Six Investing Tips to Change Your Financial Future

It has been a bad year for stocks... Last Tuesday, the Dow Jones Industrial Average fell 3.9%, the S&P 500 fell 4.3%, and the tech-heavy Nasdaq fell 5.2%. It was the worst day for the Dow and S&P since June 2020 and the worst day for the Nasdaq since March 2020. But if you have […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] Six Investing Tips to Change Your Financial Future By Enrique Abeyta --------------------------------------------------------------- [The 'EVERYTHING CHIP']( A new industry is being built around an "everything chip" that's more sophisticated than the chips in your smartphone or laptop. One little-known company is at the forefront of this technology, and the man CNBC nicknamed "The Prophet" says this company will be "America's Next Big Monopoly." Best of all, you can buy this stock for less than $10. It's no wonder the smart money, like Cathie Wood and Bill Gates, has already invested over $350 million. [Click here for the full story](. --------------------------------------------------------------- It has been a bad year for stocks... Last Tuesday, the Dow Jones Industrial Average fell 3.9%, the S&P 500 fell 4.3%, and the tech-heavy Nasdaq fell 5.2%. It was the worst day for the Dow and S&P since June 2020 and the worst day for the Nasdaq since March 2020. But if you have a focused strategy – either tactical trading or long-term investing – big sell-offs can present big opportunities. That said, it hasn't been fun for the vast majority of investors. Also, since almost all investors focus overwhelmingly on long positions (as they should), almost no one has made money. 2022 has been a year with more asset classes down year to date than almost any year on record. However, in the midst of the worst market environments, I find it valuable to remember some key basics to making real money in the stock market... Certain big-picture concepts can be easy to forget when facing the day-to-day volatility and barrage of negative media coverage. Now, keep in mind that these ideas are geared more toward long-term investing portfolios and are different from a tactical trading approach. Given the bear market and the big volatility this year, it might not seem like the time to be thinking about big-picture investing... But that actually makes it the best time to be doing so! This is by no means a comprehensive list, but here are six quick thoughts on longer-term investing and how to change your financial future... --------------------------------------------------------------- Recommended Link: [A $4 Stock with 400% Upside? In This Market?]( "I know it may seem like opportunities with this kind of upside don't exist anymore, but they do – and in this presentation I reveal exactly where to find them." – Whitney Tilson. [Click here now](. --------------------------------------------------------------- - Look for big ideas Across my publications here at Empire Financial Research, my team and I have a very nontraditional view of stocks. We don't really see them as ownership in companies (although technically they are) but rather as "products" that are bought by investing consumers. Consumers may buy a product for utility, or they may buy a product because they think it is cool or fashionable. The "utility" in the case of stocks could be dividends or – in theory – cash flow. The "fashion" could simply be companies doing great things and growing a ton. What investors like to look for are big ideas where they could see a lot of growth. So don't look for slow growth or mature markets. Utilities would be an example... They can be great businesses, but they will never change your investing future. Look for big ideas – think e-commerce titan Amazon (AMZN)! – that not only could see huge cash flow growth but also where the stock can be a "product" that will excite investors. Think big! - Look for big earnings growth While there is no technical relationship, stock prices almost always follow company earnings. Find a company that is going to grow earnings from $1 to $10 and you are likely to find a stock that is going to go up – probably a lot. It may or may not go up as much as earnings, and it may or may not go up as fast as earnings... But it is going higher! - Stocks that go up by 10 times go up 2 times and 5 times first The single most dangerous statement to destroy great long-term returns is "but the stock is up a lot already!" This shows a basic misunderstanding of both math and markets. Remember that for a stock to go up 1,000%, it first has to go up 200% and 500%. Also, if a stock is up that much already, that's probably a good indication that not only is the company succeeding but that the stock market is recognizing it. - You can't win if you don't play The "smart sounding" investor can always find a million reasons to not invest. The successful investor understands that you actually have to own the stock to be able to make the money. Don't worry about being smart – focus on being successful. - The power of big math – aim big Having a single stock go up 1,000% can make up for a lot of mistakes. The simplest version is a portfolio of five stocks. Imagine investing $100, with $20 in each stock. Imagine that four of them go down 100%. That would contribute an $80 loss to your portfolio. However, if the fifth one goes up 1,000%, that contributes a $200 gain... So your portfolio would now be worth $220. That's a 120% return on the portfolio. Across five years, that's a nice double-digit return. This is an extreme example to illustrate the power of big returns! - Stay invested It might feel good to go to all cash when the market is volatile and going against you. If you have a terrible group of stocks with real liquidity and bankruptcy risk, it might also be the right thing to do! However, if you have done a good job of picking your stocks (with our help!) then the short-term emotional gain of going to cash would be the worst mistake you can make! Similar to No. 4 above, if you aren't actually invested, you can't make the money! These are all very simple ideas... They aren't rocket science. They're also easy to forget in a horrible stock market. As such, write them on a post-it note and tape it to your computer screen. In five years when you're harvesting your returns, you'll thank yourself for doing so. And when it comes to big ideas and trends, that's exactly what my colleague Whitney Tilson has just identified... In short, it's regarding a coming "exodus" that could hit on November 15 and disrupt more than $37 trillion in retirement funds. However, Whitney says that this situation goes so much deeper than your money – it will make your life unrecognizable... The food you eat... the medicine you take... the places you travel... the way you work and more... is all on the line due to this situation. In fact, Whitney says that this is bigger than electric vehicles, cryptocurrencies, Silicon Valley, health care, inflation, the Fed, or even the looming threat of a global recession. In a brand-new presentation, Whitney explains how making one simple money move today could let you ride this wave to massive profits. [Watch it for free right here](. Regards, Enrique Abeyta September 19, 2022 --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2022 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 380 Lexington Ave., 4th Floor, New York, NY 10168 [www.empirefinancialresearch.com.]( You received this e-mail because you are subscribed to Empire Financial Daily. [Unsubscribe from all future e-mails](