Global Market Comments
April 15, 2016
Fiat Lux
Featured Trade:
(LAST CHANCE TO ATTEND THE APRIL 19 ATLANTA GLOBAL STRATEGY LUNCHEON),
(HITTING THE ROAD),
(CNN'S JOHN LEWIS:? THE DEATH OF A COLLEAGUE)
?
I am taking off today on my Spring 2016 US Road Show, hitting seven cities in seven days. The schedule will include:
Friday, April 15 - Houston, TX
Monday, April 18 ? Miami, FL
Tuesday, April 19 ? Atlanta, GA
Wednesday, April 20 ? Washington DC
Thursday, April 21 ? Boston, MA
Friday, April 22 ? New York, NY
Monday, April 25 ? Chicago, IL
To purchase tickets for the luncheons, please go to www.madhedgefundtrader.com, click on the ?STRATEGY LUNCH? tab in the second row, then the ?USA? tab, and then click on the city of your choice.
These are small groups, usually 6-12, giving me the opportunity to answer any individual questions you may have, as well as enabling me to learn how to improve your service.
Since I will be running in and out of airports, hotels, and lunches for the next week, I won?t be able to file my regular in-depth research reports and incisive market updates. So my intrepid staff will be sending you my ?golden oldies? for the interim.
This is so new subscribers can benefit from past research nuggets and legacy subscribers can review pieces they either missed the first time around, or have forgotten.
Don?t worry, I?ll still be watching the markets. I am THAT addicted. The modern world?s panoply of beeping electronic devices, like iPhones and iPads, make this easy.
While sitting in airport club lounges, I?ll also be knocking out the next week?s letters, drawing on the hundreds of ideas I constantly have swirling around in my head. If you only knew what I find in there sometimes!
The Mad Hedge Fund Trader team is currently in a major expansion mode, and we have doubled our staff since the beginning of the year. The result will be a series of new products and services for your benefit that will knock your socks off, as well as enhance your trading ability.
Yes, this is costing me millions of dollars. But I?m sure that it will be the best investment I?ll ever make, except maybe for those Tesla shares (TSLA) I bought six years ago at $16.
It appears that in this zero or negative interest rate world there is a lot of demand for the 38% average annualized return the Trade Alert service has delivered. And a lot of followers make a lot more than that! It looks like my service will be paying for quite a few new Tesla Model S-1?s and Model X?s this year.
Sure, the last six months have been tough. This too shall pass.
I?ll take this opportunity to say thanks again for supporting my research.
Good luck and good trading.
John Thomas
Hitting the Road
?The economy without debt is like major league baseball without steroids,? said Jack Ablin, chief investment officer of BMO Private Bank.
Global Market Comments
April 14, 2016
Fiat Lux
Featured Trade:
(LAST CHANCE TO ATTEND THE APRIL 18 MIAMI GLOBAL STRATEGY LUNCHEON),
(ROTATING INTO HEALTH CARE AND BIOTECH),
(VRX), (ABBV), (BSX),
(IBB), (AMGN), (GILD), (CELG), (BIIB), (REGN),
(HOW TO AVOID PONZI SCHEMES),
(TESTIMONIAL)
Valeant Pharmaceuticals International, Inc. (VRX)
AbbVie Inc. (ABBV)
Boston Scientific Corporation (BSX)
iShares Nasdaq Biotechnology (IBB)
Amgen Inc. (AMGN)
Gilead Sciences Inc. (GILD)
Celgene Corporation (CELG)
Biogen Inc. (BIIB)
Regeneron Pharmaceuticals, Inc. (REGN)
Come join me for the Mad Hedge Fund Trader?s Global Strategy Luncheon, which I will be conducting in Miami, Florida on Monday, April 18, 2016.
A three-course lunch will be followed by an extended question and answer period.
I?ll be giving you my up to date view on stocks, bonds, foreign currencies, commodities, precious metals, and real estate.
And to keep you in suspense, I?ll be tossing a few surprises out there too. Enough charts, tables, graphs, and statistics will be thrown at you to keep your ears ringing for a week. Tickets are available for $247.
I?ll be arriving at 11:30 AM and leaving late in case anyone wants to have a one on one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at a restaurant at a major downtown hotel.
I look forward to meeting you, and thank you for supporting my research.
To purchase tickets for the luncheons, please click here.
There has been no more despised sector in the stock market for the past eight months than health care and biotech.
Ever since presidential aspirant Hillary Clinton launched the Tweet that sank the troubled sector in August, both political parties have taken turns beating it up, like tag team wrestlers.
Clinton wants more competition in the industry and an end to price gouging, naming companies by name, like Valeant Pharmaceuticals (VRX) as guilty parties. Trump is demanding more competition from foreign imports.
Ted Cruz intends to demolish that great wellspring of health care profits, Obamacare, on his first day in office. Bernie Sander wants to nationalize the lot.
Traders and investors can be forgiven for not wanting to touch health care with a ten-foot pole. The stocks responded by cratering a heart rending 30%-80%.
However, a funny thing has happened over the last few weeks. Health care and biotech stocks have started going up.
And you know what? They are going to keep going up. In fact, I think that health care, along with banks, and energy will be your big alpha plays for 2016.
The sector has one big thing going for it: the calendar.
Each passing day brings the end of the current election closer, and the end of the present onslaught on the sector. Think of all the negativity as an option approaching accelerated time decay.
And here?s the crucial thing about health care. The earnings story never went away, only the share valuations did. Health care and biotech remain the healthiest segments of US industry with the greatest earnings prospects.
China, eat your heart out!
So fall down on your knees and thanks the politicians for a gift that will keep on giving. Their fulminating is enabling you to get into one of the best industries at the cheapest possible prices.
The shopping list is rich.
AbbVie (ABBV) was spun off from Abbot Labs in 2013. It has a relatively low cost cancer drug, Imbruvica, that dodges political risk. It also sells a blockbuster rheumatoid arthritis drug, Humira, and a hot thyroid drug. Earning per share will double in two years.
Boston Scientific (BSX) has a solid market share in medical devices, one of the safest corners of the health care field. No controversial $100,000 cures here. So does Thermofisher (TMO).
Gilead Sciences (GLD) is a name my Trade Alert followers already know and love, having made fortunes there in the last couple of years. They have the last word in a hepatitis cure, Solvaldi. For more depth on the compan,y please read my latest opus by clicking here for ?Keep Gilead Sciences on Your Radar?? (note: you have to be logged in to read it).
Celgene (CELG) has several blockbuster drugs in the pipeline treating psoriasis (Otezla), blood cancer (Revlimid), and cancer (Abraxane). A classic baby boomer retirement play, the company should double in value in five years.
Finally, if you want to take a safer basket play, look at the IShares NASDAQ Biotechnology Index ETF (IBB). Their top holdings include Amgen (AMGN), Gilead Sciences (GILD), Celgene (CELG), Biogen (BIIB), and Regeneron Pharmaceuticals (REGN).
To view its prospectus, please click here.
As for Valeant Pharmaceuticals (VRX), I wouldn?t touch IT with a ten-foot pole.
I spent a sad and depressing, but highly instructional evening with Dr. Stephen Greenspan, who lost most of his personal fortune with Bernie Madoff.
The University of Connecticut psychology professor had poured the bulk of his savings into Sandra Mansky?s Tremont feeder fund; receiving convincing trade confirms and rock solid custody statements from the Bank of New York.
This is a particularly bitter pill for Dr. Greenspan to take, because he is an internationally known authority on Ponzi schemes, and published a book entitled Annals of Gullibility-Why We Get Duped and How to Avoid It.
It is a veritable history of scams, starting with Eve?s subterfuge to get Adam to eat the apple, to the Trojan horse and the Pied Piper, up to more modern day cons in religion, politics, science, medicine, and yes, personal investments.
Madoff?s genius was that the returns he fabricated were small, averaging only 11% a year, making them more believable. In the 1920?s, the original Ponzi promised his Boston area Italian immigrant customers a 50% return every 45 days. My suspicious grandmother wisely passed on an invitation to join the plan.
Madoff also feigned exclusivity, often turning potential investors down, leading them to become even more desirous of joining his club. For a deeper look into Greenspan?s fascinating, but expensively learned observations and analysis, go to his website at www.stephen-greenspan.com.
My financial advisory clients, by and large, have expressed a desire to be kept in the loop once a quarter and when it matters in between, but don't want to hear from me on an ongoing constant basis. ?I know because I've asked.
They are mostly retired, conservative by nature, and want to enjoy life while trusting that I know what I'm doing. ?I often get my talking points from you, and it's interesting to watch the relief on their faces when I talk, for example, about the millennials being the hope behind the national debt.
I point out that we have something China and Japan don't have--a large group of young people coming up the pike. ?For them those talking points bring a great sig of relief.
I'm going into some detail because it's something to think about when you're marketing your service. ??
My thoughts off the top of my head.
Cheryl
Portland Oregon
"The level of fact available from news services is way less than it once was,? said Roger McNamee, co-founder of venture capital fund Elevation Partners.
Global Market Comments
April 13, 2016
Fiat Lux
Featured Trade:
(LAST CHANCE TO ATTEND THE APRIL 15 HOUSTON STRATEGY LUNCHEON)
(WHY IS THE JAPANESE YEN SO STRONG?)
(FXY), (YCS), (UUP),
(AN EVENING WITH BILL GATES, SNR.),
(TESTIMONIAL)
CurrencyShares Japanese Yen ETF (FXY)
ProShares UltraShort Yen (YCS)
PowerShares DB US Dollar Bullish ETF (UUP)