Market Warning: Second Crash Coming?
In January I mailed a letter to 163,000 investors warning them stocks could drop 50% in the next 12 months…
At the time I knew nothing about COVID-19 – and not in my wildest dreams did I believe it would touch off one of the biggest stock-market drops of our lifetime… in a single week.
But that’s exactly what happened. And more pain could be coming! Here’s how to insulate yourself from another shock.
Fellow Investor,
Hello, I’m Robert Rapier.
As a guy who runs an investing service with a 31-year track record of gains reaching 3,584%...
I don’t normally pay attention to the gloom-and-doomers.
But the coronavirus has changed everything we thought we knew about stock-market behavior.
In just 16 days, stocks reversed from an all-time high to a bear market. We’ve never seen anything even close to that before.
Three times in six trading sessions, we witnessed the largest single-day point crash in stock-market history…
On March 9th, the Dow set a new record, dropping 2,013 points.
Three days later, it set another record by falling 2,352 points.
Then on March 16 came the biggest crash of them all, with the Dow finishing down 2,997 points. (That’s almost 4x more than it lost in any single day in the entire 2008 financial crisis.)
The Fed is helpless. In their first emergency interest rate cut since 2008, they slashed rates to zero. It was the most dramatic move they’ve made since the 2008 financial crisis.
Result? The Dow dropped 785 points!
Then, when the Fed announced an even bigger rate cut on March 15th, stock futures hit “limit down”, and ended the day 1,169 points lower.
Clearly, the old playbook isn’t working.
We haven’t seen any of this before. America is grinding to a halt…
Almost every school, college, and university — shut down.
Airplanes sit empty. Same with trains, buses, and hotels.
Every professional sporting league… canceled for the season.
Restaurants dark. Churches shuttered. Festivals canceled. Heck, even Disneyland closed down.
As businesses across America hunker down to weather the storm, we’re seeing a dramatic spike in unemployment.
In fact, the president of the St. Louis Federal Reserve sees unemployment hitting 30% in the coming months. That’s Great Depression stuff.
The last time the market suffered a shock this severe, Congress stepped in to help out.
On October 3, 2008, it passed the bank bailout law and injected $700 billion into the financial system.
But instead of going up, stocks dropped another 31%.
But before you sell everything and stuff your cash under a mattress, I have some good news…
I can almost guarantee that one special group of 201 stocks
WON’T be following the economy to the bottom.
In fact, they usually go up when the market panics.
These unique companies are concentrated in large population centers.
They’re almost always monopolies… selling a product that 152 million customers are virtually addicted to.
And the kicker is, they are mandated by law to make a profit. (The Supreme Court ruled on it back in 1865.) Even now, in a time of crisis!
No other class of stocks enjoys this favorable legal status.
This makes them the safest equities in America. Not a single company in this entire industry has ever gone out of business — ever.
That’s because every single one of these businesses sells something that people refuse to go without.
That’s the key. When you buy into businesses getting constant revenue from services that people insist on buying no matter what, it’s hard to lose.
At the office, we call them “essential-service” stocks.
These companies enjoy the extreme advantage of constant demand.
I mean it literally never stops.
That’s why they never go out of business.
For example, nobody today is going to go without water or electricity if they can help it. It’s a matter of life and death in some areas.
In Arizona, people would literally die without air conditioning.
Same thing with water. You don’t just want water, you need it.
So, it’s no coincidence that some of the biggest money-makers I recommend are in the business of providing water and electric power.
And try spending a winter in North Dakota without heat. No one wants to go through that. So natural gas is another big sector I have my readers positioned in.
These aren’t glamorous enterprises. But they’re undeniably lucrative over the long run.
It’s simple to see why: When you’re buying into a business that gets constant revenue from services people will never stop paying for… you’ve got a strong wind at your back.
What’s more, these companies pay generous dividends… and even better, they raise them constantly, because their cash flow keeps rising.
So, these cash-generating machines can mail you ever-growing dividends for as long as you own shares.
In case you haven’t guessed yet, I’m talking about good old-fashioned utility stocks. The kind our grandparents used to buy.
You can hold onto these stocks for decades… because your income keeps rising and there is no reason to sell. In fact, the longer you hold, the better.
Want proof?
Take a look at how our utility picks are doing.
This is a snapshot of every utility stock we currently hold in our recommended portfolio. As you can see, we’re profiting on 91% of these investments.
We’re posting gains on 20 of our 22 picks. And not just small ones — our average total return is 739%.
That’s more than eight times our money!
Now to be clear, that number was much better before the virus-induced market crash…
And the simple fact that they’re not all in negative territory is why I believe in these companies so much.
Honestly, resilience of that nature shouldn’t be all that shocking when you remember these outfits provide things people absolutely need… no matter what the economy or stock market are doing.
I have been investing since I was 16.
I started with absolutely nothing… never received an inheritance… and I’ve grown my portfolio to seven figures, thanks to the sort of companies I’m telling you about today.
These businesses crank out the cash no matter what... which is exactly the sort of stock we all need right now.
If you’ve spent decades building your nest egg, don’t watch it all go poof — especially when you can prevent it so easily.
The stocks I stick to are as close to a bullet-proof hideout for your money as you’ll ever find.
Because they sell must-have products and services, they are the most crash-proof stocks anywhere.
They shed bear markets like water off a duck… and can actually go up when the rest of Wall Street panics.
Just look at what happened in every serious market reversal of recent years…
When the Dow and S&P 500 each shriveled by about 20% in the fall of 1998, utilities — the ultimate essential-service stocks — rose 4%.
After the market plunged in the dot-com crash of March 2000, these same essential-service stocks were up 42% by the end of the year… and have gone on to rise 400%, quintupling investors’ money.
Then came the vicious bear market of 2008.
By the end of 2009, utility stocks had fully recovered and eked out a small gain. Meanwhile, the S&P 500 was still down 4.4%.
This keeps on happening…
Just last March, when the S&P 500 slumped 7.2%, the Dow Jones Utility Average was actually up.
And despite a brutal October for stocks, our portfolio rose in value that month.
I won’t pretend that our picks never dip. They do. And they can take on a little water when the market gets stormy. But they bob around like corks on a wave compared to so many stocks that sink like a stone.
We saw more proof of this remarkable resilience just recently…
Up until the current crisis, 2018 was the worst year for stocks in a decade.
79% of U.S. stocks were down — but more than half of water, gas, and electric stocks were UP.
Now... even in the middle of this vicious bear market... our own portfolio is still going strong, with nine out of every 10 picks in the black.
Our batting average stays so high in tough times because we own so many old-school regulated outfits that sell electricity, water, and gas. What other investment can you buy whose profits are mandated by law?
I can’t imagine a more solid, can’t-lose proposition than hiding away some money in these high-yielding beauties. And when I say “can’t-lose,” I’m not just blowing smoke.
Because to repeat, no regulated utility has ever gone out of business — EVER!
If that doesn’t impress you, then you’re pretty tough to please… or maybe you know something I don’t. I certainly don’t know any other investment that offers you all this…
The 15,000 investors who follow me are racking up a steady stream of income this way. Month… after month… after month.
You can join them today… and the sky is the limit on your profits.
I just took a snapshot of every utility in our recommended portfolio on April 2nd, 2020 and calculated their returns. You can see the results below
You could have made $157,100 with our first pick alone — on a $10k investment.
You can see it for yourself right here. It shows every single utility recommendation in our portfolio. As you can see, it’s sprinkled with massive winners.
And most important of all, there are just two of down positions (even after one of the worst market crashes in history!).
We’re keeping our picks private here, in fairness to our paying subscribers. But in a minute, you’ll see how to get the full story on every one of them.
If you had put $10k into each of these holdings you’d have been up $1,626,000.
Of course, you can go as big as you want. So, there’s no limit to on how much you could have made.
If you had invested $20k, we’re talking about a gain of $3,252,000 — free and clear of your initial investment.
I cover some 200 publicly traded electric, telephone, water, and natural gas companies in the U.S. and around the world.
Right now, the conservative stocks in our Income Portfolio are paying 7.7%. And that’s just the average.
You’ll find four ways to capture yields topping 10% in this portfolio… and up to 19.9% in our larger “How They Rate” overview of the entire utility sector.
What’s more, these companies not only pay generous dividends, they raise them constantly.
In fact, the holdings in our portfolio have boosted their dividends more than three times as fast as the market.
When your quarterly “paycheck” grows that fast, you can make staggering profits even if the share price never budges.
Our dividends have risen so much over the years that the last time we ran the numbers, the average stock in our portfolio was yielding us 67% on our buy-in price!
Your dividend check can eventually grow so large that it surpasses the original price you paid for the stock.
The exhilaration of “lapping” your stock that way is a feeling you never forget.
So, with your permission, I’d like to send you a free Special Report called Old School Stars: 4 Unstoppable Back-to-Basics Utility Stocks. It reveals the meat-and-potatoes utility stocks that will give you the highest returns, including a few that are poised to appreciate spectacularly in the next two years…
The stocks you’ll find in my Old School Stars report are true “forever stocks” — the kind you can buy and forget about.
Mark my words, as the market recovers over the next three to five years, they could throw off dividends and capital gains of at least 100% as a group.
For every dollar you put into them now, you’ll have two dollars in your pocket… and you’ll be doing it by buying businesses that literally can’t fail.
Like every report we release, Old School Stars is the product of our own in-house research team.
That’s what differentiates the work we do from so many financial publishers.
We are 100% independent. We have zero affiliation with any brokerage or investment products.
And we don’t take a nickel from any company we recommend.
Our only mission is to uncover smart ways to make money that our readers would probably never find on their own.
And right now, one of the smartest moves any income investor can make is to put some money into the relentless dividend machines we’ve uncovered in Old School Stars.
I’ll send you this list of cash cows — and all my backup research — at no charge.
All I ask is that you accept a trial subscription to the publication that brings opportunities like this to your doorstep every month: Utility Forecaster.
This 12-page monthly bulletin is the only periodical devoted exclusively to making you money in essential-service stocks. There’s nothing else like it anywhere.
You can count on me to perform three major tasks in every issue of this unique advisory:
This last point is vital, because it means you get an early warning WAY before anything can go south on us.
After all, my job is to look out for you…
So, I do everything humanly possible to make sure we never get blind-sided by bad news.
I put every stock through an analytical boot camp before I even think about recommending it to you.
With 91% of our utility holdings in the black, it’s safe to say the system works.
While the rating system itself is complex, its results are crystal clear. Your investment life will never be simpler.
I’ll tell you where to put your money and when and where to move it around. You won’t trade much.
Why should we fritter away our money on commissions, taxes, and bid/ask spreads? The idea is for us to get richer, not our brokers.
As you’ll see right from your first issue, I report to no one but my readers. Our entire business is built on making money for them—and they only stay with us if they profit.
And since thousands come back year after year, we must be doing our job pretty well.
If you’re interested in joining us, there’s something I’d like to point out.
We started doing this way back in 1989… when the Berlin Wall was still standing.
That really means something when you consider that the average lifespan of an investment advisory is something like 22 months.
I’d say at least 1,450 newsletters and trading services have come and gone since we opened our doors.
Every time a new fad pops up on Wall Street, a new “advisory” pops up to capitalize on it. And 95% of them are now extinct.
That’s not us. We are making money the same way since we started out 31 years ago. We’re about as trendy as Crocs and fanny packs.
But our approach never stops working. Because essential-service stocks never go out of style.
Some of our readers have been with us for decades…
Patrick N. says Utility Forecaster is “working like a charm” for him. He was able to fully pay for his golf "habit" (three rounds a week!) for a full year. And still had enough left over to take his wife to Florida for a winter vacation
And while his results are exceptional, I hear from people like Patrick all the time — investors who have been generating cash this way for years and years…
But the only performance record that really counts is what Utility Forecaster does for YOU.
So… if you prize a high income, steady growth, and, above all, safety, why not join the thousands of investors who are already getting all this from Utility Forecaster?
Come on board with us now and you can put these tireless income earners to work for you immediately. You’ll see how to…
At Utility Forecaster, all we do is help you profit from utilities.
We report to no one but you. If our recommendations don’t increase your wealth, we know we will lose your trust and your readership. And we’d deserve to.
Utility Forecaster is totally independent of the Wall Street machine. We accept no advertising.
Nobody owns us. And we track all of our recommendations, so you always know how much money we’re making for you.
We have one purpose and one purpose only — safely making you wealthy, without a lot of nail-biting and with never more than a thimbleful of risk.
On the contrary, when you try Utility Forecaster, the risk is all ours. (Try getting your broker to take a risk!) You don’t risk a penny with our 100% money-back guarantee.
My publisher reports that Utility Forecaster has one of the highest renewal rates in the industry. You don’t get so many repeat customers unless you deliver on your promises.
Lucinda S. says…
Chuck B. adds…
And Jack T. tells us…
I can tell you about all the money we’re making until I’m blue in the face, but you’ll never know if Utility Forecaster is for you unless you give it a shot.
Here’s an idea: Why don’t you just try my service for the next 90 days, on me?
I’ll make it easy for you to get started.
First, I’ll send you Old School Stars: 4 Unstoppable Back-to-Basics Utility Stocks, which describes in full detail the mouthwatering opportunities I’ve mentioned today.
We will never release this report to the public. But I’ll send you a complimentary copy when you take a trial look at the service that brings these tireless wealth-builders to your door every month.
On top of that, I’ll knock 73% off the standard rate to welcome you as a new member of my service.
So instead of the regular price of $149, you can get in for just $39.
It’s the lowest price we’ve ever offered for Utility Forecaster.
I've also assembled a library of additional special reports and research that you'll receive as a new member today (click through to the next page for details).
Remember, you don’t have to make a final decision right now. Today I’m asking you to just TRY my service.
As soon as I hear from you, I’ll send you the current issue of Utility Forecaster… along with a copy of Old School Stars.
You’ll also get an uncensored look at our entire portfolio so you can see for yourself how we’re banking all these profits.
And please take your time with all this. There’s no rush.
You have three full months to get to know my service… check out each new issue of Utility Forecaster… go over my portfolio… read through all of your special reports and research... and maybe even buy a recommendation or two.
That’s plenty of time to kick-start a growing stream of income into your account.
If it isn’t for you, no problem. Just let us know within 90 days and we’ll send you a 100% refund, no questions asked.
I’m not talking about a partial pro-rated refund. I’m talking about the entire fee.
Even after the first 90 days, I’ll happily send you a refund for all unsent issues.
Of course, your copy of Old School Stars (along with all of your other special reports) is yours to keep—no matter what you decide.
It’s critical that you make your move now, because we could see stocks tumble another 31% over the next five months.
And you might not get another warning from anyone else.
Remember in 2007 when the “authorities” insisted that everything was going to be just fine… and millions of Americans were wiped out in the crash a year later?
Lesson: You have to think… and act… for yourself.
The president is not going to save you.
Congress is not going to save you.
And the Fed sure isn’t getting the job done.
Nobody is going to care if your financial world is turned upside down — except you. You’re the only person who cares enough about your financial future to do something about it.
This is your chance.
Please don’t delay.
Every day that your money remains nakedly vulnerable in crash-prone stocks — is another day you’re missing out on the safe high yields and stress-free capital gains our picks offer.
If you want to put your money to work in a tireless investment that will never stop paying you back, all you need are a subscription to Utility Forecaster and a mailbox to pick up your dividend checks.
Thanks for joining me today, I look forward to working with you.
With best wishes for safe profits,
Robert Rapier
Chief Investment Strategist, Utility Forecaster
Copyright © 2020 Investing Daily, a division of Capitol Information Group, Inc. In order to ensure that you are utilizing the provided information and products appropriately, please review Investing Daily’s’ terms and conditions and privacy policy pages.