The Fed is out of the way, at least for now. And that means markets have returned to watching policy developments out of Washington for their next big cue.
I’ve said this many times over the past couple of months. But the song remains the same for stocks now that Janet Yellen & Co. have embarked on the "normalization" of monetary policy.
That song’s melody is the pro-growth policies of the Trump administration, and whether those policies get implemented … or get stuck in the mud of the Washington swamp.
And as the anticipation level ratchets higher, so too do the fears of a big market pullback.
It’s enough to keep investors in a state of fear. Nobody wants to add broader-market exposure when stocks are at all-time highs, and all-time high valuations.
So, what’s an intelligent investor to do?
Well, you’re here reading this, and if I may be so bold as to say … I think that’s a great first step.
The next step is to take a page out of our editorial playbook, and follow in the footsteps of those actually making money trading this market. Here’s how …
Take the latest wins from stock and ETF guru Grant Wasylik.
Grant recently led his Wall Street Front Runner subscribers to two big, two-day-turnaround gains. Coca-Cola Bottling (COKE) and Orthofix International (OFIX) offered possible 5.32% and 7.46% returns, respectively. Yes, that’s right, two-day gains.
Grant’s also hit some home runs that take a little longer to develop, such as this week’s 83% gain in Encana (ECA) and the recent 26.04% win in Lear (LEA) in his Adventure Capitalist service. But those gains still came relatively quickly, with 12-month and seven-month respective hold times.
Then there’s the recent 16.25% gain in Hyatt Hotels (H) in seven months in his Disruptors & Dominators newsletter.
Grant’s been killing it of late. And if you want to follow his path, I strongly recommend checking out his services.
Right now he’s keeping close watch over a small company that’s quietly curing cancer. It could potentially return $3 for every $1 invested, and that’s just for starters. Learn more about it here >>
Then there’s our resident natural resources expert, JR Crooks.
JR’s notched a steady series of wins this year on companies in this space in his Natural Resources Investor service. Seven out of eight trades have been winners, and the only losing trade was down just 0.06%!
He also just notched two big gains in his Natural Resource Options Alerts service. His subscribers had the chance to bank a 103.7% win in copper in about six weeks, and a 77.8% win in crude oil in about nine weeks.
JR has made plenty of smart calls on oil. Last year, he made four separate calls that all turned into huge winners. Here’s how he does it >>
Then there’s JR’s Global Resource Hunter newsletter, which recently saw a trio of energy wins in FMC Corp. (FMC) of 26.9%, Green Plains (GPRE) of 27% and BioAmber (BIOA) of 29.1%.
If you’ve got a penchant for natural resources, as well as a penchant for profits, then you owe it to yourself to explore JR’s outstanding services.
Related story: 5 UWD Services Crush the Broader Market in 2016
Finally, I’d like to do a bit of cheerleading for one of my own services, the 10-Minute ETF Trader.
This simple-to-implement service also has delivered nice realized gains in 2017, with wins of 5.8% in the Industrial SPDR (XLI), 5.1% in the Materials SPDR (XLB) and 5.3% in the Financial SPDR (XLF).
The best part of these wins is that they took place over one-to-three months. And the entire trading process likely took members just 10 minutes per month to execute!
If you want a convenient, no-muss, no-fuss way to secure portfolio performance, then my 10-Minute ETF Trader could be just what the market doctor ordered.
I have one more way to help you make money in this market. And I’ll start by introducing you to our newest editor, Sean Brodrick.
Some of you may remember Sean, as he was one of the earliest members of our Uncommon Wisdom Daily family. Sean travels far and wide to seek out small-cap values in the commodities sector. He’s made his readers a lot of money with his insights over the past decade. And now, I am pleased to welcome him back to our research team.
In his triumphant return article, Sean called the recent pullback in commodities one of the best buying opportunities of the decade.
And as a special treat for our Afternoon Edition readers, starting today, Sean will be sharing his insights and strategies each day in a new feature we’re calling "Mining for Money."
Take it away, Sean …
Mining for Money
Why Junior Miners are on the Launch Pad
Here’s a chart that won’t just open your eyes … it could grab you right by the eyeballs. It’s a chart of exploration spending on non-ferrous (non-iron) metals. It’s used as a proxy for spending by gold and silver producers on exploration.
And it’s falling off a cliff …
The chart comes from a report by S&P Global Market Intelligence’s Corporate Exploration Strategies (CES). The report states:
"The 2016 exploration budgets by 1,580 companies totaled only U.S. $6.89 billion, a year-on-year drop of 21% and barely one-third of the level budgeted in 2012."
Gold exploration accounts for 48% of total spending. So that’s good. But as this chart from Bloomberg shows, it’s just not enough. Year-over-year, gold discoveries are plunging.
Meanwhile, the big miners are merrily producing away. But metals are NOT a renewable resource. As you take metal out of a mine, the amount you have left goes down. Unless you can find more.
A survey of the world’s biggest gold miners — Agnico-Eagle, AngloGold, Barrick, Kinross, Newmont, Newcrest and Yamana — as of June 30 2016 — shows their global reserves.
See if you can spot the trend.
Down, down, DOWN!
And that brings me to junior miners.
There’s a reason why the big companies are spending less money on exploration. There are junior miners willing to do all the hard work. They spend their own sweat, time and, importantly, money making discoveries.
Many of those juniors don’t find gold, or enough gold. They fail, run out of money … and never get to try again.
Others do find something. Something precious. Something worth developing.
And let me tell you a secret of the mining business: Explorers are not mine-builders.
These guys who explore, they love being out in the field … chasing after the next golden dream. Do you think they want to spend the next 10 years of their life looking at the same danged hole in the ground, trying to turn it into a mine?
No. Make that, "Heck no!"
For true explorers, the chase is all there is.
So they’ll sell it. They’ll sell the project to someone else. This next guy, he sees the potential. He’ll go out and raise capital and spend a lot of time and cash "de-risking the project."
Again, some fail. That shiny dream turns into so much dust. The resource won’t be as big as first imagined, or it will have the wrong geology, or the wrong metallurgy, or just the wrong darned luck.
Some projects fail. They never turn into mines. But those that are worthwhile, ah …
Now — NOW — the senior miners get interested. They have massive pipelines of future production to fill. IF the project is in the right place, and IF it combines well their existing business, they’ll buy it.
Sure, they’re paying up. They have the cash. They run freaking gold mines, for Pete’s sake. Of course they have the money.
And even though the big miners pay up, they end up spending a lot less money and, importantly, time than if they had tried to find that new project from scratch.
So the junior miners of today are sitting on the big projects of tomorrow.
And they know it.
I recently talked to a Canadian exploration company working down in a rich Mexican gold belt. They have seen their neighbors bought up left and right. And they know — THEY KNOW — they are on to something big.
Meanwhile, they have a rich silver project in another part of Mexico. Let me tell you, there are plenty of gold projects around, but very few primary silver projects that are worthwhile. This explorer believes it has a significant silver find.
So what it would like to do is sell that gold project to get enough cash to explore its silver project some more.
And from what I’ve seen, this is fast becoming the kind of market where that explorer will be able to name its price. Name it! The big miners will pay it. They have to. Go look at those first three charts. The big miners are up against a wall, and they are flush with cash like sailors straight off the boat.
They will pay up, and they will be happy to do so. That will launch this junior explorer’s share price higher.
And shareholders of this gold explorer will reap the benefits.
So stay tuned. This gold bull is just pawing the ground now. The big charge is yet to come.
Sean will reveal more details about this and other opportunities in the junior mining space soon.
I can tell you he’s got your "hot" metals chart for Friday already in mind. And going forward, I am confident Sean will also provide you with a steady stream of keen, money-making insights … insights especially adapted to a market that’s fraught with all sorts of political and economic unknowns.
Stocks didn’t sustain yesterday’s rally. The Industrials ended the day just on the negative side of the flat line. The same was true for the S&P 500, where utilities (-1.1%) and healthcare stocks (-1%) were the biggest losers of the day, followed closely by energy (-0.7%).
• GOOS (not) down: Luxury parka-maker Canada Goose (GOOS) priced its IPO at $12.78 last night. On its first day of trading, shares closed 25.8% higher at $16.08.
• Americans quitting jobs at fastest rate in 16 years: Some 3.2 million people voluntarily left their jobs in January, putting the "quits" rate at 2.2%. Finance & insurance, real estate & rentals/leasing, and other services saw the most people tending their resignations.
• 4 charged in Yahoo! (YHOO) hack: The Justice Department is charging four men, including two Russian government officials, with computer fraud, economic espionage and 45 more criminal charges. This is in connection with a series of data thefts targeting hundreds of millions of Yahoo! accounts, including those of U.S. and Russian officials.
• A parcel bomb from Athens arrived in Berlin, addressed to German Finance Minister Wolfgang Schäuble, on Wednesday. Conspiracy of Fire Cells, a militant Greek group that reportedly sent parcel bombs to several Athens-based foreign embassies in 2010, claimed responsibility.
• IMF received a letter bomb: One employee was injured Thursday after handling a letter sent from Athens to the International Monetary Fund in Paris. French officials say it is an act of terrorism. No one has yet claimed responsibility for this attack.
• A ‘hard-power budget’: That’s how White House Budget Director Mick Mulvaney described the 2018 budget proposal. It calls for a 10% bump in defense spending and 7% more for Homeland Security. It also includes cuts of up to 31% for the EPA, 29% for the State Department, 21% each for Agriculture and Labor, 20% for Justice and 18% for Health and Human Services.
Good luck and happy investing,
Uncommon Wisdom Daily