We’re Killing It in The War Room

The market’s negative tone as we end this week would have you thinking all is wrong with the world.

With the coronavirus, recessionary signals out of Japan, a slowdown in exports from China, political land mines back in the U.S. and a fear of a melt-up in U.S. stocks coming to an end… you would think we’d all find comfort hiding in a cave somewhere!

Not so in The War Room. This week we locked in a slew of winners, and just yesterday Bryan showcased his amazing trading skills by opening and closing four winners in one day alone with strong double-digit gains on Charles Schwab, Cisco Systems, Rite Aid and Virgin Galactic.

I am not bringing this to your attention to boast (well, maybe a little) but rather to show you that even in a mixed market, when you follow a system like Bryan has created, you can win, win often and win big.

I have traded alongside Bryan for over a year now (we’ve known each other for more than 15 years), and I can honestly say that I have not met a better short-term trader.

Don’t believe me?

See what War Room members are saying from the trades I mentioned above!

“For CSCO I bought a 46.5 put for .22 then set a sell for the put at a limit of .35. Sold it in 30 min for a 59% profit.”– Susan R.

“In to SCHW at 2.25, out at 2.90.” – Donald S.

“That’s 3 for 3 in 24 hours on SPCE- 108 % 70% and now 22%, SPCE is fun!!” – Richard Z.

“Made $1,000 on RAD. Thank you Bryan.” – Tito

And what many people don’t know is that Bryan got his start in a very humble fashion. He worked his way to the top, and now he’s sharing his skills daily in The War Room.

Bryan and I have two distinct styles that don’t overlap. While he focuses on quick hits and overnight trades, I focus on longer-term plays, typically options that expire more than two weeks out.

But we do share something in common…

Our love for trading and helping others make a ton of money at the expense of Wall Street!

The War Room is not only a place to get trade recommendations but also a community of traders, experienced and inexperienced alike. And we all share the same goal – to make everyone a better and more profitable trader.

Isn’t it time you joined us and experienced the results firsthand?

Click here to partake in a free training and learn how you can join The War Room today!

The post We’re Killing It in The War Room appeared first on Investment U.

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How to Invest in Stocks for Beginners with Little Money

A man lifts his spectacles up to examine a tiny bit of money in his hands. Here's how to invest in the stock market for beginners with little money.

Many people want to get invested, but they don’t think they have enough money. It’s a shame, because anyone can open a position with relatively little money and still reap the benefits of market growth. So Investment U put together this guide on how to invest in stocks for beginners with little money.

Start by looking at how much you can invest—money you won’t need for at least one year. If you’ve got a couple hundred dollars, you’ve got more investing power than you might realize. 

And if you’re pinching pennies to try and invest, be diligent about saving until you have at least $100. Remember, you’re not trying to amass a fortune—you’re merely setting up the building blocks for a growing investment portfolio. 

How to Invest in Stocks for Beginners – Even with Little Money

Once you’ve opened a brokerage account and deposited your money, it’s time to consider what you can do with it. Here’s how to start investing in stocks with little money and establish a portfolio you can be proud of. 

Weigh Volume against Share Price

Let’s say you start with $200. You’re going to be limited in what you can invest in based on security prices. For example, one share of Amazon (Nasdaq: AMZN) is well over $200, so you wouldn’t have the funds to make that investment. You’ll need to start your research focused on companies with share prices under $200.

Once you’ve compiled a list of interesting companies with share prices you can afford, you’ll need to consider volume. Do you want to buy one share of the Walt Disney Company (NYSE: DIS) or 20 shares of the Ford Motor Company (NYSE: F)? 

Do your research and pick the company you think has the most potential for profit. It might be tempting to load up on more shares of a single company at a lower share price, but that’s only advantageous if you believe those shares will increase in the coming years. Learning how to invest with little money means learning to take baby steps. 

Explore Low-Cost Investment Strategies

If you don’t have a ton of extra cash to put toward investing, one of the best things you can do is investigate low-cost investment strategies. Dividend investing with a DRIP plan, for example, is a great way to expand your position, with dividends going right back into share purchases. 

You might also consider mutual funds, which help you leverage low buying power into more lucrative holdings. Another option would be to buy shares of exchange-traded funds (ETFs). ETFs give you the portfolio diversity of a mutual fund but shares trade on exchanges just like stocks. 

Investing in stocks with little money is much easier when you explore the right investment strategies. 

Avoid Costs and Fees

Nothing will deflate your low-cost investment strategy like unnecessary costs and fees. Watch out for them and be aware of exactly how much they’re eating into your investments. 

For …read more

Virgin Galactic Soars for… No Reason?

Virgin Galactic

U.S. stocks are starting to look frothier. Just consider Virgin Galactic (NYSE: SPCE), the space tourism company founded by Richard Branson.

Virgin Galactic shares are up from $7.22 in early December to $36.39 as of this writing. The company now trades at an eye-popping $6.9 billion valuation.

So what happened? Why did this space stock go parabolic? Did the company successfully complete its first trip to the moon, or some other amazing feat?

Nope, Virgin Galactic still hasn’t flown any tourists into space.

Apparently, the stock is soaring on the news that the company is moving closer to launching paying customers into space after years of delays. Here’s how CNN explained the huge move…

Shares have surged lately due to optimism about the company’s plans to launch a commercial space service.

Virgin Galactic announced last week that it relocated its SpaceShipTwo suborbital plane, also known as VSS Unity, to its commercial headquarters in New Mexico. That brings the company one step closer to eventually launching paying passengers into space.

There are apparently more than 600 customers who have paid deposits. No launch dates have been set. The company is still testing its two prototype spaceships.

Virgin Galactic has, however, announced custom space suits designed by Under Armour. Each $250,000 ticket to space includes a tailored suit.

Source: Virgin Galactic

Virgin Galactic had $4.5 million in revenue for the past 12 months. I’m guessing that’s from presales of flights. Either way, it’s not a material amount of revenue for a $6.9 billion company.

And then there’s this tidbit from TheStreet…

Virgin Galactic is currently priced at eight times Morgan Stanley’s 2030 expected revenue estimate. The firm sees the stock as fully discounting what could be a highly successful space tourism business at scale.

It’s priced at 8X estimated 2030 revenue? That would probably be expensive in 2030, and it assumes 10 years of successful growth. That’s just silly.

Late Cycle Things

To me, the Virgin Galactic story is clear confirmation that we’re in the late stages of the bull market. Crazy stuff like this often happens toward the end of a big credit bubble. People are giddy with gains, and things start to get out of control. I think that’s where we are.

But as I pointed out a few weeks ago, stocks can soar far higher than you would think late in the cycle. So I’m not saying you should necessarily sell all your U.S. stocks.

Central banks, and especially the Federal Reserve, can greatly influence the direction of markets over the short to medium term. Jay Powell’s Fed seems committed to keeping markets elevated. And President Trump is fully on board with the mission.

But eventually, there will be a correction. And it’s likely that the correction will be steep due to the amount of debt involved.

That means it’s a good time to take some precautions and hedge your bets. I’ve been trimming gains on U.S. tech stocks. And I’ve been shifting money to much cheaper emerging markets over the past few years.

Of course, I’m also still bullish on gold, bitcoin and startups. Those are …read more

The Connection Between Self-Compassion… and Investment Success

As investors, we’re sure to experience losses at some point. Some of us may even dwell on them and fall into a cycle of self-criticism.
Today, Joel Wade explains why it’s important that we show ourselves compassion – and how that practice can help our future wealth building.

Editor’s Note: In today’s essay, contributing writer Joel Wade offers our readers a valuable lesson… for investing and life in general. For those who aren’t already familiar with Joel, he’s a highly experienced life coach, therapist, author and teacher – giving him unique insights into investor psychology and the journey toward a rich life.

Take a look at Joel’s latest piece below, and if you’re interested in hearing more from him, don’t miss his talk as a featured speaker at The Oxford Club’s upcoming 22nd Annual Investment U Conference!

– Christina Grieves, Senior Managing Editor

My client was distraught.

He had invested a million dollars and lost a quarter of that nearly overnight in a penny stock scam.

He was desperately trying to find a way to get it back. He felt awful. He knew he had made a terrible mistake, and he wanted to correct it right away and eliminate the losses.

The problem was, the value that he had counted on, what he had taken for granted as a solid monetary figure, was now gone – and there was no way to undo what had happened.

The feeling from such an event is generally shock and loss, and the danger is that those feelings can skew our perceptions, our judgment and our decisions.

But there’s another emotion that can cause even more trouble: shame.

It’s inevitable that when we invest, we’ll experience losses along the way. And, especially for novice investors, shame often follows.

One of the most important skills to learn in any endeavor – whether business, sports, performing or investing – is to get back up and carry on when you stumble.

That kind of resilience is essential to persevere and succeed at anything – but especially investing, an area that delivers occasional hard knocks to even the savviest participants.

Fortunately, the resilience you need to prosper is something you can develop. And it starts with this realization…

If you want to improve anything, if you want to change things for the better, be compassionate with yourself.

Think of the people who have had the greatest positive influence on you. Did they spend a lot of time nagging, berating, insulting or shaming you? I suspect not.

Shame has its place. When we do something that violates our values, one of the natural emotions we feel is shame.

But once that feedback is received and we have taken the steps to correct what we feel ashamed of, that emotion has done its job.

If we continue to berate ourselves about the past – after we’ve taken the steps to make it right – we actually undermine our ability to establish better habits.

For example, researchers have found that, among alcoholics who have become sober, those who continue to actively feel ashamed, criticize and …read more

How “Mallmageddon” Revealed a Troubled Market

Shopping malls have been part of the American way of life for many decades now. But unfortunately, many seem to be withering on the vine these days.

I live in Lancaster County, Pennsylvania, and we seemed immune to this “Mallmageddon,” as it’s been termed, until about 18 months ago when one of the four anchor stores in our regional mall closed, followed by another about six months ago.

We’re lucky, though – replacements for those storefronts have already been announced. Meanwhile, 30 minutes away in York, Pennsylvania, half the stores are shuttered in the regional mall.

It has been announced that a mini-casino will enter the mall in their place. But is that what people really want from a mall?

Nationwide, despite a strong economy, retailers closed 9,000 stores last year. That outnumbered the stores closed in 2018, which also outnumbered the stores closed in 2017 – and 2017 was a record.

Already this year, retailers have announced plans to close 1,200 stores, which would put the retail landscape on track for another record number of closings.

Personally, I tend to chalk all these brick-and-mortar store closings up to the “Amazon effect.” There is no doubt that we’re becoming a nation of online shoppers. And the last time I walked through the York Galleria mall, I imagined that to be the case.

However, a closer look at the facts doesn’t bear that out…

Internet shopping accounts for only 11% of total retail sales, so that by itself doesn’t explain Mallmageddon.

Furthermore, 70% of retail spending in the U.S. is in categories that have seen slow encroachment from the internet, either because of the nature of the product or because of the regulations governing the sale of the product.

It’s pretty clear there are other factors at work here. In fact, three key ones stand out:

Consider the rise of big-box stores. In a recent study, University of Chicago economists Chad Syverson and Ali Hortaçsu analyzed recent retail trends and discovered that big-box stores are more of a factor in Mallmageddon than the internet.They found that over the 14 years ending in 2013, Amazon (Nasdaq: AMZN) added $38 billion in sales, while Costco (Nasdaq: COST) added $50 billion and Sam’s Club added $32 billion.
Income inequality is another factor cited in the decline of the American mall.The Pew Research Center estimates that since 1970, the share of the nation’s income earned by families in the middle class has fallen from nearly two-thirds to roughly 40%.

Of course, the target audience for most American malls is the middle class. Retailers that target both the high end of the income spectrum and the low end have seen almost all the growth in retail sales in that period.
The third key factor that can be attributed for the decline in the American mall? We <a class="colorbox" href="https://wealthyretirement.com/dividend-investing/dividend-investing-safety-net/epr-properties-dividend-safety/" target="_blank" rel="noopener …read more

Gearing Up for Another Stock Play With MoneyGram

If you paid attention last week, you may have bought MoneyGram (Nasdaq: MGI) shares based on my analysis.

You’re welcome!

This week, War Room members closed out their MoneyGram position for gains of more than 25% in a just a week… on a stock, not an options play.

And they will be ready to jump back into the stock when the time is right. For some members, this is their second win on MoneyGram in the past few months!

When I start following a company, it stays on my screen and I work to get a good idea of how it trades based on news and volume, among other factors. On MoneyGram, I saw that we had significant resistance at $2.80. And if we cleared that, we’d be off to the races.

And that’s exactly what happened.

At 10:02 a.m., members sold the shares…

Within a five-minute period, the shares jumped by more than 10%! That’s an incredible move for a stock in such a short period of time… and there was no news to account for it. Volume spiked from 500,000 shares to more than 2.5 million shares during that window.

It was a marvel to watch!

On February 18, at 10:02 a.m., I issued a close trade recommendation on the stock play…

Sell your MGI and book the gains. Please post your fills.

But it’s what I said at 9:57 a.m. that alerted members to what was coming down the pike…

MGI is getting very close to breaking out to the upside. Resistance at $2.80.

Members sold MoneyGram in the $3 to $3.10 range within minutes after the alert was sent out and locked in some nice quick profits.

“In @ $2.39 out @ $3.00 I like micro-caps!” – Timothy Y.

“MGI – made 28%. Thank you Karim!” – Mike R.

“In at $2.40, out at $3.04. Nice 26% gain, thank ya very much!” – Bill L.

Action Plan: We’ve continued to keep an eye on the company, and when it reaches our buy levels, you can bet we’ll recommend members jump back in again.

MoneyGram and other microcaps are very volatile. And The War Room is where volatility thrives because of our real-time platform and consistent systems, which, in many instances, allow you to know where our target prices are ahead of time.

To get in on the next microcap play, join me in The War Room!

The post Gearing Up for Another Stock Play With MoneyGram appeared first on Investment U.

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Reduce Risk With the Kelly Criterion Investing Strategy

We have a moral issue with gambling. After all, one of our core beliefs is that wealth leads to Liberty. Therefore, gambling leads to slavery.

It’s a dangerous game.

We don’t partake.

Even so, we’re fascinated by the numbers behind it all. They’ve certainly guided our investment philosophy and made us a winning trader.

In fact, we’ve learned a lot from Edward Thorp – the math genius and professional gambler who turned the odds on Vegas and then revolutionized Wall Street.

He’s our kind of man – a thinker.

Even though he spent years in the blackjack game, Thorp would argue he’s not a gambler. He’s an investor. He put down his chips only when the odds of winning were better than the odds of losing.

Thorp won a lot.

He won so much, he was kicked out of most casinos.

When Thorp put on disguises and taught others to do his work for him, Vegas changed the rules. With the math no longer in his favor, he took his skills to Wall Street.

It was a move that benefits us all… especially when it comes to managing our risk.

Revealing a Secret

You see, there’s a secret of the Vegas blackjack tables that aptly applies to investing.

Thorp used it to know exactly how much to bet on each hand so he’d be sure to end up a winner.

But it worked equally well on Wall Street. It made Thorp a megamillionaire – worth some $800 million today.

He taught it to Bill Gross (whom Thorp mentored) and Warren Buffett. It treated them well too.

It remains a vital risk management strategy for all three.

It’s a formula called the Kelly Criterion.

It looks like this…

Kelly % = W – [(1 – W) / R]

We need just two important pieces of data to crunch the numbers.

First, we need our win probability – the “W” in the equation above. That’s the historic proportion of trades we’ve made that have led to a gain.

It’s simple to calculate.

First, we gather the results of at least our last 25 to 50 trades – not the dollars made or the percentages lost, just whether they were gains or losses.

Simply divide the number of positive trades by the total number of trades.

For example, if 35 out of 50 trades were wins, our “W” number would be 0.7.

From there… we need the “R.” That’s our win-loss ratio.

To get it, simply divide the average dollars gained on each winning trade by the average loss on each losing trade.

For example, if each win nets us an average of $500, while each loss costs us $1,000, our win-loss ratio (the “R” in our equation) is 0.5.

The Magic Number

With just those two simple numbers, we run the equation and get our Kelly percentage – the percentage of our overall portfolio we should devote to each trade.

Using our example above, the formula looks like this…

Kelly % = 0.7 – [(1 – 0.7) / 0.5]

Our Kelly number is 10%.

That means, if we continue to invest as we have in the past, the ideal percentage of our trading portfolio to devote …read more

It’s Time to Change Your Gold Investing Strategy

Gold vs S&P 500

Gold prices are surging.

The safe haven of choice for the world’s big-money investors easily surged over the $1,600 mark this week. It’s a price we haven’t seen since 2013.

Palladium is hot, too.

The rare but highly used industrial metal is scoring one record price after the other.

The commentary on this bull run is fun to watch. Now that gold is reaching fresh heights and has added an extra hundred bucks to its price, headline writers are starting to pay attention.

They’re blaming Germany’s slowdown, Japan’s shrinking economy and, of course, the spread of the coronavirus.

In the minds of folks reading those irresponsible headlines, Apple’s sour note on Monday is the reason gold just hit $1,600.

The press hardly mentions the fact that gold has been on a bull run since September of 2018… the very same time the Federal Reserve told us that its “accommodative” stance was over.

Ha.

Mr. Market saw right through this buffoonery.

You’re Right

Since gold began its beeline higher, the Fed has injected hundreds of billions of dollars into the banking sector. It’s a desperate attempt to keep banks lending and make sure artificially low interest rates remain, well, artificially low.

But we didn’t pick up the pen this morning to tell you to buy gold.

Its worth is a given.

We’re writing you with a warning.

[mw-adbox]

If you pay attention only to the mainstream press and if you religiously follow conventional Wall Street “thinking,” you will get burned.

You’ll not only miss out on an asset class that’s outperforming the S&P 500 so far this year but also miss out on an asset that has kept near-perfect pace with the market over the last two years.

It’s more proof of a theme we’ve penned a lot about in recent weeks.

If you stick with what you’re “supposed” to do… you’re in big trouble.

In other words, if you think you should be earning more from your investments…

If you think you’ve been misled…

If you feel like others are doing better…

Or if you simply have a hunch that there’s a smarter way of doing things…

You’re right.

Updating the History Books

The conventional thinking on gold is outdated. Break out a business school textbook or get out one of our old manuals from the advisory business and you’ll see the same mantra over and over.

Gold, the old wisdom says, should be a mere sliver of your portfolio.

They’ll also tell you that gold and stocks are uncorrelated. And they’ll convince you that gold does you good only when stocks are falling… that it’s nothing but a drag in a rip-roarin’ bull market.

It’s bunk.

Of course, the folks behind those ideas aren’t liars or cheats. They’re very smart folks with good intentions.

And those ideas were indeed true when they were written.

But they’re not true today.

These days, the markets move according to Bernie Sanders’ latest poll numbers… the latest stimulus plans from China… and, of course, the latest interventions by the Federal Reserve.

Those ideas weren’t nearly as prominent 50 years ago when the “modern” investing canon was written.

The folks behind those works would be stunned by that chart …read more

Is This 11% Yield Worthy of Forgiveness?

Which do you put more faith in – three straight years of dividend increases in 2017, 2018 and 2019 or dividend cuts in each of the six years prior?

That’s the situation with Invesco Mortgage Capital (NYSE: IVR), which pays a hefty 11.1% yield after a quarterly dividend increase to $0.50 per share at the end of 2019.

If the company maintains the dividend this year, 2020 will be the fourth year in a row it has paid a higher dividend than the year before. But can it afford to?

Invesco Mortgage Capital is a mortgage real estate investment trust (REIT). It invests in mortgage-related securities.

Mortgage REITs borrow money at low rates in the short term and lend it out at higher rates over the long term. The difference between what it pays to borrow the capital and what it makes by lending it is called net interest income (NII).

The calculation for NII also subtracts expenses.

So if a mortgage REIT collected $10 million in interest from loans, paid out $5 million in interest on its own loans and had $1 million in expenses, NII would be $4 million ($10 million – $5 million – $1 million = $4 million).

Invesco Mortgage Capital’s NII has been rising over the past couple of years, climbing from $304 million in 2018 to $313 million last year. It is expected to rise to $340 million in 2020. However, that is still below the $349 million it boasted in 2017.

Last year, the mortgage REIT easily afforded its $254 million in dividend payments to shareholders. And this year, assuming it makes $340 million in NII as predicted, it should also cover the $318 million dividend payment forecast.

The stock is an interesting situation when you view it from the perspective of my proprietary system SafetyNet Pro.

Invesco can afford its dividend at the moment, NII has been rising for the past two years and the company has lifted its dividend each year since 2018.

However, SafetyNet Pro has a long memory and holds a grudge…

The six cuts in a row beginning in 2010 do not sit well, even now. Like a spouse who has been lied to, it will take a while for investors to forgive Invesco. A few years of good behavior doesn’t mean all is forgotten.

Another aspect that makes this situation noteworthy is that CEO John Anzalone took over the top spot in 2017 – precisely when the dividend stopped falling and reversed course to move higher.

So while the company’s dividend track record is not strong, the CEO’s, while short, is solid.

But as I mentioned, it takes a long time to earn back SafetyNet Pro’s trust. Due to the six dividend cuts in the past, you have to believe another one could be coming in the future if NII doesn’t cover the payout to shareholders.

Dividend Safety Rating: F

If you have a stock whose dividend safety rating …read more

Slack Stock Has Tons of Upside After IBM Report

Slack stock price has some upside

Slack stock was one of the more volatile stocks of 2019. This is one reason why investors aren’t ready to buy into its recent surge. However, a new IBM report and Slack response is giving the company a lot of upside moving forward.

Business Insider reported that IBM had purchased Slack accounts for all of its 350,000 global employees. This report sent Slack Technologies (NYSE: WORK) stock soaring 15% on the day.

Slack Stock and the Truth Behind the IBM Report

The surge makes for one of the best trading sessions since Slack’s IPO on June 20 of last year. After market closing, however, the company filed an 8-K downplaying the IBM report. These filings with the SEC announce unscheduled events or corporate changes.

So, did Slack really score its biggest customer deal ever this week? The truth is, IBM has been Slack’s biggest customer for quite some time.

“IBM has been Slack’s largest customer for several years and has expanded its usage of Slack over that time,” Slack said in the filing. “Slack is not updating its financial guidance for the fourth quarter of the fiscal year.”

Slack stock fell 8% after the filing. In general, it’s been wavering between $20 and $30 for months. This is far from its original offering of $38.50. It went as high as $42 before plummeting in 2019.

What to Expect Going Forward

Investors were expecting Slack to announce major news after the IBM report. This wasn’t the case. They actually put some water on that fire instead.

Nevertheless, Slack stock seems to be correlating with the news cycles. Good news and bad news are the only indicators we have seen so far. Fortunately, there has been more good news as of late.

They announced a new collaboration with SiriusXM in December. The world’s largest audio entertainment company is rolling out Slack companywide.

Next comes the fourth quarter earnings report, which the company will release next month. While their stock hasn’t seen much growth, their revenue has. Revenue increased 60% year-over-year in the third quarter. Analysts expect a rise of 55-56% for the full fiscal year.

That’s great news considering Slack hasn’t made a major dent in the market. RBC suggests workplace messaging applications have an addressable market as high as $86 billion. Slack’s fiscal 2021 revenue is below $1 billion, which means there’s still a lot of room to grow even further.

Their main competition is Microsoft (Nasdaq: MSFT). This is the latest sign of bad news. It’s never easy to compete with the software giant. Their Microsoft Teams application bundles with the Office365 suite and already has a larger user base.

Can Slack Hold its Ground with Microsoft?

Slack is in direct competition with Microsoft. That’s no easy task, but it’s their only competition at the moment. Microsoft, on the other hand, is in competition with anyone and everyone in various markets. This includes other giants such as Amazon (Nasdaq: AMZN).

These competitors …read more

Don’t Plant Trees – Invest in Them

I’m all for planting trees. As is President Trump. He announced his support for the Trillion Trees initiative at the World Economic Forum in Davos, Switzerland, in January. And he reaffirmed his commitment to the initiative in February’s State of the Union address.

But some people are saying that planting trees isn’t nearly enough to address climate change. In fact, the initiative has been hammered by a number of environmental organizations.

And these organizations make some good points. No doubt, there’s a long list of steps that should be taken to slow down climate change. And the sooner the better.

But to disparage planting trees because it’s not THE SOLUTION is stupid. There is no one solution. And because trees absorb and sequester carbon, they can play an important role in restoring the environment.

One of the main concerns about the Trillion Trees initiative is practical. The world simply doesn’t have the space to accommodate 1 trillion new trees. Critics also believe the initiative will keep people from focusing on the more urgent mission of reducing carbon dioxide emissions.

Experts even wonder whether trees can make more than a symbolic impact. A report from the National Academies of Sciences, Engineering, and Medicine says we’d have to dedicate nearly 371 million acres (more than twice the area of Texas) to remove the roughly 5.8 billion tons of carbon emissions the U.S. produced last year.

The World Resources Institute (WRI) says the U.S. has the potential to add 3 billion trees per year to its landscape. That would sequester less than 10% of the carbon dioxide the U.S. emitted last year, according to Rhodium Group estimates.

These numbers indicate that trees will have a limited impact on reducing carbon dioxide levels. And some people question whether it will have any positive impact at all. They argue that trees are not an effective sequestration tool.

Most of the carbon trapped in tree trunks, branches and leaves of trees simply returns to the atmosphere, whether the tree dies as a result fire, logging or simply falling down. Jane Flegal, a member of the adjunct faculty at Arizona State University, says, “Carbon sinks can become carbon sources very quickly.”

I asked my friends at World Tree whether this is true. They said Flegal’s comments are misleading. Trees, they said, can become a source of carbon emissions only in areas where there are either a lot of forest fires or forests that are deliberately cleared using fire (e.g., the Amazon).

This nuanced view of tree planting is important. World Tree understands this intimately, in part because its business model is built on planting (and eventually cutting down and selling) the world’s fastest-growing hardwood tree – the Empress Splendor.

The Empress Splendor absorbs 103 tons of carbon dioxide a year. That’s 11 times more than any other tree. It also replenishes the soil and is noninvasive. World Tree wants to plant 3.5 million of these trees all over North, Central and South America in the next five years.

This issue deserves a more detailed explanation, so here is what …read more

The Secret to 12 Triple-Digit Wins (So Far) in 2020

Why aren’t the majority of investors successful? Because they do what everyone does.
Today, our good friend Andy Snyder explains how to rise above mediocrity and achieve true wealth.

Editor’s Note: Our good friend Andy Snyder – the founder of Manward Press – has a critical message for Liberty Through Wealth readers today. He’s on a mission to help others rise above mediocrity and achieve true wealth.

After racking up a string of triple-digit gains in his trading research services, he has gone public with his award-winning trading strategy and is teaching all his subscribers how they can use it for themselves.

Check out his powerfully simple message below and get more details on his strategy here.

– Christina Grieves, Senior Managing Editor

I was invited into the presidential suite of a swanky Baltimore hotel last week.

I was there for an interview. A team is filming a multipart documentary about wealth, and they wanted to share my story.

It was fun. But, I admit, I unloaded some big ideas on the host.

I dove into why I do what I do… my time in Alaska’s wilds… why I farm… and, of course, what everybody seems to want to know about these days, my award-winning investment strategy.

But the host – who I consider an intellectual giant – kept coming back to a key theme.

What is it, he asked, that so many folks are doing wrong?

Oh boy… I looked at my watch and asked how much time he had. This was a daunting task.

But I got out my verbal knife and whittled the theme into just one sharp idea.

Ninety-Nine vs. One

Be specific, he said. What is it that the successful wealth builders are doing that others are not?

I pushed back. “You already answered your question,” I said…

“The successful are simply doing what others are not.”

I went on to use the same words I’ve tapped out so many times to my Manward Press readers… “If you do what everybody else is doing, you get what everybody else is getting.”

It’s the very definition of mediocrity.

Look, I said, the internet is great, but go online and search for “proper portfolio diversification.” You’ll get 99 versions of the same old tripe before you stumble across advice that’s actually worth reading.

Most folks, though, blindly follow the 99. And they get just what we’d expect.

Mediocrity.

Take a topic I’m quite passionate about these days… option investing.

Go online and read about option trading.

Within an article or two, you’ll read a classic myth that tells of how 90% (or more) of options expire worthless – making them a horrible investment.

The internet has spread this falsity far and wide.

The truth is that options actually can reward investors at much higher rates (if used properly).

The vast majority of contracts – in the realm of 60% – are closed and taken off the market long before they expire. That means they had significant value and most likely represented a gain for their owner.

Out of the 40% that are not closed, 10% of them are converted into …read more