Take a Deeper Look at This Misunderstood Market

You are receiving this as part of your free subscription to Tim Melvin's Max Wealth. To remove your email from this list, [unsubscribe here](. [Tim Melvin's Max Wealth] [Something priceless is hidden beneath the market's third dimension]( The moment you [see the stock market in 3D](, something incredible happens. It turns a cycle of spikes and crashes into a straight upward line - and that means you can repeatedly pocket six-figure windfalls of $190,380... $242,174... $282,965... even $405,511 this year. Your shot at history is officially here for the taking. [Go here to see this futuristic breakthrough in action](. --------------------------------------------------------------- November 4, 2019 Take a Deeper Look at This Misunderstood Market By Tim Melvin Dear Reader, Happy Monday! It was admittedly a long weekend around the Melvin household. The World Series saw the Washington Nationals pull the upset victory over the Astros in a historic and improbable series where neither team could win a home game. With baseball season over and facing the long, dark winter rebuild for the Orioles ahead of us, I instead decided to dig into my reading list and pass along a few great reads that will help empower you on your journey to financial security. Let's get started... This Week's Books The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution Hardcover - by Gregory Zuckerman book will be released on Tuesday, November 5 - so I haven't read it yet, but I have preordered. James Simons is the most successful hedge fund manager ever. From 1988 to 2018 his flagship fund Medallion returned 66.1% annually before fees. Net of fees, the gains were 39.1%. Investors stood in line to pay him a 5% management fee and 44% of profits and he still made them money. The fund is now available only to employees of Renaissance, the company he founded. He is not a finance guy, but a mathematician who was a codebreaker for the U.S. Government and the head of the math department at SUNY Stony Brook. He only hires mathematicians, physicists, and computer scientists, not finance and economic types. If we learn anything at all, then the book is time well spent. Advance reviewers say the book reads more like a finance-centered novel than a biography, so [I can't wait to get my copy Tuesday](. Conscious Capitalism: Liberating the Heroic Spirit of Business - by John Mackey, Raj Sisodia, Bill George m sure by now you have figured out that I'm an unabashed capitalist. Capitalism is the greatest economic system in the history of the world, but the modern definition of capitalism as a brutal destructive force is simply wrong. When capitalism has a heart, it works for everyone, builds a better world for everyone involved - including the customers - and people prosper as a result. As we move closer to an election where the future of our economy will be hotly debated, this book by the founder of Whole Foods shows us the great things that can be achieved when capitalism works the way it's supposed to - [for the good of everyone](. This Week's Quick-Dives The Case for Investing in Japan Katie Koch, co-head of Goldman Sachs ([NYSE:GS]() Asset Management's Fundamental Equity business just returned from Tokyo and thinks that, "Japan is changing incredibly rapidly, but it continues to be misunderstood and, for the most part, underappreciated by investors. Indeed, Japan is the only major global equity market that has actually had a de-rating in its price-to-earnings multiple since the global financial crisis." I'm not sure I totally buy her arguments, but I do know Japan has lower asset valuations than most other developed countries and just might be worth a deeper dive. [Here, Goldman provides that for us](. FDIC 2019 Risk Review This is something of a must-read if you invest in banks or other financial stocks. In the report, the regulatory agency finds that the only real problem spot in banking right now is agricultural loans. However, they are also very concerned about the impact of non-bank lending, leveraged loans and the high yield bond markets. I share their concerns especially about leveraged loans and high-yield bonds. We've seen a lot of garbage lending done to grab an extra 100 basis points and that never works well. There is also a staggering amount of BBB rated bonds that would easily become junk if we fall into a recession and the selling for investment-grade bond funds could overwhelm the junk markets quickly. You can read more [right here](. Morgan Stanley Global Investment Committee The folks at Morgan Stanley ([NYSE:MS]() join the list of people that think the party for private equity investors may be coming to a close. They suggest that, "Investors tempted to chase the double-digit returns that many earned in private investment vehicles this past decade need to downgrade their expectations. The environment for private investing has gotten tougher, with higher valuations, much more debt and leverage, fewer loan covenants and rising competition for deals." I tend to agree with them as deal multiples are at a 20-year high and the only thing I ever heard of performing well at a 20-year high was the Grateful Dead. Read all about it [here](. Horizon Kinetics 3rd Quarter Commentary Do NOT skip this. Murray Stahl and his team are unconventional thinkers of the highest order, and they have made a lot of money for their investors over the years. They discuss valuations, the energy industry, inflation, asset allocation and a few other topics [that will help us become better investors](. To the Max, Tim Melvin Here's what else I'm following... --------------------------------------------------------------- [Mysterious Pattern Could Generate $15,000 in Monthly Income for You]( Over the past year, a strange pattern has been appearing in the markets every four or so days. And it has been signaling huge gains. Keith Fitz-Gerald, our chief investment strategist, has been testing this for months. And what he discovered was astounding. Just spotting this pattern can lead to a triple-digit winner every five days on average. Even better, you could pocket $15,000 every month. [Go here for Keith's brief presentation](. --------------------------------------------------------------- You are receiving this e-mail at, {EMAIL}, as a part of your free subscription to Tim Melvin's Max Wealth. 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