2200-2350 has held and been retested 3 times in 10 days...It is Time to be Brave!
Dear Subscriber,
Day 90 CoronaVirus Pandemic
Advice 3/24/20
#1 Closeout the XOP/SPY/QQQ PUT options in our Transformity Growth and $10k-a-Month Club Portfolios--and have a GREAT dinner and wine this weekend--you made it.
#2 We'll rebuild portfolio with 3 "Buckets" of Equities and ETFs ETNs
#3 We have been hard at work preparing these buckets of secular growth, long term stock options and blown up cyclical stocks that ALL represent real value.
Hundreds of consumer-facing companies have been blown up 80-90% in everything from food services to gambling to travel and hospitality (in addition to energy and mortgage REITS etc)
We have a once a generation opportunity to separate the wheat from the chaff in high-income land and lock in stunning monthly and quarterly income in the companies and funds that have HUGE contracted and secured income streams that are being priced as if they are bankrupt.
We are running numbers on a huge number of companies in dozens of industries to ascertain:
1) What is secular and what is temporary
2) What demand comes back first
3) What demand does NOT come back
4) What are the most obvious mispriced income opportunities
5) What are the once in a generation dislocations
We will send you the entire list this week in a long newsletter--and then select what we collectively think gives us the best chance to be in a great position as the V-shaped Q3/Q4 recovery comes roaring back.
As I shared last week, the good news is we WILL get a generational opportunity to turn $100k or $1 million into $300K-$3 million of new wealth IF YOU PLAY THIS RIGHT.
Rule #1 We will buy the VERY BEST 20+% 3-5 Year CAGR Growing Sectors with VERY BEST 15-20%+ CAGR IP owning companies and some incredible new disruptive opportunities, too.
Rule #2 We will enhance those gains with long term stock options (to lower cash risk and enhance leverage)
Rule #3 We ASSUME the full-blown $8 TRILLIONFiscal/Monetary/Corp TARP/TALF like bailout will pass this week and the Federal Government and Federal Reserve will become the "lender of last resort" to keep the $21 trillion US Economy afloat while it declines @25%+ or @ $4 trillion+ in GDP in April/May/June Q2 on lockdown.
The S&P 500 2200-2350 bottom has held and been tested 3 times. I am 99% certain we will get at least one MORE RETEST from a combination of the 3+ million new unemployed numbers of Thursday and the horrific infection and death rates that continue to climb in NYC and California.
But the
$6 trillion TARP/TALF Federal Reserve plan is stood up and running
The $2.2 Trillion Federal Bail-Out Package will be clear by Friday
The BRUTAL increase numbers in Covid-19 cases and infection data via testing will peak in 2-3 weeks
The stock markets in China and Italy bottomed when the rate-of-the-rate of new cases (the second derivative) peaked.
The Investment Grade (IG) corporate/mortgage/leveraged loan markets stayed open and borrowers stayed solvent with Fed buying
Our New 2020 Game Plan: 1/3 1/3 and 1/3 Into 3 Buckets of Stocks
Again, the core thesis of our Transformity Investing Principle (and ChangeWave Investing before that) is as simple as it is powerful: that "true S-curve transformational change is the greatest force of wealth creation and wealth destruction force in the world."
Typically investors think of this principle with regards to a disruptive new technology (iPhone) or consumer product category (say athleisure from Lulu Lemon or energy drinks from Monster Beverage) or major disruptive regulatory, fiscal or monetary policy transformations.
But these transformational events we are living in now at the low yesterday was a "7 Sigma" event aka 7 standard deviations outside of normal trading ranges--that is a historic transformational event in size, in velocity and in trading days.
TODAY was all about the short covering and algorithmic machine trading. With no floor brokers at the NYSE, LITERALLY, every trade was electronic and the computer black-box buying was almost 70% of the trades (from NYSE/Nasdaq data).
So 1/3, 1/3 and 1/3 into 12 Growth, 10-12 High Income and 8-10 Insanely Blown Up consumer-facing companies with PLENTY of cash and back-up to "make it to the other side" of the V-shaped recovery.
Note
We added a "6-Month Portfolio Protection Plan Membership" to Transformity Investor PRO to help family and friends to navigate this bear market so they benefit from this bear market snap-back.
HOW they can protect their retirement nest egg
WHY there will be another historic buying opportunity like late 2018 and March 2009 to earn 100-200%+ gains over just 6-12 months. With average stock market return since 1988 8%--there will be a once in a lifetime opportunity to earn 20-30 YEARS of stock market wealth in 24 months or less.
We know the leading 20%+ unstoppable secular growth sectors of the great Industrial Revolution 4.0 being led primarily by American based disruptors WILL BOUNCE BACK HARD because
Why "Value Investing is Dead" in a world where you discount future earnings and terminal value of companies growing just 2-4% at 1%!
IF YOU HAVE family and friends that have a lot at stake and at risk in this now undeniable global pandemic and the negative real-time second-order global economic effects that are rippling through the world economy, feel free to forward them our Code Red Updates and invite them to click here and join us for just $49 in the Transformity Research digital bunker.
Final Word: Stay strong, watch your email, and be ready to take advantage of this once-in-a-lifetime opportunity. EVERY one of these disasters since the end of WWII has ultimately been buying opportunities. BUT to take advantage, you need CASH.
Stay Transformity Strong--it's time to be brave.