- The most “disruptive” technology of your lifetime — bigger than self-driving cars
- The trouble with investing in IPOs: A solution is at hand
- More gold weakness? The Antichrist emerges to speak up
- The BRICS are back, and Rickards says it’s bad for the dollar
- The fruitless effort to separate politics and finance: Readers rise to our defense
“Eventually, it’ll be illegal to drive your own car without special training!” says our new colleague Greg Miller — who works with our small-cap guru Louis Basenese.
And with that, a member of our editorial team affirms a reader’s seemingly wild-eyed speculation about self-driving cars here in The 5 a few weeks ago.
Nor is that all: “What will the insurance companies do,” Greg muses, “when vehicle accidents go down by 90% or more?”
If your curiosity has already been piqued, scroll down to an Overtime briefing we’ve prepared for you today. Or read on — because there’s an entirely different angle to the story you should know about…
Oh, no — here goes Wall Street in search of “unicorns” again. Watch your wallet.
“Unicorn” is investor-speak for a startup company that’s achieved a valuation of $1 billion or more. The phenomenon is sufficiently rare that it’s comparable to, well, finding a unicorn.
The iconic unicorn of the 1990s was Google. It was founded in 1998, but it didn’t become a public company until 2004. The iconic unicorn of the 2000s was Facebook. It was founded in 2004 and went public in 2012.
Hold that thought about the six- or eight-year lag…
The Street is still seeking the iconic unicorn of the 2010s. Hope springs eternal, as we learned on Friday from the Financial Times: “Snapchat will lead its generation of high-value technology startups into the public market after firing the starter’s gun on a U.S. initial public offering that it hopes will put a value on the messaging startup of between $20–25 billion.”
If you don’t use Snapchat, perhaps your kids or grandkids do. In 2014, it created a sensation as a way to send a photo to someone and have it automatically delete after a few minutes. It’s branched out to perform other tricks since then.
Snapchat has appointed the usual suspects — Goldman Sachs and Morgan Stanley — to make arrangements for an initial public offering (IPO) early next year.
We’re sure that on the day the firm goes public, its executives will ring the opening bell on the stock exchange. And millions of dupes — aka retail investors — will overpay for shares.
Here’s the quandary with IPOs, one we’ve been pointing out for years: By the time a company goes public, the big money’s already been made… and you’ve been shut out.
Yes, Facebook went public in May 2012 at $38 a share. As we check our screens this morning, it’s $128. That’s a 237% increase in 4½ years.
Not bad… but it pales compared to how Peter Thiel did. He was the first outside investor to plunk down money on Facebook, eight years before it went public. Every $500 invested turned into $1 million.
Later investors made a killing too: The venture capital firm Accel Partners turned a $12.7 million investment into $12.48 billion by the time of Facebook’s IPO in 2012.
Venture-capital types and Wall Street fund managers are always first to the feast. You end up with table scraps.
But after months of exhaustive research, our small-cap team has uncovered how you can finally get a seat at the table. Better yet, you’ll be among the first to get a bite of a Silicon Valley breakthrough that stands to wreck the auto industry. And no, we’re not talking about electric vehicles or even self-driving cars.
It’s bigger than that. My colleague Robert Williams pulls back the curtain in an exclusive Overtime briefing today. Scroll down right now for the details.
The major U.S. stock indexes are coming out of the gate quietly as a new week begins: The Dow is down all of 23 points as we write at 18,116. Treasury yields are climbing down, the 10-year at 1.78%.
The last of the Big Four banks reported earnings this morning; like the others, Bank of America beat expectations.
Elsewhere, Caterpillar’s CEO has announced plans to resign next year; curiously, the word came hours after an exhaustive front-page account in The Wall Street Journal about how he presided over the longest sales decline in CAT history.
As long as we have industry on our mind, we’re getting several reads on the health of that sector this morning…
- Industrial production: Up 0.1% in September. But year over year, it’s down 1.0%
- Capacity utilization: 75.4% of the nation’s industrial capacity was in use during September — a mediocre figure that’s identical to three months earlier
- Empire State Manufacturing Survey: This amounts to our first read on the economy so far in October… and it’s a big disappointment, with the third straight monthly number indicating factory activity in New York state is contracting.
Gold continues to hold the line on the $1,250 level this morning… but maybe not for long, in the Antichrist’s estimation.
“Antichrist” was the name that some of our gold-bug readers gave to one of our trading specialists, Greg Guenthner, when in February 2013 he pronounced a bear market for gold. That was at $1,650.
“Gold’s trajectory has changed dramatically since late summer,” he writes in this morning’s Rude Awakening. “On Friday, gold settled below its 200-day moving average for the first time since early February:
“This is a do-or-die spot for gold’s short-term prospects. If the yellow metal can’t find buyers here, we’re probably in for more downside action in the coming weeks.
“But when it comes to gold’s longer-term prospects, all is not lost,” Greg hastens to add. Much of the selling’s been driven by anticipation of a December interest rate increase at the Federal Reserve. Once that’s out of the way, it could be off to the races again…
“The BRICS are back in town, and that’s not good news for the dollar,” says Jim Rickards.
Leaders of the BRICS nations — Brazil, Russia, India, China and South Africa, making up nearly a quarter of the global economy — met over the weekend in Goa, India. They didn’t make much news…
… but that’s because the real action took place last month, away from the media spotlight.
“For a while,” Jim explains by way of background, “it appeared the BRICS would mount a serious challenge to U.S. dollar hegemony. They created their own BRICS reserve fund and development bank (modeled on the IMF and World Bank) and began laying their own undersea internet fiber-optic cable that would create a BRICS internet without sending message traffic through U.S.-controlled nodes.
“Then the BRICS story went quiet in 2014–15, and China took center stage on its own with the creation of the Asia Infrastructure Investment Bank (AIIB), which invited participation by many developed economies in addition to the BRICS. It looked like the BRICS story was fading in importance.”
No more — not after a BRICS meeting last month on the sidelines of the G-20 Leaders’ Summit in Hangzhou, China.
“They made a very interesting demand,” says Jim. “The BRICS may be 22% of the global economy, but they only hold 14.89% of the votes at the IMF. Any individual country or group of countries with 15% has veto power over certain major IMF decisions, including the issuance of SDRs, the new world money. Only one country has over 15% today, and that’s the United States.
“The BRICS are now demanding that their IMF vote move closer to their share of the world economy and past the 15% threshold. If that happens, then the IMF will not be able to flood the world with SDRs in a liquidity crisis unless the BRICS agree.
“No doubt the BRICS will agree, but only if other steps are taken at the same time to destroy the privileged position of the U.S. dollar in global payments and reserves.”
It’s a long story, one Jim’s explained often in the two years since he’s joined us at Agora Financial. The next chapter comes on New Year’s Day. Will you be ready?
Bit by bit, the world’s becoming less peaceful — or so says the latest edition of the Global Peace Index.
We first took note of this unconventional metric last year. It comes from the Institute for Economics and Peace. After crunching 23 qualitative and quantitative factors, the researchers conclude the world is 2.44% less peaceful now compared with when it launched the Global Peace Index in 2007. It’s been a slow, steady decline the whole way, thanks to terrorism and political instability.
Individual nations are also ranked for peace — with Iceland coming in first, followed by Denmark and Austria. Switzerland and Canada come in seventh and eighth.
The United States? No. 103, flanked by Guinea and Cambodia…
“It never gets old,” reads the first of several emails rising to our defense, “watching the scoldings you get telling you to separate your political opinions from your economic views, and that adding political opinion is divisive.
“It’s almost as if these critics don’t grasp the fact that our economy and our politics are deeply Intertwined — in fact, far too intertwined. As far as the criticism that you are being divisive, I don’t know how they come to this viewpoint, given that you have taken potshots at the hacks from both wings of the Big Government Party in equal doses. These folks don’t also don’t seem to realize that the knuckleheads from both parties have created this divisiveness and that your observation of such is not the problem.
“In fact, at this point, we need both parties to continue on the same divisive path that has turned them into horrible reality television and hope that both sides implode. Moving forward with this system will continue to bring destruction, and a reboot of the entire process seems to be one of the very few solutions at this point.
“Thanks for continuing to let the chronic complainers have their say… and keep up the great work at The 5.”
“You show little if any bias — just observant of current news and events,” another reader assesses.
“Having been in the voting ranks over 40 years, I realize Ike’s concerns about the military-industrial complex were a foretelling of where we are today. And it’s this complex that gives the politicians the means of influencing the masses. Most of the media today are a type of propaganda/psych ops on the public. Your publications give a good fresh alternative. Keep up the good work!”
“Dave, it’s unfortunate that some readers have been duped by the mainstream media’s propaganda about Russia and the USA,” writes our final correspondent. “But misinformation campaigns tend to work and people are fooled!
“As Jim Rickards has explained, our latest currency war has real consequences for nations and people everywhere. It’s hurting families, businesses and economies globally.
“Now we have two lunatic candidates running for president. One is ‘unshackled’ (if not unhinged); the other is utterly unethical. Both of them are scary. Either way, 2017 looks like a nightmare scenario.
“How can even the most patriotic American perceive any of this as good? The Russians have every reason to protect themselves from our imperialism.
“Russian President Vladimir Putin is a skilled chess player and martial artist who understands strategy, including how to plan many moves ahead and use opponents’ tactics against them. Elvira Nabiullina, governor of the Central Bank of Russia, is supporting the ruble (rather than debasing it) while stockpiling gold.
“They know what they’re doing, and they’re playing the long game. In contrast, our leaders act like mental midgets.
“So please continue your political commentary and ignore the flak. Politics has everything to do with economics — and with the coming crackup!”
The 5: Sadly, yes.
The 5 Min. Forecast
P.S. Congratulations to readers of Jim Rickards’ Currency Wars Alert. This morning, Jim’s senior analyst Dan Amoss urged readers to take 105% profits on a bet the British pound would fall. That’s stellar performance in just two months. And while Jim and Dan expect a continued long-term decline in the pound, it was time to take short-term profits.
Jim’s proprietary IMPACT system is always serving up plays to help you profit from the global currency wars. To learn more about how it works — and how you can be on board for the next trade — just follow this link.
As noted above, our small-cap team is onto an “automotive” story that could bury the automakers. And it’s not about electric vehicles or self-driving cars. It’s bigger. Here’s Wall Street Daily publisher Robert Williams with the rest of the story…
Dear [%= :subscriberName(E, Reader) %],
Yesterday, Wall Street Daily Chief of Technology Investing Lou Basenese revealed his breaking research.
Now, the secret he discovered is out:
The automotive industry is about to get t-boned by
Silicon Valley’s latest technological breakthrough…
And it could happen any day now
It could cost them as much as $2.3 trillion.
Bad news for Detroit.
Great news for you.
Click here to discover exactly what’s happening and to see what Lou and his closest venture capitalist contacts think is the real key to finding big investing opportunities when high-technology collides with the auto industry.
Because the fact is: there’s one company positioned to vacuum up all those trillions of dollars… it’s the fastest growing tech company of all time and smart investors who grab this one now (while it’s still private) will be in the millionaire’s fastlane. Speeding straight towards a fortune.
Just how big of a fortune?
The world’s leading consulting firm – McKinsey – recently predicted that once this event happens, the market for this technology could grow by 4,900%.
That’d be almost 50x your money. I’d say that makes this a pretty big fortune.
And we have a mounting evidence… including a quiet, private deal recently spearheaded by Goldman Sachs… convincing us this event is going to happen VERY soon. Which, of course, is why we’ve cleared everything this week to bring you non-stop coverage.
Now, I know what you’re thinking.
So I’ll be 100% clear…
This massive upheaval isn’t going to happen
because of self-driving cars or electric cars
You’re right, those two technologies are important. And they’re great examples of how Silicon Valley innovation is changing the way we drive.
Yet, here’s why they’re only “sideshow” attractions.
The breakthrough we’re talking about goes beyond changing the technology inside cars.
Indeed, this breakthrough is so profound, it could change the face of transportation entirely. It even begs the question whether or not people in America will even need their cars to get around anymore.
That’s why auto makers are terrified of the day this announcement will be made… and sick thinking about the $2.3 trillion one insider predicted they’d hemorrhage as a result.
It’s why the first wave of investors to this firestorm have already collected 298%… 1,718%… even 113,236% returns…
And it’s why we’re holding an urgent live event,
this Thursday at 7:00pm EDT.
The VentureCap Strategist team is on the ground gathering details about this developing story right now.
Including how – in a rare and surprising turn of events – this private company will be legally available to regular investors who want to cash in big time before the announcement of its upcoming IPO.
That gives you a chance to cash in before anyone else you know. But things are moving fast and you’ll want to be ahead of the crowds, which is exactly what this live event will show you how to do.
Because there’s little doubt this news will on the front page of every newspaper in America once it happens. The biggest disruption to hit the auto industry since Henry Ford invented the assembly line.
The team will have the full story for you on Thursday, rain or shine.
In the meantime, they’ve just finished writing another exciting free report for you.
The rubber hits the road with this one.
It’s all about the collision of technology and cars, and what smart investors are paying attention to right now.
It’ll detail exactly what you need to know to position yourself to rake in the profits as the innovations coming out of Silicon Valley do the same thing to automakers that they did to book publishers, travel agents, record studios, and more.
(Smart investors made millions then, just like they should this time).
This new free report also details the real reason why Lou and his closest Silicon Valley connections are still paying attention to self-driving cars and electric cars right now, even though they’ll just be sideshows once this announcement changes the auto industry forever. (HINT: it’s because they’re like adding two turbochargers to the speed and size of the profits you could take home if you stick with us).
Click here to read this exciting new report now, it’s free! You’ll also earn another $125 bonus just for checking it out!
To your lightning-fast road to riches,
Executive Publisher, Wall Street Daily
PS – A bit of housekeeping. Yesterday I mentioned the most exciting part of Lou’s discovery: a rare way for regular investors to even the playing field by investing in the normally off-limits private markets… right alongside venture capitalist, mega-rich private investors, and powerful hedge funds. It’s amazing, unprecedented, and completely legal. Things have been moving fast around here. Greg hit the ground and has been onsite, in the trenches gathering intel. Lou is off who knows where. Pouring through his Rolodex of Silicon Valley and Wall Street connections. Shaking people down. Reviewing every detail. So we haven’t had time to cover this part of the story yet. But here’s good news: I just saw a draft of what the team has prepared for you… detailing how this rare opportunity gives regular investors the chance legally invest in private companies, and it’s groundbreaking. This is a game-changing strategy. It finally levels the playing field in a system that’s been rigged against the average investor for so long. You’ll get all the details tomorrow morning. Before that, make sure to check out your free automotive technology report now by clicking here.
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