Unless you’ve been camping out in the deep backwoods for the past two weeks or so, you know the news cycle is overwhelmingly negative at the moment.
I’m hearing from lots of folks who fear the worst is dead ahead, like a brick wall we’re headed for at 90 miles per hour.
It’s understandable. How many more headlines can we read about impeaching the president? About the trade war, about the war on success, before we go mad?
I think a good chunk of the world is there now, frankly.
Maybe you feel the same. And if so, you’re not alone. I feel the angst, too.
That said, I sure am relieved we don’t do politics around here, that we deal with money! Money is a different animal: It’s simpler. It’s profitable. And it’s fun… or at least it should be, anyway.
No matter how bad things get, no matter how atrocious the headlines become, no matter how disgusting the political vitriol will get, money will always be on the move.
Today, right now, is the perfect opportunity to talk about how we can set ourselves up to grab our fair share…
Money: It’s Always Growing Somewhere
Over the summer, we began to hear alarmist reports (go figure!) of an economic “slowdown” underway in places like the European Union, China, and to an extent, here in the United States, too.
As hysterical as the reports were, there’s an element of truth to them; these vast economies are slowing down, though with China’s GDP projected to grow “only” 6.267% this year, I’m sure not worried.
But as globally oriented investors looking at worldwide profit opportunities, it’s critical to remember that growth may slow, but it will most definitely not stop.
In fact, there are global, up-and-coming economies that are growing at breakneck speed. Ghana, in West Africa comes to mind, where growth is expected to top 8.7% this year. I’m not suggesting we dive in headfirst there, but it certainly proves my point.
And even in the Eurozone, where GDP is slowing overall, Ireland is on pace to beat 4.1% as it benefits from corporations scrambling to insulate themselves from Brexit chaos. That underscores another powerful thesis of ours that there’s always, always, always opportunity in chaos.
I know it, you know it, and, more to the point, the world’s best companies know it. That is precisely why they will continue to plow ahead – and we will continue to invest so that we can tap into that.
That’s been the case during two world wars, multiple conflicts, economic boom and bust, presidential assassinations, prior trade wars, the Asian Currency Crisis, the dot-com bust and recovery, and the global financial crisis of 2007 and 2008… even the Nixon and Clinton impeachments.
Take Amazon.com Inc. (NASDAQ: AMZN), for example…
It’s one of my favorite stocks for a reason – several reasons, actually.
The company has a virtually unlimited supply of cash and is tightly integrated with consumers at a time when it’s making a very concerted three-pronged, all-guns-blazing approach into cloud computing, advertising, and e-commerce.
These are all high-margin businesses growing at between 45% and 50% a year, no matter who lives at 1600 Pennsylvania Avenue, no matter what monkeyshines Wall Street pulls or what the Fed thinks it knows about rates.
AMZN is going for about $1,700 a share right now, and many people think it’s expensive, even risky. The investing public is nervous because of looming anti-trust regulation, or the threat of clueless government regulators trying to break the company into pieces.
Did I mention many people think it’s expensive?
So what! That’s what they said at $100, $500, $1,000 a share. I think it should be $2,500 or even $3,000 within the next two years, which makes it unbelievably cheap in my book.
Same story with Apple Inc. (NASDAQ: AAPL). The company has made a proper bet on 5G, services revenue is exploding, and the pivot into medical devices in the American market alone could be three times the global iPhone market every stuck-in-the-past analyst is so mistakenly focused on.
I think AAPL will hit $400 in two years if the broader markets aren’t held back – and even if there’s some short-term selling now.
Besides, you can use near-term market pain caused by uninformed and skittish investors who fear a fall to your advantage.
The important thing right now is to make sure your money is lined up with one or more of the Unstoppable Trends we follow. Doing so puts trillions of dollars at your back… instead of in your face.
If, for whatever reason, you’re not signed up for my free Total Wealth research service, please click here to do it now and get up to speed on the six Unstoppable Trends; they’ve minted millionaires for centuries, and they’ll continue to do just that for a long time to come.
Then, make sure you’ve invested only in “must-have companies” like the two I’ve just mentioned. These are the firms that are making products and providing services the world cannot live without… as opposed to “nice to haves” like Peleton or WeWork (which just withdrew its offering) that aren’t worth the paper their stock certificates are printed on.
And finally, keep a razor-sharp eye on risk management “just in case” the markets have other ideas. In which case, you can calmly, rationally regroup and – importantly – safeguard your profits and your capital while others panic in the heat of the moment.
— Keith Fitz-Gerald
Source: Money Morning