How We’re Taking Advantage Of Global Momentum

We considered it “one of the biggest areas of opportunity in the coming years.” We even said, “this portfolio could provide some very lucrative picks…” 

That was back in January 2015, when I first introduced the my International Opportunities portfolio to my premium newsletter, Maximum Profit. 

At the time, I knew that the international space was fraught with rick — and opportunity. And with the power of the Maximum Profit system — which relies on two proven indicators (one fundamental and one technical) — I’d be able to sift through to find the real gems of this space.

To be frank, however, the portfolio hasn’t quite lived up to my expectations. But I believe that’s beginning to change. I’ll touch on that in a moment…

The portfolio started off booking a string of winners. Of the first six closed positions, five were winners with an average gain of 9% — nothing to write home about until you consider the fact that the average holding period was only 40 days. The only loss came in at 3%. 


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But perhaps you’ve noticed that since January 2015 international stocks have performed poorly. In fact, in the ensuing two years since I launched my International portfolio, global stocks have gone exactly nowhere.
 

So it should come as no surprise that my International portfolio hasn’t performed all that well. The Maximum Profit system did exactly as it was designed to do: it largely stayed away from international stocks and cut losers short. Sure, we snagged a few winners — 12%, 16% and 24% among others — but during the last two years that portfolio simply hasn’t flagged many buys.

Sentiment Is Shifting Toward International Stocks 
That slowly changed at the end of 2016 and the first part of this year. That’s when my system detected life within global equities. And here’s the best part: after more than four months of reaping the rewards from international stocks — we’re currently up double-digits on four of the five holdings — the financial media is only now catching on.

In fact, global equities have been making quite the headlines as of late. Bloomberg, The Wall Street Journal, MSNBC — nearly every financial outlet — have recently talked about how emerging markets and European stocks are on a tear… something my system detected months ago.

You can see how the tide has finally turned for global equities as they’ve greatly outpaced the S&P 500 so far this year:
 

Investor sentiment toward international stocks has finally shifted. As The Wall Street Journal noted, money is flowing out of U.S. stocks and into European stocks at the fastest rate in years. Emerging markets are also benefitting, as they’ve seen the largest net inflows of money since 2014.

#-ad_banner-#Even Jeffrey Gundlach, the founder of investment firm DoubleLine Capital, which manages $105 billion, made headlines last week when he recommended shorting the S&P 500 and going long on emerging market stocks. 

And Peter Branner, who oversees $100 billion as global head of SEB Investment Management, told Bloomberg that he is now quite positive regarding Europe, especially on a global scale. He believes there are some great plays that investors can take advantage of, now that some of the political risk has subdued in Europe.

Investor enthusiasm toward international equities can likely be traced to how cheap they are compared with their domestic counterparts. For example the popular valuation ratio known as CAPE (cyclically adjusted price-to-earnings ratio) shows that the S&P 500 is trading at 29 times earnings, which is way above its mean of 16.75. Meanwhile, Europe has a CAPE ratio of 16.7, and emerging markets come in at 13.7, according to Makena Capital Management. 

Regardless of why investors are now clamoring for international stocks, I’m happy to see that we’ve finally turned the corner on the International portfolio and I do believe that we will continue to see some lucrative picks. In fact, last week we made another addition to the International portfolio that I fully expect to continue our recent winning streak.

The Safe Way To Invest Internationally
For all those investors who are just now joining the trend on global equities, we here at Maximum Profit would like to say “Welcome.” But for those of you who are just now becoming aware of the trend, I’m here to say that there’s still time.

My advice: Consider putting the Maximum Profit system to work for you when looking for opportunities outside the U.S. (heck, inside the states, too). Not only will the system be able to deliver picks right into your lap, but you can be confident that you’ll have a winning investment more often than not. And when it’s time to sell, you won’t have to worry about when the time is right. Thanks to our two proven indicators, all of the guesswork is taken out of the equation for you. To learn more, go here.