Hi Everyone
So much is happening that affects our Extreme Dividend Investing, we need to continue to review our risks and opportunities.
??? $URVIVAL OF THE FITTE$T ???
First lets look at how two competitive mindsets affect the market performance. In the behavior of the animal world, (and yes and that includes people in the stock market), there are only two types of mindsets that control survival. Predators (the few) feed at the expense of prey (the many). Perhaps we need to look at ourselves as predator and prey in the business world. In nature, opposing animal species are forced to work together for the survival of all. Obviously, both as groups constantly have to adapt and evolve to get better at survival or they both die out. Without being conscious of it, large groups of people and institutions in the world of business and stocks behave the same way. Large herds of investors, try to harvest the bounties of many different plants (various industries) cultivating them with money and effort, and much smaller troops of powerhouses, like institutions and hedge funds, cleverly out fox investor into sharing or sometimes losing their capital.
So lets look at how the markets evolved. Over the years, large numbers of investors when encountered with catastrophic losses like the crash of 1929, fought for survival with legal protections to reduce cheating and manipulation. As laws were passed, the market power players continued their efforts by financially and intellectually lobbying lawmakers, and bureaucrats to make the rules and enforcement suitable for them as well. At the same time, market technology and our dependence on it has been continually improving.
- Computer enabling technology has made a huge improvement for both camps and has been evolving at a tremendously accelerating pace since the 1980’s. Advanced statistical analysis and on line charting now benefit investors and financial advisors who avidly utilize these new tools with almost instant recognition of buy and sell indicators, and performance screening of price and yield patterns. Whats not to love about this; we are all making loads more money today with these wonderful tools.
- On the other hand, the state of the art has improved for the predators as well.
- The media is very rapidly disseminated now and as we sometimes discuss in our newsletters between politics and Wall Street, It is usually bought and paid for by biased forces. Very often, news and analytical articles are constitutionally legal but dishonest and designed to drive the panic, or occasionally the greed response in us. Some times, even when the article is legit and mostly beneficial to our investment strategies, the headline may be sensationally negative — and at today’s trading speed, with the massive information overload we receive on our phones and computers, how many bother to read past the headlines before they react. Speaking about trading speed, successful day traders rely on a trading algorithm chart statistic called the VWAP (volume weighted average percent) When bad news is delivered, that instant trend analysis used in algorithmic auto-trading can quickly evolve into panic selling. Furthermore,
- algorithmic trading is indeed one of the predators technologies made possible with expensive Artificial Intelligence that only tly they can afford. It takes place so fast, the best investors and traders can only track it and try to stay ahead of more blissful folks who are less aware (the so called herd).
- In the two people being chased by a bear analogy, the predators (lets call them the bankers) often win, but in the Extreme Dividends Investor Group, what most people don’t realize is that as investors, instead of trying to race each other to escape the predator, we join the bankers, often following them like Jackals behind the lions, collecting absolutely wonderful portions of table scrap dividends. We often see our stock prices drop with the market and are tempted to sell out, but as we see in our weekly brokerage transaction reports, our strategies and diversification keep generating large percentages of MONEY, regardless of market direction – Jackals are usually successful feeders!!!
So lets look at what’s happening now with the so called Tariff war. As the U.S. market opened today we were deep in the red over fear. Within an hour, news was out that many nations including Japan, Asia, UK and some of the EU were starting to request negotiation meetings for fairer trade policies on both sides. Trumps policies were starting to make our trading counter-parts say UNCLE!. The market started to instantly turn bright green. However, not to be outdone, anti Trump politicians, along with the market predators, who live under a threat of being squeezed to replace the stocks they had short sold, further flooded news with fear bulletins about how badly the Trump tariff war will damage business, and the market again turned red.
So everything we discussed in Friday’s newsletter including great deals, is still valid. Check out the stocks and funds on the list.
- Some of the shares we discussed have recovered nicely, e.g. our amazing ZIM had dropped from $19 down to $11 and recovered to a high this morning of $13.74 – plus, we just collected a huge dividend on it last week.
- People are starting to become aware of the advantages of funds like CVNY, and thanks to one of our members Chuck B., we became aware of this one early and have quickly made money.
- The negative crypto funds FIAT and WNTR are up now while the positive Crypto funds like CONY, MSTY and YBIT are in the bargain basement now despite their current profitabilities.
- Other shares may just be up because the down pressure of the market was just simply an over-reaction.
- Foolish people that were cashing out ignored that they were also killing their future Extreme Dividends.
MSTY, AMZY if you still own it, AIYY, SMCY and WNTR announce payments this Wednesday. WNTR is the new negative of MSTY and it is expensive now having hit a high of $59 today and we have no idea yet what its first dividend will be. So, while I am not legally allowed to advise you, there will be an alert newsletter on Wednesday which should help in your profitability decision making. I am really glad I got into FIAT before last week’s dividend, but I suspect Wednesday’s WNTR announcement may not be that profitable.
In closing, always keep in mind, you are the banker now. It is your investment’s job to make you big money whichever direction the manipulators drive the market. EXCEPT WHEN CAUSED BY WARS AND MAJOR NATURAL DISASTERS, MARKET CRASHES ARE DELIBERATE AND COLLECTIVELY PROGRAMMED BY MARKET PREDATORS. BUT WE HAVE BECOME THE JACKALS GETTING WEALTHY OFF OF THE PREDATORS SCRAPS.
Please forward your text numbers to receive more timely alert links – XtremeInvestor@XtremeInvGrp.org.
Until Wednesday.
Regards,
Clint