The Power of Smart Speculation

Sometimes that “hot new startup” really pays off…

You might not expect me to say that. When I recommend a stock, I focus on income and the company’s long history of growing revenues… These businesses will help you generate a safe and steady income over time. They should make up what I call the “backbone” of your portfolio.

Of course, these backbone stocks aren’t the only way to succeed as an investor…

One of the greatest moments of my financial career happened in 1987, when I invested in a tiny company called Amgen.

It was a risky play. But everything I learned about it looked great. That risk made me 21 times my money.

Not all speculative investments do so well. Even I’ve had my share of bad speculations on those “hot new stocks.”

When you find a risky opportunity that has the possibility of making you a lot of money, take it… but take it small. Throw a little bit of cash that way if you can afford it. I’m not talking about betting the rent money, but if you have some play money, don’t be afraid to seize the opportunity.

Just be smart about it. Educate yourself. Understanding what you’re investing in gives you a leg up on people who blindly throw money at opportunities.

If you want to speculate, you need to play it smart. And that’s where Matt McCall comes in…

Matt reminds me of myself with his high level of drive and curiosity. He travels to learn about industries and companies all the time… He’s highly aware of his surroundings, and pays close attention to details others might miss.

That makes him unique as a guy tapped into what’s truly happening on the ground.

And next Wednesday at 8 p.m. Eastern time, Matt is sharing a groundbreaking investment strategy that could help you grow your money 10 times, across multiple stocks, beginning this year.

For one night, he’s pulling back the curtain on how he finds stocks before they shoot up over 1,000%.

Click here to reserve your spot.

Q: I enjoyed your article on eggs. Not sure if it is true or not, but I heard the first big study showing how bad eggs were for you was paid for by the cereal companies. Turns out the study used powdered eggs rather than real eggs. – G.O.

A: While we couldn’t find any back up for your story GO, it wouldn’t surprise us. The war on eggs started back in the 1950s with a scientist named Ancel Keys. Keys is responsible for a large study involving multiple countries that looked at diet, cholesterol, and heart disease. One of his theories is right… Eating more polyunsaturated fats will help lower your cholesterol.

However, his theory that eating diets high in natural saturated fats like butter, eggs, etc. increases cholesterol was wrong. It came to light that he threw out data that contradicted his theories, and possibly misrepresented some of his findings. Many companies (like margarine companies) latched on to the studies to promote their products. The story is fascinating, but too long for an issue of Health & Wealth Bulletin. That’s why we recommend reading this review article from the Journal of Nutrition.

Remember, eggs are a great source of protein, choline, and ACE inhibitors, which are good for your heart. And dietary cholesterol from eggs won’t increase your blood cholesterol. Do what I do and enjoy a few eggs every week. I like mine over easy.

And speaking of cholesterol…

Q: I have a problem with your message to your readers. You state that inflammation causes all these bad things to the body. I think you’re misleading the readers. Inflammation causes nothing deleterious. Inflammation is a symptom.

I believe the better message to communicate to your readers is that the stuff they’re putting into their bodies is causing an inflammatory response. When you eat crap the body is going to respond, either positively or negatively. The body always wants to heal itself. Fruits are not an anti-inflammatory but they simply don’t trigger an inflammatory response. (Now, if they’re laced with pesticides or herbicides they can trigger an inflammatory response.)

You’re confusing your readers with “good food-bad food” semantics. In my opinion you should be trying to educate your readers to the awful crap they’re putting into our food supply which is causing the alarming increase in health problems in younger and younger individuals. Facts don’t lie and statistics sometimes hurt people’s feelings. Keep up the struggle my friend. The masses have their priorities all wrong. – T.K.

A: We agree, T.K. I’ve written many times about the “cholesterol myth,” but I’ll break it down again… Cholesterol doesn’t cause heart disease. Poor food choices and a lack of exercise lead to damage in our bodies, triggering inflammation. As you said, T.K., inflammation is the signal that something is wrong. When there’s damage to an arterial wall, it gets inflamed and our bodies send cholesterol, along with other molecules, to create a patch. That patch is called a plaque. If these build up, you get heart disease and the risk of a heart attack or stroke.

However, if you have chronic inflammation, that also damages your blood vessels and creates these injuries too. So, it is at the core of a lot of problems in our bodies.

But inflammation doesn’t just happen. We stimulate it when we eat heavily-processed foods, trans fats, and things the immune system reads as “foreign” (like artificial sweeteners). Fat tissue also causes chronic inflammation, so losing weight is a good way to combat it. And while you’re right that fruits and vegetables don’t cause inflammation, some do contain inflammation-fighting molecules like antioxidants and polyphenols. Plenty of studies show that these molecules lower inflammatory markers in research participants.

We can’t stress it enough – cut out the processed foods, trans fats, and artificial sugars. Stick to whole foods, and plenty of fruits and vegetables.

Q: If I plant a roasted nut or seed, it won’t grow a plant. Is there any nutritional value lost by eating roasted, vice raw, nuts/seeds? And if so, does that also extend to vegetables and occasionally cooked fruits? – D.T.

A: Roasting nuts does very little to their nutritional content. The water in the nuts evaporates, but the healthy lipids are relatively unharmed. One study we found in the journal Food Chemistry showed that roasting three types of nuts – macadamia, hazelnuts, and walnuts – lowered their antioxidant capacity. And roasting almonds on high heat led to the buildup of some acrylamide, which, in large doses, can cause cancer. But overall, the amounts are small, and the benefits of nuts outweigh the problems. Just don’t overdo it by eating more than a handful or two at a time.

We couldn’t find much on seeds. However, a similar study on pumpkin seeds said the same thing – the lipids (fats) that are so good for you change very little when roasted. So, while you may lose a small amount of nutrition, nuts and seeds are still excellent sources for vitamins and healthy fats.

As for fruits and vegetables, it depends on the nutrient studied. For example, water-soluble vitamins (like vitamin C) tend to be lower in cooked produce. But fat-soluble ones like vitamins D, E, and K fare better, as we can better absorb them from the food. One thing we always recommend… cook your veggies during E. coli outbreaks (like last year’s outbreak in romaine lettuce). That’s because cooking at about 160 degrees Fahrenheit is the only way to kill the virus.

What We’re Reading…

Here’s to our health, wealth, and a great retirement,

Dr. David Eifrig and the Health & Wealth Bulletin Research Team
July 26, 2019