What the Best Trader You've Never Heard of Is Buying Now

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What the Best Trader You've Never Heard of Is Buying Now

By Dr. Steve Sjuggerud
Friday, January 30, 2009

I've never seen a track record like my friend Jeff Clark's.

He's had 45 trades double in the last 45 months – that's a double a month!

The latest issue of Jeff's newsletter, the S&A Short Report, just came out. In it, Jeff is buying something everyone else has left for dead... commodities. He expects a big rally.

His timing looks good... Bonds (which typically bottom first) bottomed in October. Stocks (which generally bottom halfway through a recession) bottomed in November. And now commodity prices (after falling 60% peak-to-trough in 2008) bottomed in December.

Over the past year, Jeff's timing has been better than mine... and anyone else I know. He called the top in oillast summer, the bottom in gold last fall, and the beginning of this whole bear in early 2008. So this time, if anyone's timing is right, it's likely to be Jeff.

Jeff and I met about five years ago. We hit it off instantly... We discovered we had each come to the exact same conclusion about how to make money in the markets.

Jeff looks for trades that are low-risk, unpopular, and ready to explode at any moment.

At the heart of it, those are the same three things we're looking for inDailyWealth: 1) cheap 2) hated, and 3) just starting an uptrend. And that is exactly what we have in commodities now.

Everyone expects the world to end – and everyone expects commodity prices to fall. So commodities are a "hated" investment. But realize, commodity prices should be at their lowest at the bottom of an economic cycle.

It's difficult to call it a true uptrend now. But we've seen three successive "higher lows." It is what the start of an uptrend looks like...

iShares Silver Trust

You haven't missed a thing yet. This trade is just getting going.

Thanks to the recession and everyone on Wall Street getting out of commodities, they're supercheap now. They're hated. And the inklings of an uptrend are in place. Even better, the best trader I know is finally buying.

It's probably time to nibble at commodities... You can limit your downside risk to the December lows. On the upside, Jeff's found a trade with the potential for a 200% gain.

The best trader I know is buying commodities, expecting "a big rally." We should join him.

Good investing,

Steve

Editor's note: Steve Sjuggerud is a regular contributor to DailyWealth, a free investment newsletter focused on the world's best contrarian opportunities. We write with a simple belief in mind: You don't have to take big risks to make big money with your investments.

Further Reading:

Read This Before You Buy Gold

If You Missed Last Week's Gold Rally, Don't Miss This

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THIS COULD BE THE WORLD'S BEST COMPOUNDING MACHINE

Just under three years ago, our colleague Dan Ferris issued one of the best pieces of stock research we've ever read. It came in the July 2006 issue of his Extreme Value advisory.

In that issue, Dan all but shouted at the top of his lungs to buy shares in the world's best oil company, ExxonMobil (XOM). He used words like "biggest," "best," and "safest" to describe its legendary treatment of shareholders and assets. For instance, XOM has raised its dividend every single year since 1983. A low oil price don't bother it either. XOM returned 12% on its capital in 1999... when oil prices were below $30 a barrel. You can read an excerpt of his issue here.

As you can see from today's chart, Dan's advice was dead on. XOM has returned 26% since the write-up. The past year or so in XOM shares is just incredible.

While oil and fuel suffered giant price collapses... while the credit markets froze solid... and while stocks of all kinds were clobbered, XOM shares have held steady. Almost no stock, commodity, bond, or currency can say that these days. The great compounding machine marches on...

Those Oblivious Fools... How to Make Money Off 'em
By Dr. Steve Sjuggerud Thursday, January 29, 2009
Friday night, I was in the Gaslamp district of San Diego. The streets were packed with kids... fashionably dressed kids, everywhere, partying away, blowing their money (or their parents' money).
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By Tom Dyson Wednesday, January 28, 2009
You should never invest again without doing this. This technique is something Warren Buffett knows, Sam Zell knows, Bill Gates knows, and Peter Lynch knows. It works for bonds, currencies, stocks, real estate, and the money in your bank account.
Read This Before You Buy Gold
By Jeff Clark Tuesday, January 27, 2009

Right now, it's easy to be bullish on gold. In fact, it's common sense. But if you want to make money in the metals market, then you have to wait until it's hard to be bullish...
The One Market Soaring Now
By Dr. Steve Sjuggerud Monday, January 26, 2009
Now we're finally seeing an inkling of an uptrend – biotech stocks held up well last year, and they're moving up off their recent lows. Biotech stocks are ignored – they've been off of everyone's radar for years. And the value is there...
How to Protect Yourself from the End of America
By Porter Stansberry Saturday, January 24, 2009


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