At least that’s what every market analyst on Wall Street and cable says.
And they’ve got a point (well, three points).
First, there’s Donald Trump’s aggressive economic stimulus – including that $1 trillion infrastructure plan. Second, traders are moving their cash into a very attractive stock market. Third, the Fed will likely raise rates by the end of the year.
All three of these are bad for bonds – hence, the $1 trillion rout we saw over the past week or two.
There’s just one problem with this line of thinking. It misses the role bonds play for conservative investors, retirement funds, and other institutions who want the yield and plan to hold bonds for years.
And so, this market for fixed-income investments remains both active and huge – $40 trillion huge.
Why are we talking about the bond market? After all, we’re not going to start bypassing big tech winners in favor of bonds. Especially not now.
Like many issues, Donald Trump has been all over the map on the legal marijuana question.
Way back in 1990, the president-elect said the United States needed to legalize all drugs and use the tax revenue to educate Americans about the dangers of drugs. (He may have been joking.)
More recently, he’s been hesitant on legal recreational marijuana but bullish on the medical kind.
“In terms of marijuana and legalization, I think that should be a state issue, state-by-state,” Trump recently told reporters. “Marijuana is such a big thing. I think medical should happen – right? Don’t we agree? I think so. And then I really believe we should leave it up to the states.”
It hurts when the technology you built your business on starts to drag you down. And that’s just what’s happening at Cisco Systems Inc. (Nasdaq: CSCO), which reported a 2.6% drop in quarterly revenue last week. The drop came from lessening demand for Cisco’s switches, its chief legacy product. Cisco does have a restructuring plan, however, including cost cuts, layoffs, strategic acquisitions, and repositioning itself toward a cloud model.
Not so fast, Michael told CNBC World listeners late last week. “You can’t cut your way to growth,” he says. And moving a hardware-based business to the cloud is going to cost a lot more and take a lot longer than anyone else thinks. Michael graded Cisco’s quarterly report a “C to C- quarterly” – and so it’s not on his “Buy” list right now. What legacy tech business also reorienting itself toward the cloud model is? Watch the video below to find out.
If Nov. 8 felt like a “disruption in the Force,” that’s because it was.
The election of Donald Trump is going to hugely disrupt a lot of things in Washington and around the country and the globe. I’ve already told you how the new administration could shift billions of dollars toward defense technology. And I’ll be sharing more thoughts like that on how and where to shift your own portfolio in the weeks and months to come.
But here’s one thing that Trump isn’t going to change…
I’m talking about the greatest moneymaking opportunity we’ll see in our lifetimes. That’s the Singularity Era and all the innovations coming out of Silicon Valley and elsewhere that this brand-new era represents – and that will make you 10x gains.
So today I want to show you a technology that is poised to disrupt passenger transportation and, therefore, How We Live in this Singularity Era.
Thanks to this transportation tech you’ll be able to ride on solar-powered, magnetically levitated rail cars that will get you from New York to Chicago in roughly an hour. This budding technology could, in fact, be the fifth great transit mode after boats, trains, cars, and airplanes.
I know, I know – you’ve heard it all before…
But this isn’t just plans on a blueprint stuffed away on some nerd’s cloud account.
In fact, one of this technology’s developers just unveiled its concept for this futuristic transport system that could deliver passengers in the United Arab Emirates from Dubai to Abu Dhabi at roughly 700 mph in 12 minutes.
Virtually every polling organization got it dead wrong. The vaunted Clinton Machine seemed to do everything wrong. I’m not even sure Donald Trump himself believed he was going to win.
Whatever happened, we ended up with the biggest election upset in modern U.S. history
But as interesting as that may be… I don’t care.
You see, I’m not a political analyst. My job is not to play favorites or analyze voting patterns.
I’m here to do one thing – put the very best Singularity Plays squarely in front of you.
We’re likely to see U.S. and global markets reel through at least some instability for the next week or so – in fact, we already saw some Tuesday night. Wall Street hates uncertainty, and that’s precisely what we seemto have now.
But I’m certain about one thing. This instability is masking a huge new opportunity in the “How We Survive” window of the Singularity Matrix.
It’s an opportunity that didn’t even exist before Election Day.
Older folks – including all those baby boomers reaching retirement age – are confronting a slew of age-related ailments, including glaucoma, cancer, arthritis, and back pain.
Cannabis-based remedies, as researchers are discovering, are uniquely suited to treating those diseases.
In other words, because of marijuana’s newly understood medicinal properties, it’s changing “How We Thrive” in the Singularity Era.
As that elderly population grows – and as it begins to grasp how well cannabis works to treat numerous diseases – so will the size of the medical marijuana market. And as I’ve been telling you in recent days, that makes legal marijuana one of the biggest profit opportunities I’ve ever seen.
In fact, “It is the biggest thing I’ve ever seen.”
That’s not me talking – but the CEO of a Fortune 1000 firm who’s got a plan to “Invest, like, half a billion in the pot business.”
This move may have been risky – but it’s looking like a success.
The company’s first two “pot acquisitions” have already increased sales by more than 20%. That’s nearly four times the growth rate of the rest of the company, and operating margins are on track to be about 30% higher than the company average.
Plus, the firm’s profits are up 50% in the last four years.
And its shares have increased 33% in the past year, compared to 1.5% growth for the S&P 500.
Sony Corp. (NYSE ADR: SNE) just downgraded its earnings expectations for the fiscal year, but during a recent appearance on CNBC World, Michael said that’s no reason to write off the stock. First off, the lowered guidance is thanks to a onetime write-down thanks to the sale of Sony’s battery unit. And this is “truly a onetime,” Michael told CNBC World’s viewers.
But the real reason Michael is keeping an eye on Sony – which gained 61% between early February and mid-October – is what it’s got planned for holiday shoppers. He explains all in this video…