Ignore Haters: Buy and Win in YOUR Bull Market
Haters are going to hate.
I mean, everyone has their own opinion and that’s cool.
And there’s clearly a divide happening right now when it comes to opinions on the stock market.
We’ve been called crazy or foolish for being #BOP (bullish, optimistic and positive).
But when you look at our portfolios — across Bold Profits, since March — our America 2.0 stocks are booming (including our STUF stocks, see the proof in IanCast).
And its disrupting the old-world stocks of the past.
YOU are going to be the biggest winner as America 2.0 continues to soar… And the Main Street bull market will take off leaving the bears in the dust.
There’s one signal flashing right now that shows us positivity for the overall economy.
And I have a stock ticker you can buy that’s pretty much been going up in a straight line.
Paul and I are going to lay out a three-part scenario that shows how the “Fourth Industrial Revolution” — and its new world stocks — will shoot up insanely high in this new world.
On top of that: Updates on Tesla, bitcoin and pot that will fuel your Bold Profits spirit and help you share our #BOP investing strategy.
Welcome to another episode of the Iancast.
There’s a lot of news on Tesla, so we’ll spend some time on Tesla today. We’ll do Bitcoin and a little on cannabis. We might go a little long because we have a lot to hash out.
I think the vast majority of people, including folks at our parent company of Banyan Hill — I just want to say, we are separate from them. We are Bold Profits. We are part of them, but they are separate. We just want to make it clear because I know there are a lot of bearish people at Banyan Hill.
We are not one of them. We are bullish, optimistic, positive. Those folks have their own teams and are separate from us. They belong to the parent company. I get a lot of tweets asking me to explain why so and so is bearish or why so and so doesn’t like xyz stock. I just want to make it clear that those folks have their own teams.
They are separate from us. We have nothing to do with them. They are entitled to their views, their judgments and their opinions. We have ours and they are separate. I feel it is worthwhile to get into what is increasingly a massive divide between new generation investors versus old generation investors.
New School vs Old School Investors
I don’t know what to call it. New school investors versus old school investors. America 1.0 investors versus America 2.0. You can come up with a lot of different names, but there is this divergence. You can see it pretty much every day. There are definitely sensationalized websites today.
All of them are — MarketWatch, Yahoo! Finance. You see it there and it’s coming out more and more into the fore.
As usual a lot of negative headlines. Fear sells, so it’s a good way to get clicks. I think the people who are pessimistic are the ones investing in the stocks that are being disrupted. The optimistic people like Bold Profits are the ones investing in the stocks disrupting those older companies.
That goes hand in hand with the America 1.0 versus 2.0 divide in my opinion.
The way we look at the world, our readers in Profits Unlimited and across our services, their stock portfolios have been booming since the Nasdaq made a new high. I think it’s been fair to say that was the bottom. We can see any number of indicators that suggest the bottom is in.
Whether it be with respect to the virus or anything else or any number of other signs. I saw something yesterday about this famed investor, Jeremy Grantham, talking about taking stock exposure down to zero. I have seen people taking it down to less than zero. In other words, they are suggesting you short the market.
You can look at a long-term chart of the stock market over time and see you are rarely going to win by doing that if you are a long-term investor. Even if you are a short-term investor, there are so many great companies out there that are disrupting the old. They are growing extremely fast and there’s not a lot of them.
All the money going to the disruptive companies doesn’t have a lot of places to go. Therefore the ones out there in the public market get bid up more. Then you hear all these opinions about how it’s irrational and they are overvalued. There’s not really many other places for that money seeking disruptive companies to go at this point.
The folks who are railing against this market are experts in a previous version of the world that was passing by. Now I believe we can call it; it’s passed by.
If you look at the S&P 500 versus the Dow versus the Nasdaq, the Nasdaq is blowing the other two away over the past few years because we’ve had revolutions like Internet of Things (IoT) and the cloud software boom. Next up, I think, is blockchain.
The Millennial Portfolio — STUF
I think we’re going to see a lot of these companies that have to do with fintech and blockchain come public. Of course the crypto market is going to benefit from that too.
We have this portfolio acronym called STUF that I put out there. It’s our way of trying to get everyone to subscribe to our free e-letter. STUF is Spotify, Tesla, Uber and Facebook.
I haven‘t checked this morning, but that STUF portfolio which was put out there as the millennial portfolio. Spotify was up 14% yesterday just by itself.
It made an all-time high and has not gone down for a minute since that. That stock is going crazy right now.
I saw a tweet yesterday from a guy talking about how he was sitting with his grandfather and his grandfather didn’t know Spotify existed. He said, “This is an entire library of music on demand.” It’s amazing that you and I take Spotify for granted. I have been using it for six years now.
However, many people are just being introduced to Spotify. This idea that the world’s catalogue of music is available, even by voice search. The voice search today is OK, it’s not great. It’s decent. But you can type it in and listen to almost any song, from any era and, increasingly, from almost any country.
Now, that’s extending to podcasts as well.
They are easy to use too. I have used other services, but Spotify is by far the easiest to use. People love it.
That STUF portfolio is very much a new versus old. For full disclosure, these are in the Profits Unlimited portfolio. If you want to know what Profits Unlimited is and get into the details of America 1.0 versus America 2.0 divide, you can see a presentation I put out on this.
I believe it’s an amazing presentation because it really lays out what I believe the future is going to be. It’s what’s going to unfold.
It comes with a report on what I believe is an amazing America 2.0 company that is going to dominate the making of everything in the United States and then around the world as well. Also, a list of 100 companies that are America 1.0. As I say, the destination for these companies is certain. It’s zero. Only the speed is unknown.
Recurring Global Upturn
The other thing we’ve been seeing is a cyclical upturn that is global. We have talked about shipping. When oil was at a negative price, we saw a trend in shipping that was global. We’ve seen that shipping rates now are starting to go up rapidly.
There’s a stock called BDRY that measures future shipping rates. It’s what is expected to happen with shipping rates. It’s gone up in a straight line the past couple of weeks. It’s done really well. It’s good news for shipping rates. If the rates go up, they are making more money.
BDRY is a way to foresee what is going to happen with the shipping stocks. It’s the most cyclical industry in the world. If shipping is up and demand is up for products and raw materials or anything that gets shipped around the world in bulk, that’s great for the global economy.
It’s really good for these shipping stocks. During the lockdowns, these ships had nothing to do. Ports were closed, a bunch of factories were closed and storage places were closed. They didn’t have anything to do and they weren’t making any money. The stocks went down almost to zero.
We recommended a few of these in our $10 Million Portfolio. We used BDRY as a proxy for that. After BDRY has rallied, it’s going to be great for these shipping companies too.
It plays into what we said. There is going to be a global cyclical massive upturn. The United States is going to lead that. It relates to the fact that, in modern times, we have never had a global shutdown of trade, economic activity where there wasn’t mass extinction.
In a different time, there was no possible way we could all sit at home. Today we can because there was enough inventory of the critical goods we needed, minus protective gear that was needed for the mitigation of the virus for frontline workers. However, in terms of food and other things, there was enough within the pipe.
What that has done is solve something that has been an issue for 18 years. We have had excess inventory in any number of industries. As a result of that, we have never gotten to sufficient capacity utilization to have big growth numbers for GDP and economic growth.
Today we have been sitting around consuming inventory without replacing it. There’s a three-part scenario that I believe is going to unfold that benefits shipping and the making of things, which is also why we’re really positive on the industrials.
We are going to consume things at a faster rate as we come out of our homes for any number of items. Second, we have to actually make stuff for that. Then at a business level and a personal level, everyone is going to start to store a little more. It’s a reversal of what we have been doing for nearly 30 years.
Now people think there are a number of goods we want to produce more local. And we need to keep more inventory on hand. Really, the world was always uncertain, we just needed to be reminded in a dramatic fashion.
All these warehouses have run way lower than they have in any recent time in inventory. These shipping companies really have their work cut out for them. They are going to have to deliver so much. There’s so much demand.
In the shipping industry, they’ve been getting rid of ships. They’ve been breaking them down and selling parts. There hasn’t been much ship-building activity, so there’s fewer ships to do more work. That’s going to push shipping prices up too because there’s not a lot of ships.
That’s another thing that’s really positive for these stocks and the global economy. Like you said, it’s going to speed up even faster than it was before. Of course, that’s going to help GDP. We’ve already seen a huge increase in retail sales. They were up 17% in May. That’s going to continue. We are going to continue to see people go out and spend money.
Housing Market Surge During Lockdown
The last thing on the stock market and why we are positive and why we think it’s completely appropriate for stock prices to be rising and why we expect it to continue is also the data coming out on housing in the United States. Mortgage applications are rocketing higher.
Single family housing permits are rocketing higher. Another story is that 42% of all the bids for housing during the pandemic were in a bidding war. There is so much demand relative to inventory that people felt, while locked down, to go and outbid each other.
For something as big as a house, which is the most expensive thing people buy in their life. That’s saying something for sure.
It also tells you that the underpinnings of this economy, while the previous generation of investors are seeing disaster, people who are looking forward are seeing there is strong demand that is already in place, is going to get stronger and significantly stronger after having gone through what we went through.
In some ways, it’s actually going to solve some issues that have been lingering for some time. In the United States there’s also the additional aspect of an infrastructure bill that will be in the trillions. This is a lollapalooza effect that markets get more than any single strategist.
The smartest person in the world is rarely as smart as the combined intelligence that is represented by the stock market. We would tell you the stock market is right and all the people who are sensationalizing all this stuff are wrong.
Demand for Tesla Continues to Rise
There’s a lot of stuff going on right now with Tesla.
One of the things is that they recently said they are thinking about putting a factory in Austin, Texas. This would be a huge development. They have so many products coming out. They have the Model Y, the Cybertruck and the Semi they are going to start making soon, especially now that Nikola is out with their hydrogen semi truck.
They are competing with them for alternative energy big truck. They really do need more manufacturing capacity because right now they are really only mass producing the Model 3. They have three factories that are dedicated to that and also somewhat to the Model Y.
They do absolutely need more factory space. That’s a sign that demand for their product is really strong too. The stock just hit $1,000. As we said, the stock market is a good way of predicting things. We don’t think Tesla is a mistake. We think Tesla really does have the potential to see incredible growth.
It is accurate that they are valued as the “most valuable car company in the world,” even though they’re not really a car company. They are more like an energy storage, automation, solar company. It’s all kinds of things wrapped into one company.
They could take market cap from utilities and that space because of their solar business. In terms of them being a battery business, they also then take market cap from the ExxonMobils and that energy part of the economy.
Then they have an automobile business that’s about to turn into a mobility business. The one thing that’s going to happen once the Tesla Semi and Cybertruck are out into the world is that now you have the first two forms of transportation that have some capability of autonomy.
Vehicle Autonomy in the Near Future
The Semi will have all the learnings from the Model 3, Model S and Model X. That’s now hundreds of thousands of cars around the world. There was an interesting presentation by the Chief Engineer at Tesla talking about their approach to autopilot versus everyone else, which is completely unique.
As they say, Waymo and people like that are pursuing a very — in the judgment of Tesla — non-scalable way of self-driving or autonomy. They are trying to get highly defined maps where everything has to be right to the exact centimeter. What Tesla is doing is relying on computer imaging.
It’s developing situational awareness and situational intelligence so the same situation the driver is in, you can download that all around the world and it will apply it. Versus the other way which is not scalable. If you have to map every last centimeter down to a millimeter of accuracy, you are going to have to do that country by country.
Versus, let’s say, there’s driver behavior based on this situation and these are the most likely outcomes. Then you are building an artificial intelligence engine around how people react to various situations while being in a car. Now you can put that in and it’s highly scalable globally.
They are growing that part of their business just by selling cars. They get that data from their cars whenever people drive them. It’s just an added benefit of someone buying a Tesla car, especially the new ones with the higher-tech sensors.
I put up a tweet on where the trucking business will be in 2027. This was taken from a McKinsey study. Today there are pilot programs around the states were some number of trucks have an add on of autonomy using cameras and sensors, etc. These are all trial programs.
I believe you can go look at all the different states. The next step is there will be a platooning where one driver is controlling multiple trucks. The next one is where trucks are dropped off at truck stops and someone drives it on a local basis. And then full autonomy. The timeframe laid out in this study is by 2027.
I believe we are going to get fairly close to that timeframe. To tell people in 2020 that’s what’s coming, seven years is not that far out. We could have self-driving trucks in seven years that are fully autonomous.
Tesla already has Autopilot in their newer models, which is basically self-driving. You still have to be aware, but it’s by far the most advanced thing we have in a commercial product. Especially for the price of Tesla which is dropping pretty quick. It’s not that much more than a comparable gas engine car.
The Tesla Semi would be a semi truck that has Autopilot capability.
Everything they are putting out now has that Autopilot feature.
You will now have a truck out there that is available and capable. That is going to push all of this forward.
We have followed Cathie Wood at ARK Invest. We think she does amazing work. We have told you we think Tesla could go to $3,000 or $4,000 and potentially even more. It does play in so many different parts of the economy that today are worth trillions of dollars.
That’s why they are valued so highly right now. They are really taking parts of those market shares. You’d never know that by looking at the headlines comparing them to Ford and GM. They are not at all like that. They are something completely different.
They are more of a tech company. Kind of like here tech companies in one with solar, energy storage and automation.
Tesla is next generation. Pretty much everything else other than Uber is current generation. GM and Ford it seems unlikely these companies are going to make it in the new world. We are still BOP on Tesla.
High Demand for Crypto Market
Bitcoin has been up and down. I think it had a top of $10,400. That seems to be the bid and ask for the big blocks or whoever the whales are who are trying to keep this price down. However, we have seen some amazing stats.
The number of Bitcoins sitting at dormant addresses for the last five years is in excess of 15 million Bitcoin. There’s only 18-point-something million mined in total. So there’s only loose Bitcoin of 3.5 million-ish out there.
Scarcity comes into play with that. With The Halving, if that trend continues and I believe it will, there’s going to be less Bitcoin out there for the whales to buy. They are obviously already out there hoarding Bitcoin. There’s going to be less to hoard.
Even regular investors keep buying Bitcoin. I saw the number of addresses with one-tenth of a Bitcoin or more just reached a new all-time high. It’s almost 3.1 million addresses with that. That’s millions of Bitcoins just with those everyday investors.
Whales and institutions that are buying most of the Bitcoin are really sucking up the supply, but you have retail investors too who are buying Bitcoin at a rate we’ve never seen. Considering it’s $10,000 a Bitcoin, people are putting at least $1,000 in to three million different addresses.
Two of the biggest whales are CashApp and Coinbase. Coinbase investors might have a little more money but CashApp I think has been downloaded at least 30 or 40 million times and it’s definitely a regular person app. They are sucking up as much as 50% of all the mined Bitcoin out there.
Then there’s Grayscale which is also buying a ton of Bitcoin. They are seeing the highest demand of all time. They manage money for bigger institutions and wealthier clients. So both ends of the spectrum are seeing huge demand for Bitcoin. Of course the supply was cut in half last month and newly mined Bitcoin is half of what it used to be.
So less supply and more demand on both fronts.
Just to let people know, we actually have two cryptos in the Profits Unlimited portfolio using stock market trackers. We don’t want to give them out because we want to keep them for our readers. Let’s go through some of the things you’ve been messaging me about.
We’ve seen alt coins start to catch a serious bid. You’ve been telling me there’s a huge bid in some of these coins.
Over the past month I think Bitcoin is flat or down 1%. I was just looking at the top 50 coins by market cap and a lot of those smaller coins below Ethereum and some of the other ones are up at least 20%. I’m sure I saw at least 10 or 15 coins that have rallied in the last month in that top 50 list.
When alt coins are strong, it’s like when small caps rally in the stock market. It’s great news because when people are willing to buy those smaller, riskier companies — or in this case, coins — that demand will inevitably flow into Bitcoin at some point. Demand picking up there is a very good sign.
If there’s money moving into that level and they are willing to bid it up 30%, 50% or 100%, it tells you there’s more demand than supply. When the money starts to push into the bigger ones like Bitcoin and Ethereum you will see an explosive move.
If you’ve been watching the Iancast, we have anticipated a Bitcoin price of $50,000 by yearend. People are going to say we are crazy. They said we were crazy when we said Tesla was going to $1,000 and we don’t get people writing to us too much about that anymore. We think Bitcoin does $50,000.
We’ve looked at the stock-to-flow model on a market-cap basis and a price basis and it does suggest the next peak is crazy far away for Bitcoin. I have seen numbers which seem pretty real for $250,000 to $280,000.
The total market cap of Bitcoin is still $150 billion or $160 billion, which is the size of a decent megacap stock. I think that’s around the size of Tesla. Other than the big four cryptos — Bitcoin, Ethereum, Tether and XRP — the market cap of every other coin combined is only $40 billion.
It’s not going to take much money to move Bitcoin up because that’s where the whales go. They are starting to buy Bitcoin and they are starting to buy Ethereum. Everything has so much room to go up in the crypto market.
A lot can happen in six months. April through June of last year we saw Bitcoin go from $3,000 up to $14,000 just in a couple months. $50,000 from here sounds like a lot, but for Bitcoin it has happened several times before just in the past few years.
For those who have not followed us, we think Bitcoin will extract a great deal of market cap from gold, which is still worth about $4 trillion. We think that’s going to collapse over time and that market cap will shift to Bitcoin.
Ethereum will extract it from banks and insurance companies. They are going to replace them. There’s going to be a wipeout there. It explains one reason why I believe Berkshire Hathaway is struggling so much. It’s essentially an insurance bank proxy. That’s the perfect example of an America 1.0 company.
We’re BOP on Bitcoin and crypto in general across the board.
Explosive Growth in the Cannabis Market
There’s news out of New Jersey and any number of states looking for full legalization among other things.
Even in May there was a big pickup in sales in some of the markets like Washington, Oregon and California. They have all grown 30% or more over the past year. Oregon was actually over 50%. Those three states alone combined for more than $500 million in cannabis sales in May.
That doesn’t include Colorado or Florida. Oklahoma is becoming a huge part of the marijuana market. They have only legalized it medically and they have already sold more than $500 million this year. There are some really big markets coming in. New York and New Jersey would be two huge additions for that.
I have seen a bunch of things this year suggesting they want to get marijuana legalized medically and recreationally in those states. That would be a big boost in sales and be a big boost for the marijuana industry in general.
They’ve bottomed out and gone up a little, but we believe that as the greatest recovery — as I call it — unfolds you are going to see these stocks rocket up.
I just said California, Oregon and Washington grew so much in the past year, but marijuana stocks were at least twice as high as they are now a year ago. It doesn’t match what the market is actually doing. At some point the money is going to go back in marijuana stocks. MJ is going to fly.
Everything is going to go way up. MJ is the ETF have recommended before. I still think it can double this year, which would be more than a 150% gain from here. Again, when these stocks start to go up, they are really going to move up fast.
We saw signs of this already with Aurora Cannabis, which went up over 100% in just a couple days last month. That overflowed into some other smaller marijuana stocks that were basically priced for bankruptcy.
They are starting to move up off the bottom. I think the bottom is in for MJ and the pot stocks in general. They have nowhere to go long-term from here but up.
Be a Bull in Your America 2.0 Market
We use Paul’s new-world STUF stocks as a great example of America 2.0. And they are crushing it today!
— 🇺🇸Paul Mampilly (@MampillyGuru) June 16, 2020
These stocks are a rare glimpse of his flagship research service that’s been offering real Main Street investors a leg up in the stock market for four years now.
If you want more STUF and potentially huge gains, check out how you can get his full, laser-focused Profits Unlimited portfolio here.
Editor, Rebound Profit Trader
Editor’s Note: We will see the Dow Jones Industrial Average soar to 100,000 and real estate double. Those at the forefront of this economic upgrade will reap massive financial rewards. We believe it’s truly shaping up to be a Main Street bull market. Year after year, we’ve recommended phenomenal ways to profit from the pieces of this puzzle. Now that it’s all coming together, the opportunity could be so much bigger. Now, in this new video presentation, Paul reveals his No. 1 stock for this economic upgrade.