Our Q2 Millionaire Meltdown 2020 Game Plan
Dear Subscriber,
Ladies and Gents--The Bank of Uncle Sam is OPEN, and he can print all the $trillions of money we need with literally a keystroke at the NY Fed and the Treasury.
We indeed have a once a generation opportunity to
A) Get amazing stocks that will thrive in the post-Covid 19 world
B) separate the wheat from the chaff in high-income land and lock in stunning monthly and quarterly income in the companies and funds will survive but being priced as if they are bankrupt.
For our Transformity Family Office LP, we have been researching over 125 blown up preferred shares in all kinds of companies and structures. We have also been day trading leveraged ETFs in every sector for short term trades--TQQQ SOXL FAS etc like fighter pilots in a dogfight.
$10K a Month Club Portfolio Action to Take Tomorrow: Reestablish full positions in the blown-up yet highly secure Prefered Stock and Closed-End Fund ETFs and ETN
PFFA: Buy under $15 with >20% yield target $25
PFFR: Buy under $19 with >19% yield target $25
PFFL: Buy under $16 with > 18% target $25
CEFZ: Buy under $4 with >18% yield target $15
SHMB: Buy Under $4 with > 18% yield target $15
With the data coming in like a firehose, we continue to work the 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 and what demand is destroyed
3) What are the most obvious mispriced income opportunities
6) What are the once in a generation dislocations
Our stock universe of once a generation dislocations (i.e., stocks and bonds priced for bankruptcy and not as a going concern) goes from gambling, restaurants, travel, hospitality, outdoor/indoor entertainment and basically EVERY great long term sector being priced for bankruptcy.
We will send you the entire list this week in a short and then longer March/April 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. We are getting great feedback from our now 7,000+ subject matter experts in our Transformity Research Alliance group!
As I shared last week, the good news is we WILL get another once a generation opportunity to turn $200k into $1 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 The full-blown $8TRILLION (Fiscal/Monetary/Corp TARP/TALF like bailout) passes tomorrow. The Bank of Uncle Sam (aka the Federal Treasury and Federal Reserve) is now the "lender of last resort" for ALL 330M Americans and our $22 trillion economy. When this $bail out is done, the total stimulus package will exceed 40% of America's TOTAL Q2 2020 to Q2 2021 GDP.
I said on Sunday that the market would tell us whether it cared about 3+ million new unemployed today. Needless to say, it did not. The Fed liquidity rally is on now. The next crucible is when March GDP prints down 14% and May and June GDP cumulative is down 25-30% with peak 8-9% unemployment.
The Most Likely Scenario Ahead
The S&P 500 2200-2350 bottom has held and been tested 3 times. I am certain we will get at least one MORE RETEST as the horrific infection and death rates continue to climb in NYC and California and now NYC South aka Florida and other new hot zones.
Market historian's posted today that we have had 13 "waterfall" aka straight down 20-35% declines into bear markets since the Great Depression. Only ONCE did a 20%+ dead cat bounce of the bottom like we got the last 3 days did NOT get retested--and that was the Dec 2018 waterfall we experienced Dec 14-28 after the Fed told us they were going to continue to raise rates.
On the other hand, no country has ever thrown an economic bailout of nearly 40% of its 12 month GDP into ANY recession but especially an "event-driven" recession.
Our working assumptions are still:
$6 trillion TARP/TALF/ Federal Reserve + $2.2 Trillion Federal Bail-Out Package Approved Friday 3.27
The BRUTAL increase numbers in Covid-19 cases and infection data via testing will peak in 4-6 weeks as warmer weather
The stock markets in China and Italy bottomed when the rate-of-the-rate of new cases (the second derivative) peaked.
Short Term Trading Plan (For All-Access Members)
We do have an amazing short term opportunity to swing trade the leveraged ETF/ETN's over the next 10-12 trading days due to the sheer amount of $trillions of pension plan rebalancing that HAS TO occur at the end of this quarter and beginning of next quarter.
Pension plans by law or mandate rebalance every quarter to maintain the risk profile required by their pension liabilities. For instance, in the traditional 60% bonds/40% equities mix, the fall in equities values and the rise in bond prices (rising prices creates a reduction in yield) in Q1 2020 is LITERALLY historic.
My trading desk contacts say there is $trillion+ in rebalancing trades locked and loaded for the last three trading days of Q1 and first week of Q2. Now, ALL short term swing trading is risky--but I agreed to share my Family Office swing trades with our All-Access group as a member benefit. SO--if you want to participate and you are not already a member, here's the link to that advanced membership page--PS SCROLL DOWN the page when you click on this link (your All-Access Pass also locks in 5 YEARS of TRI and the TR $10K Income Club service--CLICK HERE)
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.
So we follow the plan: 1/3 now, 1/3 on down days and 1/3 on a retest. We go 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. First third in tomorrow and early next week, second third in on down days, and last third on a retest of the 2250 SP 500 low. IF the market runs up to the last big support 2750-2800 and fails (as I expect given the HUGE move off the bottom) we WILL HEDGE AGAIN (with SP 500 and QQQ puts).
Energy is dead and uninvestable with a few exceptions. US natural gas is going to benefit from the destruction of about 2/3 rds of the shale fracking outfits (nat gas comes along with oil fracking and is literally flared or transported to LNG outfits. Key point: UNLESS our great deal making POTUS can get Saudi Arabia and Russia to call off their oil market share/price war. I have a great report from one of our TRA members on why Russia is NOT going to blink in this war.
FINAL POINT: If you have family or friends that can take advantage of this historic once-a-generation market meltdown we do now have 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.