| The Ultimate Buy Setup Right Now in This Asset | | By Dr. Steve Sjuggerud | | Thursday, October 19, 2017 |
| Everyone's talking bitcoin. It's extremely "loved" by investors right now...
Even though I'm cautious on cryptocurrencies, it's a fascinating idea, worth learning about. And that's why we've shared essays on it over the past several days.
The thing is, when I look at investment opportunities, I pay more attention to what's "hated."
That's where I've found my biggest winners often come from...
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Two months ago, in my True Wealth newsletter, we bought an asset that had just reached a record hated level.
We bought near the bottom, as you can see – and now the uptrend has begun. Take a look...
What is this investment?
It's a real asset – a commodity – that will never truly go out of style. I'm talking about cocoa.
Cocoa beans are what makes chocolate special... The beans are dried, fermented, then broken into bits called "nibs." The nibs are then further processed into chocolate.
But nibs, apparently, are facing some setbacks for the moment...
Cocoa prices have fallen nearly in half since 2015. Speculators, worried about the possibility of a saturated market, have gotten out of the trade and driven prices down.
The pessimism surrounding cocoa reached an extreme over the summer. We can see this by looking at the Commitment of Traders (COT) report, a useful measure of what speculators are betting on today. Take a look...
Late in the summer, speculators placed more bets against the price of cocoa than at any time in history. They wanted nothing to do with it.
The thing is, demand for cocoa isn't going away. (It's chocolate!)
I told my True Wealth subscribers two months ago:
We can easily set up a trade with a great risk profile here...
I like to have the potential to make three times the money I'm risking on a trade. We can easily do that here...
Buy the iPath Bloomberg Cocoa Subindex Total Return ETN (NIB). Sell when you're up 30%, or in 12 months' time, whichever comes first. Use a 10% trailing stop. |
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As you can see from today's charts, you haven't missed the opportunity yet in cocoa...
| • | Cocoa is still near record-levels of being "hated" – which is what we want to see. And... | | | | | • | Cocoa's uptrend has just begun. |
If you want to make money, typically your best bet won't be on what's getting the love. You want to find a hated asset.
Cocoa reached a record hated level over the summer. And now it's in an uptrend.
That's the kind of setup you want to take advantage of to be a successful investor...
Good investing,
Steve |
Further Reading:
Brett Eversole recently highlighted an investment that traders are in love with right now. "We love to see sentiment extremes like this... They're great opportunities for profit," Brett writes. Read more here. |
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THIS COMPANY KNOWS YOU CAN'T RESIST ITS FOOD
Today's chart shows a market leader that built its success on addictive products... Longtime DailyWealth readers know we've highlighted the power of investing in companies that sell habit-forming products, like soda, coffee, and alcohol. People buy these products, consume them, then go out and buy more. And we can see the same thing playing out in fast food... McDonald's (MCD) has added some healthy options... But people truly crave its burgers, chicken nuggets, fries, and milkshakes. Most consumers know they're full of salt, fat, and sugar. But they don't care. Steady, loyal business has earned the restaurant chain a solid balance sheet... And it passes those rewards on to its shareholders. The company has now raised its dividend 41 years in a row. As you can see in the chart below, McDonald's shares are up 49% over the past year... And they're hitting new all-time highs. It may not be a popular strategy, but buying companies that sell addictive products can consistently boost your returns... |
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Another way to buy what no one else is interested in... Cocoa isn't the only "hated" opportunity investors are ignoring right now... |
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Stocks keep surging higher, but Steve Sjuggerud says, "You haven't seen anything yet. The biggest gains lie ahead." For a copy of his "Melt Up" thesis, click here. |
| So You Want to Buy Bitcoin... Now What? | | By Tama Churchouse | | Wednesday, October 18, 2017 |
| | If you are interested in speculating in bitcoin, I urge you to pay attention to my friend Tama Churchouse. |
| | The Big Advantage You Have Over Institutional Investors | | By Tama Churchouse | | Tuesday, October 17, 2017 |
| | How can an individual compete against the big, institutional asset managers who dominate the financial markets? |
| | Bitcoin Won't Replace Gold... Here's Why You Should Still Own It | | By Tama Churchouse | | Monday, October 16, 2017 |
| | Bitcoin is frequently compared to gold. But it's not an either/or proposition... And I'll tell you why... |
| | Did You Miss the Last Breakout in Gold? Here's Your Second Chance | | By Justin Brill | | Saturday, October 14, 2017 |
| | Regular readers know our colleague Ben Morris has been watching gold closely for months... |
| | Don't Let These Three Reasons Stop You From Buying Bitcoin | | By Tama Churchouse | | Friday, October 13, 2017 |
| | If you have doubts or questions about cryptocurrencies, challenge yourself, and read on... |
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