Saturday, May 31, 2014
Despite the conflict between Ukraine and Russia, European stocks hit a six-year high this week. And True Wealth editor Steve Sjuggerud is betting they'll go even higher.
European Central Bank President Mario Draghi was in Portugal on Tuesday and Wednesday to decide the next steps in European monetary policy.
Draghi has already said he will ease in June... And this week, he continued along those lines...
"We are aware of the risks of a too-prolonged low-inflation period," Draghi said.
Draghi is particularly concerned about how difficult it is for small- and medium-sized businesses (which are responsible for 80% of European employment) to obtain loans.
In short, more easing is coming. And Steve thinks we're about to see more of the "Draghi Asset Bubble" – the resulting price inflation from further monetary stimulus in Europe – just as we saw with former Fed Chairman Ben Bernanke in the U.S.
From the latest issue of True Wealth...
As Steve explained – and we've written about extensively over the past few years – Bernanke put unprecedented economic stimulus measures in place in the U.S. He cut interest rates to near-zero percent and bought billions and billions of dollars' worth of government bonds, causing prices of all assets (including stocks) to soar higher. Steve nicknamed this the "Bernanke Asset Bubble"...
Steve believes we're in the seventh inning of the rally in the U.S. stock market... But he says European markets are in earlier innings.
Steve made his True Wealth subscribers a fortune during the Bernanke Asset Bubble... They're up 85% in homebuilder stocks, 247% in health care stocks, 103% in technology stocks, and 147% in private-equity firm Blackstone Group.
And Steve says we have the same setup in Europe today that we did in the U.S. a few years ago. As he wrote in his most recent issue...
In addition to being a great investment opportunity, you should consider owning some European stocks as a way to balance your portfolio exposure.
As our friend and investment manager Meb Faber explained in his book Global Value, most people invest far too much money in their home market. This is a theory called the "home-country bias."
According to asset-management giant Vanguard, U.S. investors have about 70% of their stock-market funds in U.S. stocks. But as Meb explained, U.S. stocks make up 49% of the global market cap for stocks. And the U.S. is only responsible for 19% of the world's gross domestic product (GDP). That's why it's important to hold a portfolio more in balance with the U.S. global footprint.
Plus, the U.S. is one of the most expensive stock markets in the world today. You can read more about this idea in the May 15 DailyWealth.
In the March issue of the S&A Resource Report, Matt Badiali told his subscribers about an important phone call he received...
Matt's industry contact expected Enduring's Permian asset sale to happen by the summer. As part of the sale, Enduring would release the data from the region. Insiders believed the oil volumes in the rock would shock the industry and mark the beginning of a huge growth play in the Permian.
Last month, rumors started swirling that Enduring was looking to sell itself for $2 billion. Bloomberg reported the company had hired investment bank Jeffries to explore a deal. No parties would comment.
About three weeks ago, Reuters reported that former Chesapeake Energy CEO Aubrey McClendon was leading an investor group to buy Enduring for $2 billion. Again, no parties would comment...
But Matt and his inside sources think that number is too low... They think the $2 billion figure is just for Enduring's Permian production.
Regardless, it's a major deal for the Permian. And it's a testament to the "boots on the ground" research we provide our subscribers here at S&A, who knew about the potential for this major deal a full month ahead of Wall Street and the mainstream media.
And subscribers who followed Matt's advice and bought the recommendations in his March issue are already sitting on healthy gains. Matt's picks are up an average of 14% in seven weeks, and his top recommendation is up 46% in less than three months.
You can learn all of Matt's top ways to invest in the U.S. shale boom with a subscription to the S&A Resource Report. Click here to learn more.
Date Range:5/22/2014 to 5/29/2014
Date Range:5/22/2014 to 5/29/2014