Our Greatest Investment Opportunity in Almost a Decade?

In today’s Money Morning…fears for the Aussie market receding…heights we haven’t reached in almost a decade…Greg looks at premature predictions of doom…why Sam argues you should get off the sidelines…and more…

What a difference a week or two can make.

This time a fortnight ago, your weekend Money Morning opened with the phrase, ‘Picking up pennies in front of a steamroller.’ The commodity rally was faltering. US and Aussie markets alike were hesitating. And the seemingly-eternal fears of a house price crash were grabbing headlines again.

Then, with last week’s market pull-back in the US, it looked like those dire predictions may have been coming true.

But today, the ASX All Ords Index is reaching for 6,000 points. And your Money Morning editors are arguing that the bull market could tear significantly higher from here. While there may still be dangers to watch out for, Greg argued this week that bearish calls are premature. Or, worse, mainstream commenters may be bearish for all the wrong reasons.

Just because some sectors of the media want to see the market collapse from here, doesn’t mean that they’re right. And if they’re wrong, carefully chosen stocks could leave those doubters in the dust.

Sam is even more bullish. He argues that Australia could be about to see some of the best investment opportunities in the world. Possibly the greatest moment to be in the market since March 2009. According to him, now is not the time to be afraid to invest. Read on for more…

After last week’s market falls in the US, Greg opened Monday asking whether it’s really as bad as it seems. Many commenters are speculating that this could be the end of the bull market that much of the world has been enjoying in 2017. With banks individually raising interest rates on the back of fears for the housing market, things look grim for Australia in particular.

Greg argued that such dark predictions are premature. The Aussie market isn’t far shy of all-time highs. A brief correction could mean anything. And if you respond to every pullback assuming that it could be the beginning of a change in trend, you’ll be wrong the vast majority of the time. Greg explains that it’s impossible to predict the future, but you can at least put the odds in your favour. Read how in Monday’s Money Morning, here.

On Tuesday Greg looked at some of the causes behind the mainstream media’s obsession with a market collapse. Whether you’re for or against US President Trump and his policies, it’s tough to deny that large parts of the media want to see him fail. How much is that colouring analysis of the recent market pullback? Is the failure of Trump and the Republican’s attempt to repeal the Affordable Care Act really the market tipping point? If none of Trump’s other failures and scandals sent markets into a tailspin, why now? Greg argues that people are looking for too much meaning in what could be a perfectly healthy correction. If he’s right, and you can keep your head when others are panicking, you could get a real edge on the market. Read Greg’s analysis here.

Of course, even in a rising market not all stocks rise. With Wall Street bouncing back, and Australia looking set to do the same, on Wednesday morning Greg analysed a well-known Aussie company that looks cheap. But it probably deserves to. This venerable Australian retailer has been plagued by issues for years. And now it has to face down the arrival of Amazon in Australia. It may be a household name, but that won’t save it. To read why you can’t just buy any old stock, even in a roaring bull market, you can find Greg’s article here.

Sam was on an extremely bullish tear this week. He argued on Thursday that Australia could be launching the biggest bull market the country has ever seen. One of the big contributors could, unexpectedly, be Britain’s exit from the EU. The UK is already one of Australia’s major trade partners. As the ‘divorce date’ from Europe approaches, the potential opportunities for non-European nations trading with Britain could be huge. To read why, you can find Thursday’s Money Morning here.

And on Friday, Sam explained why he expects the ASX All Ords Index to soon climb above 6000 points. The last time it closed that high was in 2008, before it was dragged down by the GFC. To read why Sam thinks it will finally be reaching those heights again — and why you could be kicking yourself 10 years from now if you stay on the sidelines — click here for Friday’s Money Morning.

Then in the Financial Anarchists podcast this morning, Jordan Eliseo, chief economist for ABC Bullion joins the podcast to talk about all things gold. Kris and Jordan discuss gold investing, the impact of rising interest rates, how gold could triple in 10–20 years, and plenty more about the yellow metal. You can tune in here.

With the ASX tantalisingly close to heights it hasn’t reached in almost a decade, next week looks to be a fascinating one on the markets. We’ll be along for the ride with you.

Until then,

Tyler Jefferson,
Editor, Money Weekend

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Numbers of Interest, as of Friday

Aussie Dollar to US Dollar: 76.46

Gold: US$1,241.15 (AU$1,623.60) per troy ounce

Silver: US$18.07 (AU$23.63) per troy ounce

Bitcoin: US$1,050.75 (AU$1373.96)

West Texas Intermediate Crude Oil: US$50.16 per barrel

ASX 200: 5,864.90

Tyler Jefferson joined Fat Tail Investment Research in 2012. With a background in publishing, he started out as part of the team working behind the scenes with your Editors to bring you Money Morning each day.

When he joined, Tyler was Fat Tail Investment Research’s 12th employee. Today that number has grown to over 50, as more and more readers turn to Money Morning as their source for independent financial analysis and ideas.

Today as Managing Editor, Tyler still edits the articles you read each day. Along with that, he occasionally contributes to Money Morning with his own irreverent take on the most interesting news and opportunities for you.

Money Morning Australia