Strong Hands = Long-Term Payoff on Your Stocks!
Right now, the market requires your Strong Hands.
I know it tests you. Your patience, endurance, conviction. But here’s what I want you to take away today:
That’s right. Hold Strong Hands through this volatility. Because to me, nothing has changed.
Your America 2.0 stocks are companies that are changing the WORLD. And when the markets are down, that’s a signal to me that a run of new highs is just around the corner.
I know it can be hard to see, unless you zoom out and look at the whole picture.
Today, I’ll walk you through why it’s more important than ever to hold Strong Hands with America 2.0 growth stocks for a long-term payoff:
What’s Going On With Our Stocks?!
First, what’s going on with our stocks. We focus exclusively on what we call America 2.0 stocks, Fourth Industrial Revolution stocks. You can think of them as being growth stocks. In other words, the price of these stocks is driven by the future opportunity they sit in front of.
We look at it and see it’s huge and when they achieve it the price of these stocks can really rocket higher. That segment of the market has been in a lot of price decline. Many folks who look at the stock market are unaware that there are different segments of the market.
Companies like Apple trade by themselves because they are really large. Apple is a $2 trillion company in terms of stock market value. Then you can take a stock that we own in my flagship service Profits Unlimited — 3D Systems — which is the leader of the 3D printing industry.
It’s a massive innovation that we believe is going to remake the world. It’s a $1.5 billion company. Apple is somewhere on another planet compared to this. Many people look at a stock’s price and think they are all the same. The truth is, there are many segments of the stock market.
We largely focus on these growth stocks, but they are a lot smaller than the average stock in these bid indices like the S&P 500 or the Nasdaq 100. They have stocks like Apple, Amazon, Facebook, Google, Netflix — all these stocks that you’ve heard about.
The S&P 500 has a lot of older stocks like ExxonMobil and Wells Fargo, which we believe have no future. We believe these will zero out. They are being disruptified — that’s my word for disruption. In other words, their business is being destroyed by the fact there are better alternatives.
Their industry is going away because technology and innovation have come up with better solutions. Many of you who are invested in America 2.0 and Fourth Industrial Revolution stocks believe in the promise of all this, but wonder why stocks are going down.
It comes back to an answer I have been giving for four months. We had an extraordinary rise from about March 2020 to about February 2021. During that period in time, pretty much all growth stocks of all shapes and sizes rose. They rose by 50%, 100%, in some cases thousands of percent.
What happens in the market when this happens is that what is going on if you take a step back is that demand for the stocks is being wrung out at high prices. People are committing capital at very high prices and at some point in time the demand runs out.
As sellers come in, there is no more demand for those stocks at those prices. Now it begins a markdown process. If you want to sell, you are forced to take a price that is 10% lower, then 20% lower, then 30% lower. Then finally things generally end around 50% lower.
It’s generally in that range most times and that is what has gone on. Truthfully, this happens with growth stocks on a fairly regular basis. We started Profits Unlimited on June 1, 2016. We have seen at least four of these big corrections. Through all of it, we have stuck through it.
We believe the opportunity set is just massive. It’s so huge. It’s so early that focusing on short-term volatility is a big mistake. If you zoom out, as my colleague Ian Dyer likes to say, and look at the opportunity in front of you, look at how much growth is ahead.
Look at how early we are. I believe this moment in time when you look back two years out, three years out, five years out, you will struggle to even find this period of time. That was true in the 1990s growth market when stocks like Microsoft and others were in their growth period.
You would have corrections like this, but when you go back in time you can’t even find them. I would tell you as a market update that I am still bullish, optimistic, positive — BOP. This is a hashtag I came up with on Twitter. That’s where I am based on the fact nothing has changed.
The opportunity is still there. The potential gains are still massive. It’s still very early, whether it be 3D printing, the implementation of blockchain, artificial intelligence (AI), the emergence of new energy, or the coming of new industries like space. I believe selling out now would be the wrong thing.
However, as I mentioned, we are not financial advisors. We are newsletters providers. We publish ideas and general guidance. In the end, what you choose to do is up to you. It’s your responsibility. What you want to do with what we say is up to you. Ultimately, it’s your money.
If you are looking for things to buy, I have two options for today. One, you can check into Profits Unlimited. This is my flagship newsletter. It’s a multi-cap service. It has everything from stocks as small as 3D Systems at $1.5 billion and, in the past, we have even own multi-hundred-billion-dollar companies like Facebook.
However, right now I am seeing that the best opportunities are really in the small side — in the small to mid-cap segments of the stock market and in these growth sectors, America 2.0 sectors and Fourth Industrial Revolution sectors. Companies like Zoom, Zillow, Palantir and many others in the portfolio.
If you want to see what a laser-focused, America 2.0 portfolio looks like, go to ProfitsUnlimited.com. That will send you to a page that has a funny ad. Then you can subscribe for $47 or $48 per year. Then you will get a subscription for Profits Unlimited and you can go to the portfolio page and see what the stocks are.
Go through them. Right now with what has gone on all these stocks have been marked down hard. In my judgment and in my opinion, this is a great time to be picking up these growth stocks.
On the other hand you say, “Hey Paul, I don’t know who you are. You talk a good talk but you are telling me all about your stocks and I don’t know what to think.”
We do put out some free portfolio as a way to attract new customers to try to get them to subscribe our YouTube channel and our free e-letter. Then we hope they will have a good experience and want to subscribe to our paid newsletters.
For them, I have recently put out a mini portfolio called BUZZ. We started BUZZ in January of this year. As you can imagine, it’s been hit pretty hard. BUZZ stands for four different opportunities.
We put Bitcoin (BTC) in the portfolio. The U is for Uber Technologies Inc. (NYSE: UBER). The first Z is for Zoom Video Communications (Nasdaq: ZM). The next Z is Zillow Group Inc. (Nasdaq: ZG).
As you can see from this tracking, we are up on BTC by 64% since we put it in the portfolio. The remaining three are all down. Uber is down 23%, Zoom is down 20% and Zillow is down 27%.
For an overall BUZZ portfolio being down -2%. That’s the green line. The S&P 500 as a comparison is up 9%. Many of you will be thinking, “Why would I buy into something that has negative numbers?” The truth is, growth stocks can be volatile.
There are periods of time in the stock market in general where these stocks can decline for a period of time. Equally, when people least expect it, they can turn around and start to go up and go through the opposite: A mark-up process. These stocks can start going up and going up for years.
They can generate hundreds of percent of gains. We have had previous portfolios on our YouTube channel you can check into where people made big money. They had to go through this kind of volatility before they were able to make money.
Volatility is very much part of the game in terms of owning America 2.0 stocks, growth stocks, Fourth Industrial Revolution stocks. There’s always going to be periods of time where you can either see it as a risk or an opportunity.
I believe given the size of what America 2.0 and the Fourth Industrial Revolution can be, how early we are in it and how extraordinary these technology megatrends are, these are just in the early stages of human society benefitting.
I believe there is astonishing, phenomenal amount of money to be made if you can have a little bit of a longer time horizon rather than one day, a week or a month and if you can endure through the volatility. As part of the Profits Unlimited subscription we give you our guidance called Rules of the Game.
That will help you get through this volatility. Bottom line: I believe this is still a great moment to be invested in Fourth Industrial Revolution, America 2.0 and growth stocks. Because the opportunity is huge. It’s incredibly early. If you can endure through this volatility, I believe there are huge gains to be had.
I believe our stocks will go back to their old highs and then make new highs again and again. My personal experience is that once you go through a period like this you will have a sustainable rise where the gains are not given up.
I like to tell our readers to have strong hands. In other words, endure through the volatility. Use our Rules of the Game. That’s my message for today. I believe the stock market is going to turn around and pretty soon. When it does, it will leave all the people who are out behind and it will be hard to get back in.
And before I go, I know some of you are seasoned Strong Hands. And that means you’re looking for opportunities to buy for the market rebound.
Now is the time:
the future is v bright, the opportunity is immense, the growth that's coming is huge. be in this mindset. just think a bit longer than today, this week, this month. to get thru today think in a year or two how big your accounts will be, how high the stocks will be. stay #BOP
— 🇺🇸Paul Mampilly (@MampillyGuru) May 11, 2021
Luckily, we have a strategy just for you. Since inception, nearly 9 out of 10 recommendations have been winners.
Ian and I even had a 21-trade winning streak while the rest of the market was reeling from the volatility.
Editor, Profits Unlimited