Update - August 11, 2020

Are You a Trader or an Investor?

I was thinking this morning…

Has there ever been a bigger gap between the role of an investor and a trader?

It’s not something most folks ponder all that often. But we should.

It has a lot to do with what’s made us so successful in recent months… and everything to do with my bold Dow 100,000 prediction.

For traders, times are great.

In fact, I just got this note last week from one of my Alpha Money Flow subscribers, Robb S…

Woke up this a.m. to a $5,000 profit on Zillow. Being a Friday in this squirrelly market, I took the money and ran! Thanks for setting up a great win!

Short-term traders have an ideal setup.

There are trillions of dollars of free money flowing through the economy. The Fed has a solid backstop in place. Stimulus is fueling tremendous rallies. And we’re seeing a rotation into key sectors that seems to gain speed with each day.

For investors, though, things are a bit different.

These are folks plunking their money into the fundamentals of a company. They’re buying now and walking away – looking to make gains over the span of years, not weeks… or days.

That’s a scarier notion.

Debt is a major threat. The dollar isn’t what it once was. The nation is quivering. And Middle America is struggling.

It explains why Warren Buffett – who has had quite a tough time beating the market lately – isn’t buying a whole lot of anything these days… except shares of his own company.

He’s an investor… making a trader’s move.

I can’t blame him.

But what are you supposed to do?

Watch This

Well, the answer to that question is why I recently launched our Long Short Portfolio. Over the long term, the folks betting against this mess (the shorts) will win. In the meantime, though, we’d be crazy not to take advantage of this trader’s market.

That will be a big theme in a special video I will send you on Thursday.

The topic is gold.

Many, many readers have written me over the last few weeks asking about the best way to play gold. My answer, as you’d expect, is quite nuanced. It’s based on that idea above.

It’s time to treat gold like a trader’s asset.

Again, this will be the topic of a video I’m recording later this week. I’ll send it to you as soon as it’s ready.

We’ll cover why gold is hot, how long the bull market will last, how to buy gold, what your allocation should be and the best ways to trade it.

I’m excited about it. Stay tuned.

But I’m also excited about our portfolio.

Steady as She Goes

Take our stake in KBR (KBR), for instance. The company runs a rock-solid business that thrives on lucrative government contracts and large, well-funded infrastructure projects.

With central banks across the globe printing more and more money each day, it’s a good business to be in.

But the company just announced a move that will make it even stronger.

It’s doing what all good companies must do. It’s doing more of what works and ditching what doesn’t.

In this case, the company is unloading its energy business.

It’s too risky these days, and, well, servicing the government pays a whole lot more.

By the end of this year, KBR will go from three business units to two. It will unravel its energy efforts and focus on its Government Solutions and Technology Solutions businesses.

It’s news that makes what may be our most conservative portfolio holding quite attractive.

If you don’t yet own shares, they’re worth buying at today’s prices.

This is the sort of long-term position that will weather any storm that’s ahead.

Again, I’ll have more of my thoughts on trading versus investing during the video I’ll release on Thursday.

It’s the ideal time to dive into the topic… especially when the subject ties to gold.

Be well,

Andy