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Where to Invest $1,400 Today

Written by Jason Williams
Posted March 19, 2021

Stimulus checks are in! At least for some of you, they are. The IRS is sending them in waves, and the first wave hit on Wednesday.

Some people are getting $1,400 each. Some will get less (if they make more than $75,000 a year). Some will get far more since parents are getting a full check for themselves and their kids this time around.

I’ve already heard from a few folks surprised to see $4,200 show up in their bank accounts. They were wondering if that was right and what they should do with their newfound wealth.

And as luck would have it, Treasury yields spiked on Thursday and the selloff that it sparked opened up some great opportunities to invest that money in stocks that took a hit but have tons of potential for massive profits.

So today, in a continuation of my article from Wednesday, I’m going to give you some of my top stocks to put that stimulus check to good use...

Money You Can’t Print

In case you were wondering where the government “found” nearly $2 trillion extra laying around, it didn’t. That’s new money we’re printing, and that’s a big driver of inflation.

So one of the first things you should be thinking about buying is some kind of protection against that.

Some people will tell you that cryptocurrencies are the place to hide from inflation. But none of the cryptos have proven they’re actually a store of value, and the bet on buying them is that they’ll go higher. That’s capital appreciation, not capital preservation.

So really, you’re stuck with gold. You can own physical gold, and you can buy shares of an electronically traded fund that owns physical gold.

But if you’re not sure gold is going to react the way it’s supposed to react when inflation hits (since it hasn’t really acted that way in the recent past), locking your money up in a bar of gold that’s pretty tough to use as anything other than a fancy paperweight might not sound that great.

So you’re left with gold mining stocks, but you’ve got another issue there. The big miners like Barrick and Anglo produce gold, so their stocks really track the price of gold pretty tightly.

They’re not making discoveries. They’re buying discoveries that someone else already made — the kind of gains you’ll see on those major players are muted at best.

If you want a gold play that has the potential to make you a big profit even if gold prices don’t make a big move, you’ve got to look at the explorers. And those are what we call junior mining stocks.

They’re very speculative. They rarely have revenues or profits to speak of, but when they announce good news, their shares have the ability to scream higher by hundreds of percent in a single day.

I’ve been following a relatively new one recently, and I want to share it with you today because it looks like the company is starting to make some real progress. (Full disclosure: I own shares of this stock.)

It’s called Kainantu Resources (CVE: KRL), and it’s incredibly speculative. Its CAD$0.30 share price will confirm that. But its location and connections with the local government have me extremely bullish on its potential to grow.

You see, Kainantu is a prolific mining region in Papua New Guinea. K92 Mining (OTC: KNTNF) discovered a large gold deposit there several years back and has been developing it ever since. It made early investors a fortune in the process.

KNT.TO_chart

Over just the past three years, K92’s investors have seen a 1,290% gain all because they invested in the company while it was still exploring the region. They got to ride the wave of profits as the company announced its findings.

Where K92 was three or four years ago is where I see Kainantu Resources right now.

Its property is adjacent to K92’s prolific site. The company has an incredibly friendly relationship with the local government and the people who live in the region.

So far, it’s still in the exploration stage, but the dominoes are all lining up. If drilling results are as good as the company is expecting, we could see a major miner come in and buy out the whole operation at a huge premium. Or the company could develop the claim itself.

If you’re looking for a place to put your money that could help it grow 10 times over and you don’t mind the extra risk of investing in an unproven miner, you might want to take a look at Kainantu Resources.

My extra word of caution is that this is a very thinly traded stock, and there are not very many shares outstanding. So don’t go driving a ton of money into it all at once because that’s going to artificially drive the price up.

If you’re thinking of a speculative position, ease your way in and don't go chasing the price any higher than $0.40 Canadian for now. Remember, the company still has to prove it's got something worth paying more for.

And if you’re interested in learning more about junior mining stocks, you need to check out what my colleague Luke Burgess has to say about a new gold miner he recently uncovered that’s got huge potential and is even further along than Kainantu.

Just click here to read his report.

The Next Cannabis Boom

I’m not talking about federal legalization here, although that would definitely cause a fresh boom in U.S.-related cannabis stocks.

I’m talking about an industry that’s still in its infancy, an industry that is today where cannabis was back in the early 2010s, an industry that’s still got the potential to deliver thousand percent gains…

I’m talking about psychedelics. And if you’ve been a Wealth Daily reader for any length of time, you’ve probably already heard at least a little about this industry.

Like cannabis, it’s getting its start in the medical field, and it’s already being used to help people.

Companies are testing psychedelic therapies (like those derived from “magic mushrooms”) to help treat debilitating mental health disorders, from PTSD to anxiety and depression.

Early investors are already seeing the profits come rolling in. The first psychedelic-related company to list on a major exchange, Compass Pathways, listed in September 2020.

By that December, it had already ballooned over 100%:

CMPS_chart

But that’s not even the most impressive example. You see, a couple of years ago, one of our other analysts tipped me off to a company that had even more potential than Compass.

At the time, it was trading for around $0.30. So I bought some shares. This guy had steered me right on early cannabis stocks, so I was willing to take a little risk if he thought it was a good idea.

The company was called MindMed (OTC: MMEDF), and before I knew it, this happened:

MMEDF_chart

Yeah. That’s a 2,000% gain! The thing is this stock is still trading at a huge discount compared to Compass. But when it uplists to an exchange like the Nasdaq (which is going to happen soon), it’s going to blow up. Whenever another psychedelics company lists (which will start happening more and more frequently as we go through 2021), MindMed is likely to see a spike in price too.

I’m expecting another 10X return out of this one, to be completely honest. That might even be a conservative estimate. (Full disclosure: I’m still holding my shares.)

But the same analyst that told me about MindMed back when you could scoop it up for little more than a shiny quarter has another company in this industry he thinks could be even bigger than MindMed or Compass.

And he’s put a presentation together to share it with you so you can ride the same kind of wave of gains.

Just click here to get access.

The $10 5G Network

I’ve been trying to stick with companies I know have relatively low buy prices. I mean, I could tell you to take your $1,400 and buy half a share of Amazon, but that feels like a cop-out. And I’d guess you’d rather have a few more shares in the game.

So this next stock, like the rest I’ve listed today, is also cheap — both generally and relatively speaking.

It’s cheap generally because it’s trading hands at about $10. It’s cheap relatively because it’s changing hands for around $10, but it’s got the world’s biggest telecommunications companies in a bind.

You see, the one thing that’s holding back 5G wireless is the wires needed to connect it to the cloud.

That’s because the cloud is really just a bunch of massive buildings packed with servers for data to live on. In order for the 5G network to be worth anything, all the data held on the devices on it must go into the cloud.

There’s not enough room for it to all be floating around the airwaves. It would be so hard to access that the speeds that make 5G so impressive wouldn’t exist at all.

The data has to live in the cloud, and it has to be easily accessible. That means you have to be able to get it into the cloud and out of the cloud at the same speed it can travel over the wireless network.

There’s literally one type of physical connection that can move that much data that quickly. It’s called fiber-optic cable, and it’s in short supply.

One company has been building a fiber-optic empire over the past few years in anticipation of this shortage. It has the biggest fiber network in the country — more than all of its competitors combined.

But it has no desire to be a 5G provider. So those competitors who do want to provide 5G are falling all over themselves to set up deals with this company to “share” its network.

All of the major wireless carriers already have multimillion-dollar deals in place, so do the federal government and most of the cable companies. And more new agreements are coming in.

The payments, while seemingly small, are adding up to billions of dollars a year for this little company.

I can't give away the name here because it's an active investment in my investment advisory service, but you can learn about the company, how to invest, and why it’s going to dominate the 5G network in this presentation. Just click here for access.

“There’s Always a Bull Market Somewhere”

I don’t put a ton of faith in the stuff I hear on TV, but Jim Cramer was right when he told viewers that there’s always a place to make money somewhere. It just isn’t always obvious.

But that’s why my fellow editors and I are here. We’re always looking for that next bull market, and we’re constantly sharing our research and ideas here with you.

So keep reading our emails and articles, and keep looking for that bull market. It’s always there if you look hard enough.

Finally, when you’re getting ready to invest that stimulus check, think about the trends and companies I’ve shared here today.

And take some time to learn about Luke’s junior miners, the psychedelic market that could make cannabis gains look small, and the small company dominating the 5G network.

My colleagues and I will keep up the hard work and keep the investment ideas and market research coming.

To your wealth,

jason-williams-signature-transparent

Jason Williams

follow basic@TheReal_JayDubs

After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter, and co-authors The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.

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