat itself, it rhymes.

And any event from war to another pandemic could mean more money printing, interest rates getting slashed to 0%, and with it, inflation soaring once again.

The late 1970s saw slow growth and another round of oil-driven inflation.

So yes, for many reasons, there could be much more to gold in the months and years ahead.

Gold’s Bright Future: $3,000 Per Ounce and Beyond

Where does the gold go from here?

With the price breaking higher, it could trend to $3,000 per ounce by the end of the year.

That’s only a 25% increase from $2,400. That’s a reasonable move for the metal.

A few Wall Street analysts are coming around to my view:

  • Citigroup’s analyst team just put out a $3,000 price prediction last Tuesday. They said the metal could “shine bright like a diamond,” and test the $2,500 price point repeatedly before breaking higher.
  • Goldman Sachs says gold is in an “unshakeable bull market,” but only sees a $2,700 price point for now.
  • Banking analyst Ed Yardeni of Yardeni Research sees the metal moving to $3,500 by the end of next year amid another round of inflation. As Yardeni states: “Another wage-price spiral associated with rising oil prices will look a lot like the Great Inflation of the 1970s, when the price of gold skyrocketed.”

Why is gold picking up?

Demand.

Central banks remain massive buyers of gold.

China bought 160,000 ounces in March alone.

And while they’re reluctant to disclose specifics, Turkey, India and Kazakhstan have stated they’ve been buyers this year.

Retail investors are also big buyers. It’s usually hard to get specific numbers, given the large quantity of private sales.

But one Wells Fargo (NYSE: WFC) analyst reported that one retailer is selling between $100 million to $200 million in billion per month.

The company? Costco (Nasdaq: COST). The warehouse retailer started selling bullion online and in select stores late last year.

It’s been a massive hit. Their online sales sell out in minutes. If you get a chance to buy physical gold from Costco, go for it. As with their $1.50 hot dog/soda combo, you won’t find a better bargain.

The downside? You’ll need a safe place to store it at home.

That can be a big risk if there’s a fire or theft. That’s why I don’t buy my gold from Costco. Instead, I buy it from the Hard Asset Alliance.

The Hard Assets Alliance (HAA) allows you to store gold in a number of secure vaults worldwide.

I store my gold in a safe in Zurich, Switzerland.

The point is … you haven’t missed out on the opportunity in gold.

The metal may be near its highs, but it’s looking to make new highs thanks to surging demand.

Gold likely has another 25% upside this year, and more into 2025.

And with inflation potentially picking up, all commodities stand likely to benefit. So, let’s look at the opportunity unfolding now.

Gold’s Rally Extending to Commodities

Gold’s move higher is against the backdrop of a commodity boom.

Typically, commodities move in their own cycle, which is different from stocks.

Commodities generally boomed in the 2000s, then generally moved lower in the 2010s.

Gold is an excellent example of this. It hit $1,900 per ounce in 2011, but sank to a low of $1,050 by 2016.

Oil is another great example. It first topped $100 per barrel in 2008, up from $40 at the start of the 2000s.

But it went back to that low by 2014 — and even briefly traded negative for a few days in 2020!

Today, however, commodities are back in rally mode.

The Invesco DB Commodity Index Tracking Fund (NYSE: DBC) is the largest commodity ETF. It holds a basket of assets, including gold, base metals like iron and copper, and energy assets like oil.

Here’s how it’s performed over the past five years:

5 Year DBC Tracking

The commodity market tends to move in multi-year cycles of 7+ years. If we started a new commodity boom in mid-2020, we’re a little over halfway done.

And the above chart is beginning to look like it’s forming a cup and handle pattern. Once we break out of that pattern, we’ll see a new five-year high.

Given today’s lingering inflation and government money printing, this commodity boom should be no surprise.

Because of the long duration of commodity bull and bear markets, it’s also easy to forget that the end of the bull market tends to offer the best gains going forward.

The Top Winner for the New Commodity Boom

If I had to pick a winner for the commodity boom, I’d say oil.

Think about it…

It’s still well off its highs.

And given the inflation of the past few years, you could even say it’s downright cheap in real terms.

The recent global uncertainty and saber-rattling point to a potential oil price shock.

And since President Biden drained America’s Strategic Petroleum Reserve (SPR), we don’t have a significant buffer in place to absorb that shock.

Plus, as cool as some of today’s green energy technology is, it’s not ready to take over 100% of our power needs. Not even 50%.

Maybe 10% to 20% at best.

We’ve seen that electric vehicles need a consistent power source to charge. That’s not solar or wind. New nuclear power plants could offer a clean source of energy.

But as far as alternatives go, it won’t roll out as fast as many have predicted. That still leaves oil as the vital energy commodity, especially for transportation.

Money & Markets analyst Adam O’Dell has put together research on how surging energy demand could cause oil to move to $500 per barrel, blowing past all historical records.

Oil hasn’t made a new all-time high in over 15 years. However, prices could start to perk up in late May and really take off after OPEC’s June 1 meeting.

You can check out the latest research here, where he explains the influential trends driving oil prices substantially higher in the coming years and the best way to profit from this trend.

Aaron James

CEO, Banyan Hill, Money & Markets

Consistent Low-Risk Income: A Pipedream or Within Your Reach This Week?

Generating income can feel like a bit of a wild goose chase…

Trying to find the smartest way to safely and steadily, that is.

Sure, you want to consistently build your wealth over time — but without the headache of worrying about high, unpredictable risks.

You’ve likely seen a ton of options floating out there…

Everything from:

  • Buying dividend-paying stocks.
  • Government bonds.
  • Fixed-income securities (like CDs and money market funds).
  • Real estate investment trusts (REITS).
  • Owning rental properties.

This is just to name a few.

And these may be touted as promising investments. But digging deeper, you’ll discover that each of them comes with its own drawbacks and varying degrees of risk, which can get complicated real quick.

For many of us, some of these mean more trouble than payoff.

That’s why we wanted to make it simple for you…

We’ve asked Money & Markets Chief Market Technician Michael Carr, to come up with a solution to share with our readers…

To tell us what he believes is a much better way to secure consistent cash flow, regardless of the state of the economy, or if the market is crashing, soaring or lugging sideways.

Mike’s response was nothing short of impressive.

He’s put together a reliable trading technique that has demonstrated a 95%-win rate. It has delivered weekly payouts from low-risk trades that were closed within a couple of days.

And it’s part of his algorithmic system he calls “Accelerated Income” — just one of his many breakthroughs as a successful systems designer and trader.

Mike’s been trading the markets for 30+ years. He was a hedge fund manager who grew his former firm from $80 million to $220 million in about a year and a half.

He is also a military veteran who coded radar systems to control our nuclear armament. As one of the military’s top computer scientists, he built technology for billion-dollar firms, which to this day influence both Washington, D.C. and Wall Street.

His extraordinary experience on both the financial and military fronts — and his high-level dedication to precision — has led him to create a system you won’t find anywhere else. One that has the potential to grow an account 199% in a single year.

We want to make sure you have the opportunity to see this as soon as possible.

In a few days, Mike will show you how to start benefiting from his Accelerated Income system for the chance to take home consistent, low-risk income each week.

Just go here to get on our early-access list for his Accelerated Income Summit” — happening this Thursday, April 25, at 1 p.m. ET.

You won’t want to miss this.

Happy Sunday,

Your Banyan Edge Team

The Fog of Markets & War: We Trade Like Mike Tyson Fights

On Saturday, Iran launched an unprecedented attack against Israel.

It seemed like a well-planned operation. Suicide drones, ballistic missiles and cruise missiles were launched from several locations. The plan was most likely an attempt to overwhelm Israel’s air defense systems … and it failed.

Israel and its allies prevented 99% of the drones and missiles from reaching their targets.

This kind of outcome is fairly typical in military actions.

More than 150 years ago, Prussian Field Marshal Helmuth von Moltke wrote: “No plan of operations extends with any certainty beyond the first encounter with the main enemy forces.”

Mike Tyson explained the concept in simpler terms when he said: “Everyone has a plan until they get punched in the mouth.”

Iran’s weapons were punched in the mouth by an Israeli-led coalition of forces. With that, the fog of war, which perpetually hangs over the Middle East, thickened.

“The fog of war” is associated with another Prussian Major, General Carl von Clausewitz, who explained: “War is the realm of uncertainty; three quarters of the factors on which action in war is based are wrapped in a fog of greater or lesser uncertainty.”

Military leaders around the world understand these principles. That’s why they train their troops. Once the shooting starts, they expect their troops (the individuals facing fire) to adapt to what they see in real time.

There’s an important lesson here for investors — but it’s not the obvious one…

How to Battle the Fog of Markets

Many investors think of a market selloff as the fog of war.

They hold fast, believing that’s what they need to do. After all, they know stock prices always come back. And besides, they bought quality companies.

So, what could go wrong?

Well, everything.

You see, stock prices don’t always come back.

Many of you are old enough to remember Enron. That one-time high-flier never came back because the company went into bankruptcy.

As it was flying high, almost everyone believed Enron was a quality company. Its earnings were growing. Management said all the right things. Yet few investors understood the company was a fraud.

Enron is a memorable example. But there are many other stocks that never came back. That includes high-quality companies that were, in fact, far from being frauds.

Yahoo stopped trading in 2017 more than 50% below its all-time high. Sears went bankrupt in 2018 after falling 99% from its 2007 high. And Bear Stearns fell from more than $170 to less than $10 in the 2008 financial crisis.

Instead of digging in, investors need to react to the changing environment.

In other words, we need to think like Mike Tyson instead of pretending we’re Warren Buffett.

Tyson adapts to what he sees in the ring. If he’s getting hit by hard rights, he protects his left side. If he finds his opponent leaves his left open, he throws more rights.

This might differ from what Tyson expected. But that doesn’t matter. Tyson’s goal is to win. Sticking to the same plan won’t help him beat adversity.

This is the lesson investors need to carry them through the fog of the markets.

One way to adapt to the market environment is to know when you’ll sell.

Investors in Enron, Yahoo, Sears, Bear Stearns (and every other delisted stock) had many opportunities to exit with smaller losses. Unfortunately, too many stubbornly held on to the bitter end.

Another way to survive (and profit) through the uncertainty of the market is to trade short-term strategies that adapt to the market action.

Adapt, Win, Repeat

My Precision Profits subscribers trade like Mike Tyson. We’re adapting to the market action every day — just like Tyson adapts to every round.

One of our trading strategies — the Opening Range Breakout (ORB) — holds positions for just two hours … or less. And it’s had a pretty active month.

In the first half of April, we’ve locked in 13 trades. Eight of them were winners, and five of those were for a 50% gain or more.

So far this month, a $1,000 allocation to the strategy would have generated $593 in profit. This comes at a time when the S&P 500 is down 3.5%.

Better yet, ORB is designed to excel when stocks are volatile.

It’s a strategy every investor should consider as we move into a time when global events — like warfare attacks — might increase the risks of a buy-and-hold strategy.

Of course, ORB is just one of my favorite battle-tested tools for growing profits.

I’m constantly looking for a new edge to help my readers make additional money in any type of market.

That’s why I’m about to open access to my income strategy … one that I’ve spent the last couple of decades refining to achieve stunning results.

I’ll even be using my own $30,000 account to target $78,000 with this strategy over the next year, to show just how confident I am about this system’s performance.

I’ll be sharing the full details of how you start using it with me next week. So remember to grab your free spot to my Accelerate Income Summit” — on April 25 at 1 p.m. ET — right here.

Regards,

Michael Carr's Signature
Michael Carr
Editor, Precision Profits

Peter Lynch’s Wisdom for Seasonal Trading

Spring brings with it the perfect opportunity for a fresh start — not just for tidying up our homes — but also for assessing and revitalizing our investment portfolios.

And for our portfolios, we can take a cue from legendary investor Peter Lynch.

He’s renowned for his exceptional management of the Fidelity Magellan Fund, which achieved remarkable returns during his tenure from 1977 to 1990.

While the S&P 500 Index delivered an average annualized return of about 11% over the same period, Lynch nearly tripled that, boasting an impressive average of around 29% per year.

His success wasn’t built on complex theories or intricate algorithms.

Rather, it was simple, timeless principles that allowed Lynch to achieve stunning results…

“Water the Flowers, Cut the Weeds”

One of Lynch’s most famous phrases — “water the flowers and cut the weeds” — captures his philosophy on portfolio management.

Just as we tend to our gardens, nurturing the flourishing plants while removing the unsightly weeds, investors should focus on fostering successful investments while pruning or eliminating the underperforming ones.

Seasonal trading helps us to do that, although it goes beyond simply heeding Lynch’s advice to “cut the weeds,” and not the flowers.

Seasonal trading involves recognizing recurring patterns in the market’s behavior throughout the year. That’s what I do in Apex Alert.

For example, the “January Effect” is a well-known seasonal pattern, where small-cap stocks tend to outperform large-cap stocks in the early months of the year.

Of course, I’ve identified many other, more sophisticated patterns that occur throughout the year and give us the chance to collect profits.

Our Next Seasonal Trades 

This week in Apex Alert, we are closing a position in Sprouts Farmers Market, Inc. (Nasdaq: SFM) for a gain of about 20%. We added this stock in February, which was the ideal time to buy stocks in the food sector according to my research.

This year, we achieved a gain of about 9X that of the S&P 500 with this trade. And we’ve had six other trades so far that have also been winners.

Understanding these seasonal patterns — and knowing the optimal times to enter and exit them — allows us to continually maintain our portfolio, keeping it filled with flowers and pulling any weeds quickly if they appear.

We have new seasonal opportunities every six weeks, on average, throughout the year. Apex Alert readers already know the dates of these trades and which sectors to focus on during these profit windows.

Our next buy signal in the tech sector is right around the corner.

To learn how you can benefit from the latest profit season by jumping into our next Apex trade that I’ll be releasing this Monday — just go here.

Regards,

Michael Carr's Signature
Michael Carr
Editor, Precision Profits

The Millennial Generation Will Fuel the Dow’s Surge to 100,000

The Dow Jones Industrial Index (DJIA) is heading to 100,000.

As I mentioned last week, AI is a huge part of it.

But there’s another reason…

It’s thanks to demographics, the data used to look at populations as a whole.

Demographics indicate some significant shifts as the millennial generation hits their peak earning years.

Each generation follows a different lifestyle. What matters most as an investor is how each generation spends their money.

Following the spending trends of any generation as they hit their peak spending years can lead to better market returns.

It can mean the difference between making 200% to 300% in a decade just following the index, compared to earning as much as 5,260% in 10 years.

Done right, following a generation’s peak spending years can make you a millionaire.

Knowing which generation is on the rise and how they spend can have huge investment implications.

And investing in the right companies can make a huge difference in your wealth over a lifetime.

How Following the Baby Boomer’s Spending Trends Led to the Market’s Winners

To understand the future, let’s take a look at the past, starting with the baby boomers.

They’re the group born between 1946 and 1964. The boomers born in 1964 are turning 60 this year. It’s safe to say this generation is either in, at or near retirement.

And what a run they’ve had!

As the boomer generation grew up, some industries saw massive growth at different stages of their life-cycle.

Toymaker Mattel (NYSE: MAT) was a big winner in the 1950s. Media giant The Walt Disney Company (NYSE: DIS) was the best-performing S&P 500 company between 1950 and 1980, soaring over 800%.

There were some growing pains along the way…

The boomer generation started to earn money in the 1960s and 1970s but had to contend with high inflation and soaring commodity prices. The 1974 bear market was a brutal 50% pullback, combined with double-digit inflation. Ouch.

That may have pushed that generation to look for reasonable everyday prices. It should be no surprise that retailer Walmart (NYSE: WMT) soared 5,260% during the 1980s as the last of the boomers became adults and started spending.

As the boomers entered the workforce full-time and began to save and invest, financial services soared to cater to their needs. Between 1950 and 2000, financial services quadrupled to over 8% of GDP.

Financial Sector's Share of GDP (8.4%)

The stock market saw some of its best returns in the 1980s and 1990s thanks to this shift.

In 1950, the percentage of Americans who owned stocks stood at just 6%. By 2000, it peaked at 61% — just as the first of the boomers hit their mid-50s.

So it’s clear that the boomer generation’s spending included a mix of material things as well as investing in financial assets over the years.

That combination allowed the Dow to soar from 3,500 in 1980 to 20,100 by the year 2000.

Dow soars from 3,500 in 1980 to 20,100 by the year 2000

Amid that trend, again, specific stocks did even better.

Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A), a conglomerate that largely owns insurance other financial companies, rose 4,490% in the 1980s. Since 1965, it’s beaten the S&P 500 by 120X!

Investing in some of the top-performing stocks that play to those spending trends can mean the difference between earning 150% to 200% over 10 years — or 4,400% to 5,260%.

Good news: Catching the right stocks at the right point of the millennial’s peak spending cycle should see similar results. And why Dow 100,000 is in my sights today.

The Millennial Shift: Experiences & Tech Over “Things”

Today, the millennial generation is on the rise and entering their peak spending years.

That has huge implications for the market going forward.

For starters, the millennial generation is a slightly larger group than the baby boomers. Millennials number 72.1 million compared to 71.6 million boomers.

On the spending side, millennials are behind boomers in housing spending. 42% of them are homeowners by age 30, compared to 51% of boomers.

Part of that lower spending on housing may reflect the fact that median home prices have soared in real terms since 1970, when the earliest boomers began buying homes.

Median Home Prices 1970 - 2022

By today’s standards, a home is about 66.7% more expensive in real dollars than in 1970.

Sounds like the kids are just making a wise decision by buying other assets instead.

By living with their parents longer, millennials have been able to spend and invest money that would otherwise have gone into housing.

Recent studies show that millennials have no issue with earning, spending and even investing.

64% of millennials are currently invested in the stock market, slightly above the average for all Americans (61%).

Of those investors, 65% say they’re faring above average, thanks to their increased willingness to invest heavily in tech stocks.

That may include many of today’s well-known companies like Microsoft (Nasdaq: MSFT) and Apple (Nasdaq: AAPL).

However, you may not always want to invest in a company just because it seems to cater to millennials.

Adam O’Dell, our systematic investment expert at Money & Markets, just pointed out in Friday’s Banyan Edge that, since its IPO, investment app Robinhood (Nasdaq: HOOD) has declined 45%.

However, another tech-heavy investment platform that he recommended for his Green Zone Fortunes members is up nearly 80% over the same period.

While millennials are spending less on homes and even cars, they are willing to crack open their wallets to travel. Investors may be surprised by the performance of hospitality and tourism stocks in the years ahead.

While millennials favor experiences over things, they’re also a tech-savvy generation. They grew up during the rise of the personal computer and internet boom.

So when it does come to shopping for things, they’ve massively embraced e-commerce. Investors may not want to overlook opportunities to play to that trend, even in mega-caps like Amazon (Nasdaq: AMZN).

Next, millennials are benefiting from today’s technology booms in everything from AI and cryptocurrencies to EVs and green energy.

As I mentioned last week, the AI boom is likely to fuel a productivity boom at least as large (likely larger) than the internet.

And millennials have already adapted quickly to these new technologies. The latest jobs created to address this new tech trend will primarily go to that generation and pay well, increasing income for millennial workers to travel and invest further.

Today’s AI technologies can help give America’s economic growth a shot in the arm.

The shift to a generation that’s grown up comfortable with today’s technology may help accelerate the development of even more new technologies.

That’s why the rise of millennials could mean that markets have a massive bull run in the coming years.

Investors who invest in the right travel and tech stocks stand the best chance of beating the market’s returns even further.

The Demographic Shift Won’t Impact Dow 100,000

I’ve made it clear that I’m already targeting Dow 100,000, even if it’s “only” near 40,000 today.

From 40,000, the Dow has to rise 150% to hit 100,000. That’s easily achievable, especially if we’re in the early stages of an AI-driven tech stock boom.

Yes, we’ll have our ups and downs on the way there. But we could be there before the decade is out.

That’s because the markets are now being driven by new technologies such as AI, cryptocurrencies, automation, EVs, you name it.

These are the next generation of tech companies. The ones that will be added to the Dow in the years ahead and help it soar to 100,000 and beyond. And where millennial investors are flocking today.

Adam O’Dell calls these companies “Tech Titans.” He just released the latest research on them, and how their growth can play out in the years ahead.

Sounds like the stock market will be just fine.

Yes, there are some generational differences between boomers and millennials.

Millennials are a bit more averse to having debt. And they’re behind other generations in terms of buying homes. They spend less on things and more on experiences. But they’re still earning, spending and investing.

Understanding those differences can help you navigate these investment opportunities as millennials hit their peak spending years — and send the Dow to 100,000.

So whether you’re a millennial or not, their spending trends could make you millions.

Our experts at Banyan Hill will continue researching the best investment opportunities as this demographic trend plays out … all while making investing safe, easy and fun.

Aaron James

CEO, Banyan Hill, Money & Markets

Read This Before Buying any Bitcoin ETF

In January 2024, the Securities and Exchange Commission (SEC) made it legal for financial companies to release exchange-traded funds (ETFs) that can track the price of bitcoin.

In this article, I’ll break down why you should avoid buying a Bitcoin ETF at all costs – as well as my thoughts on why BTC is set to rally.

3 Reasons Why You Should Never Buy a Bitcoin ETF

They Charge Unnecessary Fees

A Bitcoin ETF is essentially just a financial tool that tracks the spot price of Bitcoin while charging you a fee to do so. But…you can easily do this yourself by opening a crypto wallet and buying Bitcoin. So, why would you pay another company to do it for you?

According to Nerdwallet, most Bitcoin ETFs charge between 0.5% to 1.5%. Now, you might think that these financial institutions are using some sort of secret strategy when tracking Bitcoin’s price. Right? Like, maybe they have a special crypto wallet that uses ultra-safe encryption technology. Nope. According to Nerdwallet, most Bitcoin ETFs on the market use Coinbase (Nasdaq: COIN). Again, this is easily something that you could do yourself – for free.

I guess it’s true that some BTC ETFs invest in futures while others invest in Bitcoin mining stocks. So, buying a Bitcoin ETF for the sake of tracking all of the BTC mining stocks might make a bit of sense. But, if you’re solely interested in getting exposure to Bitcoin then it makes zero sense to buy an ETF.


Now, I know what you’re thinking. Some of these ETFs have really cool names, like the “Bitwise Bitcoin Strategy Optimum Roll ETF”: (NYSEARCA: BITC). With a name like that, this ETF must have a unique trading strategy that outperforms Bitcoin, right?

Wrong.

Bitcoin ETFs Underperform BTC

I checked the 6-month returns of Nerdwallet’s Top 10 Best ETFs and, guess what? All 10 of them have underperformed Bitcoin’s return over the same period.

I know this is a bit of a small sample size. After all, a 6-month window isn’t very long. There’s a chance that these funds will go on to outperform BTC over the next 1 year, 5 years, or 10 years. But, I doubt it. Over the past 6 months, most of these ETFs weren’t even close to mirroring BTC’s return. They have all underperformed BTC by 20-30% or even more in some cases.

So, again, you’re essentially paying a company a fee to underperform the return of Bitcoin. On top of that, buying a Bitcoin ETF goes against everything that Bitcoin stands for.

A Bitcoin ETF is Against Bitcoin’s Ethos

If you’re a fan of Bitcoin and the decentralized finance movement then you know that bitcoin is all about people regaining control over their money. Right now, money is controlled by the government, central banks, and consumer banks.

  1. The government takes your money through taxation
  2. The central bank devalues your money through inflation
  3. Consumer banks determine what you can or can’t do with your money.

Whenever you want to do something with your money, one of these three entities is standing by to make your life difficult.

Didn’t pay enough taxes? Here’s the government ready to audit you and demand all of your financial information.

Saving money so that you can buy a home? Well, the Fed raised interest rates so now you can’t afford the mortgage.

Want to send money to a friend? The bank says you have to wait until Monday.

The main purpose of Bitcoin is to solve issues in our financial system and eliminate financial middlemen. In doing so, Bitcoin gives you more control over your finances. If you buy a Bitcoin ETF then you’re just perpetuating the system that already exists. Bitcoin might not be a perfect solution to all of the problems I listed above. But, it’s the best alternative we have if we want to regain control over our money.

That said, even though I’m opposed to buying a Bitcoin ETF, I still think buying Bitcoin is a great idea. Here’s why.

Bitcoin’s Pending Surge

TLDR: Trillions of dollars will soon be invested in BTC = prices goes up.

The SEC’s decision to allow Bitcoin ETFs has ushered in a new age for the cryptocurrency industry. With this new rule, Bitcoin is no longer a fringe asset that’s used by drug dealers to launder money. Instead, BTC is officially a legitimate financial product that’s certified and approved by the world’s biggest financial institutions. This is a massive context switch.

During its initial announcement, the SEC said that it approved 11 applications for BTC ETFs. Over the coming years, I’m sure that dozens more funds will enter the industry. This means that wealth advisors around the world are starting to advise their clients to buy Bitcoin and other crypto assets. This will trigger a massive influx of money into BTC.

Visual Capitalist estimates that there are 59.4m millionaires in the world. These people make up just 1.1% of the world’s population. But, they account for roughly 45.8% of the world’s wealth – which is approximately $210 trillion. The overwhelming majority of these millionaires do not manage their own wealth. When you think of the average millionaire, you conjure up images of:

  1. Trust fund kids whose family owns businesses, real estate, or similar assets
  2. Famous celebrities like actors, athletes, singers)
  3. High-paid professionals like doctors, lawyers, CEOs

Do you really think any of these personalities are sitting around managing their own wealth? Absolutely not.

Imagine The Rock balancing his portfolio each quarter. Or, America’s top brain surgeon buying shares of $VOO on Robinhood (Nasdaq: HOOD). Not happening. For the most part, wealthy millionaires have someone else manage their money. Usually, a family office or similar high-end wealth management service. I’m talking about the types of investment firms that require $50 million in assets just to schedule a meeting.

Over the coming years, these private family offices will start to recommend BTC ETFs to their clients. This will result in trillions of dollars of privately managed wealth pouring into Bitcoin – likely resulting in a massive spike in price. Even if just 1% of privately managed wealth is invented in Bitcoin, it will result in $2.1 trillion flowing into BTC over the coming years.

I feel especially strong about this, thanks to the great wealth transfer.

Will BTC Replace Gold?

I have a very strong conviction that Bitcoin will eventually replace gold as the world’s default “safe haven” investment. I say this because America is currently undergoing the greatest wealth transfer of all time.

Over the next two decades, Baby Boomers will transfer $84 trillion to their kids (Mainly, Millennials and Gen Z). This means that many younger generations will suddenly find themselves responsible for investing the family fortune. And, they’ll likely show a stronger preference for Bitcoin and crypto than their parents did.

Most advisors recommend keeping between 5% to 10% of your portfolio in gold. These talking points have been repeated so often that few people dare to question them. However, I think this mentality will gradually start to change over time. After all, how many younger investors are really interested in buying gold? For the most part, they only do it because “it’s what you do.”

But, you can’t spend gold. It barely increases in price (compared to other assets). You can’t even really use it, outside of jewelry or fashion pieces. BTC, on the other hand, can be easily transferred, spent, sent to friends/family, and has proven to increase dramatically in value over time. For these reasons and more, I believe that BTC will eventually replace gold as the default “safe haven” investment.

Anyway, I hope that you’ve found this article valuable when it comes to learning why you should never buy a Bitcoin ETF. If you’re interested in reading more, please subscribe below to get alerted of new articles.

Disclaimer: This article is for general informational and educational purposes only. It should not be construed as financial advice as the author, Ted Stavetski, is not a financial advisor. 

The post Read This Before Buying any Bitcoin ETF appeared first on Investment U.

Smart Money Is Moving Into Oil Amid Rising Global Tensions

With the election approaching in November, the news is dominated by stories about politicians and filled with the latest policy statements and missteps of the presidential candidates.

But other stories could be even more important to U.S. consumers.

You’ve likely seen the headlines. There are two major wars underway right now:

“Tehran, Hezbollah vow ‘revenge’ against Israel…”

“Drones Strike Deep in Russia, as Ukraine Extends Its Weapons Range”

These wars can escalate — and history shows they can intensify in unexpected ways, at unpredictable times.

Wars can also lead to stories no one sees coming. That makes sense. Even the smartest weapons can miss their target and cause damage to the people and infrastructure they are trying to protect.

A recent example of that can be seen in this headline:

“Damage to Cables Under Red Sea Highlights Mideast Conflict’s Broader Threat”

Many missed that story, but it’s an important one. The New York Times wrote:

Mysterious damage to vital communications cables under the Red Sea has raised concerns about whether the conflict in the Middle East is now beginning to threaten the global internet.

Just as the waters off Yemen hold crucial shipping lanes, they are also a critical location for undersea cables that carry email and other digital traffic between Asia and the West. Around a dozen cables run through the area, and more are planned.

These bundles of glass fibers, about as thick as a garden hose, “are extremely important,” said Tim Stronge, vice president for research at TeleGeography, which analyzes the telecommunications market. “Over 90 percent of all communications traffic between Europe and Asia goes through those” cables.

Experts believe the damage was likely caused by Yemen’s Houthi rebels.

Before last month, few of us would have thought the internet was at risk from a war waged by non-state actors. Now, we all realize we live in an age of asymmetric warfare, where smaller groups can cause damage that affects thousands, even millions of innocents.

We’re also starting to realize that the risks aren’t going away. This has important implications for investors.

War in the Middle East can quickly escalate, cutting off oil flows from a critical region. War in the Ukraine also threatens the global oil supply.

The smart money in the oil market has noticed this.

In futures markets, large traders are required to report their positions to regulators. Large traders include hedge funds and commercial users who buy oil to use later.

Commercials include refiners who need a steady supply of oil to produce refined products like gasoline. Other consumer users use oil as a hedge. For example, airlines use oil markets to hedge the costs of jet fuel. Their gains in oil can offset higher fuel prices.

Since October 7, when Israel went to war, commercials have increased their holdings by 18%.

This trend shows that “smart money” is concerned about its supply. Price action confirms this is a valid concern. This week, oil prices reached a six-month high.

With the smart money moving into oil, energy stocks have also moved to six-month highs.

Now could be an ideal time to consider oil stocks — before bad news sends the sector to higher highs.

Adam O’Dell has been tracking this sector and discovered one of the best ways to invest in oil’s bullish run. He’s sharing his top oil stock recommendation set to soar. Go here for the full details.

Regards,

Michael Carr's Signature
Michael Carr
Editor, Precision Profits