Air Canada Should’ve Been Buffett’s #1 Pick – Not America’s “Big 4”

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Last summer on June 28th, I wrote to you and identified Air Canada (ACDVF) as a tremendously undervalued stock.

Since then the rest of the market has caught onto the Air Canada story as the share price has subsequently risen more than 50 percent.

I’m thrilled with how this has played out for us…

But I don’t think that the Air Canada story is done.

This stock is still BY FAR the best value in the airline sector, and today I want to crunch the numbers to show you why.

But first, a quick reminder why we were looking at airlines in the first place.

Warren Buffett is Incredibly Bullish on Airlines

Over the past several years, Warren Buffett has invested billions of dollars into the four main U.S. airline operators.

As of the last regulatory filing, Warren Buffett’s company Berkshire Hathaway owns the following:

  • 65.5 million shares of Delta Airlines (DAL) worth $3.3 billion
  • 54.8 million shares of Southwest Airlines (LUV) worth $2.5 billion
  • 21.9 million shares of United Continental (UAL) worth $1.8 billion
  • 43.7 million shares of American Airlines (AAL) worth $1.4 billion

Combined, that is a $9.0 billion investment which even for Warren Buffett is enough money to show he is extremely bullish on the sector.

The interesting thing about Buffett moving into airlines is that for decades he hated the sector as an investment class with a passion. He once even called the industry a “death trap” for investors.1

So what changed to make Buffett warm up to airlines?

The answer is competition. Or more accurately, the lack of competition.

Buffett started investing in airlines in 2016 after U.S. Airways merged with American Airlines. The consummation of that merger marked the end of a decade-long period of constant airline consolidation which changed the competitive landscape of the industry.

Instead of 20 plus airlines competing relentlessly for passengers, by 2016 the industry had been reduced to mainly the Big 4. Out went an era of discount pricing and relentless competition and in came an era of sensible pricing and widening profit margins.

This industry is now what is called an oligopoly, folks. And while it isn’t great for customers, it is fantastic for airline profits.

Mr. Buffett is Still Missing the Best Airline Bargain

When I wrote last June about airlines, I noted that Buffett should have been looking north of the border at Air Canada if he really wanted to own an airline with some upside.

Since then, I have not been proven wrong with Air Canada’s share price vastly outperforming all of Buffett’s four airline holdings.

Air Canada chart

My opinion is that today it still isn’t too late for Buffett to get invested in Air Canada. The stock still has plenty of room to run.

Buffett has invested in the four major U.S. airlines because the industry is now an oligopoly. In Canada there is even less competition with the market being essentially a duopoly consisting of just Air Canada (55 percent market share) and its main competitor WestJet (37 percent market share).

Further, Air Canada shares are still very inexpensively valued. Today, the major U.S. airlines still trade at twice the valuation that Air Canada trades at relative to EBITDA (earnings before interest, taxes, depreciation and amortization).

That means that relative to the U.S. carriers, Air Canada has both half the competition (only one main competitor) and half the valuation!

When it comes to those two factors, smaller is definitely better.

Additionally, I believe there is a significant catalyst coming that will continue to push Air Canada’s share price higher…

Air Canada’s Cash Flow is About to Soar

With the company now wrapping up a major period of capital investment in new planes, cash outflows are about to decrease significantly which means that the free cash flow the business generates is going to increase.

Capital Allocation Strategy

Source: Air Canada Corporate Presentation

Over the next three years, Air Canada’s management believes that the company will generate $4.0 to $4.5 billion in free cash flow. That is cash flow that is available after paying all of the bills and making all capital expenditures.

If the company were to use all of that free cash flow to repurchase shares, it could retire half of the shares Air Canada has outstanding in just three years.

That’s great news for the share price!

Bottom line: Warren Buffett is bullish on airlines for good reason — the profitability of the industry has seriously improved. However, the best way to play the action is north of the border — where Air Canada operates with less competition, a cheaper valuation, and with a cash flow catalyst just over the horizon.

Here’s to looking through the windshield,

Jody Chudley

Jody Chudley
Financial Analyst, The Daily Edge
EdgeFeedback@AgoraFinancial.com

1 Buffett Decries Airline Investing Even Though at Worst He Broke Even, Forbes

The post Air Canada Should’ve Been Buffett’s #1 Pick – Not America’s “Big 4” appeared first on Daily Reckoning.

URGENT: If You’ve Missed the Rally — Read This

This post URGENT: If You’ve Missed the Rally — Read This appeared first on Daily Reckoning.

There’s nothing more heartbreaking than a missed opportunity.

About five years ago, I had a conversation with Jake, a good friend of mine who was also a hedge fund manager.

Jake was telling me his biggest regret when it came to investing.

“If only I had realized how strong the market was in 2012,” he told me with shame in his eyes. “I missed out on one of the best investment periods in my life! One that would have vaulted my company into the big leagues!”

Today, Jake doesn’t have a fund to manage. All of his investors pulled their money from his fund and he’s left managing just a small amount of capital for himself.

I can’t help wondering what would have happened to his career if he hadn’t spent the majority of 2012 through 2015 with his money on the sidelines.

There are some market opportunities you just can’t afford to miss, which is why I want you to pay special attention to today’s Daily Edge opportunity.

The 2019 Market Move You Don’t Want to Miss

Whenever we see the entire market, or even a group of stocks moving higher, it’s easy to think we’ve missed the boat. Human nature tells us to wait for a pullback, rather than jumping in and buying while prices are pushing higher.

That’s exactly what my friend Jake did when the market started trading higher in 2012.

Jake realized that a shift had taken place. But he decided to wait for a pullback before he put the money in his hedge fund to work. If you’re a student of the markets, you know that the market didn’t really pull back significantly until 2015. And by that time, Jake’s investors had lost patience and pulled their money out.

This is the true definition of being “penny wise and pound foolish.”

By trying to time the market and save a few points getting in at a cheaper price, Jake missed three years’ worth of gains for himself and his investors.

I bring this story up because today’s investors may be feeling similar sentiments about the oil market.

In December, the price for a barrel of oil was in a free-fall, with oil futures hitting a low of $43.40 on Christmas Eve.

Fast forward to this week and oil just pushed over $65 per barrel on news that Trump plans to re-implement sanctions on countries that trade oil with Iran.

In short, oil has rallied more than 50% from the December low. And a number of traders that I’ve heard from are lamenting the fact that they didn’t get in when oil was cheaper, and that they can’t buy now because it’s rallied so much.

These traders are falling into the same trap that my friend Jake did. They’re afraid to put their money to work because they don’t want to look foolish if they buy now when oil prices are higher, only to experience a pullback.

It’s a tough spot to be in. Because the more oil rallies, the more they look foolish for not being in the market and taking advantage of higher oil prices.

Fortunately, you’ve been profiting from this rebound in oil, because we’ve been talking about a lot of great opportunities in the energy sector for the last several months.

You have been profiting haven’t you?

If not, don’t make the mistake of waiting any longer. Because this week could be the start of the next big push for energy investors.

An All-Star Lineup of Energy Earnings Reports

This week — starting tomorrow morning — we’ve got a handful of earnings announcements that will give us a good perspective on where energy stocks are headed this year.

Tomorrow, energy titan Hess Corp. (HES) will release its earnings report before the market opens. The company’s management team will then host a conference call at 10:00 EST where they will be sure to discuss their views on the future price of oil as well as the company’s outlook for profits the rest of this year.

And then on Friday morning, Exxon Mobil (XOM) and Chevron Corp. (CVX) will post their earnings before the market opens. The investor conference call for XOM starts at 9:30 EST and the call for CVX is scheduled for 11:00 EST.

(You can listen to the calls yourself via the “investor” tab on their respective websites.)

These three earnings reports will set the tone for the entire energy complex.

Think about the companies that not only produce oil and natural gas, but also the service companies that supply the drilling rigs, and the pipeline companies that transport oil and gas away from the wells. You’ve also got refiner companies that are currently locking in big profits from selling gasoline and diesel fuel at high prices. And even specialty companies that provide sand and water for the “fracking” process.

There are so many stocks in this industry which have already been trading higher this year. You may have seen these movements and told yourself that you’ll buy the next time these names pull back.

Today, I wanted to tell you about my friend Jake’s experience so you don’t make the same mistake and miss out on this opportunity.

Oil stocks may have already moved higher from the December lows.

But they still have a long way to go.

Keep in mind that oil companies don’t need oil prices to continue to move higher to generate profits. Just keeping oil stable at the current levels will allow big companies like Exxon and Chevron to ramp up production and generate big quarterly profits.

And that means pipeline companies will have to transport more oil from wells to the refiners. The refining companies will have to churn out more gasoline and diesel fuel.

And everyone along the way will see profits continue to climb through the summer.

So if you’re sitting on the sidelines wondering when to get in on this energy market, please don’t wait any longer.

The earnings reports coming up this week could spark a new fire under these stocks and keep the positive trend going. You’ll want to make sure your capital is invested so you can profit from this next move.

Here’s to growing and protecting your wealth!

Zach Scheidt

Zach Scheidt
Editor, The Daily Edge
TwitterFacebook ❘ Email

The post URGENT: If You’ve Missed the Rally — Read This appeared first on Daily Reckoning.

Deadly Accurate Recession Warning Flashes

This post Deadly Accurate Recession Warning Flashes appeared first on Daily Reckoning.

The flighty birds congregate in the stock market. The wise owls nest in the bond market.

The bond market will let you know where the economy is heading, say the veterans.

It will not be so easily deceived by the Federal Reserve’s false fireworks. With knowing eyes it penetrates the magician’s secrets… and exposes the fraud.

New York Times economics reporter Neil Irwin:

Savvy economic analysts have always known the bond market is the place to look for a real sense of where the economy is going, or at least where the smart money thinks it is going.

Where does the smart money — the owls — think the economy is going?

Answer anon.

But first a glance at the futureless present… and the stock market.

Stocks took a dreadful thumping today.

The Dow Jones plunged 460 blood-soaked points. The S&P dropped 54; the Nasdaq, 196.

Weakened global growth is one explanation widely on offer. Soft factory data out of Germany, in particular.

But come we now to the latest message from the bond market, not unrelated…

AWhat economic future does the smart money presently foresee?

A lean season… and diminished prospects.

Today the bond market blinked an ominous signal…

An inverted yield curve.

The yield curve is simply the difference between short- and long-term interest rates.

Long-term rates normally run higher than short-term rates.

It reflects the structure of time in a healthy market.

The 10-year yield, for example, should run substantially higher than the 2-year yield.

For the reasons we needn’t look far…

Longer-term bond yields should rise in anticipation of higher growth… higher inflation… higher animal spirits.

Inflation eats away at money tied up in bonds… as a moth eats away at a cardigan.

Bond investors therefore demand greater compensation to hold a 10-year Treasury over a 2-year Treasury.

And the further out in the future, the greater the uncertainty. So investors demand to be compensated for taking the long view.

Compensated, that is, for laying off the sparrow at hand… in exchange for the promise of two in the distant bush.

But when short- and long-term yields begin to converge, it is a powerful indication the bond market expects lean times ahead.

The yield curve flattens… and time compresses.

When the long-term yield falls beneath the short-term yield, the yield curve is said to invert.

And in this sense time itself inverts.

Time trips all over itself, staggered and bewildered by a delirium of conflicting signals.

In the wild confusion future and past collide… run right past one another… and end up switching places.

Thus an inverted yield curve wrecks the market structure of time. It rewards pursuit of the bird at hand greater than two in the future.

That is, the short-term bondholder is compensated more than the long-term bondholder.

That is, the short-term bondholder is paid more to sacrifice less… and the long-term bondholder paid less to sacrifice more.

That is, something is dreadfully off.

It suggests an economic winter is coming… when investors expect little growth.

And today a closely monitored section of the Treasury yield curve inverted… for the first time since 2007.

The 10-year Treasury yield slipped beneath the 3-month yield.

This inversion is a near-perfect omen of recession — conceded even by the Federal Reserve.

Reuters:

The 3-month and 10-year spread is the Fed’s preferred measure of the Treasury yield curve as it shows the strongest historical correlation between curve inversion and a forthcoming recession.

President Trump’s chief economic point man Larry Kudlow agrees — keep a weather eye on the 3-month yield versus the 10-year yield:

“It’s actually not 10s to 2s; it’s 10s to 3-month Treasury bills. Very important.”

Sharpening the point to a poignant maximum is analyst “The Fortune Teller”:

“Let me say it loud and clear: The yield curve is telling you that a recession is on its way.”

It is not a warning to be put off or placed behind the clock.

According to Bank of America, an inverted yield curve has preceded recession on seven out of seven occasions over the past 50 years.

Only once did it holler wolf… in the mid-1960s.

An inverted yield curve has also foretold every major stock market calamity for the past 40 years.

As mentioned, the yield curve last inverted in 2007.

2007 — if memory serves — immediately preceded 2008.

Prior to 2007, the yield curve last inverted in 1998. Recession was not far off.

Warns Paul Hickey, co-founder of Bespoke Investment Group:

When it comes to an inverted yield curve, anyone who ignores its economic message should do so at their own peril. 

In graphic detail, the gray bars of recession following a yield curve inversion:

Chart

And now, early in 2019…

This doomy portent drifts once again into view…

And given the extreme duration of the current recovery and the still-inflated stock market, the thumping could assume historic grandeur.

“We’re going at least for a 40% decline from the S&P’s top,” warns Otavio Costa, macro analyst at Crescat Capital.

But is an inverted yield curve an immediate menace, a stormcloud overhead?

It is not.

History reveals the dismal effects of an inverted yield curve may not manifest for perhaps 18 months or longer.

Eighteen months would place late 2020 on watch.

Of course recession may fall later — but also earlier. The hour and minute we cannot say.

The gods have denied us the gift of foresight… and the wisdom that attends it.

Unfortunately, the owl of Minerva flies only at dusk…

Regards,

Brian Maher
Managing editor, The Daily Reckoning

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3 Market Myths Debunked

This post 3 Market Myths Debunked appeared first on Daily Reckoning.

This weekend, the stock market bull turned 10 years old, handing investors more than 17% in annualized total returns along the way.

According to my old S&P coworker, Howard Silverblatt, that performance is more than three times better than the annualized return from the end of 1999 (5.43%) and almost twice as good as the return since 1989 (9.64%).

Of course, plenty of people stayed on the sidelines and lots of experts encouraged them to do so.

This is pretty common.

When shares of U.S. companies are going up, they say stocks are getting too expensive.

When the market is falling, they say it’s too dangerous to jump in because more downside is certain.

And when stocks are going sideways, they repeatedly say the action proves investing in U.S. shares is an outdated strategy.

This kind of hyperbole makes for interesting reading, but it can also end up dooming your nest egg to a life of anemic gains. Or worse, repeated losses.

So today, I want to talk about three major market myths that continually float around out there…

Myth 1:Buying and Holding Good Stocks Doesn’t Work

Market watchers have loved saying “buy and hold” approaches don’t work for as long as stocks have been trading.

Traditionally, you would hear this from stock brokers who stood to make a lot more in commissions by encouraging their clients to trade in and out of positions. But even in today’s world of low-cost brokerage accounts, there are still plenty of experts telling investors that long-term investing is a stupid move.

I agree that a buy-and-hold approach isn’t ideal for some investors and there are plenty of active trading strategies that work well.

However, the idea that you can’t make very good money by sticking with big companies and holding them for years on end is patently false… especially if their stocks pay nice dividends.

Here’s an illustration that will probably surprise you…

The top three contributors to the S&P 500’s performance during this bull market have been Apple, Microsoft, and JPMorgan.

No real surprises there.

But in fourth place? General Electric.   

Yes, the same General Electric that has been absolutely decimated in recent times!

Despite all that pain, the fact that the stock was even lower in the throes of the Great Recession – along with all the dividends it paid along the way – still manage to put its total return toward the very top of the list.

So you can make LOTS of money by simply buying solid dividend payers at fair prices and then doing nothing more for years at a time.   

Of course, a lot of folks will say it’s impossible to find good values now that the market has run up so much over the last ten years.

Myth 2: Buying Stocks Right Now Is a Sucker’s Move

The chorus of stock market naysayers grows with every new all-time high in the S&P 500. And to be sure, we are no longer seeing a huge smorgasbord of undervalued companies out there.

At the same time, you CAN still find good bargains. In fact, some of my favorite blue chip names have actually been going down even as hot names continue to rise on hype.

What you have to remember is that generalizations like “stocks are now overvalued” don’t tell the full story. There are many thousands of individual companies trading out there – each of which needs to be evaluated on a case-by-case basis.

Just because the market is sitting at some particular P/E ratio doesn’t mean there isn’t a small tech firm experiencing tremendous growth or a large retailer being unfairly punished because of its latest earnings report.

In addition, there are plenty of ways to play stocks more aggressively or profit from short-term swings.

The key is determining your goals and then sticking with the plan you’ve made.

Which brings me to one last major market myth…

Myth 3: You Can’t Make Money If Stocks Aren’t Moving Up

Nothing could be further from the truth.

As I’ve already explained a million times, you can easily collect solid dividend checks month in and month out no matter what the underlying stock is doing (or not doing).

In addition, the market is always moving at least a little bit every day. So you can also use advanced timing tools to play the many peaks and valleys that occur within a longer period of sideways action.

Plus, there are two more ways to make money from stocks during sideways – or even down – markets:

For starters, you can sell options to generate additional income from stocks you already own or even on stocks you’d like to own.   

You can also aim to profit as individual stocks – or the broad market – falls. And you can do this by buying put options… short selling… or simply using inverse exchange-traded funds (ETFs).

So the bottom line is that there are countless ways to make money from the stock market, especially if you choose to employ a combination of the ideas I touched on in today’s article.

Really, the only bad approach is letting others scare you away from one opportunity after another.

To a richer life,

Nilus Mattive

— Nilus Mattive
Editor, The Rich Life Roadmap

The post 3 Market Myths Debunked appeared first on Daily Reckoning.

REVEALED: When Recession Starts

This post REVEALED: When Recession Starts appeared first on Daily Reckoning.

Today we reveal the time frame of the next recession — to within three months.

The surprising details anon. But first to a far more immediate catastrophe…

We are informed the partial government “shutdown” has entered a record-extending 25th day.

It is information we must take on faith, and at second hand.

That is because we have suffered not the slightest disruption to our affairs… nor has anyone within our orbit.

We would prolong the calamity until the very last cow reports to the butcher… or the first honest politician reports to Washington.

That is, we would prolong the calamity permanently.

But those more publicly minded insist we are mistaken.

They claim the shutdown is already casting a shadow, broad and heavy, over the United States economy.

Over 800,000 federal employees have been thrown from the public payrolls, they argue.

Data technology company Enigma estimates the shutdown has “blown a nearly $5 billion hole in federal workers’ finances.”

And the economy is deprived of their labor’s fruit.

Private contractors who guzzle from the federal trough are likewise going thirsty.

In turn, so are merchants downstream of the central catastrophe.

Moody’s chief economist Mark Zandi says the shutdown will drain 0.5% from first-quarter GDP:

We estimate (the shutdown) will reduce first-quarter real GDP growth by approximately 0.5 percentage points. Of this, about half will be due to the lost hours of government workers, and the other half to the hit to the rest of the economy.

But we would remind the calamity-howlers:

All furloughed federal employees will be issued full back wages once the “shutdown” ends.

And all water drained from first-quarter GDP will go back in the tub.

Meantime, the paid vacationers can snooze deep into the day, laze before the television, munch popcorn… secure in the knowledge that all back pay is due them.

But to return to the question under consideration… the time frame of the next recession.

Global growth is coming to a crawl.

Chinese exports have plunged to two-year lows. December imports also dropped 7.6% — a portent of softening domestic demand.

Meantime, European factory output wallows at three-year lows.

If we use global industrial growth as a proxy for global economic health, Zero Hedge reminds us, the world has almost certainly sunk into recession.

The United States economic machine still runs forward. But at a reducing rate.

Morgan Stanley, for example, projects U.S. growth will slip to 1% by 2019’s third quarter.

All the while, growth of global central bank balance sheets went negative last August.

Bank of America reports global money growth (measured by M1 money supply) nears its lowest point since mid-2008.

And Morgan Stanley confirms that each time M1 money supply growth tips negative — as it presently is — trouble of some type is on tap:

Chart

So is recession dead ahead… like an iceberg in the North Atlantic night?

Here our tale gathers pace…

The Federal Reserve has essentially announced a halt to its rate hikes.

A March hike has already been removed from the card table. Later hikes are also in question.

But will it be enough to sustain the show?

Once a global slowdown becomes obvious even to the Federal Reserve, it may be forced to take one additional step… and actually cut rates again.

That will be the point we suspect recession is close.

But is it not common knowledge that Federal Reserve tightening precedes a recession — not loosening?

Yes, but monetary policy features a delayed fuse.

Previous tightening will have already worked its damage. By the time it is appreciated, it is time again to back off.

The Fed begins cutting rates. But it is too late.

Let the record show:

The past three recessions followed within 90 days of the first rate cut that ended a hike cycle.

Explains Zero Hedge.

While many analysts will caution that it is the Fed’s rate hikes that ultimately catalyze the next recession and every Fed tightening ends with a financial “event,” the truth is that there is one step missing from this analysis, and it may come as a surprise to many that the last three recessions all took place [within] three months of the first rate cut after a hiking cycle!

Does the rate cut itself frighten the horses… and turn a slowdown into a rout?

One can argue that it was the Fed’s official admission of economic weakness — by cutting rates — that triggered the economic contraction that was gathering pace as a result of [previous]higher rates and tighter financial conditions.

Once again — if the past three recessions are true indicators:

The next recession will commence within three months of the next rate cut.

The supreme irony:

Wall Street will consider the rate cut a beautiful omen for the stock market…

Regards,

Brian Maher
Managing editor, The Daily Reckoning

The post REVEALED: When Recession Starts appeared first on Daily Reckoning.

The 3 Assets You Already Own

This post The 3 Assets You Already Own appeared first on Daily Reckoning.

Kim and I are all about simplifying.

We like making finances simple, which is why we’ve written several books and created multiple courses to help people understand the basics of the language of money. And we support others who carry out the same mission. Like a hero of mine, and a financial genius, figured out a way to transform your retirement. (You can find out how if you watch her short video before THIS hits at noon tomorrow.)

One of the key principles we bring up over and over again is the difference between an asset and a liability. All other lessons hinge on understanding these two concepts.

In the financial world, we talk about assets and liabilities in terms of money, cash flow, and capital gains. Assets are investments that give you high returns and grow in value, like stocks and real estate. Liabilities, on the other hand, are things you buy like cars, electronics, and yes, houses, that take your money and mostly decrease in value.

Assets and liabilities can also exist outside the financial world, and the assets you already own are just as valuable as the financial investments you make.

When people start their financial journey, they immediately want to go out and start buying up financial assets. But they quickly run into problems, and start moaning:

“I can’t afford to invest in assets.”

“I don’t know how to find assets. Where do I even start looking?”

“What kind of assets should I invest in? Where do I begin?”

What they don’t realize is that you have to invest in yourself and the assets you already have before you can invest anywhere else.

Below are three assets you already own that you should invest in just as faithfully as your financial assets. They can bring you great returns and increase in value over time, and all they require is your attention and care.

Your Identity

Recently on the Rich Dad Radio Show, Kim and I spoke about protecting yourself and your identity from cyber-attacks. One of the key points I took away from this program is the idea that your identity is one of your greatest assets, and as such, must be protected.

In this digital age, your identity is composed of an abundance of information you generate every day. It includes all the data coming from your digital devices, your finances, your social data, your healthcare data, your transportation data, even your legal data.

We spend our entire lives, every minute of every day, adding to and building our identity, and it helps us buy homes, apply for jobs, open new bank accounts, travel out of the country, and much more.

Unfortunately, most people don’t realize how valuable their identity is as an asset until they have their identity stolen. When online hackers access your information, they can steal your information and use it for their own purposes, which can wreck your identity.

Once your information is stolen, an asset you once took for granted starts to prevent you from living your life.

You might try to file a tax return and be blocked. You might turn on your computer and find all your information is deleted. You might attempt to get a mortgage but find out there’s already a mortgage in your name somewhere else. Medical treatments you knew nothing about start popping up on your insurance bill.

We work hard to craft an identity that will be an asset to us. We actively build our credit scores, pay our bills on time, protect our Social Security numbers, file our taxes correctly, and have all the right insurance in place.

With this asset, we are able to increase our value and move along on your journey to monetary independence. Without it, we are prevented from accomplishing many important things in life.

That’s why having the right protection in place for this particular asset is so important. Investing in this asset means taking the steps to ensure it is protected from hackers.

Your Relationships

People often get uncomfortable when I start talking about relationships as assets. They don’t like viewing their relationships as something they can utilize for their own benefit.

But that’s the wrong way of thinking. Relationships are incredibly valuable assets. The world runs on relationships and having relationships in place that help support you and vital on your journal to having independence, in the monetary sense.

Viewing relationships as assets doesn’t mean viewing people as objects, or only befriending people in terms of how they can help you. But it does mean examining the relationships you have now and exploring how you can invest in them to make them valuable in many different ways over time.

Relationships with family, friends, mentors, business associates and colleagues, your boss and coworkers, even the people at your gym, can lead you places you never thought you would go. Take the time to invest in this asset, and the returns you receive will be exponential.

Your Mind

Your mind is one of the only assets in the world that will never decrease in value. It has infinite returns, as you can always be improving your mind. You can always learn and grow and change your thoughts, which is incredible! There is no end point to the growth of your mind.

That’s why at the Rich Dad Company, we view cultivating your mind and increasing your education as the first and most important step to achieving independence in the financial aspect of your life.

Investing in this asset means increasing your education, learning new things, trying out new experiences, and taking the time to actively grow your knowledge.

The best part is, in this day and age, investing in your mind is one of the few assets that doesn’t have to cost you a dime. With the variety of online courses and free lectures available, you can invest in your mind every single day and benefit from the returns.

Invest in Yourself First

You have to invest in yourself first before you can start investing in anything else. This is a lesson that few people seem to grasp. When people learn about assets and liabilities, they want to jump into a real estate deal or start buying up stocks and commodities, neglecting the valuable assets they already own.

The assets listed above can create a solid foundation for you that can allow you to succeed when you start investing in financial assets.

Take some time to invest in them and watch how your financial journey becomes that much easier.

Regards,

Robert Kiyosaki

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

The post The 3 Assets You Already Own appeared first on Daily Reckoning.

Junior Mining Stocks: Buy Fur Coats During A Summer Heat Wave

Buy Fur Coats During A Summer Heat Wave...buy junior miners during the summer doldrums when most people are snoozing.

My Father grew up in the garment business as my grandfather had a successful tailor and dry cleaning store in the South Bronx right off the Bruckner Blvd.  One of the first lessons he taught me was buy the highest quality winter gear during a heat wave in the summer.  Most people don't even look out a few weeks let alone a few months.  Use other people's shortsightedness as an advantage to get bargain basement opportunity.

Although its the summer doldrums and its hard to stay focused on the markets, we must not ignore the few areas in the mining sector that are really drawing the attention of the markets.  Eventually our sector will come back and could possibly lead.  Look at oil and copper a couple of years ago it was in the basement and now it has led over the past year.  It almost moved up so high recently that I got nervous for a short term pullback.  Same with gold miners they will eventually come back into favor as the explorers are having a hard time finding new economic gold deposits.  There will be more investments into the juniors notice the recent strategic move of Goldcorp to take a position in Allegiant Gold which I featured only a few weeks ago right here...

Let's look at three current positions that I have recently featured.  Since early May some of our featured companies are up exponential.  This has come at a time when frankly the junior mining sector has sucked.  In some ways its almost as bad as the end of 2015.

Nevertheless, don't give up hope.  Attention should be paid as there is a major conference in Vancouver all next week run by the big boys Sprott, Rick Rule and Doug Casey.  I expect a lot of news going into that conference and possibly buying in the market as you have the top mining promoters and investors who can afford the $900 entrance fee.  Unfortunately, I will not be able to attend but I will have subscribers there that could report back.
http://www.cvent.com/events/2018-sprott-vancouver-natural-resource-symposium/custom-17-1bdaa1f10192419d9f2f6ef3b95b8f23.aspx

First off there are two areas that many of my active subscribers are currently interested in and that I expect to see a push at the conference.  One of them is the golden triangle in BC. Its getting a lot of interest.  Last summer a few stocks went from pennies to dollars as they hit with drilling.  I think we could see another summer of great results thanks to the global warming in that area that has led glaciers to recede and new gold targets to be found. I recently highlighted and bought shares in the open market of $GOT.V Goliath Resources run by Roger Rosmus.
 
They are drilling two new discoveries during this season. Management is very confident that this year’s drilling success will have a positive and material impact on the market cap.  The stock is on the verge of a major cup and handle breakout at $.28 where the next stop could be $.40 according to the technicals.  Give Roger Rosmus a call if you would like to learn more!

 
Goliath Resources Limited
Mr. Roger Rosmus
President and Chief Executive Officer Tel: +1-416-488-2887 x222
Check out the recent exploration news here...
https://goliathresourcesltd.com/wp-content/uploads/2018/07/GOT-news-release-2018-Surface-Exploration-Program-Commences-July_5_2018-1.pdf

Another area which could start gaining momentum again is the Pilbara in Western Australia.  Eric Sprott has been adding to his position Novo and I expect more bulk sampling news which could prove more continuity in the region.  I expect some news before this upcoming conference.  As you know I recently bought shares and have been highlighting Pacton Gold $PAC.V as our pick.  Novo may be bought out soon by Kirkland Lake with some development success which could put all the eyeballs on Pacton which Sprott just bought into when the company raised around $5.5 million and now control the 3rd largest position in the Pilbara Region.  

The chart is excellent looking to form another breakout above $.90.  Its been one of the best performers on the TSX Venture in 2018.  It could be just the beginning if Novo makes some positive developments going into this Sprott Conference in Vancouver.
For more information on Pacton Gold contact 1-(855)-584-0258 or info@pactongold.com and ask to speak to the Chairman Dominic Verdejo
Check out their recent news by clicking here...
http://pactongold.com/index.php/investors-en/news-releases/193-pacton-gold-to-acquire-highly-prospective-bellary-dome-project-in-pilbara-mining-region-where-multiple-nuggets-discovered

Finally I would like for you to look at an interview with Plateau Energy Metals $PLU.V $PLUUF.  You may remember it as Plateau Uranium but it has changed its name as they have made a huge lithium discovery which they have taken from discovery to a possible maiden resource any day now which could knock the socks off the lithium industry!  It could be big.  I wouldn't be surprised if this could be soon taken out by a Lithium Americas or possibly the Chinese once they have that maiden resource in hand as early as the next couple of weeks.  

Please listen to this interview as this is quite exciting times for $PLUUF!  

https://www.youtube.com/watch?v=ec_4CrUHXzE

Best wishes,

Jeb Handwerger

Disclosure: Disclosure: Author (Jeb Handwerger) owns shares in these sponsored companies and I want to sell them for a profit.  Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Author is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Author is not an expert in any company, industry sector or investment topic.

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