This unique app could make investors a fortune
Wednesday, 25 July 2018
By Bernd Struben
- What goes up must come down
- Turnbull Rubbishes Shorten’s Energy Promise
We open today with a mea culpa.
In yesterday’s Port Phillip Insider I wrote to you about a ground breaking new research report from small-cap analyst Harje Ronngard.
The report focuses on a potential medical breakthrough Harje calls ‘the living drug’. In his words it has the potential to, ‘eradicate mankind’s deadliest diseases including cancer, HIV, arthritis and Multiple Sclerosis.’
I read a draft of that report on Monday. Having lost friends and family to cancer myself, the implications blew me away. It’s truly must read material.
With that in mind, I was in a hurry to get the report in front of you. As it turns out, too much of a hurry.
You see, Harje is still putting a few finishing touches to the report. And it needs to make the run through our internal compliance process too. That means it won’t be ready for me to share with you until next week. Or possibly not until the first week of August.
When it is ready, you’ll be the first to know.
In either case, you may have noticed that the links provided in yesterday’s edition went to Harje’s other new report. The one that’s actually complete and been given the green light by our compliance team.
The breakthrough Harje highlights in this report is technological rather than medical. And it has the potential to massively disrupt the way people shop online, travel and even eat.
Harje calls it ‘the Everything App’. That’s because with a single app you can:
- Order food
- Buy insurance
- Purchase movie tickets
- Book accommodation
- Shop online
- Pay your bills
- Recharge your phone credit
- And much more…
As Harje notes, ‘It’s like having dozens of your favourite websites packed into a single, smartphone application.’
Now regular readers may know I’m somewhat of a technology dinosaur. Not through ignorance so much as by choice. I prefer cash to credit or debit cards. And my dumb phone has no internet or payment capabilities. Though it makes excellent phone calls. Remember those?
But I’m aware that this places me in a small — and shrinking — minority. Smartphones aren’t just the toy and tool of choice for millennials. Even my father is often glued to his phone’s screen.
Knowing the size of the market at stake, Harje has been keeping a close eye on an upcoming gathering of internet pioneers in Beijing. That happens on 19 September. And if all goes to plan it could see the Everything App go viral.
More importantly for you as an investor, it could see the share price of one small ASX-listed start-up skyrocket.
In fact, Harje believes this virtually unknown company could deliver returns of 1,000%…all before Christmas.
As always, hunting for these kinds of outsized rapid returns isn’t without risk. Start-ups are some of the riskiest investments you can make. Some shoot the lights out…others fail.
But if Harje is right, even a small investment in this company could make for a Merry Christmas this year indeed.
Now a look at the markets.
Overnight the Dow Jones Industrial Average closed up 197.65 points, or 0.79%.
The S&P 500 gained 13.42 points, or 0.48%.
In Europe the Euro Stoxx 50 index finished up 29.26 points, or 0.85%. Meanwhile, the FTSE 100 gained 0.70%, and Germany’s DAX added 140.82 points, or 1.12%.
In Asian markets, Japan’s Nikkei 225 is up 95.84 points, or 0.43%. China’s CSI 300 is down 0.04%.
In Australia, the S&P/ASX 200 is down 19.34 points, or 0.31%.
On the commodities markets, West Texas Intermediate crude oil is US$68.72 per barrel. Brent crude is US$73.76 per barrel.
Turning to gold, the yellow metal is trading for US$1,225.72 (AU$1,648.36) per troy ounce. Silver is US$15.49 (AU$20.83) per troy ounce.
Bitcoin continues its bull run, surpassing 60-day highs. One bitcoin is worth US$8,415.43. That’s up from US$7,735.68 when I wrote to you yesterday…an overnight gain of 8.8%.
How high is bitcoin likely to go? Our in-house crypto experts Sam Volkering and Ryan Dinse have long said ‘much higher’. I’ll bring you their latest research as soon as that’s available.
The Aussie dollar is worth 74.36 US cents.
What goes up must come down
We’ve spent some time over the past few weeks examining the global economy’s path to recovery following the 2008 financial meltdown.
Driven by near zero interest rates and government bond buying (essentially creating money), this recovery now sits on a decidedly fragile base.
The story is similar across the better performing developed nations. Unemployment is fairly low. GDP growth is reasonably strong. And stock markets are at near multi-year record highs.
In fact, the ASX 200 is sitting near 10-year highs. While the NASDAQ is near its all-time highs.
Yet wage growth is close to zero. Governments, businesses and households are up to their eyeballs in debt. And central banks’ coveted inflation targets remain elusive.
The most recent Aussie inflation figures came in at 1.9%. That’s still a bit lower than the RBA’s 2–3% target. So the gouging we’ve been taking at the petrol stations could come as welcome news to RBA Governor Philip Lowe. If not for you and me…
‘Sharply higher petrol prices have intensified inflationary pressures in the economy, June quarter figures are expected to show on Wednesday, complementing a rise in core inflation into the RBA’s target range for the first time since late 2015.
‘Australian Bureau of Statistics inflation data due Wednesday morning is expected to show that a jump in petrol prices of 7 per cent over the June quarter drove annual consumer price inflation to 2.2 per cent, from 1.9 per cent in the previous quarter, on Bloomberg consensus forecasts.’
It’s a strange world where higher petrol prices could be cause for celebration from our policy makers. But after being confronted with the spectre of deflation — heaven forbid your cash gains 1–2% in value — I imagine they’ll take inflation from any corner they can find it.
That also includes the inflation that comes with a weakening currency.
At the moment the Aussie dollar is worth 74.36 US cents. But as interest rates in the US march higher while the RBA holds steady, the Aussie dollar is likely to lose further ground against the greenback.
Then there’s the looming trade war between the US and China. If China’s economy slows down, so too will its demand for Australian resources and commodities. Not to mention baby formula.
As Bloomberg notes:
‘“On all fronts, the U.S.-China trade war is Aussie-negative,” said Marcus Wong, a treasury strategist at CIMB in Singapore. “Retaliatory action that inadvertently impacts the upstream or downstream of China’s value chain, or leads to a keen deterioration in global risk sentiment, would see a further deterioration in the Aussie.” …
‘The Aussie has dropped against all its Group-of-10 peers this year except Sweden’s krona amid concern the U.S.-China trade dispute will cause China to reduce demand for Australian raw materials. The Reserve Bank of Australia kept its benchmark interest rate at a record low this month, saying the U.S. trade policy was causing uncertainties.’
In it’s ongoing hope to stoke inflation, the RBA should be careful what they wish for.
Just look at what’s happening over in Venezuela.
Earlier this week the International Monetary Fund (IMF) forecast that inflation in Venezuela may hit 1,000,000% by the end of 2018. Yes, that’s one million percent.
Have a look at the chart below. It shows you the price of an espresso with milk priced in bolivar:
Click to enlarge
This hyperinflation is mostly a product of rampant money printing. A crisis reminiscent of Weimar Germany.
Now I’m not saying Australia needs to worry about 1,000,000% inflation. Or 50%, for that matter.
But even if inflation overshoots the RBA’s target by a few percent and hits say 5%, the RBA and commercial banks will be raising interest rates in rapid order to try and stay ahead of the curve.
If that happens, Australia’s highly indebted households — which is most of them — will find out the true cost of their loans. And Australia’s $1 trillion plus mortgage market will take a beating.
How much of a beating?
Renowned US economic forecasts, Harry S Dent believes we’re in for the mother of all depressions Down Under. He calls it ‘Economic Winter’. And according to Harry, winter is coming. Soon.
He explains everything, as well the precautions you can take before the storm hits, in his bestselling new book, Zero Hour.
You can learn more — and access the special discount currently available on hard copies of Zero Hour — by clicking here.
Finally, here’s the latest on the battle for cheaper energy from The Australian Tribune:
‘Turnbull Rubbishes Shorten’s Energy Promise’
‘The political battle of wills to see which party can deliver lower energy costs to Australians continues apace.
‘No one argues the fact that electricity prices have gone through the roof and need to come down. But the Liberal party remains adamant that they have the best solution to bring costs back to Earth.
‘Prime Minister Malcolm Turnbull has attacked Bill Shorten’s plans on power prices after…’
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