Who will be the first corporate behemoth to reach that sought-after $1 trillion valuation? Michael just appeared on Fox Business’s Cavuto: Coast to Coast to discuss the possibilities. Plus, Michael discusses what he sees ahead for market conditions… Check it out. Click here to watch.
Archive for December, 2018
Volatile market conditions have been the watchword in these last days of 2018. But right now, conditions appear grossly oversold.
Michael just appeared on the podcast Money Life with Chuck Jaffe and give the skinny on why many technology stocks – and the broader market – are oversold right now. He explains what factors to look for in choosing the right stock in these sorts of conditions, how to make money whether the market is going up or down, and what opportunities lie ahead for 2019. Click here to watch.
The first item on my agenda today is to wish you a happy and healthy New Year!
I hope you’re looking forward to the year ahead like I am, because I expect we’ll see plenty of exciting tech investing opportunities, despite the choppy market conditions toward the end of 2018.
For many, the end of the year marks a great time to make resolutions that improve our lives. So with that in mind, I’d like you to consider creating your own Investment Action Plan for 2019.
It’s something my wife and I have done for more than a decade now, and it’s proved valuable as a way to update and clarify our investment priorities, which can get lost in the shuffle during the busy year.
See, each New Year’s Eve, my wife and I sit down, prepare ourselves for a “financial reset,” and spend some quality time together discussing our accomplishments over the prior year. We savor our investment successes – and reflect on the failures that taught us valuable lessons.
Before we wrap up the proceedings and head out to a nice dinner, we set up a new action plan that we’ll review again come this time next year.
What started out as our fun little ritual has turned into a positive financial habit – the sort that can help you attain your financial goals no matter what the market throws your way.
And it’s why today I’m going to show you how to set up your own Investment Action Plan for 2019.
It could even make you rich.
This holiday season, you might want to check for one more Christmas present under the tree.
And it comes in the form of a spin-off. Let me explain.
United Technologies Corp. (NYSE:UTX) completed a $23 billion merger with Rockwell Collins Inc. on Nov. 26.
Normally, the story of a sprawling conglomerate acquiring an aerospace contractor would pretty much end there.
That’s because the idea behind these kinds of bolt-on buyouts is to create new synergies that make the bigger, newer firm more competitive and more profitable.
Of course, United Technologies wants to take advantage of the Trump administration’s defense buildup, one of the biggest we’ve seen since the Reagan era.
But in this case, the merger served as a catalyst for a much bigger change.
The same day United Technologies closed the books on the deal, it announced a broad realignment that surprised Wall Street.
Following the Rockwell acquisition, United Technologies said it would break itself up into three standalone companies.
That’s great news for investors because studies have shown that these kinds of spin-offs usually lead to market-beating gains.
Just the sort of late Christmas gift investors can enjoy.
That’s why today, while you enjoy the company of family and friends, I’m going to show you how to get in on the action.
Where some might get mad, I like to get even.
See, when we spoke back on Oct. 19th, I told you how I’ve fallen for my 2109 Acura MDX hybrid, and the broader scope of autonomous driving capabilities.
Thing is, I left out an embarrassing anecdote. As it turns out, what happened to me during the buying process also happens to millions of others. And today, I want to show you a great way to play the best firms that are addressing the issue.
But before I do, let’s got back to what happened at the Acura dealership. See, everything was running smoothly until the finance manager came to tell my wife and me that our credit didn’t go through.
No, we are not deadbeats. We have very high credit scores. We had simply forgotten one small detail. After the infamous 2017 hack at Equifax Inc. (NYSE:EFX) comprised 143 million accounts, including ours, we froze our credit.
This meant that no one, not even us, could take out a loan or credit card in our name. Fortunately, it only took a few minutes for us to login to the credit agency and get the lease financing approved.
But the situation got me thinking a lot about our brute force protection system the other day when reading about the latest big cyber intrusion. This one involved 500 million hotel customers, and once again, included my wife and I.
It seems like consumers like us can’t go very far these days without hearing about some sort of corporate data breach that compromises their private data.
Fortunately, this steady stream of computer hacks and cyber-crimes aren’t only a cause of concern.
They also present the opportunity for savvy investors to choose an investment that will beat the market, again, next year…
Right about this time of year, I get a lot of friends and family members asking for my advice.
I also frequently appear as a guest on national TV shows, such as CNBC, the Fox Business Network and Yahoo! Finance, to offer my analysis of big tech trends and how to invest in them.
But around Christmas time, I start getting questions about devices themselves.
Folks figure that since I spend hours each day researching every conceivable aspect of high tech, I must have some ideas about products that would make great Christmas gifts.
Of course, they’re right. In fact, I consider myself something of a technophile. There’s just something satisfying about holding the fruits of all that technical work in your hand, plugging them in your ears, or seeing them on your screen.
And that’s why today, I want to set you up with a Christmas gift list of seven really cool high-tech presents that are sure to surprise and delight your loved ones this holiday season.
Now then, since I don’t know what your personal budget is, I put this list together without making price the highest priority.
And along the way, I also let you know about an exciting new tech investing opportunity that’s set to get your New Year off to a good start.
When we spoke on Tuesday, I noted that blockchain technology is an unstoppable force set to disrupt industries around the world.
In particular, I said investors should look beyond cryptocurrencies to understand blockchain’s enormous potential.
We’re talking about technology that, I believe, could affect $8 trillion in global transactions. And I actually think that’s a conservative estimate.
See, the world’s total GDP runs at around $80 trillion a year. And blockchain tech could eventually underpin all of that buying and selling.
But I’m only assuming blockchain grabs a 10% market share of systems that are rapidly becoming archaic.
Here’s the thing. As amazing as it sounds, trillions of dollars in trade each year still relies on paper-based contracts or, frankly, old computer networks.
Thanks in part to blockchain technology, that’s all about to change. In a big way.
That’s why today, I want to show you four industries where blockchain technology could add security, transparency and greatly reduce business costs – and bolster the bottom line for the innovative firms using this technology.
This is the kind of “strategic info” that could make you look smart at your office Christmas party or next family gathering.
Better yet, put it to use wisely, it could help you pinpoint your next few triple-digit winners – and that’ll be even more fun to share with friends and family.
I can’t tell you how thrilled I was to hear from my friend Frank Holmes.
For those of you who don’t know him, Frank has won numerous awards and accolades as the CEO and Chief Investment Officer at U.S. Global Investors, Inc. (Nasdaq:GROW).
It’s a boutique investment management firm specializing in actively managed equity and bond strategies. Frank and his company also are some of the savviest folks in the world when it comes to metals and mining.
That’s the reason I started following his career in the first place. Fact is, I have been involved with strategic metals and minerals most of my adult life.
Turns out, Frank and I have one more thing in common. Both of us are big believers in the disruptive power of blockchain technology. Indeed, Frank and his associates recently interviewed me for a profile that I republished, and which you can access here.
In particular, Frank’s editors wanted to get my take on where the blockchain is headed.
It’s not much of a surprise, really, as many folks we chat with here also have questions of their own about what blockchain technology is, and what it represents in terms of its profit potential.
That’s why today I’m going to fill you in on what Frank and I discussed in the interview.
And I’ll go further and explain what I see as the big opportunities that lie ahead with blockchain tech…
Big news this morning – and I hope you’re hearing it from me first.
As I’ve been predicting since I first started covering the field in late 2016, Big Tobacco is diving head first into legal cannabis.
Altria Group Inc. (NYSE:MO), maker of Marlboro cigarettes and other major brands, said early today that it’s taking a $1.8 billion, 45% equity stake in Canadian cannabis leader Cronos Group Inc. (Nasdaq:CRON). Plus, Altria has the option to take over Cronos through 55% ownership over the next four years.
The “bigness” of this news is evident in the price Altria paid: $12.14 per share – an 18% premium over Cronos’ stock price as of Thursday, and approaching the stock’s all-time high of $15.30.
And it’s evident in how Cronos absolutely skyrocketed on the news. As I write this, the Toronto-based firm’s stock is already up more than 25% for the day.
Altria’s dive into pot makes sense, of course. Its long-running global experience in the highly regulated tobacco industry is going to come in handy for an internationally oriented cannabis firm like Cronos, which has operations not just in Canada, but also in Colombia, Germany, Poland, Israel and Australia.
And Cronos should supply a nice shot-in-the-arm for Altria, which, like all tobacco firms, has been hit hard by public health laws and anti-tobacco campaigns. It no doubt hopes the Cronos deal will help turn the tide.
As for what happens from here – to Cronos and the rest of the legal cannabis industry we follow so closely here – no one can say for sure.
The other day, I grabbed the opportunity to sit down with the CEO and Chief Investment Officer at U.S. Global Investors, Inc. (Nasdaq:GROW), Frank Holmes.
His firm specializes in actively managed equity and bond strategies. And the folks at U.S. Global Investors are highly astute in the metals and mining sectors as well.
Frank and his team wanted to interview me to get my take on where the technology, cannabis and blockchain sectors are headed. And they’ve kindly allowed us to publish the piece that resulted from our interview.
It’s got some important details about where I see the investment opportunities lie ahead for these industries, so I’ve decided re-publish the article here for you today.