Just as we’ve anticipated, tremendous amounts of flight capital are flowing into our markets. And just as we told you, that money is pursuing the highest-quality stocks in the universe. Now get ready for the NEXT phase of this Global Money Tsunami.
But first, some urgent questions …
How did we see it coming? Well, the more appropriate question, in my view, is: How could anyone NOT see it coming?
We saw ISIS scaring away a tidal wave of Mid-East money toward the U.S.
We saw Vladimir Putin scaring away an even larger wave of European money by brandishing weapons of mass economic destruction on the ground AND weapons of mass physical destruction in the air.
We saw similar conflicts that could drive away scared money in the Pacific Far East.
And today, we see all these waves taking on even larger dimensions.
Indeed, even as the stock market was surging last week, continuing one of the most powerful post-correction rallies in modern history, a trader on the floor of the NYSE looked up at the Big Board with a gasp and a smile, asking:
“I don’t get it. Where in the heck is all this money coming from!?”
He truly had no idea. But if he had been following us, he’d be tired of knowing the answer.
I repeat: A growing, accelerating, global money tsunami is being driven by fears of Russia, ISIS, even China …
Attracted by the tremendous size, massive power and relative safety of U.S. assets …
And seeking the elite stocks that have the soundest balance sheets, the strongest P&Ls, and the most consistent stock price momentum among the 12,000 stocks traded on U.S. exchanges.
Next question: How can you make money from this powerful global force?
Well, these are precisely the same stocks I feel my Weiss Stock Ratings can identify more accurately than virtually anyone else. So let me present …
Three Kinds of Evidence
Let me back up that statement with three kinds of evidence.
The first evidence comes from a study published years ago in The Wall Street Journal comparing our original Weiss Stock Ratings to those of virtually every major research organization. (See chart below.)
The conclusion: Weiss Ratings ranked number one in the United States in terms of performance, beating every single one of the other rating firms.
The research organizations that The Wall Street Journal bolded in the above table are the firms that were conflicted, that accepted underwriting fees from the companies.
Those not bolded are considered independent research organizations.
In all, 23 ratings organizations were covered in this study. And among all 23, whether independent or not, Weiss Ratings were the best.
The Weiss Ratings beat Deutsche Bank, Merrill Lynch, JP Morgan. Goldman Sachs, and Piper Jaffrey. Plus we beat a longer list of others by a country mile.
The bottom line is that if you had been following the Weiss Stock Ratings at the time of this study, you could have made more money than you could have made with all of the major and minor firms in this study.
According to this outside, independent study, the one-year performance of Weiss Stock Ratings beat the S&P by 19.73 percentage points. All the others either had inferior outperformance or actually underperformed the S&P.
That was during a bull market. In a bear market, where many other ratings approaches lose money, and the Weiss Stock Ratings can do a better job of helping investors avoid losses or even make money, our outperformance is even greater.
The second piece of evidence is how much money you could have made using our Weiss Stock Ratings if you had bought only our top-ten-ranked A+ stocks, rotating to any new stocks on the new top-ten list each month.
Starting with $100,000 in January 2005, through the end of August 2014, you would have made a total return of $613,000. (Based on stock appreciation and dividends before commissions and taxes.)
That’s 6.5 times more than the Dow Jones Industrials, 6 times the S&P 500, 4.9 times the Nasdaq Composite, and 4.6 times Warren Buffett’s Berkshire Hathaway Shares during the same period.
The third piece of evidence is more anecdotal — but extremely interesting to me personally.
Performance of the Stocks I Own,
Selected with the Weiss Stock Ratings
My ultimate portfolio is based largely on my Weiss Stock Ratings. And while I was checking it online one day this week, I noticed a very interesting pattern, as shown in the above table (based on data straight from my personal account at Fidelity).
While the S&P 500 was up 1.19% on the day, our stocks were up much more:
* My Ultimate Portfolio Stock #1 was up 1.55% …
* Stock #2 was up 1.57% …
* Stock #3 was up 2.34% — nearly two times better than the S&P 500 …
* Stock #4 was up 4.02% — 3.4 times better …
* Stock #5 was up 5.97% — 5 times better, and …
* Stock #6 was up 8.17% — nearly seven times better than the S&P 500!
In sum …
- All outperformed the S&P 500.
- The AVERAGE stock posted a 3.9% gain, generating $3.30 in gains for every $1 earned by the average S&P 500 stock.
Among these …
Two of our stocks outperformed the S&P 500 by 35% — 37% …
Five outperformed by more than 100%. And among these …
Two outperformed the average S&P 500 stock by five to one or better!
Will this be typical every day? Probably not. There are bound to be days when many of our positions go down with the broad market. But I believe that there are also bound to be plenty more days like these — when our stocks outperform the market like crazy.
Why? Because in my portfolio, I own only the very best, extremely high quality stocks on the market; the absolute cream of the crop based on my Weiss Stock Ratings and proprietary performance index.
And now for the final question …
What Should You Do?
Always invest prudently, maintaining a healthy amount of cash in reserve. There’s no such thing as a perfect investment strategy. All have some warts. And all are subject to losses.
Second, insist on top quality. So-called “miracle hot stocks” can outperform some of the time. But in the long run, most underperform and can even torpedo your portfolio.
Third, be sure to stay tuned for the next phase of the Global Money Tsunami.
Good luck and God bless!