Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


How To Collect Your Share of My Million Dollar Giveaway

How To Collect Your Share of My Million Dollar GiveawayWe recently kicked off the most outrageous initiative in the history of investment research. It’s called the Income Millionaire Project. And the goal is simple: create 1,000 income millionaires. That’s a $1 billion goal! No one has ever tried it before, but that doesn’t bother me. I’m so sure you can use this program to make a million bucks… I’ll pay you $1,000 to start your journey. Go here for details.


Investment Therapy For “Trump Derangement Syndrome”

By John Persinos on January 3, 2017

People often corner me at cocktail parties seeking free investment advice. I consider it an occupational hazard. However, during this year’s holiday gatherings, I noticed an added dimension of anxiety if not downright fear.

It’s called “Trump Derangement Syndrome,” and yes, it’s a real thing. Psychiatrists are reporting greater levels of hand-wringing among their patients because of Donald Trump’s unexpected rise to the most powerful job on the planet.

Whether you love or loathe the extravagantly coiffed billionaire, his status as president-elect is causing considerable worry. Over adult beverages this year at Christmas and New Year’s celebrations, the most frequently asked question I got was: How do I hedge my portfolio?

It’s a prevalent question in our mailbag as well:

“I would appreciate any information that would help answer the question: how do I hedge the political and economic risks of 2017?” — Richard C.

I would appreciate some further information on hedging my portfolio for 2017. Since the market has done so well for so many years, I am expecting a correction soon. Thank you for any advice you can offer me.” — Don Z.

The small-cap prescription…

In previous issues, I’ve already covered specific time-proven hedges (gold mining and silver streaming stocks), as well as the sectors that should perform best under Trump’s reign (aerospace/defense, financial services, and construction).

Here’s another opportunity that I’ve yet to address: the likely outperformance of small cap stocks in 2017.

Since Donald Trump’s shocking upset on November 8, the Russell 2000 index of small-cap stocks has jumped 10.1%; the index gained 19.4% for full year 2016. That compares quite favorably to the S&P 500, which gained 3.3% and 9.5%, respectively.

Jim Pearce, chief investment strategist of our flagship publication Personal Finance, says a strong U.S. dollar and rising interest rates — two conditions in place for 2017 — should give lasting momentum to the small-cap rally.

Jim also serves as the director of portfolio strategy for Investing Daily and director of our Wealth Society. As he explains about small caps:

“The strong dollar should have little, if any, effect on…small companies that concentrate on U.S. customers. If you’re retired, adding small-cap stocks to your portfolio actually increases the ‘safe withdrawal rate’ from your IRA, reducing the chance that you’ll run out of money later on in retirement.

Finally, if you’re worried about the Federal Reserve raising interest rates…then add small-cap stocks to your portfolio. During periods of rising long-term rates and rising short-term rates, small-cap stocks outperformed large caps.”

Jim Fink, chief investment strategist of Options For Income and Velocity Trader, says small-cap value stocks have dramatically outper­formed all other types of stocks over the long term.”

Trumpian tailwinds…

The bull market is overdue for a correction and the Obama recovery is on course for a correction. However, several tailwinds position small stocks as “defensive growth” hedges.

Let’s start with Donald Trump’s policies, which would benefit smaller companies. Trump presumably understands the needs of America’s entrepreneurs — the aggregate holdings of the Trump Empire would rank about midway in the Russell 2000 by revenue, if it were listed.

Trump has promised to lower the business tax rate to 15% from 35% for corporations and 39.6% for sole proprietorships and partnerships. The GOP-run Congress is likely to go along, which would give a shot of adrenaline to small businesses.

Trump and Congress also vow to eliminate the Affordable Care Act, which would please small company CEOs. Obamacare has increased the number of Americans with health insurance, but it also has imposed mandates that smaller employers consider onerous.

Another advantage for small companies in 2017 is the likelihood that Trump’s appointees will lessen regulations against the financial services sector, which would help the local and regional banks that typically supply the credit to smaller companies.

Trump’s protectionist policies may trigger trade wars, but most small caps derive the majority of their sales domestically, which insulates them from overseas turmoil and a strong greenback.

Finding the next Steve Jobs…

Screen Shot 2017-01-03 at 5.08.55 AM

Jim Fink says for top small-cap performance, invest in the founders:

“The more experience in investing I gain, the less I focus on financial numbers and the more I realize that the ‘secret sauce’ of top small- and mid-cap stocks is their top management. Specifically, honest, competent people with the passion and discipline for building a lasting, high-profit business.

I especially look for companies managed by their entrepreneurial visionaries. I avoid professional managers who hop from one company to the next in search of a huge salary. The shortcut to finding honest, competent manager CEOs is founder CEOs.”


In other words, you should look for the next Steve Jobs. And our investment team will help you find him. In the meantime, if you have a question about the risks and rewards ahead in 2017, shoot me a question: — John Persinos

The Clock Is Ticking

I’ll make this quick: You only have a few hours left on our offer to join the Wealth Society. Which means…

  • If you want free access to every advisory service we publish for the rest of your life…
  • If you want 60 full days to try it all out before deciding if it’s right for you, and…
  • If you want our personal guarantee that we’ll pay back your membership fee if we don’t show you 36 triple-digit winners within 12 months…

You’d better click here NOW to get started.


You might also enjoy…


Forget Buy and Hold. Here’s how to retire faster…

I’m not a fan of “buy and hold.” Gurus like to tell you that patience is the key, but I call horse puckey.

We’ve discovered an investing technique that consistently pays out easy-to-repeat profits.

One that’s proven to beat the market 2,082% in head-to-head testing.

And one that’s generated over 488 winners since 2011.

This method is so powerful, in fact, some of the investors we’ve let use it reported back to us saying they’ve made $71,425… $82,371… and even as much as $151,000 in a single year thanks to this “trick.”

That’s how powerful this investing technique is!

What what exactly is this mysterious method? I’ve put all the details together here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.