2017 is about to bid us farewell. It’s been one heck of a year. One of the most incredible years I can remember.
We saw in a new US President. That’s right, for all his controversies, he only got into office in January!
The UK took the whole year to bumble their way through their European exit. And they were able to achieve…nothing. They still have 2018 to bumble on through. And in the end, we may not even see it happen.
Of course North Korea decided that the world was their enemy once more. It appears they are able to launch a nuclear warhead at any given time.
Are we worried by that? Not really. Even a madman knows that as soon as a real threat goes up, the US will wipe the whole country off the face of the Earth.
If anything North Korea has just stepped into the mutually assured destruction stand-off. It’s a party co-hosted by Russia and the US.
It’s estimated the US have 6,800 nuclear warheads. And the Russians have around 7,000. Then there are the new comers to the party such as China (270), the UK (215), France (300), Israel (80), Pakistan (140), India (130) and now North Korea with perhaps 10 of their own.
If anything this threat has been great for military stocks. Companies like Raytheon [NYSE:RTN] and Lockheed Martin [NYSE:LMT]. 2017 has seen both of these military giants deliver incredible returns, considering they’re both blue chip stocks.
We don’t see that story going away in a hurry. If anything the threat of war both physical and cyber is rampant. And if you want to invest in an industry that’s about to go through a global boom, look no further than stocks with military contracts and links.
We think it’ll be a mega-boom trend for 2018.
Don’t be passive, be active
One of the other interesting phenomenon of 2017 has been the rise of the exchange traded fund (ETF).
The US markets overall have been on a mind bending surge. Just look at the charts of the Dow Jones and NASDAQ — there was only one direction for them both in 2017, up.
It would have been ease embodied to just tip your money into an index ETF and pick up returns. And it seems that’s where a lot of money went in 2017.
According to investment research and management firm Morningstar, in November US investors put $16.6 billion into passive funds. This follows on from $27.6 billion in October.
Meanwhile around $17.9 billion was pulled out of active funds. This follows on from $18.8 billion in October.
It’s one of the biggest stories of the year, and has largely gone under the radar. Investors seem to be disengaging from markets. Instead of actively seeking opportunity, they’re just packing up shop and handing over money to passive funds.
This is good and well in theory, when the NASDAQ and Dow are at record highs. But how does this play out in a down market? Not very well, is the answer.
But when will markets fall? We don’t know. They will at some point, but when? We don’t think for a while. At least no major crash for some time. But sideways markets — at least in Australia you can expect for some time.
That’s why we think passive investing is a mug’s game. If you want to chase down the biggest and best returns, you need to pick winners. Be active. That may come in the way of stocks — or in our view also in crypto.
The green rush
Take for instance the explosion of the medical marijuana boom in 2017.
Countries all over the world began to legalise this natural ‘wonder drug’. Australia came out and gave the official green light. We saw ASX ‘pot stocks’ go bananas early on, with some seeing triple figure gains in a matter of days or weeks.
There were companies that were putting out company announcements just mentioning the word ‘cannabis’ that had wild double-digit swings daily.
It was nothing short of mania. But it was a short-lived mania. Soon after the surge in marijuana stocks, the world caught on to the cryptocurrency and blockchain story.
Take note, the marijuana story isn’t going away. In fact if you’re looking for one of the biggest market opportunities in 2018, we think it’ll be back in ‘pot stocks’.
Ongoing development and research will lead to huge medical breakthroughs. Medical marijuana we think will go down as important as the discovery of penicillin. And there are a huge number of Aussie companies that are set to boom from the new ‘green rush’.
It’s one area we think you must consider investing in for 2018.
Crypto and the blockchain
But as we said, the world was all about crypto and blockchain in the second half of 2017. We might add that this technology has been around since 2009. In fact, we’ve been covering it for at least the last four years.
Six months does not make a revolution. But a revolution is underway. Albeit now getting a little silly.
For instance, the SEC in the US has just suspended trading in The Crypto Co [OTC:CRCW]. The company was a sports bra maker just a few months ago. They then changed their name and saw a 57-fold increase in their stock price. But the suspension comes as the SEC has doubts about the accuracy of their filings.
Not to be outdone The Long Island Iced Tea Company [OTC:LTEA] has also decided to ‘change focus’. They too are now shifting to blockchain. That’s right, an ice tea company moving to blockchain…
And their stock price is up 500% since the news!
Let’s be clear. Changing your name or saying you’ll shift to crypto or blockchain does not make you worth 57 time — or even five times — what you were yesterday.
And you should be very careful of companies shifting to the blockchain opportunity without a real business plan.
Don’t get us wrong. There are a load of great companies that are building great companies in this area. But it’s also full of rampant hype and ‘fear of missing out’ (FOMO). Don’t get sucked into it. And don’t let your irrational mind get the better of you when trading on these opportunities.
Still, in our view crypto investment and blockchain stocks are going to blow the roof off in 2018. We don’t think there’s a better way to boost your portfolio than through these opportunities.
And if you’re trying to figure out exactly where and how you can cash in and get involved in military stocks, medical marijuana or crypto and blockchain, then look no further. Sam Volkering’s Secret Crypto Network, Exponential Stock Investor and Australian Small Cap Investigator are all services that will provide you with those opportunities.
If you want to invest in the biggest mega trends for 2018, then these three investment newsletters will get you there. A subscription to each will be the best value Christmas gift you’ll ever give yourself. And by next year, hopefully the gains you’ll make will make next Christmas even bigger and better.
Editor, Secret Crypto Network