With Ebola still rampaging across West Africa and cases popping up in the United States, it’s clear that the virus is now a financial event.
That means we need to think about this logically.
And we also need to invest logically.
Over the past few weeks, we’ve watched as one “clinical stage” pharma firm after another has seen its stock price rise and plummet on rumors about who has the most likely Ebola vaccine.
I’m not taking you on any wild rides like that.
Instead, I want to introduce you to a solid big-cap company that is gearing up for a major Ebola drug trial and could have a product out in just seven months – and it would likely see hefty gains when its drug hits the market.
On Oct. 15, I told you that the best time to cash out of the market is… never.
And just four days later, TheWall Street Journal ran an investing column that came to the same basic conclusion.
Citing an “enormous body of academic research,” the Journal concluded investors should always have some money in stocks.
There’s just one problem. A Wall Street money manager quoted in the column said that investors should likewise make sure they have exposure to emerging markets.
When I read that statement, I was floored. This may be the worst investment advice Wall Street ever gave.
With spin-offs, companies unlock hidden values in their operations and pass them on to shareholders – offering low risks and high probabilities of market-beating profits.
And the past month or so has produced a bonanza.
First, eBay Inc. (Nasdaq: EBAY) said it is spinning off its very successful PayPal digital payments firm. Then, Hewlett-Packard Co. (NYSW: HPQ) announced that it plans to divide itself in half.
And most recently, security software maker Symantec Corp. (Nasdaq: SYMC) joined in and said it’s splitting in two.
Overall, spin-offs are estimated to be worth $1.6 trillion so far this year.
Here’s the hitch.
As promising as all that money sounds, most of these deals won’t take effect until the second half of next year.
But I have uncovered a way to take advantage of the growing market for spin-offs right now.
And we’ll do it with a single investment that has beaten the market by 65% over the last two years
Apple Inc. (Nasdaq: AAPL) recently announced impressive third-quarter results that have some wondering if Apple’s stock is flying too close to the sun.
Michael appeared on Varney & Co. to talk about Apple’s future and what those quarter results really mean for the iDevice king.
This morning’s 600-point neck-breaking swing in the Dow Jones Industrial Average only added to the pain of the big sell-off over the past week and a half.
And in our realm of tech, chip stocks came under especially hard pressure after the CEO of Microchip Technology Inc. (Nasdaq: MCHP) said that “another industry correction has begun.”
But you shouldn’t be joining the crowd and dumping stocks at this point.
In fact, those who are “running for the exits” will be penalized for their caution.
Tech investors like us who stay in the market, on the other hand, will be rewarded for our courage.
Today, I’m going to tell you why this moment is actually a big moneymaking opportunity.
According to Dow Theory Forecasts, “the biggest risk of investing is not being in the market when it goes down, but being OUT of the market when it goes up… Every time you pull money out of the market, you run the risk of missing those important rallies that create seven-figure portfolios.”
If you couldn’t get a piece of the largest IPO in history a couple of weeks ago, you were far from alone.
I think the Alibaba Group Holding Ltd. (NYSE: BABA) initial public offering will go down as the greatest wealth opportunity of a generation – but only about 4% of the $25 billion worth of stock went to individual investors like you.
As alluring as Alibaba and the white-hot IPO market can be, it’s not a place to play unless you have the “connections” needed to access the best deals – or have a special “angle” to play.
I can’t help you with the connections.
But I can give you that special angle.
And that angle will give you access to the profits rolling out of Alibaba and the IPO market – but at a much lower level of risk.
So, today I’m going to show you a far better way to gain access to Alibaba’s huge profit steam at a nearly 50% discount from the stock’s current price – and at a much lower level of risk.
