Fragile Egos, FOMO, and Farm Cash
Today, I’ve got quite the article for you. I’ve got a little coverage on this epic rally that refuses to listen to reason and an incredible income-generating opportunity for you to build up some much-needed extra cash.
But before I get into all of that, let me tell you a story I think you’ll find interesting...
So, a few weeks ago, I wrote an article about how the market always sucks in a few more rubes before it grinds them up, spits them out, and teaches them a hard lesson.
In that article, I mentioned a few billionaire investors who’d recently been on TV talking about their books in the hopes they could squeeze a little more profit from their positions by getting the public in on them, too.
One of those “gentlemen” was Billy Ackman, founder of Pershing Square Capital Management. And he was on TV having a tear session about how terrible the world was going to be and how the stock market was going to keep on falling and people were going to keep on dying.
He called out stocks by name and claimed they were likely heading to zero. He sniffled through a plea to the president to lock down the country before even more calamity struck.
And then he quietly closed out his short position and reinvested his $2.1 billion in profits into the same stocks he claimed were headed to zero.
And I called him what I’m still pretty sure he is: a scumbag trying to profit at your expense.
What I didn’t know when I wrote the article is that billions in profits can’t buy a resilient ego. And Billy boy’s ego is probably the most fragile I’ve ever encountered.
When You Know You Hit a Nerve
You see, I made some generalizations to make the article easier to read. I said that the short position was still on and gaining while Billy was on CNBC. And I said he claimed the market was going to keep crashing. In reality, only half of the short position was still on and gaining from his chat, and he claimed the market was going to keep crashing "if" the president didn't order a nationwide lockdown.
The rest of the article was pretty darned spot on, especially the part about his nefarious motives for going on TV and talking up his book.
But he didn’t like being called out for what he was trying to do, so he had his overpaid director of communications reach out to me to give me a lesson in power. Basically, a billionaire hedge fund manager’s ego was so fragile, he had this kid chase me down to make sure I wasn’t sullying his “good name,” and tried and bully me into silence.
Really, Billy? That’s the best use of your director of communication’s time? Don’t you think it would be better spent keeping you from getting on TV and opening your big dumb mouth in the first place?
Isn’t his job actually to make sure the firm communicates clearly and you don’t go starting drama? Shouldn’t he have been the one begging you to get your ego in check and just stay off television?
Do you really need to have this kid chasing down everyone who thinks you’re a little scummy and probably a cheat? Because if you really do, he’s gonna need a bigger staff because there are a lot more people than just me who feel that way.
I figured you folks would find it amusing that a billionaire hedge fund manager is afraid of little old me and our community of investors and wanted to share that little tidbit. And I thought you might even be proud to hear you’ve got little Billy Ackman shaking in his Italian loafers.
But now that we’ve got my story and Billy’s fragile ego out of the way, let’s move on to some stuff that actually matters.
FOMO Take the Wheel
Let’s talk about this seemingly never-ending rally we’ve been in since late March that refuses to listen to reason.
The S&P 500 soared through 3,100 — not a resistance line, but an emotional number nonetheless — earlier this week. That’s despite the fact that the market had been stopped by the 3,050-resistance level two times in 2019.
But now, everything is much better than it was last year, right? So, it makes sense we’d be pricing stocks like the world is in perfect shape.
Earlier this week, my colleague, the renowned Briton Ryle, had this to say:
This 3,050 level stopped the S&P 500 twice in 2019 — in July and again in September...
So now we're gonna just blow through it because... things are so much better than they were a year ago??
You know when they put blinders on horses so they can only see what's straight ahead? Yeah, that. The Fed, Treasury, and Congress bought $4 trillion worth of blinders for this market. And it’s on a full-on rampage...
All-time highs are now 10% away. 10%! Dividends have been hacked, 36 million people are out of work, cities are on fire — so of course, new highs make total sense!
You can sense the same sarcasm from him you’re getting from me regarding this continued rally. The market is completely disconnected from reality. It’s riding high on trillions of dollars in stimulus (that must eventually be repaid), and it’s climbing higher on the back of FOMO.
You’ve heard us talk about the fear of missing out (FOMO) many times before; it’s what drives bubbles to massively high levels. FOMO took Tilray’s price up to $150 as investors scrambled to get some cannabis gains. FOMO is what’s taken telemedicine shares up over 100% since the start of 2020. And FOMO is what’s still driving them higher today.
Investors who see the disconnect between prices and the economic reality facing us are getting worried they’re missing all the gains. And every time one of them succumbs to the peer pressure a rally like this creates, that new money sends stocks even higher.
So, when does it all come crashing down like all the FOMO-driven bubbles before it? I really wish I could tell you. But I’ve been predicting a reversal since April, and I’ve been wrong.
So, a better question is: How do you position yourself for a correction that should be coming but also get your portfolio ready for a bull market that may be already underway?
Here’s what I told the members of The Wealth Advisory investing community earlier this week:
But what can you do to prepare for something that you’re not sure will happen? Really, you just need to keep following the same advice Brit and I have been giving you since this all started in late February.
Consolidate your portfolio. I just heard a great saying this weekend about how you can’t dance at every wedding, and what the guy meant was that you’ve got to pick and choose.
And in the past few weeks, people have been investing in everything, looking for gains. They’ve bought a little of this and a lot of that and now they’re sitting on way too many positions to be able to react fast if the market does sell off quickly…
Also, try to generate some cash. You can take advantage of strategies like those Brit uses in Real Income Trader to generate steady low-risk income. You can add fresh money to your retirement accounts (if you haven’t hit the contribution limit for the year already). And you can take those funds you generate while consolidating your portfolio and save them for strategic buys.
At times like this, you need to have some cash on the sidelines just in case I’m right and the reversal does come. But you also don’t want to give up too much potential gain by taking everything out.
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It contains full details on why dividends are an amazing tool for growing your wealth.
So, you need to be strategic. You need to only hold investments that you’re 100% confident can survive a really bad recession and come out the other side. You need to trim your portfolio down to just your top stocks and get rid of the speculative plays you’ve bought to capture gains in the rally.
For one, those speculative plays are likely to fall harder and faster than other stocks. But also, if you’ve spread your portfolio out over 30 positions, you’re not going to be able to react quickly if the reversal hits fast like the crash did earlier this year.
But while that’s actionable advice, it’s not specific. And I’m not the kind of guy to come at you with a bunch of general advice and not give you something more concrete, too.
“The Best Investment You’ve Never Heard Of”
So, today, I’m going to give you the opportunity to join me and the members of my investing community in collecting thousands of dollars in extra income every single month.
It’s a relatively new opportunity for TWA, but it stems from a program that started back in the last truly great financial collapse — the Great Depression.
Markets had crashed and millions of Americans were out of work and unable to support themselves and their families — sound familiar? And the massive lines at unemployment offices were only trumped by the even longer lines outside of soup kitchens.
But the government couldn't give out food that didn't exist. And an oft-forgotten side of the Depression was the Dust Bowl. Farmers across the country were literally watching their land blow away with every gust of wind. Droughts swept the nation’s breadbasket. And crops withered and died in the fields.
But without farmers, we don’t have food. And without food, our nation can’t survive. So, FDR brought together some of the smartest and most progressive minds of the day to solve the nation’s farming crisis.
And the CCC was born. The CCC, or Commodity Credit Corporation, is a government-backed agency that makes loans and grants to farmers in need. If you can’t afford to buy seeds to sow, the CCC will help you out.
And over the years, the CCC’s coffer has gotten way bigger. This year, there’s over $38.5 billion earmarked for our nation’s farmers.
But here’s the kicker: You don’t have to be a farmer to collect a share of these funds. In fact, you don’t even have to have ever stepped foot on a farm or pulled a single weed in a garden.
And unlike government programs like Social Security and Medicaid, there’s no age requirement or income cutoff. Literally anyone can participate.
But most Americans have no idea that an opportunity like this even exists, let alone that they can take advantage of it to generate monthly income payouts of $1,646 (or more) each and every month.
But that all changes today. You see, my partner and I at The Wealth Advisory are always on the hunt for new income generating opportunities. And coming from a family of farmers, I’m very familiar with the funding provided by the CCC.
So, when Brit and I found this loophole that allows anyone — farmer or not — to collect a piece of those funds, we were pretty excited, to say the least.
I know how profitable farm land can be — my family and I split ownership of some out in Indiana. But I also know what a pain it can be to find a farmer to work your land. If you’re not willing to do some real work, your farm can just sit there fallow and worthless.
So, finding a way for regular folks to capitalize on farm ownership and collect "farm cash without even owning a single acre of land was a huge win in my book.
And it was the kind of information I just couldn’t keep private. I mean, there are already multimillionaires and billionaires profiting from it. Why not you, too?
So, I put together a presentation detailing the whole opportunity and how you can get involved.
Or, if you prefer to read a report with all the same information, I’ve got one of those for you, too.
Either way you get it, make sure you get it today. It’s the start of a new month and income payments are going to start going out to bank accounts across the nation. Make sure one of those checks finds its way into yours.
To your wealth,
After graduating Cum Laude in finance and economics, Jason analyzed complex projects and budgets for the U.S. Army. Then, at Morgan Stanley, he led the assistants' team for the North American repo sales desk, responsible for hundreds of multibillion-dollar trades every day. Jason is the founder of Main Street Ventures and an editor for The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
The Best Free Investment You'll Ever Make
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