Saturday, June 14, 2014
In today's essay... a unique income strategy you've never considered... one that should pay out reliable 12%-plus yields for at least the next decade.
That's not a typo. And it's not a wild marketing pitch.
What we'll cover today is going to be the most consistently successful income strategy in the stock market over the coming decade.
I hope I have your attention. Because this strategy – which not one in 10,000 individual investors is using right now – will put the single biggest technological trend of our time to work for you, every single day.
You won't read about this idea in the mainstream press. No broker is talking about it.
Imitators will follow... but you heard it here first.
This strategy basically allows you to collect a royalty almost every time someone makes a phone call, searches the Internet, reads an e-mail, sends a text message, uses Google Maps, buys a song on Apple's iTunes digital media store, or watches a video on the website YouTube.
You know the use of "smart" phones, "smart cars," and computers has exploded in the past 10 years. It's growing every day. Today, we'll cover a "slam dunk" way to generate personal wealth from it.
Don't worry if you're not a computer expert. This doesn't require any computer or gadget expertise.
What's this trend? And how do you collect these "royalties"?
We'll get to the income in a moment...
But first, let's talk about the "Internet of Things."
By now, you've likely heard of – or used yourself – new technological innovations like self-driving cars, refrigerators that order groceries, homes that know to turn off the lights, and health-monitoring devices that send vital signs right to your doctor.
This is the stuff of sci-fi movies just a decade ago.
Now, for many people, it's just everyday life.
Nearly everything we use – our cars, our phones, our appliances, our homes – is becoming interconnected.
Our old, "dumb" phones and cars have been replaced by "smart" ones.
You can talk to them. They can talk to you. They can talk to each other.
For example, right now, you could search for good, local restaurants by speaking into your phone. You might program your home's security system with your iPad. You might adjust your home's thermostat from controls in your car. Your wristband might be transmitting your heart rate to an "app" on your phone.
These are all examples of what people are calling the "Internet of Things." Everyday devices are being plugged into the Internet. It works hand in glove with the explosion of smartphones and portable tablet computers.
Everything is getting connected.
It is the biggest, most important technological trend of our time.
This trend is creating incredible demand for telecommunications bandwidth. It demands faster Wi-Fi connections... faster home cable speeds... more Internet "hotspots." It's creating more demand for the devices that use them.
In a recent report, research firm Gartner noted that global smartphone sales increased 42% from 2012 to 2013. For the first time, smartphone sales outnumbered "regular phone" sales.
The sales numbers are even more impressive in developing markets. Gartner notes that smartphone sales in India increased 166.8% from the fourth quarter of 2012 to the fourth quarter of 2013. Smartphone sales in China increased 86% in 2013.
Gartner estimates that the number of non-PC, tablet, and smartphone "Internet of Things" connected units will grow to 26 billion in 2020. It's a nearly 30-fold increase than the number in 2009.
Networking giant Cisco notes that 43% of U.S. homes have four or more online devices. It expects the amount of bandwidth consumption per home to grow to four times the current amount by 2015. Cisco expects global Internet traffic to increase threefold over the next five years.
Again, the growth in demand from developing markets is even more impressive. Research firm TeleGeography expects broadband demand in Africa to grow an average of 51% per year until 2019.
This trend is also creating incredible demand for data storage. All the pictures, movies, television shows, and songs you buy must be digitally stored. The information generated by our cars, homes, and appliances must be stored. The data companies collect on their customers must be stored. It must be sifted, filtered, and analyzed.
This is part of the "Big Data" trend you've likely heard of... which is also called "storing things in the cloud."
Research firm IDC says global revenue from public cloud services totaled more than $21.5 billion in 2010 and will reach $72.9 billion by 2015.
Like any big technological innovation, the Internet of Things will create lots of millionaires and billionaires. It will produce huge stock-market winners.
The strategy we're about to cover will allow the "average guy" to get his share of these profits. It will allow investors to reliably produce double-digit income streams on their stock portfolios. And as we noted earlier, it requires no expertise with iPads, computers, or smartphones.
This strategy is centered on a group of stocks we've labeled "Digital Utilities."
Readers of Dr. David Eifrig's (or "Doc," as we call him around the office) services are very familiar with this idea. He and I (Brian Hunt) coined this term years ago.
The idea is a play on the income-producing power of traditional utility stocks... like power, natural gas, and water providers.
Because it doesn't make sense to have a dozen different water or electricity providers, states and municipalities grant monopoly status to traditional utilities. In return, utilities accept regulations that limit their ability to raise prices. Essentially, states and towns assure themselves reliable power in exchange for guaranteeing the companies' profits.
Utilities' unique business position has historically made them terrific income investments. Their dividend payments were so secure that advisors almost always included them in retirees' portfolios.
As "Doc" writes, developments in computers, networks, and cellular phones have created a new kind of utility...
To give you an example of this idea, Doc asks readers to consider two of his favorite Digital Utilities: Intel and Microsoft.
Intel and Microsoft aren't the only "utility-like" cash-generating tech dominators...
EMC Corp is the world's largest data-storage provider. When companies need to store data (video files, audio files, documents, e-mails), EMC is the "go to" provider. Most companies don't have the resources or the expertise to deal with the immense amount of data they need to store. EMC does. It is the "dominator" of data storage.
Last year, EMC generated $23 billion in sales. That's up more than $5 billion from 2010. As you can guess, the demand for data storage can only go one way in the coming years. The "Internet of Things" will see to that.
Like Intel and Microsoft, EMC uses its dominant position to generate lots of cash and direct it to shareholders.
Cisco is another elite "Digital Utility." It's the dominant provider of "Internet plumbing" gear. Last year, Cisco generated $48 billion in sales... up $8 billion from 2010.
Cisco also pays one of the market's most reliable 3%-plus dividends. It's another company that is a sure beneficiary of the "Internet of Things."
We could go on... but you get the idea. It's not complicated. As we buy more smartphones and more tablets... as we watch more streaming videos... as we connect more things to the Internet, businesses that support the infrastructure will enjoy a giant "tailwind" for a long, long time.
There are around a dozen or so large technology businesses that dominate their industries. Their entrenched positions, massive research & development budgets, and vast resources have created big "moats" around their business.
Now that smartphones and the Internet of Things are creating an explosion of demand for their services, their near-monopoly-like profits will only grow... and shareholders stand to make great money in Digital Utilities.
Regular Digital Utility shareholders should do well over the coming years.
But to generate truly large amounts of income – which should amount to 12%-plus annual yields – investors need to acquire a certain skillset.
It's a skillset we've helped thousands of regular folks learn... to the great benefit of their investment accounts. We've received an incredible amount of thankful feedback for our work in this area. It's an idea we want every single S&A subscriber to understand. We want our parents to understand it. We want our children to understand it. It has led to the greatest performance in investment-newsletter history.
Knowing about this idea – and using it – will provide you with a HUGE advantage over regular investors.
To generate the largest amount of investment income from the Internet of Things and Digital Utilities, you must harness the income-producing power of selling stock options.
You've probably heard our plea before. But it's such a useful skill that we'll make the plea again. It's the strategy behind our most successful service, Doc Eifrig's Retirement Trader. Doc has used options-selling strategies to produce an incredible track record: He has closed 174 out of 176 positions for a profit.
We've discussed Doc's strategy and track record many times. What we haven't done much is highlight how Doc has structured 68 winning positions around Digital Utility stocks like Intel, Microsoft, and EMC. Every single one has been a winner. And the average gain for those positions was 9.6% (usually with holding periods of just a few months).
Doc has mastered the art of analyzing Digital Utility stocks, determining when their shares represent great values, and applying his income-producing strategy. He's a master of timing these positions for maximum income and maximum safety.
The incredible returns being generated in Retirement Trader show that my claim at the start of today's essay is no prediction. It's happening right now. And the giant Internet of Things trend will ensure this strategy pays like a broken slot machine for many, many years.
If you're a Retirement Trader subscriber, congratulations. You've taken steps to broaden your investor "toolbox." You've acquired an extremely valuable skill. Look to make more money from the Internet of Things in the coming years.
If you haven't learned these techniques, we urge you to begin soon. To ensure as many people as possible start learning, we've made it as easy as possible for you to take the first step...
We've published a book that explains how to use this technique step-by-step. And on page 87, it also lists the 25 ideal businesses for this technique. That means you can eliminate at least 90% of the publicly traded stocks from your investment radar.
Typically, we charge around $3,000 a year to teach people how to use this strategy. This high price ensures that we only attract folks who are serious about learning how to make money with options and are willing to get started immediately.
But because we are a business that survives on the quality of our ideas... we want as many people as possible to have the chance to benefit from this technique.
We want as many people as possible to learn the strategy Doc has used to produce a track record of 174 out of 176 winning closed trade recommendations in his research service.
We've been in business for more than a decade, and we have never seen anyone come close to generating this kind of track record. It is near perfect.
As S&A founder Porter Stanberry puts it:
As I mentioned, Doc typically charges $3,000 to teach people how to use this strategy.
But in our new book, High Income Retirement, he explains how this income technique works, step-by-step, and which companies are ideal to use this strategy on to safely generate extra income.
Now to be clear... Doc doesn't give out any specific buy recommendations in the book. He reserves that information for his Retirement Trader subscribers.
But in High Income Retirement, he covers everything you need to know without requiring you to subscribe to any expensive trading services.
To my knowledge, no other book on the market teaches you how to use these techniques and identifies which companies to use them on.
High Income Retirement costs just $39, including shipping. I'm confident that when you read about Doc's options strategies... and start using them to collect regular income for your retirement... you'll agree that the price is an absolute bargain.
Reader Charlie W. has been using Doc's technique to generate consistent income:
Today, the details of this income technique can be yours for just $39.
But if, after reading High Income Retirement, you don't think it is worth every penny you've paid, you can send it back to us within the first 30 days for a full refund. You can learn more about this book – and why the ideas in it are so controversial – right here. (This does not go to a long video.)
Date Range:6/5/2014 to 6/12/2014
Date Range:6/5/2014 to 6/12/2014