Why The Trump Pump Is Coming To An End

I look for the stock market to stall near current levels. Here’s why.

Enough already! Bull markets don’t grow to the sky. They need to take breathers every so often to rebuild value before rallying further. We are seeing the beginning of that dip right now. This is normal and should not be thought of as the beginning of a major bear market.

Seasonally, the market usually dips in early December and that is also happening right now. Normally, the market dips until about the middle of the month then shoots higher to the first week in January. I think that will happen this year.

Markets will start to reconsider the Trump Pump. Markets skyrocketed on ideas that Trump will put in pro-business policies like deregulation. New policies like that are certainly bullish.

But markets first go through a euphoria stage. But that is followed with a disappointment stage. The market gets disappointed that the new policies don’t happen right now and sell off. The market starts to look more critically and says that these policies are bullish but they make take years to implement all of them if they do actually implement them all. And so they get disappointed and sell stocks.

We are bound to go through such a period with Trump. It is very common and to be expected. That is how markets work.

****************************Advertisement*************************************

Learn To Trade Stocks The Courtney Smith Way!

Courtney Smith managed the number one growth mutual fund in the US. He wrote the number stock picking newsletter. He was voted the number one bond and gold market time in the country.

Wouldn’t you love to learn the techniques he used to create this amazing track record?

On February 4-5, in Las Vegas, Courtney Smith will be teaching a live two day seminar that will reveal the four critical keys to outstanding stock investment profits. They include:
1. How to create a psychology that will allow you to accept massive profits
2. How to control risk so the risk doesn’t control you
3. How to pick stocks poised for massive profits
4. How to time the buys and sells for maximum profits with the least risk
For a modest investment you can learn amazing techniques from a trading master.

But you have to click here now to register!

Click here now for more information and to register!

*************************************************************************************
But after the disappointment phase comes the rational bull market. This is the bull market that is durable and long. This is where the serious money is made.

So look for a dip over the next 10 days then a sharp rally to the end of the year.

Posted in Investing General | Leave a comment

TRADESMITH video Free version – December 5, 2016

Courtney teaches you deep insights on how markets are connected in this week’s TradeSmith. Important!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

Posted in TradeSmith | Leave a comment

Trade Secrets: How the Central Banks Are Creating Chaos

Central bankers present an image of authority from on high. They like to present themselves as prudent protectors of us mere civilians.
Yet they are the biggest gunslingers in the world.
They are the cause of much chaos and suffering throughout the world.
They are usually unaccountable to anyone yet have more power than anybody but heads of states. At least many heads of state are elected.
Here’s the problem.
Money makes the world go ‘round. Money is the one thing that unifies a country. We all use it. So the central bankers control the single most important thing in the economy.
But, throughout history, bankers have run monetary policy in a crazy way.
Let’s take a couple of recent examples.

In the mid-2000’s, the Fed boosted money supply and dropped interest rates below where they should have been. In effect, they were saying, “Want to borrow money? Here’s lots of it at a super low price!” This led directly to the housing boom which was one of the biggest bubbles in American history!

They then panicked and hiked interest rates dramatically in 2007 thus popping the bubble they created and caused the 2008 Great Recession.
There were other causes of the Great Recession but the boom could not have happened without the Fed making a massive mistake in monetary policy and then making another mistake in popping it.
Chalk up massive suffering for Americans and others due to gunslingers at the Fed.
We now have several central banks, notably the European Central Bank and the Bank of Japan, embarking on massive economic distortion scheme of negative interest rate policy or NIRP. These central banks are charging people to lend to them! Yes, reread that last sentence! It’s astounding!

But this massive distortion is once again causing tremendous suffering around the globe.
Let me just mention one disaster that is sweeping the world.
The world is getting older particularly in the developed world. These older people rely on their pensions for their income.
Traditionally, pension funds would look at the ages of their pensioners and come up with an expected amount of money they will need each year to meet their financial obligations. They would then usually buy bonds that matched those liabilities. This system has only worked since the beginning of pensions with NO problems.
Along come the gunslingers.
Now, many bond yields are negative which means that the pension funds can’t find bonds from major developed countries that match their liabilities. So they really have only two choices:
1. Cut what the pensioners get or
2. Invest in riskier assets.
They are doing both.
Pensioners around the world are seeing their income squeezed. This is the major reason why we are seeing “retirees” working at Walmart into their 70’s. They can’t afford to retire! And this is cutting out jobs that are normally for younger people.
Pension fund managers are investing in riskier assets like junk bonds, emerging market bonds, and dividend paying stocks to make up for the lack of yield or even negative yield from safe government bonds.
This means that they will suffering at least occasionally when those riskier assets go belly up or suffer from bear markets. Who pays for the higher risk? You and I.
The central banks said that the Great Recession was caused by too much debt and too much risk. So their solutions? Borrow more and take more risk.
The central bankers are leading us right back to a higher cliff than we were in 2008! And we will pay for it.

Courtney Smith is Chairman of WealthbuilderLLC.com. He is the author of 10 books on investing. He speaks to thousands of people every year. He is the only man in history to have managed a top ranked mutual fund and hedge fund.

Posted in Investing General | Leave a comment

She Needed the Money Fast!

She lived in Vancouver and needed to make money. Her husband got a gig as a DJ in Holland. But she had no visa to work. So she needed to make money without a visa.

She took a trading course from me that focused on futures and Forex.

In the first week of trading she doubled her account size!

She called me up in a panic! “What do I do with my positions?!”

I said, “Get out!”

The reason? She had about five times too much risk! She had all these forex pairs that were highly correlated. She got lucky and made a ton of money but she just as easily have lost a ton.

Hey, better lucky than smart.

She then settled down and started doing well from skill and knowledge rather than luck. She would make some money and then take it out of her account so she was always playing “with the house’s money”.

She was a cool customer after the original panic and just smoothly did well.

I rarely talk about the performance of my students because then I have to say the following: Past results are not necessarily indicative of futures performance. Trading entails risk. Only trade with money you can afford to lose. Results are not typical and you may never make money at all and might even lose money. So be careful.

But I like her story. It is inspiring to me that a person with no background in trading could basically turn it on become a pro trader.

I’m telling the story because we are offering a course that included some of the techniques that she used in her trading.

You can get some free training about these techniques here: Stock Success School next one coming on February 4-5, 2017.

Posted in Investing General | Leave a comment

Paper Money. What a Joke.

Take out some money from your wallet. Go on, humor me.

Look across the top. What does it say? Federal Reserve Note.

Wait! A note is a debt instrument, not money!

We used to have Silver Certificates up until the 1960s. It said silver certificate across the top.

It was real money because it was a receipt for $1 of silver. You could take the dollar bill and go get four quarters made of silver. OK, it wasn’t perfect but at least it was backed by something.

The Federal Reserve Note is a debt instrument of the Federal Reserve Bank. You’ve loaned them $1 and they promise to pay you back.

So let’s say you take your $1 to the Federal Reserve Bank and say you want to redeem your loan to them. What will they do/

First, nothing. You can’t go to the Fed and ask for them to repay the note.

But you could go to a bank ask them. What will they do? They will redeem your note with more notes! Unbelievable.

Take in a hundred dollar note and they will give you five twenty dollar notes. They pay you with more debt!

Wow! I want to be in that business! Oh, wait. That would be illegal!

You loan them money and they never have to pay it back!

What a scam!

P.S. Consider subscribing to my TradeSmith newsletter to keep up to date on the stocks I am buying for my portfolio. Click here: http://bit.ly/Trade-Smith

Posted in Investing General | Leave a comment

TRADESMITH video Free version – November 28, 2016

There are lots to go on the downside, plenty more to go on the downside! We’ve got a lot more money to make even though it’s already dropped a lot!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

 

 

Posted in TradeSmith | Leave a comment

Mega Moves

Peter Brandt pointed out to me that there are around 8-12 mega moves per year. A mega move is any move that will make you $5-10,000 on the move. He said to me that his goal every year was to only do those trades. He thought that the ideal year would be that he only traded those trades.

Of course, in the real world we can’t just trade those mega moves. We will have other trades that are losers and other trades that will be small winners.

He felt that a year where he did, say, 25 trades in a year but caught all or nearly all of the mega moves would be a highly doable and highly profitable campaign.

Ou focus should always to make these mega moves. They can create wealth that changes our life. Yes, we will have other trades. Some winners. Some losers. But these other trades will not net to anything that will change our lives. The mega moves will change our life.

You may have problems with catching the mega move. Do you feel in your heart of hearts that you deserve to make mega money? Do you get out of your trades too soon to make the mega money? Do you have an entry and exit strategy to ensure that you will be in the mega moves?

Examine your trading. Are you cashing in on the mega moves or is this massive money passing you by?

Posted in Investing General | Leave a comment

Why Uber and AirBnb Are Slow Motion Wrecks

I love Uber. I use every time I can. I’ve never used AirBnb but friends tell me it is great.

But I think they are very flawed as businesses. Here’s why.

Take Uber for example. They call it ride sharing. But it’s not. You pay to sit in that car. That’s called a taxi.

When you pay to sit in a car with a stranger, that’s called a taxi. All the semantic run arounds doesn’t deny that fact.

Uber is a taxi with a great app. I love the app.

But they exist because regulators and competitors were caught off guard.

Uber largely exploded in size because they built a business model that doesn’t have all the costs of a regular taxi.

Where are the costs of:
1. Insurance. What happens when you are in a wreck in an Uber car?
2. Regulation. People like to say regulation makes things better. Even assuming that is true, which I doubt, it costs money. Uber is not regulated so no costs.

And so on.

So the savings you get using Uber are simply the cost savings from those items.

Some cities have enforce these costs on Uber and, guess what, no bargain anymore!
***********************************************************************
Stunning NEW Weekly Video Newsletter!

Each week, Courtney Smith reveals to you what is really going on in the stock, bond, forex, oil, and gold market. His amazing proprietary indicators show you the way in the market. Watch him use some of the techniques he used to manage the #1 Growth Mutual Fund in the US. He is using many of the techniques he used to get voted #1 Gold and Bond market timer three years in a row. Now you can get a 20 minute video briefing every single week to guide you through market turmoil.
Click here for more information!
http://bit.ly/Trade-Smith

***********************************************************************

AirBnb is similar. I’m sorry but when you pay someone to stay in their house, it is a hotel, bread and breakfast or something. It is not house sharing unless you get it for free.

Once again, I’m thrilled with having alternatives such as AirBnb!

But the regulators and entrenched interests are fighting back. They are enforcing hotel regulations and taxes on people they catch. So the economics of the company disappear.

You can look for regulators to simply go to AirBnb and search for the listings and send out enforcers to collect taxes and fines as a way to make money. Easy! Your listing on AirBnb is effectively an admission of guilt! Busted!

More and more cities will do this.

Both companies will pivot as the heat gets hotter.

P.S. Consider subscribing to my TradeSmith newsletter to keep up to date on the stocks I am buying for my portfolio. http://bit.ly/Trade-Smith

Posted in Investing General | Leave a comment

TRADESMITH video Free version – November 21, 2016

I told you to get long the dollar and it is rocking! I’m now looking for a massive move of 20%. Check it out in this week’s TradeSmith free weekly video!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

Posted in TradeSmith | Leave a comment

Chaos

Markets appear chaotic. Not chaos in the physics sense but chaotic in the common daily use of the term.

It often appears that nothing makes sense. Markets plunge one minute and then rally the next. What in the world!

Earnings for a stock can keep going up year after year yet the price of the stock can keep going down year after year.

I sit here in my office looking at prices on the screen jumping around like a cat on a hot stove. Why did it just go up a tick then down two. It makes no sense to me in my chair.

But it makes perfect sense to the floor trader or broker. They see the bids and offers and the size of those bids and offers so the price jumps are logical.

They look at the market and they think that the upstairs traders like me must be crazy. Why are those upstairs traders buying today and not yesterday? They must be nuts. My behavior, as witnessed by my orders, seems chaotic while their behavior on the floor seems chaotic to me.

Chaos comes from our perspective, not the market.

The market is.

It is a form of spontaneous order.

Look at it from another perspective and it all makes sense.

People who say the market is crazy don’t know the market. They are like a dog looking at a human.
***********************************************************************
Stunning NEW Weekly Video Newsletter!

Each week, Courtney Smith reveals to you what is really going on in the stock, bond, forex, oil, and gold market. His amazing proprietary indicators show you the way in the market. Watch him use some of the techniques he used to manage the #1 Growth Mutual Fund in the US. He is using many of the techniques he used to get voted #1 Gold and Bond market timer three years in a row. Now you can get a 20 minute video briefing every single week to guide you through market turmoil.
Click here for more information!
http://bit.ly/Trade-Smith
***********************************************************************

Posted in Investing General | Leave a comment