Editor’s Note: Thanks to some help from John Boehner yesterday, we took our message on the legal cannabis revolution to a whole new level – to a national audience of as many as 1 million. At our American Cannabis Summit– the first-ever nationwide event for cannabis investors – the former Speaker of the House revealed why he’s going “all-in” on marijuana… and exactly how ordinary Americans can make a fortune from this $100 billion industry. It’s a message Michael has been sharing here for years – and now we’re spreading it even further. If you missed our historic event yesterday, we’re rebroadcasting it for a limited time. Catch it right here.
How’s your stomach?
I’ve been through dozens of days like yesterday in my 35+ years doing this, but even mine got tied up in knots a few times.
The Dow Jones Industrial Average tumbled nearly 550 points at yesterday’s lows – but closed just 125 or so points off.
It was not a day for the faint of heart.
But this isn’t the end – we’re still in the middle of a generational bull market that’s got years left in it.
Yes, we’re all nervous about rising interest rates… a trade war with China… the midterms… you name it.
But earnings for most companies are killing it. The economy is as strong as it’s ever been. Silicon Valley isn’t slowing down on the innovation front.
We’ll be back to a steadily climbing market before you know it.
Meanwhile, I don’t blame you if you’re looking for some safety – maybe in the form companies that will pay you cash to hold them… no matter what their share prices do.
“Hold on, Michael,” you might be saying. “Didn’t you just say that you couldn’t have picked a worse time to be a value investor?”
Yes, it’s true that on Oct. 9 I cited data showing that growth stocks made more money in the last decade than value equities have in the past 30 years.
Indeed, the name of the game in the bull market that began in March 2009 has been growth.
As a longtime Silicon Valley insider, that suits me just fine.
But that’s not the full story.
This Irony Is Reality
Fact is, several of the top growth firms in the tech sector today have quietly become some of the best dividend payers in the market.
And that means, even in a sell-off like we’re now seeing, your money won’t be flying out of the window. With dividends, even when markets are in turmoil, you can make money on stocks.
The irony abounds. Riding this largely unknown trend, tech shareholders in the know have become some of the savviest value investors around.
There’s a reason why this has largely remained hidden from the average retail stock buyer. It has to do with a time-honored principle in Silicon Valley.
For decades, the unwritten rule of thumb was that any tech firm that paid a dividend was announcing to the world that it had become a laggard, ceding ground to younger, more aggressive upstarts with better technology.
All that has changed recently because of one key fact. Tech firms are so profitable today that they simply can spend all that cash on R&D or acquisitions.
See, the top 10 tech firms by projected 2018 sales have a combined $510 billion in cash on hand. Half a trillion dollars sound like a lot of money, but that understates how much money they really have. It only covers cash in the United States.
They hold roughly the same amount overseas.
In other words, just the 10 largest tech firms could lay their hands on roughly $1 trillion in cash if they had to.
And with the recent corporate tax overhaul, cash-rich Silicon Valley firms are about to generate even more money. Under that plan, corporate taxes fall some 40% — from 35% to the new rate of 21%.
Add it all up and you can see that by picking the right tech stocks you can have both income and big… massive… share-price gains.
The Silicon Valley Millionaire Plan
I believe this hidden trend is so crucial for investors that I have compiled a special report designed to help you pile up profits.
That says it all…
Because I want you to make as much money in the market as possible, I’m giving this comprehensive 18-page report away for free. It’s just one of the many free special reports we provide for you every year as part of your Strategic Tech Investor membership.
Click here to get your very own copy.
Now I said before that I believe we’re still smack in the middle of what may end up being the biggest generational bull market the world has ever seen.
We’ll see plenty of speed bumps along the way – like the one we’re hitting now – but that’s all they are.
But maybe you believe we’re all steering into a ditch – that, as the TV preachers say, the market is headed for “a great reckoning.”
One like we haven’t seen since 2007-’08… or maybe even 1929.
Morgan Stanley analysts say we’re entering into a “rolling bear market” – and they see no sign of a rally ahead.
If that’s the case – if you want to prepare yourself and your family from economic collapse – then you’ll want to check out the Survival Guide we’ve put together. (Get more info on it here.)
This market may have hit the brakes – but I don’t think it’s stopping anytime soon. So I think they’re nuts.
But maybe they’re not.
Can you afford not to be prepared – or, better yet, ahead of the game?
Find out how to get our Survival Guide by clicking here.
Check it out – and then I’ll be back here later this week with more of those high flyers.