The Reason Why Facebook Is Worth More Than Coke and AT&T

daily chart July 24 2014

A slight down day with the Dow Jones down 3 points (-0.02%) and the Nasdaq down 2 points (-0.04%)

The market continues to perform exactly as per our internal forecasts. And while most of Wall Street traders doze off somewhere in the Hamptons, the market was able to set another speculative bubble benchmark that is too hard to believe.

Facebook Is Now Valued Higher Than Coke and AT&T. 

Now the company’s $190 billion market value makes it bigger than such bellwethers as Coca-Cola and AT&T. It’s not a member of the Dow industrials, but if it were, it would be larger than two-thirds of that index’s 30 members.

There you have it. The company with $2 Billion in Net Income is worth more than a company with $19 Billion in Net Income. Yeah, yeah, I know………Facebook will take over the world and we will have ads coming out of our ears. Yet, Facebook’s valuation tells us very little about the true value of the company and everything we need to know about the state of today’s financial bubble. In other words, those who cannot see a massive stock market bubble, by any measure, will suffer significant losses over the next few years.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 24th, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

The Reason Why Facebook Is Worth More Than Coke and AT&T Google

Investment Wisdom Of The Day

peter lynchEveryone has the brainpower to make money in stocks. Not everyone has the stomach. If you are susceptible to selling everything in a panic, you ought to avoid stocks and mutual funds altogether.   -Peter Lynch

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Investment Wisdom Of The Day  Google

Why You Should Have Bought Chipotle’s Stock Instead Of A Burrito

chipotleContinuation from yesterday……

Key Statistics 2006 2014
Price Per Share $42 $660
Market Cap $1.3 Billion $20.4 Billion
Earnings Per Share $1.29 $10.66
P/E Ratio 31 62
Price/Sales Ratio 1.58 5.66
Price/Book Ratio 2.74 11.70
Revenue $823 Million $ 3.63 Billion
Net Income $41.4 Million $356 Million
Annual Earnings Growth 31% (revenue) 20%
Total Cash $154 Million $804 Million
Total Debt $ 0 Million $0 Million
Book Value Per Share $15.3 $56.51
Shares Outstanding 31 Million 31 Million
Total Assets $604 Million $2 Billion
Shareholder Equity $474 Million $1.54 Billion

As we look at the data above, one thing jumps out at us immediately.  Just how overvalued the stock is. Not only in 2006, but even more so today. With a P/E of 62, a P/S ratio of 5.66 and a P/B ratio of 11.70, Chipotle’s has one of the highest valuation multiples in the restaurant industry and on par with some of the fastest growing technology companies out there.  In comparison, another high flyer Apple Inc (AAPL) has a P/E of 16, a P/S ratio of 3.27 and a P/B ratio of 4.8. Clearly illustrating just how expensive Chipotle’s stock is.

Despite its substantial overvaluation levels (by any traditional measure) Chipotle was able to demonstrate significant growth in most of its metrics over the last 8 years.  During this time revenue grew 341%, net income increased by 768%, book value grew 273% and shareholders’ equity increased 225%. While an impressive performance, the numbers above do NOT justify the 1,465% rise in the company’s stock price.

We must now go back to 2006 and study the company in greater detail in order to determine why the company was selling at such an expensive valuation back then and what was the catalyst behind its stock price going even higher. Most importantly, we have to figure out if we would have been smart enough to take a long position in either 2006 or 2008/09.

Chipotle’s fundamental growth and investment story is best understood if we break it down into 3 categories.

  • New Store Growth
  • Margin Improvement
  • New Concepts & Future Growth

By the time the company went public in 2006, Chipotle had 500 restaurants and growing at approximately 100 additional stores per annum. By the end of fiscal 2013 the company operated 1,595 restaurants, with 185 stores being opened in 2013 alone.

To Be Continued Tomorrow…..

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Why You Should Have Bought Chipotle’s Stock Instead Of A Burrito  Google

The Enemy Of My Enemy Is My Friend

cold war 2 investwithalex

Continuation from yesterday……...In other words, both Russia and China are fed up with the US and NATO at this point in time. Further, given today’s geopolitical and macroeconomic situation there is very little hope for the situation to improve. Quite the opposite.  It is highly probable that the US relationship with both countries will continue to deteriorate as all 3 superpowers fight for their own interests.

“The enemy of my enemy is my friend”

If you are unaware, China and Russia are both “ex-communist” countries that have a long history of working together.  Until China reluctantly opened up its doors to the West after Richard Nixon’s visit in 1972, it was always expected that China and the Soviet Union would stand together. Vietnam War, North Korea, Communism Ideology, etc…. In fact, it wouldn’t be at all wrong to describe China and Russia having a “brotherly” relationship. You consistently see the evidence of that at the United Nations, where Russia and China tend to support each other on important international issues.

Most recently, while both the US/Russia and the US/China relationships have been strained, the relationship between Russia and China has never been better. In May of 2014 Russia and China signed the biggest ever gas and oil deal valued at more than $400 Billion.  Around the same time Russia and China conducted joint naval drills. Further, the working relationship between President Putin and President Xi Jinping is incredibly strong.  In other words, both Russia and China see their close ties and their ever improving relationship as a must to counterbalance the US and NATO.

In conclusion, both China and Russia are fed up with the US. On multiple levels. As the US and China/Russia relationship continues to deteriorate over the next 10-15 years, Russia and China will, once again, be forced to form an alliance. With the US and NATO flexing its military muscles on the Russian and the Chinese border, the alliance between Russia and China will eventually become a military alliance similar to NATO.

Economic Reasons:

Most wars are triggered by economics, not ideology For example, the Civil War was fought over the cotton trade and not slavery, the Revolutionary War was fought over excessive taxes and not the British rule and the WWII was triggered by an economic depression and war repatriations in Germany in the 1920s and the 1930s.

If you are unaware, the US owes China $1.3 Trillion. With the US National Debt at over $17 Trillion, the US is one recession away from not being able to cover its interest payments. In a nutshell, the US doesn’t have the money to repay the Chinese. The only way out of this mess is for the US is to inflate its currency away. The FEDs have been trying to do just that over the last 10 years, thus far, without too much success.  Mostly due to a number of deflationary forces within the economy.

To Be Continued Tomorrow…….(Why Am I Seeing This On  A Financial Website?)

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The Enemy Of My Enemy Is My Friend Google

How To Stop Negative Thoughts, Feelings and Emotions

business ideasContinuation from Monday……..If you were a simple body and mind configuration, you would not be able to observe your own thoughts as you just did or as if you were an outsider looking in. Think about it. How can a mind observer itself while generating various thought patterns? That would be impossible.  That leads only to one conclusion.  A third point of reference is needed in order to observe both your thoughts and your body. That third point of reference is your Human Consciousness.

A few years ago I was on an 8 hour hike with a friend of mine. About an hour into the hike Jim started to suffer from a migraine that was literally killing him. It had gotten so bad that he could barely walk. He ended up throwing up a number of times and had to sit down every 200 yards or so just to gather his energy. At times I could barely get him up.  I distinctly remember Jim telling me, “Man, my headache is so bad I wish would die right now”. He looked terrible and while I could sympathize with his pain I couldn’t feel it. I knew it was there, but I couldn’t internalize it…..I couldn’t experience it. I was just an observer.

When you begin to observe YOUR OWN thoughts, feelings and emotions you begin to react in exactly the same fashion. You become an observer. You are then able to disassociate yourself from all of your own mental processes. While it might take a fair amount of practice to get to that point, once you comprehend how your mind works, it will become a lot easier.

For instance, you might have had a really bad day at work where your boss ripped you a new one. The incident was so bad that you believe that another tiny slip up would result in your firing.  It is important to now illustrate how you would react to such an incident with and without the ability to be an observer.

WITHOUT Having an Ability to Observe Your Own Thoughts, Feelings & Emotions: (The Old You)

You will immediately become identified with the incident. Your mind/brain will immediately begin to generate all sorts of crazy and negative thought patters and feelings. You will begin thinking how stupid you were, that you have made a mistake, that you are not worthy to have your job, that your boss is right, that you will be fired, that you should probably start looking for a new job, that you will not be able to provide for your family, that your wife or husband will leave you, that you will soon become homeless and die of starvation, that you are a loser, that you are a failure, that you are worthless, that God hates you and so on and so forth.  The feelings of anger towards your boss will follow shortly thereafter.

Basically, the mind will create a negative spiral within your human form on multiple levels. Including your body, mind, feelings, emotions and thoughts.  For as long as it lasts, you will literally live in the hell of your own making.  You will associate with and you will become that negativity energy. Unfortunately, that is exactly how most of us live today.

WITH Having an Ability to Observe Your Own Thoughts, Feelings & Emotions (The New You):

On the contrary, when you become an observer, all of your thoughts, feelings and emotions fall by the wayside. While your mind will still generate the negative thought pattern described above, you will not be impacted by them. You will simply acknowledge that these thoughts exist and move on. In fact, it would develop in the following fashion

  1. Your mind will begin to develop thoughts suggesting that you were stupid, that you have made a mistake, that you are a loser, etc…. Just as above.
  2. At this stage you would shift into the state of Higher Consciousness and begin to observe your thoughts.  As if you were watching a movie.
  3. While in the state of higher consciousness you would simply acknowledge and then dismiss your mind. You would instruct your mind and your thoughts to “Get Lost”.

That’s all there is to it. By cutting your thoughts at the root of the problem you are then able to escape all the negativity associated with having a long lasting negative experience. All in one swoop.  In other words, by dissociating from your mind and by becoming an observer your thoughts, feelings and emotions would not be able to impact you.

To see this process in action, repeat Exercise #1 with one slight variation. Instead of simply observing your thoughts, recall a situation that makes you mad beyond believe. Whatever it might be.  When your blood is at a boiling point, stop, close your eyes, shift into the state of higher consciousness and begin to observe your thoughts, feelings and emotions associated with it. As you do, you will soon realize and understand just how ridiculous your anger is.

To Be Continued Tomorrow……..(Why Am I Seeing This On A Financial Website?)

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How To Stop Negative Thoughts, Feelings and Emotions Google

Find Out Why Both Bulls & Bears Are About To Be Destroyed

daily chart July 23 2014

An up day with the Dow Jones up 62 points (+0.36%) and the Nasdaq up 31 points (+0.71%)

The stock market continues to perform as per our exact internal forecasts. And while the markets remain just about as exciting as a day at the dentist, this too shall pass. Remember, periods of inactivity are often followed by periods of immense activity.

That is one of the reasons that the market tends to catch most of the traders and investors by surprise. It is the market’s job to confuse as many bears and as many bulls as humanly possible. That is the setup we have today. With most bears capitulating and with most bulls remaining in the state of blissful comma, something big is about to happen. The question you have to ask yourself is this. What can the market do in order send a shock wave through the ranks of most investors? Both bulls and bears. And while the answer might appear easy, it is not.

If you would be interested in learning exactly what the stock market will do next (to the day) and its internal composition, please CLICK HERE

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 23rd, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Find Out Why Both Bulls & Bears Are About To Be Destroyed Google

What You Ought To Know About Getting Rich

money2-lastspartan

Continuation from yesterday………

Reason #8:  Financing Is Readily Available

It has never been easier to obtain financing for your business and/or a startup.  With a multitude of options available (discussed later in the book) it simply becomes a matter of preference and a little bit of hard work when it comes to raising capital for your business. The saying “You need money to make money” is indeed accurate. Having multiple access points to capital makes it that much easier for you to succeed and to become wealthy.

Reason #9: Most Corporate Jobs Are A Dying Commodity That You Can’t Really On

While not entirely yet evident, having a good paying and a stable corporate job that can make you wealthy is going the way of the dinosaurs. Gone are the days when you can expect to have the same job for the rest your life.  Instead, today’s business environment is a fast paced zoo that oftentimes destroys jobs that you thought would be there forever. Tossing people out of the job market for ever longer periods of time. Without a warning and when they expect it the least. As a result, having a corporate job becomes just as risky, if not riskier, than starting your own business.

Reason #10:  Transform Your Life For The Best

Finally, it’s a perfect time to get wealthy because it’s going to change your life for the best.  Not only will you have more money to spend on your family and friends, but more importantly, you will have more time. Further, real wealth will allow you to structure the life of your dreams. Whatever it might be, every single desire will be available to you at the snap of your fingers.  More education, adventure, family time, charity work, etc… will be at your discretion once wealth is achieved.

As the points above clearly illustrate, the time for you to get wealthy is NOW.  There are no barriers and it has never been easier. The costs associated with starting a business are next to nothing while the total number of business opportunities is mind boggling.  With the worldwide economy offering a substantial amount of opportunity to anyone who wants it and with all types of information available at your fingerprints, there is no risk in trying. Finally, the freedom and happiness associated with getting wealthy will change your life for the best.

You can START NOW by coming up with a million or a billion dollar business idea. The next chapter will show you exactly how.

To Be Continued Tomorrow……(Why Am I Seeing This On A Financial Site?)

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What You Ought To Know About Getting Rich Google

Inspiration Of The Day

inspiration of the day8

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Inspiration Of The Day Google

One Million Chicken Burritos

CMG

Company Name:  Chipotle Mexican Grill, Inc Stock Symbol:  CMG Industry:  Restaurants
Percent Appreciation:  1,465% Number of Bags:  14.6 Holding Period:  8.5 Years
Entry Date & Price:  Feb, 2006 @$42.20/share Exit Date & Price: Current ($660.50/share) Original Investment($10,000): $146,500

Company Description:  Chipotle Mexican Grill, Inc., together with its subsidiaries, develops and operates fast-casual and fresh Mexican food restaurants. As of December 31, 2013, it operated approximately 1,600 restaurants; and 6 ShopHouse Southeast Asian Kitchen restaurants. The company was founded in 1993 and is based in Denver, Colorado. The company focuses on trying to find the highest quality ingredients they can to make great tasting food, on building a special people culture that is centered on creating a team of top performers empowered to achieve high standards, on building restaurants that are operationally efficient and aesthetically pleasing, and on doing all of this with increasing awareness and respect for the environment. The company expects to open between 180 to 195 additional stores in 2014.

Quick Trading Overview & Objective: The Company went public in January of 2006 after being spun off from McDonalds. While the company’s IPO price was set at $22 a share, the price immediately doubled at the open, only to trade at $45. The share price continued to appreciate over the next 2 years. Running up 200% before collapsing 70% in the midst of 2008 financial crisis.  Subsequently, the company’s share price went on to appreciate over 1,550% between 2009 bottom and today (as of 7/23/2014 @ $660.50)

We will now go back in time and take an in depth look at the company in order to determine if we could have taken a long position in either 2006 or 2008-2009. More importantly, we will look at Chipotle’s fundamental/trading patterns over the last 8 years to ascertain if we would have been able to maintain our position over such an extended period of time in order to walk away with such massive gains.

FUNDAMENTAL ANALYSIS:

In order to establish a clear picture of what had happened between 2006 and today we must first analyze the fundamental growth of the company over the last 8-10 years.

To Be Continued Tomorrow…….

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One Million Chicken Burritos  Google

Why China Is Furious With The USA As Well

china fuck investwithalex2

Continuation from yesterday…….The major point to take away from our Russia Vs. the USA discussion is as follows. Russia is fed up with the US for a number of reasons. First, the Russian leadership and top military commanders see NATO’s expansion up to the Russian border as a declaration of war.  The US meddling in Ukraine, Georgia and even Belarus over the last 5 years is a clear indication of that.  Second, the US keeps lecturing Russia on what to do and how to do it. Since no one likes being lectured, Putin is not only fed up with the US foreign policy, he is furious with it. His televised speech on March 18th, 2014 proves that without a shadow of a doubt.  Finally, with the US hitting Russia with multiple rounds of sanctions throughout 2014, the Russian leadership, media and population clearly decry such actions as a form of economic warfare. Rightfully so.

When we combine the factors above we can safely conclude that the Cold War 2 is now in full swing.  What’s more, we can anticipate Putin to remain in power in Russia for as long as he wants. Therefore, for as long as the US continues with this foreign policy against Russia, a policy that is unlikely to change anytime soon, the US relationship with Russia will continue to deteriorate. So much so that at a certain point it will be too late for either party to prevent the Nuclear World War 3 from happening.

China finds itself in a very similar situation. If you have ever been to China, you very well know that Chinese are very proud people. Just as Americans are. Yet, America cannot help itself but to shove it’s god given “Righteousness”, democracy and politics down the Chinese throats.  One thing is certain.  This policy infuriates the Chinese to no end.  Plus, China sees itself as a rising global superpower who is trying to assert its presence in the region through its military buildup, only to be constantly undermined by the US directly or with the help of Japan, Taiwan and the Philippines.

While many will argue that China is acting out as a big bully against its less powerful neighbors, and that might very well be the case, one thing is certain. China feels powerful enough to challenge the US directly by suggesting, in no uncertain terms, that the US should get out of the South Pacific region. With the latest threat occurring in May of 2014 when Beijing accused the US Secretary of Defense Chuck Hagel of threats and intimidation. Here is just a brief summary of the conversation.

The US Secretary of Defense Chuck Hagel: “In recent months, China has undertaken destabilizing, unilateral actions asserting its claims in the South China Sea.  The US will not look the other way when fundamental principles of the international order are being challenged”.

The Deputy Chief of Staff of the Chinese Army, Lieutenant-General Wang Guanzhong responded with: “We firmly oppose any nation’s use of intimidation, coercion, or the threat of force to assert these claims. I felt that Secretary Hagel’s speech is full of hegemonism, threat and intimidation.”

To Be Continued Tomorrow…..(Why Am I Seeing This On A Financial Website?)

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Why China Is Furious With The USA As Well Google

Why You Should Always Keep Your Mouth Shut….When Investing

daily chart July 22 2014

An up day with the Dow Jones up 62 points (+0.36%) and the Nasdaq up 31 points (+0.71%)

The market continues to behave exactly as forecasted in our internal daily updates. In short, the market remains within a tight trading range as it continues to accumulate energy. Yet, not a day goes by without an important lesson.

Today’s lesson? Never reveal your stock market position(s). 

Yesterday, notorious short seller and activist hedge fund manager Bill Ackman announced that he will finally deliver a death blow to Herbalife’s (HLF) existence and prove, once and for all, that Herbalife is nothing but a giant Ponzi scheme. I am sure while having wet dreams that his amazing  presentation will send HLF stock to zero. And while the stock initially came down, the price staged an impressive 26% rally once Ackman opened his mouth to deliver his presentation. Ackman Unleashes Herbalife’s Biggest Single-Day Gain Ever

Point being, never discuss your positions. Even if you are a Billionaire. Sooner, rather than later, it will lead to losses. That is one of the reason I will never announce the upcoming stock market crash on a free public forum. While my subscribers will have full access to that information, unfortunately, the rest of the public will be caught unprepared. In other words, sounds like a perfect reason to subscribe.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 22nd, 2014 InvestWithAlex.com

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Why You Should Always Keep Your Mouth….When Investing  Google

The Secret Behind Why The “Time Is Right” To Get Filthy Rich

hedge fund investwithalexContinuation from yesterday…..

Reason #3:  An Ocean Of Money Is Available For The Taking

  • Annual GDP (Gross Domestic Product) of the USA: $16 Trillion
  • Annual Worldwide GDP:  $72 Trillion (Estimated)

Just think about the numbers above.  The worldwide GDP offers all of us $72 Trillion for the taking. With $16 Trillion in the USA alone. If you are able to start a business and put your fingers on just a fraction of the tenth of one percent of that money, you will be making billions of dollars.  Simply put, there is an avalanche of money out there.  All you have to do is go get a big enough bucket and start filling it with money. Lots of money.

Reason #4:  Millions Of Opportunities To Become Wealthy.

The markets have never been so open. There are literally millions of different ways to get wealthy. From new technologies to restaurants, from improving old processes to foreign markets. Opportunities are beyond abound. No matter what industry or field of work you specialize in, chances are, there are plenty of opportunities to get wealthy in every single one of them.

Reason #5:  No Risk In Trying

What is the worst thing that might happen if you start a business and try to get wealthy?

Well, you can fail and file for bankruptcy.  That’s about as bad as it is going to get. Certainly you will have financial issues and other predicaments associated with your business failure, but you will still be alive. You will be well enough to pick up the pieces and keep moving forward.  It is a very well known fact that some of the most successful people in the world have gone through a number of failures only to have a spectacular success later on.  Pick up almost any biography and you will find it there.  As a result, the only real risk is in NOT trying.

Reason #6:  Support & Know How

It is no longer necessary to get an MBA in order to start a business and/or to get wealthy.  With proliferation of the Internet everyone has access to the same information. What used to take a few weeks can now be done within a few hours.  Plus, there are a number of companies offering personalized support, education and coaching when it comes to starting your own business.  The bottom line is, there are no barriers of entry and if you do need extra support, well, it is available as well.

Reason #7: Worldwide Markets Are Now Open For Business

You no longer have to be tied to your local markets.  There is no doubt that the Internet makes your online business automatically international, but it is much more than that.  For instance, you can always take a physical business that works very well in the USA and open the same type of a business in China. While not a guarantee recipe for a success, it illustrates just how easily the international arbitrage can now be done. For the most part, the world should be viewed as an opportunity playground. A place where you can get wealthy just about anywhere you wish.

To Be Continued Tomorrow……..(Why Am I Seeing This On A Financial Website?)

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The Secret Behind Why The “Time Is Right” To Get Filthy Rich  Google

Investment Grin Of The Day

investment grin of the day 25

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Investment Grin Of The Day  Google

Don’t Buy The Best Buy

BBY

Continuation from yesterday……

TIMING & MATHEMATICAL ANALYSIS:

After going public in 1985 at around $0.05 a share (split adjusted) the company’s share price gradually increased until November of 1994 when it set an intermediary top of $4.71. Regrettably, after looking at the stock price composition my mathematical and timing work has failed to yield a clear result. In other words, Best Buy’s stock price had no clearly identifiable cyclical, structural or internal time frameworks associated with it.

While a rare occurrence, some stocks do not have such a structure. They tend to oscillate on their own accord and without as much of a hint as to what the future holds.  It would not be at all inappropriate to file such stocks under a “Wild Animal” category and forget about them. Particularly when the fundamental and the technical analysis results had failed to yield anything worthwhile.  Based on my personal experience, it is best to steer clear of such stocks.

CONCLUSION:

Best Buy Inc gave us no warning or evidence in 1997 that it was about to stage a massive 4,000% rally over the next 9 years.   In fact, all of our analytical metrics had failed in predicting the upcoming rise.

Sometimes it is just as important to know when it is time to take a position as it is when it is time to walk away. Best Buy presents us with a clear illustration as to why you should have walked away, even though the stock was about to stage a massive rally. Despite its general undervaluation at 1997 bottom, the future was anything but clear.

From the fundamental perspective, there was no way to know if the company would be successful in making their new store concepts work and if they would be able to improve their margins. In addition, it was impossible to anticipate when the company would accelerate their new store growth and to what an extent.  Certainly not in 1997 and certainly not when the company’s stock price was at around $1.25 a share.

Out technical and mathematical analysis did not fare that much better. Both had failed to predict and upcoming surge in the share price.  While our technical analysis did suggest an entry point in November of 1997 at $3 a share, when the stock price broke above the previous high, neither the fundamental nor the mathematical side of the analysis would warrant a position.

In conclusion, even thought Best Buy’s stock price went on to gain 4,000% between 1997 and 2006, there was no prudent way to take a position in the stock in either 1997 or early 1998. By the time the fundamental picture was starting to clear up, the stock price has already surged to $40 a share.   In other words, the only way to take position in the stock was to speculate or to have it as a small allocation within your overall well diversified portfolio.  It would have been impossible to benefit otherwise.

Final Prescription: Sometimes It’s Better To Walk Away

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Don’t Buy The Best Buy Google

Why Russia Will Go Into War Over Ukraine

nato expansionContinuation from yesterday……

Political Reasons for the War:

We don’t have to go very far to see the tensions between Russia and the US -or- China and the US.  All we have to do is turn the TV on. As I write this today, the relationship between Russia and the US had cooled to the point we haven’t seen since the 1980s or before the Soviet Union broke up.  And while the two superpowers continue to position themselves throughout the world, the situation in Ukraine requires further attention as it clearly displays the power struggle between Russia, the US and NATO.

Just a few days ago the tragedy of Malaysia Airlines flight 17 struck over Ukraine.  And despite plenty of evidence to the contrary, the Western World and the Western Media were very quick to condemn Russia for the attack. Certainly before any investigation can begin and in many cases just 10 minutes after the crash had occurred. With very little physical, radar and other verifiable evidence, the President of the United States had the audacity to blame Russia and Mr. Putin directly for the crime committed over the skies of Ukraine.  A troubling trend that relies entirely on the “Believe Us” premise so often used by corrupt politicians. While it is highly probable that we will never know who shot down Flight 17, the incident clearly displays just how much the US and Russia relationship had deteriorated and just how close NATO and Russia are to getting involved in an all out conflict.

To most, Ukraine might appear as an irrelevant nation somewhere in the Eastern Europe. To the US, NATO and Russia it is of incredible importance. As the NATO expansion picture above illustrated, NATO continues its eastward expansion and now sits directly on the Russian border at multiple locations in Latvia, Lithuania and Estonia.  As it is right now, many high ranking Russian military generals see this expansion right up to the Russian border as a clear declaration of war by NATO.

That is why NATO’s push for Ukraine becomes so important. If the Western powers and NATO are able to get a major foothold in Ukraine and eventually have Ukraine join the EU and NATO, that in itself would  deal a major defeat to Russia.  NATO would now have a massive border with Russia and it would, in theory, be able to deploy a missile shield rendering Russian nuclear forces obsolete.  In other words, the conflict in Ukraine is a lot more complex and a lot more important than most people are led to believe.  Basically, it is a conflict that Russia cannot afford to lose and it is likely to go into an all out war to make sure Ukraine remains under Russia’s influence.

To Be Continued Tomorrow……(Why Am I Seeing This On A  Financial Website?)

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Why Russia Will Go Into War Over Ukraine  Google

Can Your Mind Observe Itself?

holographic universeContinuation From Saturday…….It is time to illustrate exactly how that works. Here is what I want you to do before you move on to the next section of the book. It is incredibly important that you follow the exercise below as the rest of the book will not make any sense if you are to skip this simple practice.

EXERCISE 1: Observing Your Own Thoughts.

Find a quiet and preferably dark place where you will not be bothered over the next 30 minutes. Leave your cell phone and all other devices behind. Once again, it is crucial that no one interrupts you for the next 30 minutes.  Sit down or lie down and get comfortable.  Close your eyes and relax. Mentally prepare to observer your own thoughts.

It is also important to understand what it is exactly you are about to experience before you experience it. Otherwise, you mind will make a fool out of you and you won’t be able to comprehend the experience. For instance, as you lie down and close your eyes your mind is likely to remain silent for a few brief moments. Shortly thereafter, your thoughts will come fast and furious. They will show up out of nowhere, establish thought patters or chains and then lead you on a roller coaster ride of various thoughts, feelings and emotions.

For instance, let’s assume that your significant other or someone close to you has lied to you in a major way over the last couple of days. It is highly probable that your mind will go directly to that thought pattern and start thinking about a wide range of the issues associated with the incident.  While the experience will start there, in 5-10 minutes time your thoughts might be in a totally different place.  At that stage you might be thinking about getting a divorce or how your mother lied to you when you were 10 years old.

What the overall thought patter or sequence will be is inconsequential for our purposes.  Once again, it will be important to remain conscious of the entire experience and the fact that you are observing your own thoughts. At that instant you should realize that A. You have the ability to observe your own thoughts B. You are NOT your thoughts and C. You are a 3rd party observer of your own thoughts.

One last thing. If you have never done this before, it is highly probable that you will become associated with your thoughts at various points throughout the experience. That is normal. Simply shift gears once you realize the fact and become an observer once again.

STOP & PERFORM THE EXERCISE BEFORE YOU CONTINUE.

If you have never done this before, congratulations, this was your first meditative experience. If it was a success, the rest of the book will make perfect sense. If you were not able to observe your own thoughts I encourage you to repeat the process over the next few days or until you do. While it might take a little bit of effort on your part, the experience is well worth it.

Relating this experience to our previous discussion of the 3-dimensional reality and the human body, mind, ego, thoughts, emotions and feelings, here is what you have to understand without a shadow of a doubt.

If you were a simple body and mind configuration, you would not be able to observe your thoughts as you just did or as if you were an outsider looking in. Think about it. How can a mind observer itself while generating various thought patterns? That would be impossible.  That leads only to one conclusion.  A third point of reference is needed in order to observe both your thoughts and your body. That third point of reference is your Human Consciousness.

To Be Continued Tomorrow ……(Why Am I Seeing This On  A Financial Website?)

Z31

Can Your Mind Observe Itself?  Google

The Dow Is Accumulating Energy. Which Way Will It Break?

daily chart July 21 2014

A slight down day with the Dow Jones down 48 points (-0.28%) and the Nasdaq down 7 points (-0.17%). 

The market continues to develop exactly as per our internal forecasts. And despite’s the markets apparent never ending rally, the Dow is less than 500 points away from it’s December 31st, 2013 top. In other words, despite financial media’s never ending cheerleading, the Dow had barely moved.

What is going on? 

I am so glad you have asked. Based on my mathematical and timing work the market is accumulating energy for a massive upcoming move. Will the market surge higher to set the final top or just outright collapse to usher in the next bear market? Answering this question in a proper way will make all the difference between making a small fortune and losing half of your portfolio.

This conclusion is further supported by my mathematical and timing work. If you would be interested in learning exactly what happens next (to the day), please CLICK HERE

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. July 21st, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

The Dow Is Accumulating Energy. Which Way Will It Break?  Google

Why Now Is The Perfect Time To Get Filthy Rich

duck tales investwithalex

10 Reasons Why Now Is the Perfect Time to Get Wealthy

Continuation from Friday…...Getting rich is not easy. Yet, the time to get rich has never been more perfect.

When I was growing up in the Soviet Union it was nearly impossible to get rich. Not by any Western standards and not by a long shot. It didn’t matter if you were highly educated or not, you were making the same amount of money as the person next to you. By law. For instance, my mother who was a Principal at a large music school and a drunken construction worker were making the same amount of money. Around 150 Rubles per month.  At that time and as a society, all opportunities were taken away from us. None of us had a future.

Today, for those of us who live in the Western world, the situation is quite different.  We are lucky enough to have the freedom to do anything and/or to be anyone.  Outside of our own imagination, there are literally no limits to what we can become. Still, for most of us, getting rich is nothing more than a pipe dream.

It shouldn’t be. Here are the 10 reasons as to why now is the perfect time to get wealthy.

Reason #1: No Barriers

Throughout much of the human history people were mostly kept in their socioeconomic class. Only a few lucky souls were able to do the impossible and get rich. Most often it was the adventurer or the explorer, the religions leader or the warrior who were able to break the mold or get lucky enough to escape their original status. The rest of the people were born, lived and died in their so called “born into” economic class.

That started to change about 300 years ago with the advent of the industrial revolution and the proliferation of new countries and ideals. Most notably, in the USA and the U.K.  As the time went on Western society has been successful in gradually removing ALL barriers associated with getting rich. In other words, if it is your sincere wish to get filthy stinking rich today, there is absolutely nothing that stands in your way.

To make things ever better, money tends to be blind. It doesn’t see your color, race or religion, it doesn’t care what country or what neighborhood you come from, it doesn’t care if you are a male or a female or what your sexual preferences are. The money doesn’t care who your parents are or what your education level is. If you are willing to work incredibly hard in order to become wealthy, none of the external factors above can stop you from making it a reality.

Reason #2:  The Cost Of Starting A Business Today Can Be As Low As ZERO

While some businesses require a substantial capital outlay, you can start others for nothing at all. For example, the cost of starting an Internet business today could be a big fat ZERO. I do advocate spending a little bit more if you decide to go that route, about $60-100 to be exact, but the reality remains. Some of the fastest growing and the most profitable businesses today could be started from your kitchen table and with zero capital investment.  Hundreds of Billionaires and tens of thousands of millionaires have done just that in the past 100 years. Now it’s your turn.

To be continued tomorrow…….(Why Am I Seeing This On  A Financial Website?)

z33

Why Now Is The Perfect Time To Get Filthy Rich  Google

Were You Smart Enough To Buy Best Buy At The Bottom And Make Millions?

Continuation from Friday…...When we combine the factors above we begin to understand why Best Buy’s stock was selling at a discount in 1997 and why it started to rally once the performance improved and the company began to grow at a rapid rate once again. The question is, would investors be able to forecast such changes all the way back in 1997 from the fundamental perspective alone?

Absolutely NOT.

The fundamental developments above took years to play out.  And while improved performance could have been anticipated, there was no clear evidence that it would occur. In addition, a few questions remain. For instance, while company’s initial undervaluation and subsequent growth can be explained by the first 1,000% to 2,000% increase in Best Buy’s stock price, it cannot be explained by Best Buy’s stock price surge of 4,000% during the same period of time.  Perhaps technical analysis can offer us a better answer.

TECHNICAL ANALYSIS:

BBY2

Since the fundamental analysis did not yield a strong buy signal for Best Buy in 1997 we must now concentrate on the technical side of the equation.

As the chart above shows, Best Buy’s stock price collapsed over 75% between November of 1994 and February of 1997. Dropping from $4.70 a share (split adjusted) to about $1 a share.  What’s more, this substantial down move had occurred during one of the strongest bull markets in history. A bull run that initiated at the same time that Best Buy’s stock price topped out, in November of 1994.

Unfortunately, outside of dropping 78%, Best Buy’s stock gave us very few clear technical signs that it would either top out in 1994 or bottom out in 1997. Outside of a clearly defined downtrend between November of 1994 and February of 1997, we have very little to go by. In other words, by early 1997 it was unclear if the company’s stock price was going through another bear market bounce or if it was in the early stages of a massive bull run. It was not until October of 1997 that Best Buy’s stock price broke above $3 a share, giving us the first indication that the company’s stock price has shifted gears and might be starting a sustained bull market run.

In conclusion, technical analysis alone would have failed in giving us a clear buy signal at around $1.25 a share in February and March of 1997. There were NO clear technical signs that Best Buy’s stock price was about to stage a 4,000% rally. Perhaps we will have better luck with our timing and mathematical analysis.

z32

Were You Smart Enough To Buy Best Buy At The Bottom And Make Millions? Google

What Does World War 3 Have To Do With September 11th, 2001

In cartoon: Ukraine in crisis

Continuation from Friday…..While most people are aware of singular events throughout history, they often have a difficult time connecting events all the way back to their origin. September 11th, 2001 presents us with a perfect case study. And while most people believe that the crimes that were perpetrated on that day had originated in the late 1990′s, the actual trigger point had occurred much earlier than that.  In 1979 to be exact.

Let us now follow this chain of events from the start.

  • The US and the Soviet Union continue on with their proxy and covert wars throughout the world (1945-1979). In the late 1970s, the Middle East region becomes increasingly important.
  • In the late 1970′s Afghanistan goes through a number of rapid regime changes.  A number of Soviet politicians are captured and decapitated by “Islamic Militants”
  • The Red Army floods over the border in 1979, the Afghans are no match for the Soviet military machine.
  • Hundreds of thousands of Mujahedeen flood into Afghanistan from all over the Middle East to fight in the name of Allah and against the Soviet “nonbelievers”.
  • The Soviet Union proceeds to level the country over the next 5 years. The Mujahedeen forces are decimated. The Red Army is nearly in full control of the country.
  • In 1986, the CIA introduces Stinger Missile system to Afghanistan as it begins to supply the Mujahedeen with the weapon. It’s a game changer. Soviet planes and helicopters start to drop from the sky, reversing the tide of the war.
  • With the financial, arms and logistics support from the US, Osama Bin Laden quickly rises through the ranks to become one of the leaders within the Mujahedeen movement.
  • The USA drops Afghanistan and any support for the Mujahedeen, like a hot potato, as soon as the Soviet Union decided to withdraw from Afghanistan in 1988-1989. Enraging Osama Bin Laden in the process.
  • The Gulf War. The US sends a large contingent of troops to be stationed in Saudi Arabia in the 1990.  Osama Bin Laden becomes further enraged and vows to wage war against the US.
  • Between 1990 and 2000 Osama Bin Laden launches a number of smaller terrorist attacks against the US and its interests.
  • September 11th, 2001.

Point being, September 11th, 2001 didn’t come out of the blue. A direct lineage to that horrible event can be traced back to at least 1979 and the power struggle between the US and the Soviet Union.  The World War II can be easily traced back to the World War I in the very same fashion.  In fact, historians who can see such lineages should be incredibly concerned of what is happening between the US and Russia at the present moment.

To be continued tomorrow……. (Why Am I Seeing This Post On A Financial Website?)

P.S. Boy…….I wonder how many keyword red flags this post set off at the NSA.