I’m really excited to head to Florida in a couple of weeks. But, I won’t be working on my tan or getting massages at the resort spa I’m staying at!
Instead, I’ll be attending and presenting at the Irrational Economic Summit in West Palm Beach, Florida. If you can’t get enough of me, I’ll actually be speaking twice.
I’ve been a participant at the last two Summit’s. Harry enjoyed my speech so much the first time around that he hired me to come onto Dent Research as the creator and editor of Forensic Investor.
I’m the team’s “Horatio Caine” of the investment world, uncovering all the dead bodies before anyone’s the wiser. The thrill! The profits! Pretty exciting stuff.
It’s the same with the Irrational Economic Summit. It’s not only about listening to and rubbing shoulders with some of the industry greats like Harry and David Walker. It’s also about meeting many of the folks who read our work. It’s an honor to do this work and interact with you. And I hope to see you there in the next three weeks. I’ve got some important stuff to share with you…
I’m mostly known as a bear, trading shorts for a living for the past 17 years. However, this year I’m mixing things up a little bit. We’re just a few weeks away from launching Hidden Profits, the first newsletter of its kind that seeks to identify companies that pay you first.
But why bother? Why should you care?
Well, we live in a world where corporate executives are highly incentivized to enrich themselves by propping up the stock price with funky accounting and other tricks. They don’t have your best interests in mind even though you own the company.
Since 2009, I’ve been using a model that I developed to identify companies undertaking aggressive accounting practices. I’ve used this to identify short sale candidates and profit from a decline in the stock for my Forensic Investor subscribers. But, in a twist, this very same model can be used to pick winners – especially by focusing on companies that pay you first.
In testing since 2000, these stocks are up 748%!
Virtually every investor is chasing yield in this low interest rate environment. That chase has led low-volatility, high-payout companies to record valuations. If you just buy high yielders, you’re going to get creamed in the coming years.
So, at 3:30 p.m. (EDT) on Friday, October 21, I’m going to show attendees (including LIVE Stream viewers) how to sift through the wheat from the chaff and identify companies with quality revenues, solid cash flows, and undervalued assets. Then we’ll look at the impact of what happens on stock returns when you buy the companies that pay you first.
I firmly believe the next bear market is going to be one for the ages. Harry does as well.
I wouldn’t be surprised if the average stock gives back more than 60%-70% of the returns achieved since the beginning of the bull market in March 2009. The indexes may not go down as much, but many individual stocks will.
If you have a portfolio of $1 million, you’re staring a $500,000 to $600,000 loss right in the face.
The track record of Forensic Investor has held its own over nearly two years, despite virtually every headwind imaginable for shorting the market. But, once the environment becomes a bit friendlier to betting on stock declines, I truly think the opportunities for significant returns will be legendary.
That said, while a major bear market might take most stocks with it, many opportunities will be created to buy stocks at major discount values. In prior bear markets, hidden-profit-type stocks have held up well. That’s the benefit of big cash flows and strong balance sheets.
In both cases, you need to know how to capture the gains where and when they arise. I can help.
I look forward to seeing you in Florida!
John Del Vecchio
Editor, Forensic Investor
P.S. There are dozens of events on the burner right now that could blast open the doors for the bears to come streaming in. And on October 11, at 1 p.m. EDT, Harry will talk about these in an exclusive interview. Register to watch.