Dear Wealth Daily Reader,
Since returning from Ukraine, I’ve been asked one particular question more than any other:
"What the hell were you doing in Ukraine?"
That was usually followed up by two more questions . . .
"Are you and Yee [my wife] okay? Are you looking for a 25-year old trophy wife or something?"
Nobody believes I was in Kiev on an investment tour of sorts. But I was.
You see, I’m a member of a roving gang of stock brokers, investment bankers, private investors, financial journalists and, yes, global partiers.
I’ve been a member since 2005. Our group has twelve members . . . and membership in this "club" is super strict and exclusive. In other words, you have to bring something to the table that benefits the group.
The group’s decision to let you in has to be unanimous. And . . . every member has to be a self-made man.
All of them are successful in their own right. They’re the savviest investors I’ve ever known. Some are just in their mid 30s, yet they’re millionaires 50 times over.
The gang doesn’t have a name. Our clubhouse? It depends on what city we fancy at the time. It truly is a secret investment society.
We’ve held meetings all over the world . . . Zurich, Vancouver, Panama, Costa Rica, Germany, Yalta, Kiev, Macau, Montana, Wyoming, and Dallas, to name a few.
Not every member makes it to every meeting.
Last April, for instance, only four of us made it to Fort Worth, Texas.
There, we took a helicopter tour over an oil field in Hamilton County. The company that owns the fields has seen its stock price increase 55% since our visit:
Of course, I recommended the stock in my investment letters when I returned to Baltimore.
The reason our group liked this company enough to buy it? The company has 2.5 barrels of proven reserves per share. Do the math–that’s $160 worth of oil for $5 a share (its April stock price).
We believe the stock will continue to go higher, especially in light of rising energy prices.
But while in Kiev, we discussed new opportunities. Two, to be exact.
One isn’t public yet. But trust me when I tell you it’ll be blockbuster. I’ll reveal both investments when the time is right. So stay tuned.
In the meantime, it’s time to make a lot of money.
You may remember that I put my reputation on the line last May when I wrote:
Using a 13.5% annual growth rate as my assumption, I come up with these targets for the Dow over the next five years:
2007. . . . .. . . . .. . . . . . . . 15,200
2008. . . . .. . . . .. . . . . . . . 17,252
2009. . . . .. . . . .. . . . . . . . 19,581
2010. . . . .. . . . .. . . . . . . . 22,224
2011. . . . .. . . . .. . . . . . . . 25,224
But if the Dow averages annual gains of 23.2% over the next five years, those targets increase substantially, and the Dow hits 30,440 by 2011.
As you read this, the Dow is trading at an all-time record high. And the S&P 500, the Dow Transports, the Dow Utilities, and the Russell 2000 are all breaking to new record highs.
Ladies and gentlemen, we’re in a new bull market.
It’s time to prepare your portfolios for it.
When the markets corrected in August, I got a lot of emails taking me task . . .
"Nice call, numbnuts. You made a bull market prediction right before the crash."
And those were the kind emails. But I didn’t waver.
Here’s what I wrote in Wealth Daily on September 6:
When I was studying at the Market Technicians Association in the late 1990s, the one golden rule that was drilled into our heads was and still is: the trend is your friend.
If we are to believe this market maxim, then we have to conclude that the markets are still in a bull phase . . . and the recent 12% selloff was your garden variety correction, and an excellent buying opportunity.
As you read this, the Dow is in record territory.
A year ago, I called for Dow 15,200 by the end of 2007.
To reach that level, the Dow has to rally 8% from its current level. Doable? Yes. Probable? Only time will tell.
But listen, dear reader, don’t let anybody tell you different. The broader market is in an uptrend. Plain and simple.
It’s time to make a boatload of money.