The biggest investment theme in decades

Tuesday, 24 October 2017
Melbourne, Australia
By Bernd Struben

  • Exponential growth potential
  • This is just the beginning
  • Is the ‘Aramco fix’ in?

I’ve looked at this from every possible angle, and I’m convinced it’s the biggest single theme that will drive your investment returns over the next decade.’

— Ryan Dinse

I first met Ryan Dinse three months ago.

That’s not very long in the greater scheme of things.

Yet already I’m convinced that Ryan is one of the finest financial thinkers of our time.

Not financial planners, mind you. Though Ryan did spend his fair share of time managing a large portfolio as a financial advisor. And he was quite good at it.

But there’s a world of difference between a competent financial planner and a skilled financial thinker.

A good financial planner may tell you that China’s pollution war is just getting started. And this may impact China’s demand for iron ore. So, you might wish to hold off topping up your shares of BHP Billiton Limited [ASX:BHP] and Rio Tinto Limited [ASX:RIO].

With the latest news out of China, that may be sound advice. And it could save you a few dollars.

A top notch financial thinker, however, looks well beyond that.

They think outside the box that limits almost every financial advisor in the world. They study history. And they look at how breaking trends compare to past events where early investors made intergenerational wealth.

The key to success as a financial thinker, then, is finding the right breaking trends.

Like investing in bitcoin back in February 2013, when it sold for US$22.09. Or even jumping aboard on 1 January this year, when it was priced at US$997.69.

And that’s exactly what Ryan has devoted the last three months of his life to. Finding what he is convinced is the single biggest investment theme of the decade, if not the century.

If he’s right, this breaking trend is set to supercharge select stocks’ share prices.

Earlier today, Ryan released his full research report. Along with three stocks he expects to shoot the lights out from what he calls the second ‘microchip moment’.

You should have received an email notice in your inbox earlier today. You can also find all the details here.

More after the markets.

Markets

Overnight, the Dow Jones Industrial Average closed down 54.67 points, or 0.23%.

The S&P 500 lost 10.23 points, or 0.40%.

In Europe, the Euro Stoxx 50 index finished up 3.78 points, or 0.10%. Meanwhile, the FTSE 100 nudged up 0.02%, and Germany’s DAX index gained 11.96 points, or 0.09%.

In Asian markets, Japan’s Nikkei 225 index is up 30.01 points, or 0.14%. And China’s CSI 300 is up 0.53%.

In Australia, the S&P/ASX 200 is up 0.64 points, or 0.01%.

On the commodities markets, West Texas Intermediate crude oil is US$51.95 per barrel. Brent crude is US$57.43 per barrel.

Gold is trading for US$1,283.33 (AU$1,642.56) per troy ounce. Silver is US$17.12 (AU$21.91) per troy ounce.

One bitcoin is worth US$5,797.21.

The Aussie dollar is worth 78.13 US cents.

Exponential growth potential

Why would someone give up the security and handsome paycheque that come with a successful career in financial planning?

Not that our newsletter editors aren’t paid well. They are. But it’s a very different type of work. And in most ways, far more challenging.

When I asked Ryan this question earlier today, here’s what he told me:

There’s no room to explore ideas fully when you are monitoring the markets almost 24/7. For instance, I’d discovered cryptocurrencies back in 2013 and became a member of the Digital Currency Council.

Now I’m going back to my roots in a way. Helping clients in a market stacked against them.

I’ve always gone for the underdog. It might be a Scottish thing, but I love to see the little guy win. That’s a big motivator for me, and a reason I’ve shunned the big-name investment companies.

My role now gives me the freedom to research big ideas. Stocks with exponential growth potential.’

The big idea — and the stocks with exponential growth potential — centre on blockchain.

As you likely know by now, blockchain is the technology behind bitcoin…and every other cryptocurrency. It’s what’s known as distributed ledger technology. Every new transaction is recorded and added to the previous ones. The result is a growing ‘blockchain’ of data.

One of its appeals is it doesn’t require a central authority. And that makes this tech highly disruptive.

The applications for blockchain go way beyond crypto, however.

It’s been nine years since the first cryptocurrencies emerged quietly onto the scene, enabled by blockchain. But things are really only starting to heat up now.

Ryan refers to it as a ‘microchip moment’ and a ‘great tech collision’. He likens this point in time to the great collision of microchips and early computers. A coming together that created the consumer electronics boom.

And I don’t have to tell you how early investors in IBM Common Stock [NYSE:IBM] or Apple Inc. [NASDAQ:AAPL] fared.

Blockchain technology should continue to provide profitable investment opportunities for years to come. But the biggest gains might be made in the early weeks of next month.

Starting on 1 November, to be precise. The day of the great blockchain collision. You can get all the details here.

This is just the beginning

Outside its use in cryptocurrencies, blockchain technology was virtually untouched — or at least unheard of — until just last year.

Mastercard Inc [NYSE:MA] must have been working on it for some time. But it wasn’t until October 2016 that the company unveiled its first blockchain work. The company’s systems were aimed at smart contracts and payment settlement processes.

Mastercard is now expanding on the tech and using blockchain in business to business transactions.

From CoinDesk:

Credit card giant Mastercard is pushing ahead with a set of blockchain payment tools first unveiled last year, opening them up to banks and merchants for wider use.

In a press release, the company announced today [20 October] that it would first be working on business-to-business (B2B) transactions with the tech, as part of a bid to “address challenges of speed, transparency and costs in cross-border payments.”

Now, MasterCard is encouraging other firms to begin settling transactions through its blockchain APIs, which it says can ease some of the friction experienced during cross-border payments processes.

Ken Moore, Mastercard Labs’ executive vice president, said in a statement:

“By combining Mastercard blockchain technology with our settlement network and associated network rules, we have created a solution that is safe, secure, auditable and easy to scale.”

Now Ryan is not tipping Mastercard. The company is up a tidy 41% since this time last year. But the exponential growth stocks Ryan has uncovered could match those gains in a single day. And keep right on going.

Of course, there are no guarantees. And you always need to be fully aware of the risks. You can find those risks…and the potential exponential rewards…here.

Now moving from cryptos to oil…

Is the ‘Aramco fix’ in?

You may have heard of Saudi Aramco. It’s Saudi Arabia’s state-owned oil company.

And it’s massive. The Saudis value it at an incredible US$2 trillion.

You may also know that the Saudis plan to sell 5% of the company in an initial public offering (IPO) next year. At US$100 billion, this would be the biggest IPO in history.

Greg Canavan, editor of Crisis & Opportunity, was onto this story early. Here’s what he wrote back in August:

Do you not think that the Saudis will do what it takes to get oil prices higher as they go into full marketing mode for the sale of Saudi Aramco?

I certainly do.

There’s nothing complicated about it. It’s simply good business. They will find a way to do it.

Greg labelled the stealth plan he envisions the ‘Aramco fix’. And he recommended three stocks to his readers that he expects could be 10-baggers by the time the deal goes through.

Maybe you bought one of those stocks. Or all of them. If so, you should be laughing.

So far, those stocks are up 25.71%, 15.85%, and 107.79% since he recommended them.

Those aren’t 10-baggers yet. But then the ‘Aramco fix’ has yet to fully materialise. Though it looks as if the Saudis are busy laying the ground work.

Have a look at the graph below.



chart image

Source: Bloomberg
Click to enlarge

Do you notice anything about the trend since late August?

As Bloomberg reported yesterday:

OPEC and its allies achieved a record-high level of compliance to production curbs. At the same time, commercial oil stockpiles kept by members of the Organization for Economic Cooperation and Development have decreased to 159 million barrels above their latest five-year average, according to the Joint Ministerial Monitoring Committee.

The market is consolidating just below its recent highs amid optimism that OPEC members are keeping their word on cuts, according to Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut.

Yet investors are waiting to see if “the effect of the production cut and increased demand really tightens the supply-demand balance,” McGillian said by telephone. “Without signs that the overhang in inventory levels is still being whittled down, the rally starts to lose some of its momentum.”’

Mainstream investors may be waiting to see if ‘the effect of the production cut and increased demand really tightens the supply-demand balance’, as McGillian says.

But Greg Canavan was convinced two months ago. And remains so today.

You can check out his special report — and the three Aussie energy stocks he believes could see gains of another 800% or more — here.

Comments, questions, contrarian ideas?

The Port Phillip Insider mailbag has been rather quiet of late. Except for readers who mistake the email address for our customer service team’s.

Comments, questions, or contrarian ideas? Send them to letters@portphillipinsider.com.au. We retain the right to publish your letters if we think they’ll be of interest to your fellow readers. But we’ll only use your first name.

Cheers,
Bernd