Killer profits are the backbone of investing.
Creating them feels good and can have a powerful impact on your life.
Contrary to what most investors believe, you don’t have to have a hot tip or access to Wall Street’s mahogany-lined halls, either.
Big profits are about getting your money working with one objective in mind…
To produce the outcome and the wealth you want.
That’s it.
Simple as that.
Many people, of course, think this is impossible now that the S&P 500 has just notched up another all-time high and is now on record as the longest bull run in recorded history.
I frequently hear the objections…
… it’s too expensive
… there’s nothing to buy
… the markets could fall
Good!
Every single objection is proof positive that the bull run can continue. The economy is a long way from being overheated, interest rates are still low, and the world’s best CEOs are still growing their companies at 20%+ a year.
Some of the companies I’ve recommended are doing far better, including choices like Amazon.com Inc. (NasdaqGS:AMZN), for example, which has tacked on a staggering 2,190% over the past decade. That’s enough to turn every $10,000 into a staggering $229,000.
This isn’t just a “one-off.”
Quarterly earnings have risen at least 10% for five of the past six quarters, and the U.S. economy jumped by 4.1% in Q2, the fastest expansion since 2014.
To my way of thinking, it’s the perfect storm for still higher prices ahead.
Not in a straight line, mind you, but all the ingredients are there.
This isn’t just your imagination.
I know the list of things that could derail the markets is longer than either of us would care to admit… but not one of those things has happened. The Fed is neutered, global trade wars are a speedbump, and the headline risk screaming across late night Internet chat rooms just hasn’t surfaced.
Volatility is evaporating faster than ice on a hot summer day.
The most profitable move you can make right now is twofold:
- Double-check your Trailing Stops and make sure you’ve got them “up nice and tight,” just in case the markets have other ideas. It’s one of the most powerful profit protection mechanisms there is for market conditions like we have now. Most investors think about them only in terms of preventing losses, which means that they’re missing literally half the profit potential.
- Of course, there’s always the possibility that I am flat out wrong in my assessment. I don’t think I am, but there’s nothing like having added protection as an extra precaution.
- Buy the best fundamentals you can find when stocks that interest you are “going up” and momentum is working in your favor.
I’ve just recommended two such plays in my sister service, High Velocity Profits.
Both are making new highs and have fabulously strong fundamentals proven to drive higher prices over time. Velocity – a specific term I use to describe momentum – is working in their favor, which means that I only recommend stocks that were “going up” and now have the potential to move even higher.
I’ve also got my eye on Gilead Sciences Inc. (NasdaqGS:GILD), where recovering glory is the story that can create huge profits – even though the markets are at all-time highs and the bull market is a record 3,453 days long.
Gilead Sciences was a high flier until recently but, thanks to a patent withdrawal in China that would have offset a drop in its Hepatitis-C-related business, the stock is now trading at about half of its all-time peak of $123.37 hit on June 24, 2015.
That’s great because the company still has an enormous pipeline and solid growth potential that is almost totally unrecognized by the markets, specifically as it relates to HIV prevention and treatment.
I’m also keenly interested in the company’s cell-therapy business and the Kite Pharma acquisition. The company created Yescarta – a cell-based gene therapy – which gives them access to approximately 80% of eligible cancer patients and could have a nearly $3 billion revenue impact.
Then there’s a new manufacturing facility intended to support European customer acquisition. Estimates suggest that’s worth around $500 million a year, but I think the figure could be closer to three quarters of a billion as the Kite Pharma acquisition matures.
And, finally, the company has an Ebola-related drug in the works. The disease is simply not on the radar screen at the moment, but I continue to watch outbreak after outbreak surface in Africa. Not to ruin your day, but that’s often a signal that It’s only a matter of time before any disease “travels” or, unfortunately, gets weaponized in the wrong hands.
Both suggest more spending ahead and, hopefully, huge profits in your pocket.
Even at “these” levels.
Until next time,
Keith
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Source: Total Wealth Research