Wealthpress

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• Mailbag: Why Tech Is a Bubble and Is it Really Time to Dump Apple?
• Is 2021 the Death of Fiat Currency?
• 2 Small-Cap Stocks to Watch in 2021
• Stock Market Update: Wednesday, Dec. 30, 2020
• My Top Pick for 2020 Doubled. Is Nvidia Still 1 to Watch?
• Bearish Stock Market Trade Going Into 2021

Mailbag: Why Tech Is a Bubble and Is it Really Time to Dump Apple? Posted: 31 Dec 2020 09:07 AM PST Happy new year, welcome to my first mailbag of 2021! I hope everyone had a delightful holiday season. I'm sure many of you are ready to put a bumpy 2020 behind us and start fresh in the new year… This is a great feature where I can answer your questions about some of my recent videos, picks and pans.  Those who follow me regularly know I'm big on drone tech and drone tech stocks. In a recent video, I said to avoid AgEagle Aerial Systems Inc. (NYSEAmerican: UAVS), and I got a couple of good follow-up questions on this topic.   Mailbag: UAVS, Apple, Big Tech and More How does this compare to UAVS? Both seem to be military stocks. UAVS main focus was agriculture but now currently moved to manufacturing of drone delivery. And drone delivery will be the next big thing… thanks to covid. — danny25705 I thought UAVS was partnering with Amazon? — Carlos Paiz Two good questions I tackle in my short video down below.  Switching gears, I also did a recent video about Apple Inc. (Nasdaq: AAPL) and it's so-called "Apple EV," an electric vehicle the company is reportedly exploring. I suggested selling the stock on this news because I don't think an Apple EV is the best use of shareholders' money.  Apple shares are already at record highs, so it's a great opportunity to sell the stock at a great price. My friend Mike took issue.  Apple is still expanding and is going to be a leader in 5G. It is expanding into India. This seems extremely bullish? I see this better than MSFT (Microsoft). — Mike G Mike, I don't disagree. The company is expanding its iPhone dominance. It has many markets around the world where it could potentially expand. But is it "extremely bullish?" That's where we disagree. Check out my video below and I'll explain why.  And finally, my last question came from Janice after she watched a recent video of mine where I said I believe the current market — particularly the tech sector — is a bubble.  Let's get to the meat of Janice's question:  I have funds invested and need to make changes so looking at  Fidelity Global Innovators Class Fund it holds a basket of stocks. Information Technology 53%, Consumer discretionary 17%, Consumer Staples 2.05%, Communication Services 12.9%, HealthCare 10.10%, Materials 2.64%, Energy 1.56%, financials .18% and remaining .20% not shown. Top 10 investments held with this fund are MS, APPL, Alphabet, Roku, Shopify, Slack Tech, Micron Tech, Dynatrace and Elastic. Based on your latest thoughts about tech and overpriced stock market, is there any potential here for returns over the next two quarters? If not where would you look to park money at this time, to maximize profits without directly going into stocks. Look forward to your response. — Janice There's a lot to unpack here. My opinion is that there's a lot less potential than a year or two ago, simply because so many tech stocks are so highly valued relative to the profits they earn.  Check out my mailbag video and dive into these great topics in full detail. Then share your thoughts in the comments below.  And as always, send your investing questions to jeff@yastine.com. You can also follow me on Twitter and Facebook. P.S. Make Your Money — Regardless of the President Trading experts Roger Scott and James West were able to put together huge gains under President Donald Trump — especially in 2020. Between them, they put together 554 winning trades that totaled an 1,831% net gain.  While they're ready to say goodbye to 2020, they're not ready to say goodbye to those results — and you shouldn't be, either. That's why they developed a strategy for trading in 2021 under President-elect Joe Biden.  This strategy is built to maximize your returns at less than 15% risk. In this Turning Point event, they're giving away their strategy… as well as some of their top picks for the new year. You Don't Want to Miss This  The post Mailbag: Why Tech Is a Bubble and Is it Really Time to Dump Apple? appeared first on Wealthpress.

Is 2021 the Death of Fiat Currency? Posted: 31 Dec 2020 07:30 AM PST Do you have FOMO yet? If you didn't put your cash to work in 2020, then you're fighting the tide ignited by the Federal Reserve. Never in the history of the world has so much money been printed. Plus, if you're an accountant and love seeing balanced books, you've likely never had your eyelids twitch more than this year. The reason is simple: Countries have seen their balance sheets decimated deep into the red this year. Countries like Canada have seen their Debt-to-GDP ratios jump from 89% to 115%. The European Union is forecast to hit 102%. And the United States is currently at 131%. And depending on whose numbers you believe, total Chinese debt to GDP is forecast to go as high as 318%… The New Era of Helicopter Money During the 2008 global financial crisis, Fed Chairman Ben Bernanke famously earned the nickname "Helicopter Ben" as the federal asset relief programs set the course for enormous money printing and fiscal aid. In 2020, helicopter money took on a whole new meaning. This past year alone, the United States printed 21% of all U.S. Dollars in existence. Look at the unprecedented surge in fiat currency… It began with a liquidity crunch back in March, ignited by the Russia and Saudi Arabian oil price war, and was followed by the eruption of the coronavirus pandemic. Economies and global trade went to a complete standstill. It's these types of events that alligator investors like myself and other major financiers with capital — waiting for the moment to deploy en masse — salivate at. Long-time readers saw this coming… Governments are not shying away from negative rates and printing money. I call these Financially Transmitted Diseases and it's something that I've pounded the table on for a long, long time. How much of that money is making it into bank accounts and circulation, you ask? Good question… Below is a chart which shows the increase in the M2 money supply. M2 is a broad money supply measure which includes cash, checking deposits and easily convertible near money. The key takeaway? Everyone is printing money, and fast. And there's no going back. The Death of Fiat and Rise of Assets This new world backed by Modern Monetary Theory (MMT) will fuel a bonanza of ultra-cheap money. And we're seeing it in real time. A stock like Tesla Inc. (Nasdaq: TSLA) seemed expensive at $80 (post-split) at the beginning of 2020. But two factors led to speculative excess on a scale that no one's seen before: The entry of a massive new generation of investors (Millennials and Generation Z) thanks to platforms like Robin Hood, and Trillions of new dollars and currency units chasing a home. With most people working remotely and stuck in their houses, that money went into online shopping and stocks. And there are no signs that this is slowing down. As a result of this incredible money printing in the United States, the U.S. dollar is under siege. It currently faces its largest short position since 2014. This means that investors are betting against the US Dollars at levels not seen in years. Below is a chart which shows the net positioning of non-commercials from the CFTC's Commitment of Traders (COT) report. The wall of shorts has been aggressively piling on all year. This weakness in the dollar has reverberated through the markets and set the course for real assets to perform exceptionally well. Explosive Gold and Silver Breakouts I cut my teeth for 2 decades in the resource sector and let me tell you, there is absolutely no mania like gold and silver mania. What we saw in 2020 is just a prelude to what I see coming in the Gold and Silver markets. After a multi-year consolidation period, gold took the world by storm in 2020. This year gold took out its old high from 2011, and briefly surpassed $2,000 per ounce. While gold has taken all the fanfare this year, silver has quietly been building momentum and is still well below its 2011 record high. Silver tends to be much more volatile than gold. That's why silver manias are truly wild and can deliver staggering returns. You think Bitcoin returns are huge? You've never seen a junior silver stock explode higher in a silver bull market. And we're just in the early days of a major silver bull market… You're going to want to fasten your seatbelt on the way up and even tighter on the steep chops down. Below is a chart showing the historical returns of silver's bull markets. As you can see, silver has A LOT of room to run much, much higher. The Death of Fiat: Rotating into Bitcoin, Ethereum and Cryptocurrency While the shorts piled on the U.S. Dollar, those looking for a global devaluation bet went not just to gold and silver, but to Bitcoin as well. Bitcoin smashed through previous highs of $19,000, breaching $24,000… For good reason, the Bitcoin rocket ship has every crypto bug shouting from the rooftops. Yet, no one is hearing them… And we can see that below with the trends in search activity through Google search. You can see that search interest is 80% lower today than in late 2017, even though prices are higher now than they were then. Maybe it's because many retail investors got burnt in the downswing and have already written Bitcoin off. Yet the price of Bitcoin has made an incredible comeback and noteworthy funds and companies are either already buying it, or building the groundwork to buy it. Square, one of the world's largest digital payment processors, bought $50 million worth of Bitcoin and have their own dedicated cryptocurrency team. Grayscale, the largest digital asset manager in the world, reported inflows of over $1 billion in the third quarter of 2020. Currently it has over $6 billion under management. And billionaire hedge fund managers like Paul Tudor Jones have made significant bets on Bitcoin as hedges against inflation. But DO NOT Count Out the Almighty Dollar Just Yet… The U.S. Dollar dominates as a payment currency for global trade with a 79.5% share of inter-regional currency usage, by value. If this past March was any indication, the world still needs U.S. Dollars. In a race to zero, the U.S. Dollar is still the best option. Personally, I hold a large percentage of my cash position in U.S. Dollars. I always call myself a profit bug because I'm not tied to a single asset, currency or mandate. My job is to find unique investments that have incredible upside potential. The nominal price rise in assets is continuing a trend set in motion decades ago. Could 2021 be the start of the new commodities super cycle? What I do know for certain is that I am actively putting my money alongside my subscribers into investments with fantastic risk-reward profiles. These aren't dinky, illiquid juniors that have no real assets or management without skin in the game. These are companies that trade real volume, have world class assets and management are big time owners of their own stock. Our hit list of stocks keeps growing and we're always on the hunt for next deal. Looking back 3 years from now, you might wish you owned more assets. And for now, and the foreseeable future, all of those assets are denominated in U.S. Dollars. Here's to a wild year and a safe, healthy and prosperous 2021! Marin The post Is 2021 the Death of Fiat Currency? appeared first on Wealthpress.

2 Small-Cap Stocks to Watch in 2021 Posted: 31 Dec 2020 06:45 AM PST You'd typically see me do a stock market update and review video around this time of day. But today, I figured I'd do something a little different.  The reason for that is simple: It's the last day of the year!  So in today's video, I'm going to show you which sectors are likely to break out in 2021… which report is crucial for strong stock market action ahead… and two small-cap stocks setting up for major moves right now.    P.S. If the past 12 months weren't kind to your portfolio… and you're looking to wipe the slate clean in 2021… then I've got some great news for you.   Market expert James West and I have teamed up to give you our No. 1 stock pick heading into the new year — absolutely FREE! Considering the fact that James and I delivered a total of 554 winning trades to our readers this year… I think you'll want to hear what we have to say.  Click here to claim the No. 1 stock in 2021.  The post 2 Small-Cap Stocks to Watch in 2021 appeared first on Wealthpress.

Stock Market Update: Wednesday, Dec. 30, 2020 Posted: 30 Dec 2020 02:03 PM PST Wall Street rebounded despite diminishing hopes for $2,000 stimulus checks as focus turned back to the improved outlook for 2021 amid the vaccine roll out — and more in Wednesday's stock market update.  Volatility traded in a tighter range as overall stock market volume remained thin heading into the New Year’s holiday Friday. Stock Market Update  The Russell 2000 rallied 1.1% after tapping a high of 1,987 shortly after the opening bell. The Nasdaq added 0.2% with the morning peak reaching 12,924. The Dow also gained 0.2% following the intraday trip to 30,525. The S&P 500 nudged up 0.1% after trading to an opening high of 3,744. Energy and Materials were the strongest sectors with gains of 1.6% and 1.4%, respectively. Communication Services and Consumer Staples paced sector laggards after falling 0.7% and 0.1%. Stock Market Movers Ryerson Holding Corp. (NYSE: RYI) zoomed nearly 17% on a technical breakout with shares trading to a fresh 52-week peak of $13.84.  Stock Market Outlook  The percentage of Nasdaq 100 stocks trading above the 50-day moving closed at 89.32%, up 2.92%. Near-term and lower resistance at 87.5%-90% was recovered. A move above the latter would indicate a retest towards 92.5%-95% and overbought levels from mid-July. Support is at 85%-82.5%. The percentage of S&P 500 stocks trading above the 200-day moving average settled at 89.70%, up 0.40%. Key resistance at 90% was cleared but held. A close above this level keeps upside towards 92.5%-95%. Support is at 87.5%-85%. Global Economy European markets closed lower after UK lawmakers signed off on last week's Brexit deal.  The UK's FTSE 100 fell 0.7% while Germany’s DAX 30 and the Stoxx 600 were down 0.3%. The Belgium20 and France's CAC 40 slipped 0.2%.  Asian markets settled on both sides of the ledger. Japan's Nikkei fell 0.5% and Australia's S&P/ASX 200 was down 0.3%. Hong Kong’s Hang Seng surged 2.1% and South Korea's Kospi soared 1.9%. China’s Shanghai jumped 1.1%.  U.S. Economy Advance trade deficit widened further to a record -$84.8 billion in November after expanding to -$80.4 billion in October. Imports rose 2.6% to $212 billion after increasing to $206.6 billion previously. Exports edged up 0.8% to $127.2 billion following October's pop to $126.2 billion. Advance wholesale inventories dipped -0.1% to $649 billion versus the prior 1.2% rise to $649.4 billion in October. Advance retail inventories were up 0.7% to $616.9 billion following the prior 0.9% climb to $612.7 billion. Stock Market Sentiment The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was up for the third time in four sessions with the late-day peak reaching $157.53. Current and lower resistance at $157.50-$158 was recovered. A close above the latter and the 50-day moving average would suggest additional strength towards $159-$159.50. Support is at $156.50-$156. Volatility Index The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) traded in a tight range with the morning low tapping 22.41. Current and upper support at 22.50-22 was breached but held. A close below the latter would suggest another retest towards 21-20.50. Resistance remains at 23.50-24. Stock Market Analysis The SPDR Small-Cap 600 ETF (NYSE: SLY) rebounded following the first-half run to $79.83. Near-term and lower resistance at $79.50-$80 was breached but held. A close above the $80.50 level and Monday's all-time high at $80.58 would signal additional momentum towards the $81.50-$82 area. Support is at $79-$78.50 followed by $77.50-$77. RSI (relative strength indicator) is back in an uptrend after clearing and holding lower resistance at 65-70. A close above the latter would indicate additional strength towards 75 and the late-November peak. Key support is at 60, a level that has held since mid-November. Sector The Energy Select Sector SPDR Fund (NYSE: XLE) remains in a seven-session trading range with the intraday high reaching $38.58. Near-term and lower resistance at $38.50-$39 was cleared but held. A close above the latter would suggest additional strength towards $40-$40.50. Support is at $37.50-$37. A move below the latter and the bottom of the trading range would signal a further pullback towards $36.50-$36. RSI is in a slight uptrend with lower resistance at 50-55 getting cleared and holding. A close above the latter would signal strength towards 60-65. Support is at 45-40 and levels from early November on a close back below the 50 level. Check back after the closing bell for the most important news and numbers in the WealthPress stock market update.  The post Stock Market Update: Wednesday, Dec. 30, 2020 appeared first on Wealthpress.

My Top Pick for 2020 Doubled. Is Nvidia Still 1 to Watch? Posted: 30 Dec 2020 12:48 PM PST One thing I hate is putting labels on the moves I make in the stock market.  Do I look for growth? Yes… so I guess that makes me a growth investor. But I also look for value, so I'm a value investor, too, right?  One of my best trades of 2020 came when I found a company with both great growth AND value. And it's in everyone's favorite sector, tech: Nvidia Corp. (Nasdaq: NVDA).  I recommended Nvidia this past January because it was undervalued and growing fast. I also recommended selling Nvidia rival Intel Corp. (Nasdaq: INTC) because it was barely growing at all while carrying a high price tag.  Since my recommendations, Nvidia rose 105% while Intel fell 25%.  So, Jeff, after you're done patting yourself on the back, what's next for shares of Nvidia?  Nvidia's P/E Ratio Tells the Story WealthPress’ Jeff Yastine Heading into 2021, there's nothing wrong at all with Nvidia and owning shares of the company's stock. It still makes the best graphics cards on the market. The company should earn at least $6.62 a share in profits in 2021, rising to $8.73 in 2022 and a staggering $10.13 a share by 2023.  It's hard to argue with that kind of growth.  But at this point, investors are paying a high price to own a slice of that extraordinary profit growth. If you're new to investing, this can sometimes be a hard concept to grasp. Nvidia's a great company and everyone wants to use its chips.  That's the story, case closed…  But make sure you don't miss the other half of this story: value.  I can demonstrate value with a simple metric: Nvidia's P/E ratio, or price-to-earnings ratio. You take a company's stock price, divide it by its earnings per share and you get the P/E ratio, or price multiple, as it's sometimes referred to.  So what does Nvidia's P/E ratio tell us about where the stock ranks as far as buy, sell or hold? Check out my short video and let's discuss Nvidia's P/E ratio further to see whether this stock is still worth adding to your portfolio. Then share your thoughts in the comments below.  And as always, send your investing questions to jeff@yastine.com. You can also follow me on Twitter and Facebook. P.S. The End of the Year Doesn't Mean the End of Your Returns The year 2020 can be summed up in one simple word: "chaos." Buying and holding wasn't the safest play as the historic year led to historic volatility — and gains. But those gains don't need to stop as we enter 2021. That's why trading experts Roger Scott and James West have been working hard on getting their third annual Turning Point event ready for you.  With this strategy, they'll show you how to rotate your positions for maximum gains every two weeks. You Don't Want to Miss Out The post My Top Pick for 2020 Doubled. Is Nvidia Still 1 to Watch? appeared first on Wealthpress.

Bearish Stock Market Trade Going Into 2021 Posted: 30 Dec 2020 11:06 AM PST The markets have been ripping higher these past few months as Wall Street is continually hit with catalyst after catalyst (i.e. the vaccine, presidential election and now the new stimulus check). So we're not surprised that shorting anything right now (when the stock market is near hitting all-time highs) is easier said than done. Or so we thought, until we noticed something interesting playing out on our charts. We have a couple reasons why we believe what we're seeing is a very good setup going into 2021 to successfully short a stock. You see, a few hours ago I learned some shocking information about this company that could destroy it… Protests against the company have already begun… The post Bearish Stock Market Trade Going Into 2021 appeared first on Wealthpress.

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