A Vital Investing Lesson

Investment U View in browser IU Plus | Courses | Master Plan | IU Bookstore Sunday, August 9, 2015 This Little-Known Company Could Save Your Retirement This may be the biggest energy breakthrough of the century... A little-known company will fuel 10 million U.S. vehicles a year with as little as $0.58 a gallon gasoline. Retirement planning could be as easy as adding this to your portfolio.   What Investors Can Learn From Dan Price and the "Trophy" Generation Andrew Snyder, Editorial Director, The Oxford Club We call it the "trophy" generation. Kids get something even if they don't deserve it - everything but a spanking. But now those kids are growing up. They're running businesses. And, as we'd expect, they're running those business with the same cavalier gimme-gimme attitude. They're failing. In fact, they're failing so badly that it's comical. You probably heard Dan Price's story. He made headlines in April when he announced everybody in his credit card processing company would make a minimum of $70,000 per year. The kids of the trophy generation - many of them writing the stories about the news - gave him accolades. Attaboy, they said. Way to take from the rich and give to the poor. Yep... Then his planned failed in a spectacular way. Just as anybody with half an economic brain would predict. Price now finds himself mired in a lawsuit filed by his business partners and, worse, his employees are unhappy. Several have left the firm for saner pastures. The New York Times interviewed some of the folks who took their final paycheck from Price's firm. The comments would make Karl Marx blush. "[Price] gave raises to people who have the least skills and are the least equipped to do the job and the ones who were taking on the most didn't get much of a bump," said Maisey McMaste, who gave up a role as a financial manager. This Week's Best-Sellers We're About to Share Some of Our Editors' Best Picks With a Select Group of Readers As an Investment U subscriber, you already have access to innovative market analysis you can't find anywhere else and timely views on the markets. But did you know that you can also receive specific stock recommendations from our experts' premium research services? It's all thanks to a special upgrade we've created. To find out how it works, click here. We almost NEVER do this... If you want to discover one of the hottest tech stocks right now, you'll want to check out this short presentation. A few short weeks ago, this stock was only $10. Now, it's trading for around $12. And we guarantee it will grow to $15 in the coming months. For details on this urgent opportunity, click here now. Grant Morgan quit his job as a Web developer, despite a 22% raise. "Now the people who were just clocking in and out were making the same as me," he said. "It shackles high performers to less motivated team members." There's a vital investing lesson in Morgan's quote. People want to be paid for what they do... the unique talent they bring to the table. And they want to make more than somebody who offers less. Capitalism treats the job market no differently from how it treats the stock market. The companies that provide something unique and useful will get treated better than those that don't. Simple. Apple (Nasdaq: AAPL) is the perfect example. It provides products that nearly half of us put in our pockets each day. It sells something truly useful and its shareholders have been aptly rewarded. Apollo Education (Nasdaq: APOL), on the other hand, is one of the worst performers of 2015. Shares are down over 62% this year. Why? Its customers no longer see the value of its products. A degree from one of its programs doesn't have the same value as a degree received elsewhere. Its product is not unique or useful... and the markets are valuing the stock accordingly. But here's where we beg you to be cautious. Just as Price tried to ignore the rules of economics, there are forces doing "Capitalism treats the job market no differently from how it treats the stock market. The companies that provide something unique and useful will get treated better than those that don't. "Simple." similar things throughout the stock market. At the risk of sounding like a drum that plays just one beat... Yellen and her troops at the Fed are absolutely one of those forces. As they pump their funny money into the economy, companies that don't have those unique or useful products are temporarily benefiting. They're getting loans to stay alive. They're getting capital simply because it has nowhere else to go. In other words, they're getting a raise despite the fact they merely clock in at 9 and clock out at 5. As that stimulus wanes, so will these firms. It's simply the rule of the economy. Perhaps that's why we like the markets as much as we do. Despite our culture's apparent need to put a trophy in every hand, the markets spit on the idea. Eventually, the winners win and the losers go home empty-handed. If we want to win our fight against mediocrity, we must first admit not everybody will hold a trophy above their head. I'm fine with that. Good investing, Andrew Click here to post a comment on InvestmentU.com We Also Recommend What Heavy Machinery Sales Say About the Global Economy by Rachel Gearhart Saturday, August 8, 2015 Forget about a recession. Right now, we're in a full-blown global depression. At least, we are if heavy machinery sales are any indication. Read On... The One Move That Could Secure America's Energy Future by David Fessler Thursday, August 6, 2015 The Iran nuclear deal could be disastrous for our economic and energy future. That is, unless we lift the 40-year-old ban on U.S. crude exports. Read On... Four Charts That Prove Gold Is Poised for a Rebound by Sean Brodrick Tuesday, August 4, 2015 There's no question gold is dirt cheap right now. But these charts prove the situation isn't nearly as bad as most investors think. In fact, a gold rebound could be right around the corner. Read On... You are receiving this email because you subscribed to Investment U. To unsubscribe from Investment U or to manage your account, click here To cancel by mail or for any other subscription issues, write us at: Investment U Attn: Member Services 105 West Monument Street Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Investment U. Question? Comment? Need help? Contact us here. 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