Standout Companies That Are Ready to Fall

Here’s a simple but effective metric that will let you know when it’s time to sell short.

As originally published at Total Wealth
These Three Iconic Stocks Are Poised for a Dive
By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

We’ve spent a lot of time talking about how to identify great companies with huge upside potential. No doubt you’ve got the 3-Step Total Wealth Process down by now: 1) identify the trend, 2) pick your trade, and 3) control your risk.

So today I want to shift gears and talk about the one metric you can use to identify seemingly pristine companies that are ripe for a fall.

Our timing couldn’t be better. Janet Yellen has just taken off the blinders and the markets charged higher… at a time when corporate profit growth is about to go negative for the first time since the Financial Crisis began and QE started. Meanwhile, there are fears of another recession, flat wages, and even flatter consumer credit.

Obviously the stronger companies will survive and that’s in large part why we concentrate on them. But the weaker ones… whoa Nelly, they’re in for a wild ride.

How do you know which is which?

Fortunately, that’s not hard – there’s one number that can tell you which way to play it.

Learn to “read” it properly and you’ll have a tremendous advantage over most investors, for whom hope is unfortunately a viable investment strategy.

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    Keith on CNBC: Deciphering the Fed’s Statement

    Attempting to figure out the mixed messages from the Fed is the topic de jour. To me the Fed is a master of confusing the obvious, however that does not dissuade me staying the course and investing in the “must have” stocks.

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      The One Instance for Using Debt

      Debt is the downfall of many Americans. I advise friends and investors alike to get debt out of their lives permanently. However, there is one circumstance where you can use it to your advantage.

      As originally published at Total Wealth
      The Only Time I’ll Tell You Debt Is Profitable
      By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

      The other day I saw an ad for a mattress store that offered financing, so you can “sleep in peace” on your brand-spanking-new $7,000 mattress set. (Talk about irony!)

      Debt is the American way. It makes the impossible possible. It’s seen as benign or even good.

      It’s not.

      Personal consumer debt is one of the most dangerous financial products ever created.

      Federal Reserve data show that Americans owe $11.74 trillion as of 2014. Some $882.6 billion of that is credit card debt, $1.13 trillion is student loans, and another $8.14 trillion is mortgages. An estimated 119.3 million indebted households carry an average of $15,257 each, or more than double the $7,117 carried (and paid off monthly) by non-indebted households.

      The way I see things, debt is nothing more than “plastic prosperity” that makes you feel like you have more spending power. It’s a myth that’s been sold to the American public methodically and systematically for 30 years. And it wrecks lives.

      Getting out of debt (or avoiding it entirely) is an absolute imperative when it comes to building Total Wealth.

      But as an investor, there is one instance where you should consider taking on debt.

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        Public Awakening to the Human Augmentation Trend

        It looks like the media has finally latched on to what we have been discussing here for months. The Human Augmentation Trend is starting to grab headlines but it is still in its infancy and there is still much opportunity.

        As originally published at Total Wealth
        The Human Augmentation Trend Just Got Red-Hot
        By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

        Last October I wrote to you about one of the most exciting and potentially profitable “Unstoppable Trend” of all – Human Augmentation. At the time I noted that the sector will conservatively be worth hundreds of billions of dollars by 2020 because it’s expanding at a compound annual growth rate of 43.52% a year.

        I think I may have understated things.

        Recent research suggests that we need to move beyond technology to include biological upgrades, too. That means the target market potentially doubles right along with our profit potential.

        That’s going to be fabulous for my favorite Human Augmentation recommendation: Ekso Bionics Holdings Inc. (OTC:EKSO). It’s returned 25% since I first brought it to your attention last autumn.

        But you know what?

        It’s also going to be great for the other Human Augmentation companies I highlighted in that very same report.

        One of them has recently doubled, while a few others are up two, three, or twelve times the overall return of the S&P 500 this year.

        So far…

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          Interest Rate Hike Myth

          Contrary to popular belief, history has shown us that a rate increase does not directly translate to a market correction. In fact, there are definite opportunities present.

          As originally published at Total Wealth
          How to Handle Today’s “Rate Increase” Wildcard
          By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

          Yesterday capped a miserable three-day streak for U.S. markets on fears that the Fed may accelerate a possible interest rate hike with the Dow, S&P 500, and NASDAQ shedding 1.09%, 1.79%, and 1.38% respectively.

          Bring it on!

          I’ve pointed out repeatedly since the Financial Crisis began that the “good is bad” meme followed by traders – which triggers market dips with every piece of significant good news thanks to paranoia the Fed will seize on it to raise rates – only creates buying opportunities for investors with the right tactics.

          Today, that could be you.

          Yesterday’s collapse creates three massive opportunities. I’m going to explain to you exactly what they are, why they exist, and most importantly why they’re being overlooked by insiders and mainstream investors alike.

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            Your Questions Answered

            I deeply appreciate the feedback received from Total Wealth subscribers. Here are some well thought out questions that I am happy to respond to.

            As originally published at Total Wealth
            Total Wealth Q&A
            By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

            From the very beginning, I’ve insisted that Total Wealth be a “high-touch” service, meaning that you and I work closely together in the pursuit of the kind of wealth we all dream about, but very few people actually obtain.

            Most of the time that means we explore specific opportunities, trends, trades, and tactics that are key to Total Wealth. But every once in a while, it also means that I turn the floor over to you.


            Simply because it’s far more profitable to learn from each other than it is to go down the road by yourself. Chances are that if you’re thinking about something, another member of the Total Wealth family is, too. And that means we’ve got a great opportunity to learn from each other.

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