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Thursday, October 20, 2016
My True Wealth Systems readers are up triple digits in six months.
That's not from a risky penny stock or an options trade... That's from buying an entire stock market.
The crazy thing is that these gains could keep going. This market just staged a major breakout. And history says that could lead to another 23% gain over the next year.
Let me explain...
The most successful True Wealth Systems trade of 2016 has been Brazilian stocks... by far.
We made the trade in my high-priced True Wealth Systems newsletter in April. We bought, with leverage, through the ProShares Ultra MSCI Brazil Capped Fund (UBR). And we're up more than 100% since then.
That gain is thanks to a record year for Brazilian stocks. The country's benchmark Ibovespa Index ("IBOV") is up 78% this year in U.S.-dollar terms.
That makes it the world's best-performing major stock market for 2016. But we could see further gains, based on history.
You see, Brazilian stocks hit a new 22-month high last week. We've only seen seven other distinct 22-month highs going back to 1992.
Not surprisingly, this rare breakout tends to mean further gains in Brazilian stocks. Take a look...
Despite major ups and downs, the Brazilian stock market has performed well since the early 1990s. The country's typical annual gain has been 9.1%. But buying after a breakout led to much better gains...
We saw 7.2% gains a month later... 9.5% gains over the following six months... and huge 22.9% gains over the next year.
In short, buying Brazil after a 22-month high is a great idea. That's the opportunity we have today. And importantly, the upside with our leveraged fund is even higher.
Shares of UBR return twice the daily change of Brazilian stocks. So a 20%-plus gain in Brazil's overall market could easily lead 40%-plus gains in shares of UBR.
That might sound crazy, since True Wealth Systems readers are already up more than 100%. But UBR is still down 64% from its 2014 high. Take a look...
This is exactly what I look for when investing...
Brazilian stocks spent years crashing. But that trend has reversed. And they're now in a strong uptrend.
Importantly, they just broke out to a 22-month high. And history says that will likely lead to further gains.
True Wealth Systems readers are up triple digits on this idea. But the largest gains could still be ahead of us. And that means Brazil is still a great buy today.
A different recommendation from Steve's True Wealth service just went from "great" to "picture perfect." Steve writes, "It's down 62%, making it super cheap. It's the most hated it has ever been. And the uptrend is just getting started." Learn more here.
Volatility after new highs in the stock market can scare some investors. But as Steve's colleague Brett Eversole explains, history tells a different story. Learn why double-digit gains in stocks are possible over the next year here.
OIL-SERVICE STOCKS ARE ON THE REBOUND
Crude oil is rallying above $50 a barrel... and that's great for the oil-services industry.
When it comes to investing in commodity and sector booms, regular readers know we encourage readers to take the "picks and shovels" approach. Rather than betting it all on one project, these companies supply vital products and services to all the firms participating in a boom. In other words, instead of trying to mine the gold itself, these companies sell "picks and shovels" to the gold miners.
In the oil and natural gas industry, picks-and-shovels vendors are known as "oil services." These companies sell oil rigs, pumping services, drilling services, and dozens of other things to large oil companies. When oil prices are high, these companies enjoy a strong tailwind.
One of the biggest players in this space is Halliburton (HAL). Shares of this blue chip spiked higher yesterday after the company reported a surprising quarterly profit. It's up more than 45% this year and just hit a new 52-week high. With oil prices stabilizing and drilling activity picking up, this uptrend has much further to run...