Update - June 16, 2020

You Have No Excuse Not to Invest

I knock on wood as I type it… but it’s never been a better time to be an investor.

I’ll put the economic ideas aside for just one second while I start with the mechanics.

It’s now almost entirely free to invest.

Go online… start a brokerage account… and make free trades.

Commissions are a thing of the past.

You can now buy shares of the SPDR S&P 500 ETF (SPY) for $313 and, with one move, own a ticker symbol that will allow you to do what the vast majority of professionally managed funds can’t do… keep up with the market.

But what if you don’t have the $313 it takes?

Ah… this is where things really get good.

Split It Up

Thanks to an innovation that’s become available only in the past few months, you can now buy a piece of nearly any stock on the market… for as little as a buck.

In other words, you can own a chunk of all the biggest and best companies on the market without paying their full share price.

Can’t afford Amazon (AMZN) at $2,500? That’s fine. Just buy a hundredth of a share for $25.

Don’t want to mortgage your house for a $270,000 share of Berkshire Hathaway (BRK)? Join the Oracle of Omaha for just $20.

There really is no excuse not to invest.

But there is that pesky little notion of risk.

You can lose money in the stock market. That fact will never go away.

That said… it sure does seem like those folks in Washington are willing to do everything they can to make sure stocks don’t head in the wrong direction.

The action on Wall Street over the last week was messy.

The folks at the Federal Reserve – the puppeteers who make the market dance these days – met and did a jig of their own. They two-stepped all around the data but ultimately ended where they started.

They did nothing.

Why should they? Many of the programs they previously announced still haven’t begun.

The markets weren’t happy with the news. Thursday’s sell-off was a mess.

But the Fed came out for an encore this week. It promised to buy up to $750 billion worth of corporate debt.

It’s a grand magic trick.

Factories need built. New phones need developed. And workers need paid.

Now all a company has to do is go to the Fed, outstretch its arm and the money will appear… still warm from the printing press.

But if you recall from economics class, there are two forms of economic manipulation… fiscal and monetary. The Feds dish out the monetary kind. The politicians are in charge of the other.

And the White House has been busy on the fiscal front.

Shortly after the Fed announced its $750 billion plan, Trump and his team upped the ante and boasted about their plans for a trillion-dollar infrastructure stimulus.

It’s more free money.

It sent stocks surging ahead.

Our portfolio is doing quite well on the news.

Building Riches

Alas, the fellow at the helm (that’s me) has been here before. I traded right through the 2008 fiasco.

That’s why, a couple of months ago, I featured KBR (KBR) in the pages of Manward Letter. I told you it was a stimulus darling and will surely do well as countries around the globe dump trillions of dollars into infrastructure spending.

It’s paid off handsomely.

Over the last month, shares of KBR are up by 50%.

That’s a huge run for a $3.7 billion company. But it shows why this is such a good time to be an investor.

Funny money is flowing all over the place.

Shares of the company are still only $26 today. But if you can’t afford that… buy ’em for just a buck.

It’s now possible.

It may not be a great time to be an accountant for Uncle Sam, but it’s a great time to be an investor.

Be well,

Andy

P.S. You may have heard me mention the beta strategy I recently tested with my Codebreaker Profits subscribers. We made some huge gains… up to 714% in less than a month. But now the strategy is no longer private. I detailed it all at this link.