Daily Archives: December 1, 2017

Cryptocurrency

Is a Cryptocurrency Crash About to Happen?

“I’m rich!” my friend Tess said to me.

“How?” I asked her.

“My stock is up over 1,000%.”

“Wow!” I gasped.

That was late in the year of 1999, during the greatest bubble ever.

To know how incredible this bubble was, listen to this.

Qualcomm Inc. (Nasdaq: QCOM) rose 2,619%. Twelve other stocks, including the one that my friend Tess was in, rose by at least 1,000%. Another seven rose by 900%.

Now, just understand that many of these stocks represented big companies in the Nasdaq Composite. So, for Qualcomm and these companies to go up by this much was a clear sign that a mania — a bubble of gigantic proportions — was going on.

Right now, another incredible bubble is going on, and I’ve got a strong feeling that history is about to repeat itself.

My Money Was Safe

Personally, I sold all my stocks in 1999. And I watched from the sidelines as daily stocks jumped by 20%, 30% or even 50%, representing insane gains. For a while, I felt dumb.

However, when these stocks cratered in 2000 and 2001 … my money was safe.

There may be a massive cryptocurrency bubble underway that could cause a cryptocurrency crash. Here's what you need to know.

I warned my friend Tess many times. However, she didn’t heed my advice.

She never sold. And the stock that at one point had made her rich lost all its gains.

An Enormous Bubble Will Make Cryptocurrency Crash

Right now, I believe there’s a massive bubble going on in cryptocurrencies like bitcoin and Ethereum that will lead to a cryptocurrency crash.

This Thanksgiving, you might’ve even heard your family and friends talk about the money they’ve made in one of these two currencies. And it’s true: some people have made millions. Others have made hundreds of thousands of dollars.

After all, bitcoin is up an astonishing 1,172% in the last 12 months, hitting a high of more than $11,000. In the last month, bitcoin is up 50%. Over the last seven days, it’s up 17%.

There may be a massive cryptocurrency bubble underway that could cause a cryptocurrency crash. Here's what you need to know.

Now, many people have written to me already telling me that my negative feelings about bitcoin are because I missed out.

The truth is, this is exactly what people told me in 1999, when I told them that stocks were a bubble and going to crash. Tess even stopped talking to me for a while when I told her she should sell the stock that had made her rich.

That’s the thing about bubbles. No one wants to sell. Once prices peak, people keep looking back, waiting to sell at the recent high. And they keep doing this till their gains are washed away.

The Essence of a Bubble

Clearly, my previous warning to stay away from bitcoin was too early. However, there’s no question that bitcoin and other cryptocurrencies are an enormous bubble that’s going to crash sooner rather than later.

The reason why I believe this is because in 1999, there was nothing underpinning the incredible daily gains in bubble stocks, and the same is true today for bitcoin.

The only thing propelling bitcoin is the news that it’s going up. That’s the essence of a bubble, where the idea that something can go up is the thing that people value the most.

And the thing about bubbles is that, eventually, everyone who is ever going to buy into it gets in. Then the selling begins.

When this happens, people will lose the incredible gains that they currently have in bitcoin and other cryptocurrencies.

Like in 1999, I feel a bit foolish because I’ve been wrong. However, I’ve gone through many bubbles in my 25-plus years of investing experience. And there’s no question in my mind that what’s going on in cryptocurrencies is a bubble that’s going to end badly.

Regards,

Paul Mampilly

Editor, Profits Unlimited

In this exciting NEW VIDEO, Wall Street legend and former multibillion hedge fund manager Paul Mampilly pulls back the curtain on the biggest investment opportunity in the market today. What insiders are calling “The Greatest Innovation in History,” this revolution will mint more millionaires and billions than any technology that came before it. Right now, the current market for this technology is just $235 billion, but given how fast this technology is moving experts predict it will soar to $19 trillion by 2020. But 8,000% growth is just the beginning—and now’s your chance to get in on the action. [CONTINUE TO VIDEO]

Source: Banyan Hill

Technology

The Easy Way to Boost Your Income

Income is not dead.

I know that the Federal Reserve has worked hard to convince Americans that income is dead with near-zero interest rates for years and the excruciatingly slow crawl higher from zero.

Not only is income not dead, but it should continue to be a critical part of your overall portfolio along with domestic and foreign stocks, gold, commodities and even rare tangible assets.

That’s why I want to show you an easy way to boost your income in your portfolio that doesn’t require the use of options and is as easy as buying a stock…

An Easy Way to Boost Your Income

Earlier this week, I talked about the importance of rebalancing your portfolio at least once a year following sharp movements in the market. And we’ve certainly had that.

The Dow Jones Industrial Average has gained more than 20% this year. It broke through yet another record level as it surged past 24,000 this week.

The tech-heavy Nasdaq Composite is up roughly 19%. Even the small-cap Russell 2000 Index has rallied 12%.

In the commodity space, oil has tacked on 7%, and gold has grown an impressive 12% despite strength in stocks.

But while high-flying stocks can produce some solid growth for your wealth, it’s important to dedicate a portion of your portfolio to income.

And while Janet Yellen and the rest of the Federal Reserve have lifted rates several times — and are likely to do it once again later this month — we’re still far off from interest rates that are regarded as normal.

Yet, there is still an easy way to boost your income.

A Hidden Income Gem

A steady flow of income is something that most of us are searching for when it comes to growing our portfolio, particularly as you get closer to or enter retirement.

The stocks of the S&P 500 Index aren’t exactly wowing investors, as it returns on average a 1.93% dividend yield.

Fixed income is still struggling under low interest rates managed by the Federal Reserve. The U.S. 10-year note is yielding just 2.34%.

Utilities have long been a go-to for many investors with their long history of dividend payments. But even utilities are averaging a yield of only 3.31%.

But Matt Badiali, editor of Real Wealth Strategist, has uncovered an amazing collection of stocks within the natural resources sector that issue a steady stream of income to shareholders.

In fact, he’s selected five stocks for his Real Wealth Strategist subscribers that average an annual yield of more than 7.4%. And these five stocks will pay out in the form of 44 checks over a year.

Matt calls them freedom checks.

I want to show you a great avenue for adding income to your portfolio. This is the easy way to boost your income. As it turns out, income is out there.

Of course, Matt didn’t choose these stocks just because they have a high yield. He’s also expecting to see their share value grow over time due to strength of the company and growing demand in the industry.

Achieving Portfolio Balance

Achieving the right balance for your portfolio is more than just loading it up with a bunch of high-flying stocks and the occasional blue chip.

The right balance means that you are not only growing your wealth, but protecting it against fluctuations within the market. It’s rare when all sectors are rising at the same time and at the same rate. It’s also rare for all sectors and investment types to fall at the same time and rate.

With the right balance, you are able to cushion any losses that you might experience in one group or sector with gains in another. And by adding a nice mix of natural resources and income to your portfolio, you’ll be one step closer to getting that mix.

Regards,

Jocelynn Smith

Sr. Managing Editor, Banyan Hill

In this exciting NEW VIDEO, Wall Street legend and former multibillion hedge fund manager Paul Mampilly pulls back the curtain on the biggest investment opportunity in the market today. What insiders are calling “The Greatest Innovation in History,” this revolution will mint more millionaires and billions than any technology that came before it. Right now, the current market for this technology is just $235 billion, but given how fast this technology is moving experts predict it will soar to $19 trillion by 2020. But 8,000% growth is just the beginning—and now’s your chance to get in on the action. [CONTINUE TO VIDEO]

Source: Banyan Hill