Yesterday, Jeff described how Eric Fry, editor of The Speculator, uses a disciplined and informed global macro analysis to identify the stocks that are set up to make millions.
Using these ideas, Eric has established himself as a legend among Wall Street traders. While most investors, even seasoned pros, can’t brag about one 10-bagger stock pick, Eric can boast over having 12.
Imagine how even having just one of those 12 picks can change your investing life…..
That’s why we are bringing you this series to promote Eric’s work and to let you know how you can leverage this system for your own portfolio. It’s simply too important to miss.
Today we are running his essay on his “Green Light” system that tells him the absolute right place to buy to create Macro Millions.
Regards,
Luis Hernandez, Managing Editor
Green Means Go
By Eric Fry
I only recommend trades that get my “Green Light.”
As the famous saying goes, “A rising tide lifts all boats.”
And that’s 100% true when it comes to riding these megatrends.
Once you use global macro analysis to spot a trend, it becomes fairly easy to find the investment opportunities that are going to soar along with that trend, just like an innertube rides a river current.
But we don’t just want any old company. We only want to invest in the best of the best. The stocks and options that are going to soar the fastest and furthest as the megatrend picks up momentum.
My Green Light System focuses on stocks that are:
Depressed – My first rule is to find a sector, stock, or other asset that is hated, overlooked, or undiscovered – or all the above. The key is to look where others aren’t. Like when the big commodity bull market kicked off in the early 2000s, I not only recommended commodity stocks like SSR Mining Inc. (SSRM) and Valero Energy Corp. (VLO) for big gains, I also recommended Brazilian stocks.
That’s because the Brazilian economy relies heavily on natural resources industries. So when commodity prices are rising, the Brazilian economy prospers. My bullish call on that Brazilian megatrend proved to be quite timely, as the nation’s stock market soared 500% over the ensuing four years. That gain was more than 10 times the gain of U.S. stocks during the same time frame.
And by using my Green Light System, you could have easily seen 10 times that amount on this megatrend. As I’ve been saying, you only need one trend … even one trade … to turn a small initial stake into a fortune.
Potent – I’m looking for companies and other assets that are not only overlooked, but also tied to a plausible megatrend catalyst. They must be well positioned to benefit from a megatrend of technological breakthrough, game-changing innovation, geopolitical phenomena, cyclical recovery, a tectonic monetary shift, or macroeconomic disruption. They have robust potential.
For example, commodities in the mid-2010s were in the midst of a wicked five-year slide. The price index was sitting at its lowest level in nearly two decades, and many stocks were trading below book value. So I was definitely interested in looking into this trade further.
In this case, the prices of base metals and most other commodities had fallen below their cost of production. Copper miners like Teck Resources Ltd. (TECK) were pulling metal out of the ground at a cash cost of $0.50 per pound, but they were only able to sell that metal for $0.40.
Obviously, that’s not a sustainable situation. Companies can’t sell their products at a loss forever. That’s why, in the mining industry, this unprofitable condition usually signals that a major trend change is imminent. In early 2016, I got the green light on a few of the biggest names in the sector.
The Green Light System and my analysis told me that companies like Wheaton Precious Metals Corp. (WPM), Petrobras SA (PBR), and Teck had the best chance to skyrocket… with the least risk. Sure enough, over the next 24 months these companies went on a tear. And readers who were following my research at the time could have had the chance to make Macro Millions five times: 915% on Teck… 178% on Wheaton Precious Metals… 139% on VanEck Vectors Gold Miners ETF (GDX)… 197% on Petrobras… and 628% in Ivanhoe Mines Ltd. (IVPAF).
Trending Favorably – I’m looking for stocks that are displaying at least early-stage momentum. They have started to reverse from a downward move and are indicating a sustained move higher.
When all three of my indicators are flashing green at the same time, you’ve got a trade on your hands with big potential.
My proprietary Green Light indicators are based on proven technical signals derived from both short- and long-term price and volume trends. I can’t give away all the details in this report because revealing my secrets might reduce the effectiveness of my strategy.
But understand this: Once a stock gets the green light, you can be sure that it has the best possible chance of soaring 100% … 500% … even 1,000% or more in the coming years.
All that’s left is the way we’ll place those bets.
Regards,
Eric Fry, Editor
