Update - January 28, 2020
Important News and an Upcoming Event
This week is very different from last week.
Last Tuesday, I wrote you and mentioned that the inking of a fresh trade deal may force us out of our bearish play on China’s economy.
This week… that play is one of the strongest bets on Wall Street.
It’s more proof that as mighty as man thinks he is, ol’ Ma Nature packs a whole lot more punch.
As hard as Trump tried to slap the jaw of China’s markets, he found himself fighting a formidable foe. But it took little more than a microscopic virus – and some hyperbolic reporting from the world’s news outlets – to shut down a huge city, halt trade in its tracks, and nearly instantly shave a percentage point or two from the nation’s GDP.
For investors, there are all sorts of lessons to be learned.
Above all, it proves the merit of a trailing stop exit strategy.
It would have been easy to unload our stake in the ProShares Short FTSE China 50 ETF (YXI) after Trump’s Phase One deal was signed. Investors who let their emotions get the best of them would have used the news to hit the sell button… and would have missed out on a 10% gain last week.
But a trailing stop is unemotional. It doesn’t watch the news. It cares only about our profits.
I recently filmed a short video about trailing stops and how to use them. You can check it out at our YouTube page.
While you’re there, be sure to hit the “Subscribe” button that’s just below the video. It’s free, and it serves two key purposes.
First, it will make sure you have the chance to view all of our future videos (we’re working on an options trading class right now). And second, the more folks who subscribe to the channel, the more YouTube will see the value in what we’re doing. That means it will share our videos with other like-minded investors.
It’s an important way that we can spread our mission far and wide.
Get Ready for Gains
Mother Nature is a powerful force… and so is Mr. Market.
Despite the panic on the Street on Monday, the market is eager to right its wrongs and get things moving higher again.
Helping that cause is the great market driver – earnings season.
A slew of companies are opening their books to investors this week and revealing their latest profit figures. Since earnings are what ultimately drive stocks, the results we’ll get over the next few weeks will set the tone for the market’s overall direction for much of the year.
We’re already seeing the good news.
Shares of Graco (GGG) jumped out of the gate this morning thanks to a strong Q4 earnings beat. Analysts expected earnings per share (EPS) of $0.39, but the company proudly posted a profit of $0.48 per share.
Looking forward, the company now expects to see single-digit revenue growth for 2020. It’s certainly not a gangbusters prediction, but it outshines the Street’s previous estimates of no growth for the year.
I’m looking for more good news on Thursday when ResMed (RMD) announces its latest figures.
We’re already up by 110% on the position. But that figure is likely to grow if the company posts an EPS figure of $1.01 or greater.
I’ll keep an eye on it and will let you know of any important news.
Big earnings reports are also likely from AGCO Corp. (AGCO) and Smith & Nephew (SNN) on February 6, from Waste Management (WM) on February 13, and, perhaps the biggest of them all, from Copart (CPRT) on February 19.
With good news, we could be sitting on some huge gains.
When we add up all the gains from just the five stocks listed above, we’re up by 285%.
That number should be well over 325% by the end of February.
The Most Valuable Subscription Around
Finally, the feedback from our latest health-focused issue was flat-out fantastic. Thank you to everybody who sent kind words…
Like this subscriber, who sent us this note last week.
I just want to say that I am so glad that I am a lifetime subscriber to this letter/financial advisory. I followed Andy Snyder from The Oxford Club to his brave and bold step of starting his own publication, which in my opinion, took a ton of guts and as I suspected has been a spectacular success. I love the fact you focus on the 3 pillars of success: Liberty, Connections and Know-How. And the fact that your focus is not entirely on wealth, but also our health and other life experiences, which add to a richer fuller life.
So again, I want to just say that being a lifetime subscriber to Manward Letter and the daily Digest was and still is the best decision I made in being a part of Manward’s family. Keep up the excellent work. Andrew Snyder for President 2024! – Subscriber N.G.
I’m excited to see where the year takes us. We have some great and bold ideas for the months ahead. They’ll pack even more value into what has already got to be the most valuable subscription of its kind.
If you haven’t yet read the health-focused issue we sent you last week, here’s a link.
As always, let me know your thoughts and questions by sending an email to mailbag@manwardpress.com.
And finally… my team and I are working on some more free (to subscribers only) bonus content that I think you’re going to love.
I wrote a lot about the hemp industry and the medical community’s fresh research on CBD last year.
I’m very excited about this sector – from both an investing and a health-focused standpoint.
But there have been lots of ups and downs over the last few months. There’s a lot of information that hasn’t been shared… but should be.
So in mid-February, I’m going to host a bit of a hemp summit. I’ll update you on the investment opportunities, as well as the many health-focused initiatives that are happening.
The event will be free to all subscribers. There’s no need to do anything.
But now is a great time to send me your questions and any topics you’d like me to explore.
There’s a lot happening… and a lot more ahead.
I’m glad to have you on board for it all.