Create Generational Wealth by Investing in Mega-Trends
If you only listened to the mainstream financial media, you’d think the U.S. economy was nothing but doom and gloom.
But here at Bold Profits Daily, we’ve been telling you for months about the “secret” boom that’s setting stocks up to make new all-time highs.
In this week’s Market Talk, Amber Lancaster, Ian Dyer and I are joined by our newest Bold Profits analyst, Hudson Cashdan. We discuss:
- The growing likelihood that the Federal Reserve will cut interest rates in 2019.
- How companies such as Beyond Meat are benefiting from millennials’ preference for plant-based protein sources.
- Some innovative new ways to purchase and send cryptocurrencies.
- What Apple’s $999 monitor stand says about the company’s future.
June 10, 2019
Amber Lancaster: Welcome to this week’s Market Talk. I’m Amber Lancaster, joined by Paul Mampilly, Ian Dyer and Hudson Cashdan. Each week we look forward to sharing our viewpoints with you, our readers, and giving insight into what’s on our radar. Today’s outlook is for the week of June 10, 2019. I’ll begin by sharing with you what I’m watching and then we’ll hear from Ian, Hudson and Paul.
Today I’ll cover three topics. The first will be my take on recent U.S. economic releases and upcoming releases. The second will be my innovation story of the week. The third will be the latest performance numbers on the Disruptification Index.
On the heels of the weaker-than-expected May jobs report, the market is buzzing. The chatter is becoming ever louder that the Federal Reserve is closer to cutting interest rates as soon as July. The size of any potential rate cut is unknown at this time, but as soon as the market digested this news stocks soared on Friday.
The S&P 500 had the best week of 2019. Actually, it was the S&P’s biggest weekly gain since November 2018. If this rate cut happens, I want to remind everyone of a prediction that Paul publically stated on December 28, 2018. The prediction was published in his weekly update and his free e-zine.
“Prediction number one for me is the interest rates are going to go down in 2019. The reason for that is what I made a video about before. I believe that this era of disruptification is such that you have all these technologies that make lots of things cheaper.
It’s going to cause interest rates to go down because the critical factor for them going up is inflation. If you have technology that’s deflating the cost of making things, then there’s no real reason for inflation to go up. Instead, we might actually see prices go down. That would mean interest rates keep going down as we go out into the future.”
Paul is officially is on record with this forecast more than six months ago. This interest rate implied probabilities chart from Bloomberg puts it all in perspective. This table shows the chances that the Fed will either hike rates or cut rates through June of 2020. As you can see, in the hike probably column the current chances of a rate hike are 0% now through June 2020.
But check out the third column titled “Cut Probabilities.” For June, the chances of a rate cut are 18.2%, but by July 31 the chances of a rate cut skyrocket to 78.8% with the potential rate cut range between 2-2.25%. By September, the probably increased even higher to 94.5%. This line chart visually shows you the projected implied probabilities of the rate cut over the last year.
The white line denotes the chances of a rate hike. This line steadily increased from May 2018 until its peak in October 2018. Then, it began to plummet to 0% today. The blue line shows the chances of no rate changes. It began to rise in November 2018 until it plateaued in March 2019. Since then, it’s plummeted as well.
The most interesting line is the orange line. You see how it meandered along the bottom of the graph near the zero range? In March 2019 it took off. Climbing higher and higher and eventually crossing over the blue no-change line to reach 94.5%, which is the chance of a rate being cut by September 2019. This is a fantastic chart to help one visually plot the past, present and future implied probabilities of Fed funds rate action.
Turning to the trade wars, Mexico’s peso rebounded higher after a trade deal was reached between the U.S. and Mexico. President Trump stated this past Friday that the possible 5% tariff posed on good from Mexico has been indefinitely suspended.
Now that a truce has been formed with Mexico, President Trump is prepping for an epic meeting with Chinese President Xi Jinping on the sidelines of the G20 meetings in Osaka, Japan taking place later this month from June 28-29.
Looking forward to this week’s economic releases, here are the most significant. As you can see in this graphic, on Tuesday the producer price index (PPI) will post at 8:30 a.m. On Wednesday, the consumer price index (CPI) for May will post at 8:30 a.m. On Friday we will have a trio of major releases.
First will be advanced retail sales month-over-month for May releasing at 8:30 a.m. Next, industrial production month over month for May is releasing at 9:15 a.m. Lastly, the University of Michigan sentiment number, which will be a preliminary number for June, will post at 10 a.m.
My innovation story of the week focuses on how Bitcoin is going mainstream. We talk a lot about the future of Bitcoin on Market Talk and how we’re bullish on its medium-term performance. There’s a more promising future ahead. Seattle-based Coinme, which is a block chain financial technology company, states they are dedicated to helping the world gain access to virtual currency.
They also tout they are America’s first licensed Bitcoin kiosk company. They have joined forces with Washington state-based Coinstar — a well-known coin counting kiosk we find in convenient places like our local supermarket. Together, these two companies have partnered to create this brand new kiosk.
Together, these two companies are expanding the accessibility of Bitcoin purchases across 21 states and more than 2,200 stores.
According to Supermarket News, the following stores will offer this service: Winn-Dixie, Acme Markets, Food Town and Piggly Wiggly. Here’s how it works. Per Coinme, it’s a four-step process. This image shows how each step works. The customer goes to the Coinstar kiosk that is enabled with the Coinme Bitcoin technology. The customer touches “buy Bitcoin” on the screen.
They review and accept the transaction and enter their phone number. The customer inserts U.S. paper money into the cash accepter. Any amount up to $2,500 is fine. They’ll receive a printed voucher with a Bitcoin redemption code. Lastly, they can then visit Coinme.com/redeem to create a Coinme account or sign in to an existing account to claim their Bitcoin.
Coinstar CEO sums this venture up nicely by saying, “We’re incredibly pleased with this collaboration with Coinme and are eager to continue expanding to new markets in the coming months.”
Turning to our Disruptification Index, this chart shows it continues to outperform major indices year to date. It’s up 27% versus 16.7% on the Nasdaq and 14.6% on the Dow.
That’s it from me. Ian, what are you watching for today?
Ian Dyer: Thank you, Amber.
Beyond Meat, a company that came public about a month ago, has made a lot of headlines recently. One of the things they did recently was report their quarterly earnings. They said their sales tripled over the past year. More importantly, their sales to restaurants and food distributors went up 500%, which is virtually unheard of for any company.
Beyond Meat is establishing itself as a name for plant-based meat, alternative protein, anything you want to call it. People are shifting more into this. They are cutting back on how much meat they eat. There was a huge survey done all around the world. They surveyed more than 4,000 of the top companies in the world.
They found that 70% of people are at least cutting back the amount of red meat they are eating. They are looking for protein in other sources like plants. That’s exactly what Beyond Meat does. Millennials are one of the biggest demographics that are playing into this. About 81% of millennials have said when they are grocery shopping one of the main things they look for is ways to find protein content in any food.
A lot of millennials are cutting back the amount of eat they are eating so they’re looking for other ways to find protein. One of the biggest ways they are doing this is by buying veggie burgers, veggie sausage, steaks — really any kind of meat that you can find that’s an alternative source of protein. This is exactly what Beyond Meat is doing.
They are playing into all sorts of trends with this. If they can distribute to mainstream restaurants like McDonalds, then a lot of people are going to pick this up. They’re going to be looking for healthier alternatives at these restaurants. We believe there’s years ahead of growth, especially with the early millennial trend of switching to these kinds of foods.
It’s going to last for decades. You have gen Z behind them that are really driving these new trends. A lot of people are kind of skeptical about the run that their stock has had, but we believe this is a great company with a bright future for years to come.
Another one I want to mention is Zoom Communications. It’s a company we have talked about before. They are the company that we use for these video chats. This is something else playing into the millennial trend. I can testify to this personally. A lot of millennials enjoy working remotely. I work from home three days a week.
It’s a lot more efficient. You can get a lot more things done. You don’t have to wait in traffic in rush hour and things like that. One of the things that it’s not efficient in is communicating with your coworkers. That’s where Zoom comes in with their conference call video chat communication services.
This is really the only way to play this kind of technology in the stock market. There’s no other stock that really focuses on video chat like Zoom does. There’s a lot of demand for this as more and more people are starting to work from home with these technological advances.
Zoom actually said in their most recent earnings call that they doubled their sales in the past year and doubled the number of customers. This is another thing being driven by millennial growth. 87% of millennials that have been surveyed on this have said they would rather work remotely with video chat technology than go into a traditional office setting.
It’s so efficient. You get to stay at home, you don’t have to wait in traffic, you can be more flexible with your hours, you can get more done when you cut out those hours and hours of wasted time.
These are two companies that are playing on a demographic trend that are very popular with millennials.
That’s what I have for this week. Hudson, over to you.
Hudson Cashdan: Thank, Ian.
I think that’s a great call on Beyond Meat. Along those lines, I think we have two or three names coming this week that have a similar trading profile as Beyond Meat. That’s Chewy.com for one. Chewy is like Pets.com from the previous generation except they generate revenues, they’re very popular and they are growing fast.
They actually have a real business. They are doing great. Where I live in Manhattan I see boxes and boxes of Chewy.com orders stacked up every day. The amount of money people spend on their pets is growing and will continue to grow for the foreseeable future. We think Chewy is an interesting one to watch this week.
CrowdStrike is another one. CrowdStrike is doing cloud-based cyber security, which is a growing industry. If you recall, CrowdStrike was involved in the DNC hack situation in 2016. We recently heard about an Iranian operation in the 2018 election and I’m sure the 2020 election will have a lot more fireworks from all sides.
A company like CrowdStrike is going to be more and more in demand as things move forward. They are growing very fast. That’s going to be an interesting one to watch this week.
Finally, Fiverr, which hits on what Ian was saying. There is a trend toward remote work. Right now I’m in upstate New York, I’m not in an office either. This Zoom plus a few other applications really helps the productivity situation around work. Fiverr is a marketplace for freelancers to meet companies who need their services. Fiverr is coming this week as well and we think that’s going to be interesting.
Further down the line, we have a really interesting one that fits with Zoom, which is Slack. It’s basically placing email, conference calls, chat and document sharing all in one. We use Slack as well as so many other companies. People love Slack. I love Slack — I think we all love Slack. That’s coming probably in the next month or so.
That’s what I’m looking at. Back to you, Paul.
Paul Mampilly: Thanks, Hudson.
Just to be clear, all the companies that Hudson is mentioning are potential IPOs. In other words, you cannot yet buy them in the stock market. As you might remember, we’ve started a service that is not yet for sale but something you can look out for in the future in your email inbox. Hudson is helming it. He’s going to be the head of IPO Speculator.
All the companies he’s mentioning are companies that have either come recently and are available to buy or are coming. These are the big companies like Chewy, Slack, WeWork, Airbnb — these are all signature companies of our time. Hudson is going to cover them as they come in the news and as they come public. We’ll tell folks if they should buy it, shouldn’t buy it, how to trade it and all that stuff.
Let me get to what I have. Going off of what Amber was talking about with interest rates, the Federal Reserve is setting up to lower interest rates from the 3% area down to as low as 2%. What that’s going to do for you is it’s going to move a lot of cash that’s now sitting in cash and bonds and it’s going to move it into riskier and high-return areas like stocks.
You know what I have been saying for a long time: stay in our stocks. Stay particularly in the stocks that we tend to focus on. These megatrend stocks and stocks associated with great technological developments of our time.
I also found that if you spend a lot of time on websites like MarketWatch or Yahoo! Finance or even the Wall Street Journal and New York Times, the one thing the media has been terrible at is constantly pushing an agenda of doom, gloom and pessimism. I want to put two things up here which will blow your mind.
In the first quarter of 2019, U.S. home values hit an all-time high: $26.2 trillion. Underlying that is even better good news: 60% of these home values now represent equity. Not debt. This is the highest since 2002. The average homeowner owns 60% of their house. That’s good news.
This really blows my mind. Home prices are 15% over the bubble price moment of 2006. Imagine that. What do you see in the media every day? It’s constantly, “Be afraid. Go hide under your desk.” Then, this next one is that total wealth has increased by something like 4.5% to a record of $108.6 trillion. You would never know that.
You would never from talking to anybody. This is a secret boom going on. Make sure you get your piece of it. Stay away from folks who are constantly telling you things are wrong. Come and listen to Bold Profits Daily, to Amber, Ian, Hudson and I. We really lay out everything as to what the facts are.
The stock market on the other hand, as Amber mentioned, had some big moves up. Markets always anticipate. They will look forward as much as six, 12, 18 months in advance. They will anticipate the interest rate cuts that are going to come. As you can see, we’ve started to move up. We’re pretty close to all-time highs again.
The other thing that we’re seeing as companies anticipate a faster growing economy in the next six to eight months out is takeovers. In our Profits Unlimited portfolio we’ve had two huge, massive winners in the last 10 days. The first one was where this company called Infineon bought a company in our portfolio called Cypress Semiconductor for a lot of self-driving car chips and chips associated with Internet of Things.
Our subscribers made 30% in a day. It was trading at one price on Friday, Monday the deal came and it was 30% higher. Today, just today, I woke up and I saw the piece of news. We sent news to our subscribers that Salesforce — a huge cloud company that’s been around a long time — is buying Tableau Software.
Our readers, from the time we told them to buy this, are going to make more than 200%. Great news for our readers. Congratulations to all of you who are listening who own Tableau. You are going to do great.
These two deals confirm our general view: Focus on the new world instead of the old. The news events and facts continue to confirm that. Focus on the megatrends, focus on growth, opportunity, innovation. This is where the bull market is for stocks. This is why our readers continue to do well.
The Disruptification Index that Amber tells you about every week also continues to do well.
Amber mentioned Bitcoin. There is a connection between lower interest rates and Bitcoin and cryptos in general. In another time, when interest rates went down people would buy gold, silver and these types of things. However, people of Ian’s age and Hudson’s age — actually, we have to be transparent, Ian, Hudson and I all own some amount of Bitcoin — what they reach for is Bitcoin.
As you know, I made a video telling you Bitcoin was a bubble in 2017. I also made a video saying I was calling the bottom on Bitcoin — it has doubled since then. I believe with interest rates going down, you’re going to see money start to migrate from cash and bonds.
For sure some of it will go into our kinds of stocks — stocks of the new — and some of it will start to go into Bitcoin and cryptos in general. We’ve been telling you we are positive on cryptos and Bitcoin. I still am that way.
Quickly, before this gets too long. Apple, you know I’ve been negative on Apple. I get a lot of hate mail, I expect some more. Feel free to put your hate mail in the comments. I’m sure you all saw, remember there was a time if you spent $1,000 you would expect a computer with a stand. At their latest conference, Apple announced they will sell you the stand by itself.
It has no actual computer in it. It’s just the stand. It tells me where Apple has gone as a company. It has lost its way. Completely lost its way and lost its sense of its own values. To sell a stand for $1,000 is to take advantage of your customers. What can you do? Is someone going to stand there and hold the computer for you?
Are you expected to hold a computer with one hand while you type with your other hand? Obviously I’m making a joke, but it does tell you how lost this company is and how far away they are from the company Steve Jobs built, which I loved. I loved the products they brought out in his time. I continue to be negative on Apple because they really are no longer doing the right thing for their customers.
Tesla, which is a company that’s also very popular among many of you, are expected to have record deliveries. As you might know, Wall Street hates Tesla. A lot of people hate Tesla. However, every time I’m hanging out with folks who are really 40 and under, this is one of the companies that people love and know. This is the Apple of our time.
People know Tesla, love Tesla and always want to know about the car and the company. I’m still positive on Tesla. I would tell you that I believe it’s still good money. Last thing I will mention is that Facebook is looking to release its own cryptocurrency. It’s going to be based on a basket of currencies around the world.
I believe with that you are going to see an iPhone moment for cryptos. If they make it so you can send the Facebook crypto via a WhatsApp — for example, my mother is in India. For me to send her money is a pain. It’s incredibly painful. If I can do that with a WhatsApp message, I’m going to do that.
With that, so many people are going to start to adopt cryptos. I believe this is an incredibly positive time. I really still believe there is a long way to go for stocks in general. I want to mention we are going to be releasing this service soon called IPO Speculator that Hudson is going to be heading.
Those companies are really the companies that represent our times. Look out in your email for when we are going to be launching that.
Back to you, Amber.
Amber: Wonderful insights, Paul. Great information, Ian. Thank you, Hudson. Thank you to our viewers for tuning in this week. We appreciate you very much. We look forward to talking to you again next week.
If you like this channel, please subscribe. If you have comments, we want to hear them. Good or bad — we hope they’re good — but please comment below. Until next time, have a wonderful week. Take care.
The Truth About Making Generational Wealth
It’s an incredible time for the U.S. economy.
Home values are 15% higher than the bubble prices in 2006, an all-time high. New technologies are making products cheaper than ever. And the S&P 500 Index just posted its biggest weekly gain since November.
Yet the mainstream media continues to be negative and pessimistic about the U.S. economy.
If you listened to them, you’d miss out on all the gains. You’d miss out on all the incredible growth opportunities we’re seeing in disruptive industries.
You’re never going to get rich by listening to the mainstream media.
Fortunately, our Bold Profits team is here to bring you the truth. And we’re focused on the mega trends and innovations that are creating generational wealth for investors.
We also discuss:
- There’s a huge amount of initial public offering (IPO) activity right now. We talk about a few upcoming IPOs for popular startups that are growing extremely quickly.
- Two major acquisitions in the tech world happened in the last 10 days. We explain why this is great news for our readers, and what these moves tell us about the opportunities in the tech sector.
Editor, Profits Unlimited