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Weiss Ratings founder Martin Weiss names the hidden gems of a crypto sector that has grown 100-fold since 2020 and could grow another 400-fold in the months ahead. Plus, he gives you access to an early-bird, backdoor method for buying the gems of this sector for 80%, 90%, even 99% less than other investors will probably pay.

Hey Traders!

While Wall Street gleefully cheers on the latest tech darling or market behemoth, a quieter, more patient investor lurks in the shadows. Bob Robotti, a seasoned fund manager with a nose for the overlooked, champions the art of value investing in unpopular stocks.

Forget the dazzling lights and roaring crowds; Robotti prefers the dimly lit back alleys of the market, where “unloved, mispriced companies” reside, their true potential hidden from the gaze of the frenzied masses.

Think of the stock market as a bustling marketplace. Shiny, polished stalls peddle the latest gadgets and trendy wares, their vendors hawking quick gains and instant gratification. Robotti, however, bypasses the flashy displays and heads towards the dusty corners, where weathered merchants quietly offer forgotten treasures at bargain prices.

These aren’t the instant hits or fleeting fads, but businesses with solid foundations and “excellent growth opportunity” waiting to be rediscovered. It’s a game of patience, meticulous research, and unwavering conviction in a company’s true worth, even when its stock price remains stubbornly stagnant.

Managing a cool $900 million, Robotti embodies the “buy low, wait high” philosophy. Take his 2009 investment in Builders FirstSource, a company teetering on the edge of oblivion as the housing market crumbled. Panic and despair reigned supreme, but Robotti saw resilience and adaptability simmering beneath the surface.

Fast forward to today, the company’s market cap has ballooned from a meager $200 million to a staggering $20 billion, a testament to Robotti’s keen eye and unwavering belief in its potential.

He doesn’t shy away from the shadows either. The energy services sector, often demonized for its environmental impact, has long been a hunting ground for Robotti. He sees opportunity in the underinvestment plaguing the sector, particularly in the untapped potential of offshore oil and gas exploration. Here, the supply-demand dynamics are a beautiful waltz: demand gracefully ascends, supply gracefully dips, and rates waltz merrily upwards.

Companies like Tidewater, providing offshore service vessels, perfectly embody this philosophy. Robotti, not only an investor but also a board member, believes the company is poised for substantial growth as the “economics of this business…gravitate to what it would cost to build a new vessel.”

But Robotti’s message goes beyond mere sector plays. He urges investors to look beyond the glitz and glamour of the “new economy” and go deep into the “metamorphosis of the old economy.” Seek out those cyclical businesses that have weathered the storms, emerged stronger, and are now primed for a resurgence. It’s a strategy that may not grab headlines or generate social media buzz, but for those willing to embrace the unloved and unheralded, the rewards can be truly transformative.

Remember, the most valuable treasures are rarely found bathed in the spotlight. They often reside in the forgotten corners, waiting to be unearthed by those with the courage and patience to dig deeper.

Now, put down your trendy stock tips and flashy market reports. Grab a flashlight, dust off your research tools, and venture into the back alleys of the market. You might just stumble upon a diamond in the rough, waiting to be polished into a fortune. 

– James

I’m A Stock Trader

In the next article: Wall Street witnessed contrasting moves last week, with stocks climbing to new highs while bonds dipped due to inflation and interest rate concerns.

Last week on Wall Street, stocks and bonds performed a synchronized, yet curiously opposite, routine. While major stock indexes like the S&P 500 and the Dow Jones climbed to new highs, bond prices took a tumble, sending yields higher. This left investors scratching their heads, wondering if the market’s recent winning streak was about to hit a wall, or if it could keep its momentum going.

On the equities side, things were looking rosy. Positive earnings reports from tech giants like Taiwan Semiconductor fueled a rally, particularly in the tech-heavy NASDAQ. The index, ever the trendsetter, surged ahead thanks to the chipmaker’s upbeat performance. However, just as the stock market party was getting into full swing, the bond market threw a wrench in the works.

Strong economic data, including robust retail sales, a stable labor market, and positive consumer confidence, painted a picture of a healthy economy. However, this same strength fueled concerns about inflation and rising interest rates. These, like a looming storm cloud, cast a shadow over the bond market, pushing prices down and yields up.

Despite the bond market’s grumbling, Wall Street clung to its optimism about future interest rate cuts. This hopeful outlook, fueled by hints of a dovish Fed and positive economic data, kept the stock market party going.

Some analysts, like Jeff Krumpelman of Mariner Wealth Advisors, saw the recent market moves as a logical response to good news: “It’s pretty straightforward,” he said, “good earnings, solid economic data, and hints of rate cuts – that’s a recipe for a happy market.”

However, not everyone was convinced. Matt Willer, a private asset investments expert, highlighted the conflicting forces at play. The strong employment data suggested slower rate cuts, while geopolitical tensions added a layer of uncertainty. He felt the market was still “finding its direction,” grappling with both domestic and international concerns.

Arnim Holzer of Easterly EAB Risk Solutions believes the next big step in this financial tango will depend on the upcoming labor market report. “The Fed won’t cut rates aggressively unless things get really tough in the job market,” he said. “If the recent strength persists, yields could rise again, but investors seem to be focusing on the labor data as the key indicator for the Fed’s next move.”

So, what does this all mean for the future of the market’s winning streak? Will it continue to defy gravity and economic concerns? Or will the conflicting signals eventually trip it up, leading to a stumble? Only time, and the ever-unpredictable market itself, will tell. But one thing’s for sure, it’s going to be a fascinating race to watch, with plenty of twists and turns along the way.

Just five companies, all heavily involved with AI, have boosted the major averages into bull market territory.

One of those stocks, Nvidia, was up 189% in the first half alone.

Nvidia is a legendary home run, but our Weiss Ratings AI specialist, Jon Markman, has homed in on one high-rated AI stock in particular.

It’s our pick for The #1 AI Stock of 2024 and Beyond

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