Ask Doc "The next 12-18 months could help you make a fortune before the inevitable crash." That's what Steve Sjuggerud told listeners last night during his emergency briefing on his market "Melt Up" theory.
Last night, Steve and Stansberry Research founder Porter Stansberry discussed:
- Why the Melt Up is still going strong...
- When they think the bull market will end...
- The sector that will benefit the most in the coming months...
- The perfect strategy to protect your portfolio from the market "Melt Down"...
Steve also explained why this isn't a "buy anything" market. You need to have your money in the right place to maximize your returns.
In Steve's True Wealth Systems, he's already given two recommendations he says are "the best ways I know of for you to take advantage of this final inning right now, and potentially make hundreds of percent."
Click here to learn more about Steve's Melt Up theory.
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Q: I recently heard the higher the SPF number on sunscreen the worse the lotion actually is for your skin. The higher number may protect you longer when out in the sun from an actual burn but the overall long term negative affect on your skin due to the needed ingredients to give the high SPF number is even worse than the actual sun exposure. Do you have any evidence of that being true? – C.F.
A: When it comes to sunscreen, most people think the higher the sun protection factor (SPF), the better the protection. However, the opposite is true. Sunscreen is full of toxic chemicals, including nanoparticles, which several lab studies show cause hemorrhaging and birth defects in fish and mice. Many sunscreens also contain oxybenzone. It's a hormone disruptor, meaning it interferes with things like estrogen and adrenaline. More troubling, oxybenzone is absorbed easily into our skin.
Also, when it reacts with sunlight, it forms free radicals in our bodies... These radicals bounce around your system, trying to pull electrons off healthy parts of your cells. Too many free radicals can lead to massive damage. They alter your proteins, fats, and even DNA. They cause inflammation and cancer.
Too much sun exposure does increase the likelihood of getting certain skin cancers. (It also wrinkles and discolors the skin, making us look older.) But remember... sun exposure is vital to good health. Vitamin D produced by the body from sunlight is critical for preventing diseases such as multiple sclerosis and depression.
When you're going out in the sun, do what I do...
I prefer using SPF 8. It takes me about 20 minutes before I burn in strong sunlight, so with SPF 8, I get 160 minutes of protection. That's my burn rate (20 minutes) times the SPF (8). So unless you're planning a bad game of golf on the equator, I don't recommend ever using anything higher than SPF 30 (about 10 hours of protection at a 20-minute burn rate). You don't need that much goop.
Q: I use a Neti Pot regularly and use purified water from my Brita Filter or purified bottled water. Are [you] saying that is not safe? – L.H.
A: As we mentioned last week, stick to using sterilized or distilled water in your Neti pot. If you go to the store to buy it, the bottle will be labeled as "sterilized" or "distilled." Any other water should be boiled or filtered through specific types of filters. For safe filtering, the Centers for Disease Control and Prevention (CDC) recommends using a filter labeled "NSF 53," "NSF 58," or "absolute pore size of 1 micron or smaller." (Read the CDC's guide to water filters here.) If you use the wrong filter or mishandle it, you might still end up with bacteria in the water.
So do what I do... stick to distilled or sterilized water.
Q: If the reason you bought a particular stock is for the dividend, would you ever want to set a trailing stop? Or just set it very loose?
I read in one of your emails that one should subtract the dividend from the highest price when setting the trailing stop, but I still would have sold many times over the years if I had used trailing stops, but I'm glad I didn't. I always say that if the price is down on dividend day – more shares for me! – D.H.
A: In my newsletters, I typically recommend a 25% stop loss.
Is there anything magical about 25%? No. You can use any percentage. Sometimes we'll set our stops at 50% for more volatile recommendations and 15%-20% when we want to play conservatively.
Here's how to account for dividends when you use a trailing stop...
If you're buying a stock for $10 and set a 25% trailing stop, you would sell the stock when the price falls 25% lower than $10 (down to $7.50). If the price moves to $20, your new stop would be $15.
Let's say you received a $1 dividend payment. All you need to do is subtract that $1 dividend from the highest share price – $20, in this case. Then you use that number – $19 ($20 minus $1) – to set your stop loss. So your stop would move from $15 to $14.25 ($19 times 75%).
As for the stock price moving on dividend day, unless you have an extremely tight stop, the stock won't be down enough to trigger a stop.
Microsoft (MSFT), for example, pays a quarterly dividend of $0.39. If Microsoft shares fell by the price of the dividend, that'd be less than a 1% decrease from yesterday's closing price ($68.49). That's not enough to trigger our usual 25% stop.
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Editor's note: Our offices here at Stansberry Research will be closed on July 3 and 4 in observance of the Fourth of July. Look forward to your next issue of Retirement Millionaire Daily on Wednesday, July 5.
How are you celebrating the Fourth of July? Let us know at [email protected].
What We're Reading...
- A lifetime National Parks pass for seniors is about to get much more expensive.
- Something different: A grim fireworks display that lit up skies in the Cold War.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Retirement Millionaire Daily Research Team
June 30, 2017