I’m often asked:
How do I pick the stocks I recommend?
Do I look only at charts, financial ratios, my favorite economic indicators, and so on?
Everyone asking me this simple question would like to receive a simple answer.
But I don’t have one.
My approach is about observing the big picture—how the world works—and then trying to figure out what might happen next.
Understanding this concept is crucial for any investor, and it helped me to make one of my best trades of the past year.
Here’s what happened…
Understand The Big Picture Before You Invest In Anything
After a period of synchronized growth, global economies began to diverge in 2018.
The United States was riding Trump’s tax cut wave in what seemed like a never-ending expansion, while the rest of the world contracted.
The unexpected tariff war sent shockwaves through the global supply chain, resulting in a slowdown in Europe, Australia, Japan, and other developed economies.
However, worst hit were the emerging markets.
These countries are incredibly dependent on the global economic cycle. They offer cheap labor forces, which attracts foreign companies to set up factories. Unfortunately, that means that, when manufacturing activity slows, emerging economies are hardest hit.
Moreover, such countries often have unstable currencies. It is a common practice for them to borrow in U.S. dollars. But, now and then, even the U.S. dollar can show erratic behavior.
In Spring 2018, that’s precisely what happened. A combination of Fed interest rate hikes and a growing economy pushed the U.S. dollar ever-higher. In a span of three months, the U.S. dollar index gained about 8%. A dramatic increase for any currency and a painful development for anyone who borrowed in U.S. dollars.
But where others saw gloom and doom, at Lahardan Financial we saw an opportunity.
This was our prediction…
Getting In Before Everyone Else
When we first began discussing investments in emerging markets, they had already declined quite a bit. By September 2018, we were positive a turnaround was near.
Businesses were beginning to adapt, central banks were talking of fresh stimulus, and U.S.-China trade negotiations were showing the first signs of progress.
Moreover, we believed that the U.S. dollar was reaching its peak. Soon, the manufacturing slowdown would spread to the United States, and the Fed would stop raising rates, stabilizing the U.S. dollar.
Finally, emerging market stocks were trading at such low valuations, we just couldn’t resist.
And our timing was just right.
Emerging market stocks bottomed out on Oct. 29, 2018, just two days before we launched our breaking report—7 Emerging Market Stocks You Can Get For Pennies On The Dollar.
Three of those stocks, ISA CTEEP (CTPZY) from Brazil, Gazprom (OGZPY) from Russia, and Great Wall Motors (GWLLY) from China, would go on to return 85.44%, 65.06%, and 49.03%, respectively.
The Next Big Trade
The chance to buy those three stocks at rock-bottom prices has passed…
But that doesn’t mean there aren’t other, similar opportunities out there.
Indeed, I consistently see winners like that in my portfolio.
And, now, for the first time, I’m ready to reveal my trades.
I’m letting you buy the same stocks that I would buy.
It’s a paid service, but if you subscribe to my True Retirement Trader, you’ll get instant access to my best stock picks, some of which are already up by 40.54%.
Moreover, you’ll get at least one buy or sell alert per week, as well as a built-in volatility protection mechanism.