| June 30, 2014 | | | | | |
 | | | How to Access a
$1 Trillion Market | | | - Grab a piece of the world's hottest hidden "market"
- Banking on small-cap bargains
- Plus: What happened to all the stock pickers?
|
| | | Greg Guenthner coming to you from Baltimore, MD...
 | | Greg Guenthner | Today, you have a shot at a $1 trillion market.
It's hidden in plain sight. And over the next few months, this red-hot trend has the power to deliver you overnight double- and triple-digit gains-- perhaps many times over.
Here's how...
As the market slowly churns higher this year, bigger companies are snatching up smaller competitors for big premiums. And these acquisitions are tossing instant gains into investor's accounts...
Merger and acquisition activity is heating up in 2014. So far, we've seen almost a trillion dollars in deals announced in North America this year - that's a 79% increase over last year.
Why the bum-rush for companies to buy other companies?
Remember, stocks were on a rampage this time last year. But the rally slowed down at the start of 2014, and then corrected pretty hard coming into this summer.
"Suddenly, big firms were sitting with all-time record cash on their balance sheets, noticing that lots of attractive businesses are suddenly looking cheap by comparison. It's a recipe for a buying frenzy," explains our small-stock expert Jonas Elmerraji. "And the tiniest stocks on the market are the best place to be right now. After all, small stocks make easy acquisition targets for big cash-rich companies. They're also the only corner of the market where I've been able to find dirt-cheap bargains that Wall Street has overlooked - I'm talking bargains like a $7.50 stock that currently has $3.32 per share in cash."
Jonas is hot on the M&A trail this year--and he thinks we're really going to see a lot of M&A activity in small stocks this summer. In fact, the group of folks that follows his small-stock research has already watched one of the names in his model portfolio - Fusion-io (NYSE:FIO) -- get a buyout offer for $1.2 billion in cash earlier this month.
"Put simply, big companies are buying small companies because they have no other options. Interest rates are low - practically zero. The economy is experiencing hiccups. Investors are getting nervous about how much higher the S&P 500 can go," Jonas says. "And firms have more than $1.25 trillion that their investors expect them to put to good use. The best option out there is to buy attractive small-cap companies and grow their businesses through acquisitions."
It's truly a recipe for a buyout bonanza.
And Jonas' readers are really well positioned to grab onto that trend in 2014. That's why he just scoured his entire portfolio to pick out five names that he is recommending his readers buy this month.
"Right now, we're sitting on open gains as high as 100%, 238%, and even 1043% on some of our longer-held positions," Jonas continues. "But I think that the five names holding as a "buy" in our portfolio could match that performance in the next couple of years - or even beat it!"
It's an exciting time to be a small stock investor, that's for sure. Click here to find out how you can gain access to all of Jonas' small-cap acquisition targets... | | | | | | | | | Did the Fed Kill President Kennedy? I know it sounds shocking… But our sources have uncovered a "smoking gun" to Kennedy's assassination. A document that we believe may reveal who killed Kennedy… and why. This is by far the most controversial thing we've ever published at Agora Financial. So we have no idea how long this video will stay online. | | | | | | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | 15% | was the drop traders experienced in wheat prices this quarter. According to Bloomberg, global wheat stockpiles will reach a three-year high before the 2015 harvest... | | $105 | buys a barrel of crude today. Oil is slowly retreating from its 2014 highs posted earlier this month... | | $20.90 | is where you'll find silver futures this morning. The poor man's precious metal is finally cooling off after rising more than $2 in June. Meanwhile... | | $3.15 | is the price of copper this morning. Copper is consolidating after a big comeback from almost breaking down below $3 again just a couple of weeks ago... | | 1,951 | is where you'll find S&P futures just before the morning bell. Stocks are looking to pick up where they left off last week with a slightly green open... | | | | | | | | Rude Trends | When to Buy... When to Sell
| | | The S&P 500 is up a little more than 6% year-to-date as we officially approach the halfway point of 2014 today...
But a quick check up on the professional "stock pickers" shows that most of the pros have failed to hit this modest benchmark. In fact, Morningstar reports that so far this year, more actively managed mutual funds are trailing their respective benchmarks since 2011.
"In some cases, the gap is stark," The Wall Street Journal notes. "More than 74% of actively managed funds that invest in shares of big U.S. companies are lagging behind the S&P 500 index, up from 50% last year. It is the second-worst performance on record going back to 2004, according to the fund researcher. The story is similar across many categories of funds investing in small- and midsize stocks."
So almost three out of four actively managed funds isn't living up to expectations. That's crazy. But it's really nothing new. Many of the pros have had a lot of trouble trying to figure out the market--even though stocks have mostly churned higher since the 2011 eurozone correction.
Thankfully, you have a simple formula you can use every single day to help rake in the gains. Instead of trying to outsmart the market, you should follow the trends. It's really that simple.
So how can you continue to beat the pros at their own game during the second half of 2014 and beyond?
Find the best trends and get onboard. Don't let news event and other distractions shake you out of winning positions. Cut your underperforming positions. And most importantly, learn that the market is the boss. Price doesn't lie. At the end of the day, that's all that should matter to you (and your brokerage account).
[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | | | | Ignore At Your Own Peril | Today's Must Read Links
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