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The "perfect storm" of bad news on July 15 could turn out to be the last bottom we're going to see in the financials in this bear market. Read on to find out why investments in the financials are worth considering after the storm clouds clear. And don't miss this week's "Ask Toby" segment where I tackle the investment potential in lithium batteries. Toby |
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On Aug. 14 'A.O.P.' Recipients to Collect Biggest Payout in 27 Years ... While most Americans rely on their 401(k) or pension plans to fund their retirement, some savvy investors are now getting paid thousands of extra dollars per month from the U.S. government-authorized "A.O.P." plan. Established during the Carter administration, the "A.O.P." has since beaten out every other asset class on the market with annualized returns of nearly 20%. The next "A.O.P." payout is set for Aug. 14, and will break distribution records, paying out a potential $10,000 to $40,000 per person. |
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EDITOR'S NOTE: There will be no audio or video version of Toby's Rant this week. It's no secret that we've been making a ton of money shorting financial stocks in our ChangeWave Shorts service. And there's still more pain to come for many of these stocks -- just look at what happened to American Express (AXP) yesterday after it reported disappointing earnings. (What a shock.) If you want to profit from this pain by taking a position on the short side, ChangeWave Shorts Editor Michael Shulman can show you how. That said, I want you to circle July 15, 2008, on your calendar, because I believe it will turn out to be the official low point for the surviving bank stocks. I know this is contrary thinking, but the key word to remember here is "surviving." No matter what happens today or next week, you can rest assured that there are going to be more rough days before things get better. But it's when things get ugly that the bravest investors begin to step into the beaten-down sectors. Anyone who was clever (or crazy) enough to buy Freddie Mac (FRE) and Fannie Mae (FNM) at their lows has seen their investment double in a week. And I think there will be similar opportunities for those who dive into the strongest financials in the next month or so. But, to do that, you must be able to stomach the volatility when everything goes to hell in a handbasket. If you do, you could ride a wave in the financials that will dwarf the one we saw in the '90s. Save the Date It's an overused cliché, but we saw the "perfect storm" of bad news on July 15, as that was the day everything hit the fan. General Motors (GM) sank below $10 and suspended its dividend. June retail sales were disappointing, the producer price index (PPI) number increased and the U.S. dollar hit a new low against the euro. Plus, we couldn't avoid reports about IndyMac (IDMC) customers lining up around the block to withdraw what was left of their deposits from the failed bank. The financials also took a beating that day, with double-digit sell-offs in Citigroup (C) and Wachovia (WB), while the Financial Select ETF (XLF) traded record volumes. The XLF traded 469 million shares that day -- a record that held for two days until 528 million shares were exchanged on July 17. So many bank shares were traded that roughly 70% of outstanding shares were sold. This means we have a new class of shareholders in the financials that are investors, not traders. Combine this with the temporary SEC regulation forbidding naked short selling on several financial stocks, and you can see a new level of stability in the sector. So, again, if you're a short-term trader who has an investment horizon that's measured in weeks, this ain't for you (try our ChangeWave Shorts service instead). But if you have a sufficiently long-term investment time horizon of a year or more -- and understand that earnings power ultimately drives stock prices -- you'll realize that the time to buy the best of the financials is near. Do your job correctly and you could be in line for 200% to 500% profits down the road. The key, of course, is to identify the survivors. The Bottom Line July 15 could have very well have been the last bottom we're going to see in this 24-month bear market in financials. If we see opportunities there, we'll pounce, but there are many other sectors that are giving us opportunities to profit without the stomach-churning uncertainty in that sector. Join us at ChangeWave Investing and discover the very best opportunities to make a ton of dough during the next couple of years. We're investing in the fastest-moving secular growth industries in the world in sectors like: * Green energy technology and infrastructure The best way to make money when everyone else is panicking is to follow the growth. Come with us and I'll provide the roadmap to riches.
Toby P.S. July 15 may mark the bottom in financials, but with more rocky seas ahead, it helps to know that the 15,000-strong ChangeWave Alliance has your back. Join us and start investing in the best sectors and stocks for the next bull market. Try ChangeWave Investing risk-free for 90 days. |
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'These guys are living up to their money-doubling promise.' -- Toby Smith I've been after Nick Atkeson and Andrew Houghton for the past couple of years to bring their expertise on the options market to investors like you. They finally agreed, and we launched Big Money Options in June. And these guys are living up to their promise to give you money-doubling trades at least twice each month. We closed trades for 115%, 170% and 320% gains, and now we have two more open trades up 110% and 280%. Keep reading to get the full story and discover how you can get in on this money-doubling service. |
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In today's video, Toby tells you which stock he thinks is the best play on the explosive growth in this technology. |
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Be sure to tune in to Fox News Channel this weekend and join Toby and the crew on "Bulls & Bears" for their weekly market roundtable as they kick off the Fox News Channel business block on Saturday, July 26, at 10 a.m. Eastern. ("Bulls & Bears" replays at 4 p.m. Eastern, Sunday, July 27, and 4 a.m. Eastern, Monday, July 28.) Or you can catch the show Saturday evenings at 6 p.m. Eastern on the new Fox Business Network. Check your local cable listings or satellite guide to find the Fox News Channel location and times for your area. NOTE: These shows are NOT on your local Fox network station. They are on Fox News Channel on your cable or satellite system (Channel 360 on DirecTV, Channel 205 on Dish Network). Keep in mind that these schedules are subject to change, and the Fox News Channel business block and other programming may be pre-empted for breaking news events. |
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Let the Options Pros Guide You People realize that options are one of the best ways to make large profits while putting fewer of their investment dollars at risk. You can use options for speculation and to enhance the returns of your long stock positions. That's why we created OptionsZone Insider, and it can help give your portfolio a boost during this bear market. OptionsZone Insider is a free e-letter that will provide you with the best options traders' insight and advice. Put their years of knowledge and experience to work for you. Get professional direction, unique strategies and trading ideas delivered directly to your inbox. Here's a small sample of what you'll get:
Accept your free subscription today and gain immediate access to the articles above. |
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 Wine Find: Blanc Bliss
The hot summer always gets me into Sauvignon Blanc mode. This type of vino is a great treat after a day at the beach or on the golf course. There are three basic flavors in the Sauvignon family: tropical fruit, grass and bell-pepper. Personally, I prefer the tropical fruit type, and if you do, too, you've just got to try the 2007 Home Ranch Sauvignon Blanc from Sbragia Family Vineyards in Dry Creek, Calif. -- and serve it cold. You'll get notes of honeysuckle, jasmine, mango, guava, citrus and pinnapple on the mouth and finish. The long, juicy fruit notes just last and last. This wine retails for $20 per bottle or less -- you gotta love that value. To share your favorite wine or food experience, e-mail me through the form at: www.changewave.com. |
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| Join ChangeWave at the San Francisco Money Show
Ignite your portfolio and boost your investment savvy at this four-day event filled with opportunities to gain profitable insights and advice. Join us in the heart of downtown San Francisco, Aug. 7-10, at the San Francisco Marriott. Don't wait. Accept your free tickets today. |
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