Doc’s note: We’re in one of the longest bull markets in history. Lots of our favorite stocks are expensive. And it seems like there aren’t many chances to generate big gains before this bull is over.
That’s why I’m sharing an essay from Steve Sjuggerud, where he explains how to find the last, big investing opportunities.
And don’t miss out this Thursday, June 21 at 8 p.m. Eastern time, when Steve hosts a live event where he’ll share details on an asset poised to move much higher… and the best way to take advantage of this move.
The big problem in investing is, it’s all been done…
Today, more investors have more information at their fingertips than at any time in history. It’s hard to find an advantage that nobody else has.
Where can you have an edge? Where can you find an idea that can deliver truly outsized returns?
I look for three things in an investment… I want to find an investment that is 1) cheap, 2) hated, and 3) in an uptrend.
The thing is, it’s all been done in No. 1 and No. 3 above…
For No. 1 – finding what’s cheap – tens of thousands of “value” investors are using the same metrics (to scan the same databases… to come up with the same stock picks). It’s hard to find something extraordinary this way that someone else hasn’t already found.
For No. 3 – finding the uptrend – it’s even worse… Computers are faster than people at identifying trends in the stock market and exploiting them. It’s hard to have a huge edge in such an expensive, competitive arena.
So the middle one is where “alpha” lives – that is, the potential for dramatic outperformance.
The reason is simple… It’s hard to objectively measure real-time human emotions and how people will react.
I believe it’s a good thing that it’s hard to put human emotions and reactions into a repeatable computer program. It means the world still needs people like me to rely on our experience, in addition to our numbers.
Even more important, it has led to the biggest investing successes of my life…
When I find an investment that is extremely hated, I often “go big”…
In late 2008, I actually took an extra mortgage on my house to buy stocks. It’s the only time I’ve ever done that. But stocks were so hated in late 2008, it looked like either the financial world was coming to an end, or it was the best buy signal of my lifetime. It turned out that I was a bit early – but it worked out fantastically.
March 2009, in hindsight, will likely end up as the greatest stock market bottom in my investing lifetime. And even with my early call, I took full advantage of it.
Then, in 2011, I started buying property in Florida. I had never bought U.S. property as an investment in my life. But I “went big” starting in 2011. Florida real estate was more hated than I’d ever seen it. I bought a property for less than a million dollars in 2011 that had been under contract for $14.4 million just 18 months earlier.
2011-2012 will likely end up as the greatest housing-market bottom in my investing lifetime. And again, I took full advantage of it.
The storyline was simple for both of these trades… These investments were incredibly hated. And I “backed up the truck” to buy as much as possible.
This secret – buying investment that are cheap, hated, and in an uptrend – is how I make ALL my market calls… whether it’s stocks, real estate, commodities… you name it.
Right now, I’m seeing the beginnings of what could be the next big move in the market.
My team and I have spotted the next big asset that is set to soar in value, perhaps by as much as 500% or more over the next few years.
This Thursday, June 21 at 8 p.m. Eastern time, I’m hosting a free, live online event where I’ll talk about why this asset is set to boom and the best way to invest now.