пятница, 22 мая 2020 г.

1 Mistake Stands Between You and Dow 100K Profits

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Story Highlights:

  • The Dow Jones is heavily weighted in America 1.0 stocks that are tanking.
  • America 2.0 companies will be the big winners and drive the Dow to 100,000.
  • Here’s the one mistake many investors make that could help you design a portfolio ready to capture the surge in the Dow!

Physics was not my favorite subject.

But my dad told me: “The only way you’re going to get into college, Patrick, is if you get all A’s.”

So what did I do? (And trust me, smooth-talking my strict teacher was out of the question.)

Instead, I did the math.

I calculated exactly what I needed to boost my grade to 90% and get my A.

You see, each assignment had a different weight that added up to 100%: homework was 15%, attendance was also 15%, quizzes were 30% and the final exam was 40%.

I knew it all came down to scoring at least a 92% on the final — because I maxed out what I could with the other percentage parts making up my grade.

So that’s what I did.

Now I’ve forgotten most of what I crammed in for physics — however the lesson of adding up the different parts to figure out the whole pie is still engrained in my brain today.

This is an important lesson for us when it comes to the Dow Jones Industrial Average reaching 100,000!

In my last article I told you the America 1.0 stocks currently making up the Dow will be replaced with America 2.0 companies, which in turn will push the Dow to our six-digit mark this decade!

However, there’s more to the story you need to know — including one move you need to make today — so you can profit from this rise.

Tipping the Dow’s Scale Toward America 2.0

Like the different parts that made up my physics grade, the 30 stocks in the Dow are given separate values.

For example, Apple Inc. takes up an 8.7% piece of the Dow Jones pie, while Coca-Cola Co. only has a 1.25% sliver.

This means that Apple contributes more to moving the Dow up or down than Coca-Cola.

When Apple first entered into the index in 2015, it’s price movements only contributed 4.7% of the daily percent changes in the index — about half of what it does today.

Now, here’s the reason I’m telling you this.

When the America 2.0 stocks (Uber and Tesla) replace America 1.0 stocks (Apple and Coca-Cola) in the Dow, they will drive it up.

America 2.0 stocks will contribute more of the gains, as their weights grow within the index.

To put it simply Tesla (NYSE: TSLA), Uber (NYSE: UBER) and other America 2.0 companies in the index will make up the bulk of the Dow’s surge to 100K.

America 1.0 stocks will slowly get pushed down and out of the Dow.

This is why it’s important for you to stick with companies disrupting the status quo and pushing our society into a bright future!

1 Important Move to Make Today That Many Investors Miss

Let me be clear: You do NOT want to structure your portfolio to match the weights in the Dow.

Here at Bold Profits we have a better way. A way that doesn’t require any last-minute calculations like the ones I had to pull off to get my A in physics.

It’s one of Paul Mampilly’s Rules of the Investing Game.

And it’s one of the first things we tell new readers.

To design your portfolio for maximum profit exposure, you have to have equal weight.

That means you should put the same dollar amount into each position we recommend. Many investors don’t use this rule and that’s a mistake.

Equal weighting gives you more opportunities to win. And it’s one of the most important moves to make today for your America 2.0 portfolio.

We can’t guarantee Tesla or Uber will be added to the Dow. But we do know that America 2.0 stocks are going to lead the Dow to 100K.

And by equal weighting these opportunities, you’re going to have more exposure to the massive gains America 2.0 will unleash.

They will replace the old-world America 1.0 stocks. Which one do you think will be the first to go?

You can see if your guess matches Paul’s. He put together a special report of 100 Blacklist companies that are destined for zero.

The Blacklist is your guide to what stocks to AVOID. They will be replaced in America 2.0. You can get all the Blacklist details here.

We’re extremely bullish, optimistic and positive (#BOP) about the opportunities that lie ahead!

And just like I calculated what it would take to ace my physics final, my calculations for America 2.0 are looking good.

Happy investing,

Patrick Goodrich

Patrick Goodrich

Analyst, Bold Profits Publishing

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