How to Get More America 2.0 Stocks in Your 401k
Our economy is getting America 2.0-ized…
Almost every sector is seeing it. And you want more exposure now!
You’ve been writing in and I’ve listened.
One question: “How can I get greater America 2.0 exposure in my 401k plan?”
I’ve got an answer for you.
Plus, more of your questions about America 2.0, interest rates, investing within your means and why I do this:
Caution: There are Paul Mampilly Scammers Out There!
This week I have to start with something a little unpleasant. I received a number of communications from people saying there are a number of bots, spam bots and scammers using my image and Profits Unlimited, which is my flagship newsletter, to try to get them to send money.
I want to make one thing clear: You should never send money to anyone claiming to be me, claiming to represent me, claiming to be part of my team or claiming to represent my team. We have a newsletter, we never manage money.
We are not money managers. We are never going to ask you to send us money. We sell subscriptions to our newsletters. That’s the way we make our money. Anytime you see comments in the YouTube channel, on Twitter, Facebook or any form of social media or anywhere on the internet, you will know anyone asking you for money is a fraud.
They are trying to scam you and trick you. It’s something that you should absolutely avoid. The only thing we have to offer you is subscriptions to our newsletter. That is the only way we would ever ask for any kind of payment.
All our newsletter subscriptions require a credit card. Anyone asking you to wire money, send them Bitcoin or anything like that is going to be a fraud and scam. It’s something I ask you to avoid. It’s something we are trying to keep track of.
However, when you look at the comments on my videos immediately after I post you will see that the spam bots come immediately. They are able to take my picture, use my name and try to converse with you. Please avoid having any kind of conversation with something that seems to good to be true.
Sending money to anybody based on a casual chat is not OK. If it has my picture and my name or anything, I have nothing to do with any of that. These are people who are using technology to trick you and try to take your money away from you. The only thing we have to offer is subscriptions to our newsletter.
Profits Unlimited is available online, on the Banyan Hill website once you purchase and login to view the service updates. You can also receive printed copies in the mail. Generally each newsletter is about six or eight pages long and includes my stock analysis.
The rest of the newsletter has a bonus from last month about Bitcoin, telling our readers and subscribers what to do with respect to Bitcoin. Then there’s also a portfolio review.
We also give you, if you are just beginning, five stocks to consider buying into. Finally, there is a review of all the stocks currently in the model portfolio that is still considered a buy. That’s what a newsletter would look like. I am going into this because of the fact people still believe we manage money.
We do not manage money in any way, shape or form. In fact, we are not financial advisors. What we do is publish ideas.
Since in this video I am answering questions and concerns that have come up as a result of this YouTube channel and social media, I am going to dedicate the rest of this Bold Profits to answer questions that have come over various periods of time at me.
QA: What if I don’t have enough money to invest?
One of the questions that have come is that people have written in to say they lack the money to invest.
People say they have the money to buy Profits Unlimited but lack the funds to invest because all their savings is in a 401(k). Most 401(k) accounts are limited. For most people, they are unable to buy individual stocks, even though some 401(k) plans do include an option where you can control your investments.
For many, it’s a complicated way to get it and you may have to consult with your Human Resources. Many people have said they believe in America 2.0, the Fourth Industrial Revolution and the megatrends, but there’s nothing they can do.
They are locked into an index fund. They want to know if there’s anything they can do to get exposure to America 2.0, Fourth Industrial Revolution and the new world. The one thing I will say is that most 401(k) plans usually have an array of funds.
Go through it and look for funds that say they invest in small caps. In other words, much smaller companies. Those are more likely to be Fourth Industrial Revolution companies and America 2.0 companies. Also, the technology funds are also more invested into America 2.0 and the Fourth Industrial Revolution.
You can say the same thing for mid-cap funds as well. Mid cap generally refers to companies that are a lot smaller than Apple that is worth $2.2 trillion. They might be in the hundreds of billions of dollars, which in today’s world is somewhere in the middle.
Small caps are things that are under $3 billion and all the way down to $100 million or $200 million. Those areas of the stock market are where you see the vast majority of America 2.0 and Fourth Industrial Revolution companies that are growing quickly and that you want exposure to.
This is not financial advice, I am simply answering a question from people who say, “All the money I could have used to invest in things like America 2.0 is locked up in my 401(k). What are the options if you are in that position?” One of the things you can do is buy into funds that have more small companies, more mid-cap companies.
Skew your investments toward the technology side and the healthcare side for now. Then, over time, what you will see is that pretty much every sector of our economy is going to be America 2.0-ized. We are going to have a new way of doing things across the board.
However, for now, you can get exposure by being in certain areas over other areas. If you look at something like energy, it’s still dominated by carbon-based users and makers. The newer companies that are based on batteries and solar power are still very small.
Right now, the best place to be is to think about it from the perspective of the companies being small or in the mid-size category. That’s the best way you can get exposure if you are locked in. The other alternative if you are willing to take the risk is to explore the possibility your company has the option for you to actively manage your own 401(k) plan.
However, I will say this: It is something that is filled with more risk than whatever your company auto enrolls you for. It’s something you have to think about before jumping to go do it.
QA: Does the rise in interest rates mean the bull market is over?
Another question that came in this week is a little technical and it’s about interest rates. A number of people on Twitter have been asking me about interest rates and if the recent rise in interest rates means the bull market in stocks is over.
From my perspective, I believe that is not the case. The reason is because interest rates are still at historical lows. Yes, they have come off a bottom, but the stock market is not that reactive that it is going to move as a result of that. Interest rates are still at historical lows.
I believe, in my opinion, it is going to stay low for a long period of time because of the Fourth Industrial Revolution, America 2.0 and these fantastic megatrends like Internet of Things, artificial intelligence, blockchain, precision medicine, new energy, the coming of new industries based on 3D printing that are still yet to be implemented.
My reading of history and the diffusion of technology is that those are deflationary. In other words, you get so much more for every dollar you invest in those types of technologies that those periods tend to be deflationary. With that, I believe that the Federal Reserve, which sets interest rates in the United States, is going to stay on hold for a long period of time.
I am unconcerned about the rise in interest rates that many people are asking me about. If there is a time when there is a significant rise in interest rates where it can lead to significantly inflation and the Federal Reserve lifts rates very high, that would for sure change my mind.
However, we are definitively very far away from that. In my judgment, we are also in a period where because of technology and innovation, I believe low interest rates can be sustained for a very long period of time.
QA: If you are so good at buying and selling stocks, why do you choose to share your ideas with every day investors?
The other question I want to deal with that I get asked a lot is why I do this. Many people will say, “If you’re so good at what you do, why do you choose to do this and why do you choose to share your ideas with people?” Many people will probably scoff at my answer.
From my perspective, I feel like this role or job — in my company we are called newsletter editors or guru — this is the best way I can think of to share a skill I developed over 15 to 20 years. For me, it’s one way to pay back or pay it forward for all the incredible thing the people and this country has done for me.
I came here as a clueless 18-year-old kid who knew nothing. I was given a chance by lots of folks who owed me nothing. Many of the things that were done were small gestures. For example, I remember in college one time in the winter it was so cold. I lacked a car and a proper winter jacket.
I had no idea how to protect myself. I remember someone stopping and picking me up with my four bags of groceries to give me a ride. Those moments were many and frequent. Those people had no reason to help me out. That continued throughout my life and career.
I have always felt I owe a debt of gratitude to folks in this country. This is one way I can share what I understand, what I know, my expertise and knowledge. So that’s why I do it. With respect to if I was so good why would I not keep all these ideas for myself, the truth is there is no way anyone who has all these ideas can keep them all for themselves.
Some folks who have a lot of ideas and are good will choose to start asset management companies, hedge funds and mutual funds. However, in my judgment, those largely cater to wealthy people. I wanted to do something that pretty much anyone could afford.
Profits Unlimited goes for $48 or $96. This is a way that anyone, regular people, anyone with $50 or $100 can access it.
From there, you need a few things. You need a brokerage account. You do need some capital. You need to take some effort, time and trouble to follow the investments and follow Rules of the Game that we use to guide people in terms of how to use Profits Unlimited.
So those are some questions I thought I would answer. I wanted to make it a priority to tell you about the fact there is clearly a lot of scams, spams and fraud activity going on, particularly around our YouTube videos and other places on the internet.
There is someone claiming to be a part of my fan club that is asking for me. I’m not affiliated with any of these. Please never send money to anybody. The only thing we have to offer you are the newsletter subscriptions like Profits Unlimited. We have a number of others as well.
If you are interested in those, the best place to start is Profits Unlimited. That’s our flagship newsletter and will be your first taste of it if you are interested.
Editor, Profits Unlimited