To view this email as a web page, go [here.]( [Power Trends] You Can Build Wealth with a Portfolio of âAll-Starsâ... Why Wouldnât You?
The best hockey players in the world are gathered in Las Vegas this weekend for the NHLâs All Star extravaganza. The annual shindig is an all-out party with activities for fans and special events like last nightâs skills competition. Oh yeah, and then thereâs the All Star game this afternoon. The whole thing is more spectacle than sport, but there is something cool about the best of the best playing on the same teams. Thatâs not possible during the regular season. Much as they might want to, general managers canât fill an entire team with only All-Stars. But itâs different for us investors. We can fill our portfolios with nothing but All-Star stocks. And why wouldnât we? Thatâs the whole idea behind my [Quantum Edge system](. Own the best... Pack Your Portfolio
In sports, you have lots of average players, with above and below average players in the mix as well. But then there are the superstars that come along and outperform everybody else â Michael Jordan, Tom Brady, LeBron James, Wayne Gretzky. These are the true All-Stars... the âfranchise playersâ that produce eye-popping numbers, win championships, and make a lot of money for themselves and their teams. The business world and stock investing work much the same way. Some businesses â and therefore their stocks â are heads and tails above others. They have better brands, business models, management, and products than their counterparts... and therefore bigger profit margins, juicier sales, and stronger balance sheets. They have incredible performance statistics, like sales growth, brand value, and cash flow generation. They are the all-stars of Corporate America... and investment portfolios. If you were the general manager of a sports team, youâd want your team loaded with âsuper performersâ as much as possible â players with exceptional talent that generate exceptional performance statistics. As the general manager of your portfolio, you should follow the same logic, right? Pack your portfolio with the best of the best, and leave the average and below average performers to everyone else. Dramatic Outperformance
Thatâs why I prefer to invest directly in stocks than exchange-traded funds (ETFs). They are great proxies for industries, sectors, and themes. And while you do get some superstars, you also get plenty of average and below average stocks. Youâre better off investing in the best and leaving out the rest. Let me show you a great example with the iShares PHLX Semiconductor ETF (SOXX). Regular readers of Power Trends know that I am exceptionally bullish on semiconductors going forward. But theyâve been phenomenal investments in the past, too. Just look at the index from late 2011 until now... a superb 14 bagger.
Of course, 1,300% profits sitting passively in an ETF is darned good. It shows the value of investing in the right sector. But we can do even better â a lot better actually â picking out the main engines of ETFs to see where the juice is coming from. I designed my [Quantum Edge system]( to also analyze and rate ETFs as well as stocks, and one of the ways I use it is to check the constituents by weight to see how they score. SOXXâs top three holdings are Advanced Micro Devices (AMD), Broadcom (AVGO), and Nvidia (NVDA). Look at how they did over the same period as SOXX above...
- AMD went from $3 to $175 â 5,733% profits.
- AVGO went from $25 to $1200 â 4,700% profits.
- NVDA went from $3.40 to $613 â 17,929% profits.
Those three stocks averaged 94 times your money, almost 7 times more than the ETF. Now, I would certainly take 14x in an ETF, but Iâd rather have 94x. And to get that, you need to focus on the best stocks. RECOMMENDED LINK [Election Shock on August 19th?](
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To truly outperform, you need to invest in the leaders... to own the All-Stars. Sure, they may come up lame or have an off season once in a while, but over time youâre going to be successful. Thatâs why my team and I conducted a series of huge research projects with a powerful goal in mind â to create a proven system for identifying the worldâs leading stocks and owning them during their most profitable âhypergrowthâ phases. The systems we used took more than $18 million and over 11,000 man hours to build. But it paid off... literally. This Quantum Edge system we rely on in [TradeSmith Investment Report]( and Quantum Edge Pro has beaten the broad market by 600% over the long term, according to independent testing and back testing by TradeSmith. Applied consistently over time, that kind of outperformance can help you compound your wealth at rapid rates. We found the key is owning stocks with:
- Great fundamentals, showing the strength of the business.
- Strong technicals, showing the strength of the stock.
- Big Money inflows, the money that moves stocks.
My system analyzes more than 6,000 stocks every single trading day â thatâs more than a million data points â and points us to the All-Stars set to outperform the rest of the market. And it works. Thatâs how we ended up with our current [TradeSmith Investment Report]( portfolio in which 15 of our 16 stocks are making us money â and the lone holdout is down less than 5%. Thatâs the kind of results you get when you own the All-Stars... the leaders that can take your portfolio to new heights. Talk soon, [Jason Bodner]Jason Bodner
Editor, Jason Bodner's Power Trends P.S. Iâll be releasing my new stock recommendation next week. Itâs a pioneer in its space, and it is an All-Star with the kind of performance I look for in fundamentals, technicals, and Big Money inflows. In fact, my system picked up a Big Money buy signal this past Tuesday â the fourth of 2024 already. If youâd like to be alerted as soon as I release it, [click here to learn how you can join TradeSmith Investment Report today](. Youâll also get immediate access to our full winning portfolio. Get Instant Access
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