| This Cheap and Hated Investment Just Popped up on My Radar | | By Dr. Steve Sjuggerud | | Wednesday, July 20, 2016 |
| Everything is up!
Stocks, bonds, gold, property… they're all up. Investors love 'em all.
That's good for our net worth… But what does it mean for new investments?
Longtime readers know I like to find hated investments – that's where the biggest returns come from. So what's hated today?
It's the same investment – with the same setup – that I told my True Wealth readers was "The No. 1 Opportunity of 2013."
This investment had fallen for years… It had actually fallen in half from its 2007 highs to its lows in 2012. Investors had given up. That's when we bought it. And this investment soared nearly 40% in 2013.
Let me explain…
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Today, a similar thing has happened… This investment lost 38% of its value from its 2015 highs to its 2016 lows. That's nearly identical to what we saw at the end of 2012, before the massive profits kicked in…
But most important to me, investors have given up again… This investment is hated.
How do I know investors have given up?
I look at the shares outstanding for this investment, which is an exchange-traded fund (ETF)…
You can see in the chart below that, in 2011 and 2012, the number of shares outstanding of this investment consistently went down… which means that investors were continually getting out.
They were throwing in the towel… And that's what I like to see. You can see that a decrease in shares outstanding is happening now, too… Investors have been steadily giving up on this investment.
Take a look…
We recommended buying shares in late 2012. It was exactly the right thing to do. We took profits of 60%-plus in 2015.
The same type of setup we saw in late 2012 is happening now…
Once we start to see a solid uptrend, this is an investing idea that I will seriously consider. The ingredients are there.
So what is this investment? It's the WisdomTree Japan Hedged Equity Fund (DXJ).
I haven't been to Japan in a few years. Japan's investment prospects haven't been on my radar this year… But with these near-perfect setup conditions, they are now.
Based on how DXJ performed the last time we saw these setup conditions, it should be on your radar, too.
Good investing,
Steve |
Further Reading:
"It's almost against the laws of nature for stocks to pay a dividend yield higher than their P/E ratio," Steve writes. But that exact situation exists in Asia right now. Get the details here. Brett Eversole says foreign stocks are the place to be following the "Brexit" vote. Best of all, you can take advantage of it with a single click. Read more here: Why Foreign Stocks Will Be the Post-Brexit Winners. |
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THIS 'PICKS AND SHOVELS' BLUE CHIP IS BREAKING OUT
Today's chart looks at the soaring share price of one of the world's greatest "picks and shovels" businesses...
Regular readers know that one of our favorite investment strategies is investing in "picks and shovels" businesses. These companies benefit from sector and commodity booms. They don't bet the company on one project... Instead, they sell vital goods and services to an entire industry.
Cisco (CSCO) is one of our favorite examples. It has been one of the ultimate "picks and shovels" investment plays of the Internet revolution. Cisco sells routers and switches – the "plumbing" of the Internet. Tech companies like Google and Amazon depend on Cisco's products to run their businesses.
As you can see, Cisco's business model has treated shareholders well. The stock just hit a fresh 15-year high this week. As long as folks continue to use the Internet, Cisco's business should continue to thrive...
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| Don't Buy That Stock... Until You Answer These Three Questions | | By Kim Iskyan | | Tuesday, July 19, 2016 |
| | We recently talked about three questions you should ask yourself before you buy an asset. But when you're buying a stock, there are a few more questions you need to ask... |
| | How to Take Advantage of the Biggest Anomaly in Finance | | By Dr. Steve Sjuggerud | | Monday, July 18, 2016 |
| | It is, in my opinion, the biggest anomaly in finance... And there's an easy way to take advantage of it... |
| | Housing's 'Traffic Jam' Is Creating a Great Opportunity for Investors | | By Mike Barrett | | Friday, July 15, 2016 |
| | Market anomalies – like the current "traffic jam" in housing – often create opportunities for astute investors. But such aberrations never last forever... |
| | Stocks Hit New Highs – Further Gains Ahead | | By Brett Eversole | | Thursday, July 14, 2016 |
| | The S&P 500 hit a new all-time high on Monday. The Dow Jones Industrial Average followed suit on Tuesday... |
| | Three Investment Mistakes That Are Draining Your Portfolio | | By Dr. David Eifrig | | Wednesday, July 13, 2016 |
| | Most folks just want a hot stock tip... But these folks will likely never truly grow their wealth. |
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