Why I Love “Toxic Profits” and Where to Find Them

Investing Strategies
by Tim Melvin
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In today’s Hidden Profit Report, I want to revisit the concept of “Loving the Toxic.”

The market is clearly overextended and overvalued right now.

In fact, the reading on one of my favorite valuation measures, the Excess CAPE Yield, is now at levels seen in 1969 and 2000.

Today’s economy and stock market have similarities with both those years and that does not bode well for the long-term returns from the stock market.

The best long-term outcomes will come from learning to love the out-of-favor assets and sectors the market deems “toxic.”

In this episode, I will point you in the direction of those toxic profits.

Oh, and before you go, one more thing.

In this month’s MVP Portfolio Webinar, on September 18 at 3pm Eastern, I will introduce you to two of the most powerful investment strategies ever developed. These are not flash-in-the-pan, work-for-a-hot-second trading strategies.  Both strategies have been empirically tested and proven to work over decades of market conditions.

They have delivered market-beating returns in both good and bad markets.

They have done better than the market indexes when everything turns ugly.

In the subsequent recovery, both strategies have the potential to deliver rapid triple-digit returns.

We will discuss how to find deeply undervalued stocks with market-beating potential.

I will show you how to use a credit check to help avoid value traps that keep getting cheaper.

We will discuss how to identify the type of fundamental momentum and progress that can attract big money buying that drives the stock higher very quickly.

I will also teach you how to identify stocks that have the type of powerful momentum that can lead to enormous gains and avoid story-driven momentum that can quickly collapse, taking your profits south along with the stock price.

We will discuss how these powerful strategies offer what I call “Zig-Zag” portfolio diversification to help protect you from the inevitable downturns in the stock market.

Finally, I will point out how to identify those times when it makes sense to throw everything you have the stock market and those periods where caution may be called for.

You don’t want to miss it. Click here to reserve your seat right now.

Author: Tim MelvinTim Melvin is a 30 year plus veteran of financial markets. He uses rigorous quantitative analysis based on the principles used in deep value and private equity styles of investing to help investors compound their wealth using strategies designed to maximize profits and minimize risk. He uses in-depth research efforts to uncover special situation opportunities that can profit regardless of market direction. He has also developed models for building alternative income portfolio that can help individual investors uses income producing portfolios previously available only to individuals. Tim believes that individuals have powerful advantages over institutions but are not taught how to use them. He wants to be the one who help individual investors stop taking entirely too much risk for too little return. Tim is the editor of The 20% Letter, The 20% Letter Insiders, Takeover Letter, Underground Income, MVP Letter, and Preferred Payouts Letter.
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