- Amber Hestla, chief investment strategist, Income Trader, Profit Amplifier and Maximum Income.
Q: What are the worst geopolitical risks bedeviling investors today? Is it Russian expansionism, North Korean saber rattling, the U.S.-China trade war, Middle Eastern strife, Brexit… or is it something else? I guess by their very nature, "Black Swans" are always surprises. A: The trade war is a big risk, and some kind of trade war is likely in the next year or so. Eurozone tensions are almost certain to flare up over time. These are two risks that everyone knows about and understands. Markets will react quickly to these. Everyone also knows about the risks in Latin America, but many seem as if they want to ignore them. Venezuela is imploding and spillover from the collapse of that country is likely to affect neighboring countries like Brazil and Colombia. Brazil faces political turmoil, where corruption and social unrest are widespread. Colombia also is corrupt and violent as drugs continue to cause problems in that country. Spillover from Colombia could affect stability in Ecuador. And, of course, it can affect stability in the countries of Central America as citizens seek safety by moving north. - Jimmy Butts, chief investment strategist, Maximum Profit.
Q: You've often stated that the insiders on Wall Street have rigged the system against retail investors. How so? A: Technology, speed and knowledge. With the rise of high-frequency trading, the folks on Wall Street can receive, process and trade data in the blink of an eye. Many of the top firms have sunk millions, if not billions into private fiber optic lines linked directly to exchanges, supercomputers, and algorithms that allow them to exploit minute movements and patterns in the market in fractions of a second. For the average investor, this just isn't possible. Most investors enter trades through their brokerage account, which is then sent on to the exchange. It's like snail mail compared to Wall Street's ultra-sophisticated capabilities. - Stephen Leeb, chief investment strategist, The Complete Investor and Real World Investing.
Q: You've written several prescient books about the emergence of China as an economic rival to America. In which areas does China pose the greatest threat to America and how should investors position themselves? A: The greatest threat to the U.S. from China's emergence will be commodity scarcities. They will have the potential to drive down economic growth and apply pressure to stock markets. Scarcities are just beginning to show up now, but I expect they will intensify over time. One investment implication will be rising gold prices, as I will explain. I would recommend that for now investors have around a 10% weighting in precious metals and especially gold and a somewhat smaller weighting in major diversified commodity stocks. As commodity scarcities become more visible, I'd switch the entire commodities weighting into gold. - Jim Fink, chief investment strategist, Options for Income, Velocity Trader, and Jim Fink's Inner Circle.
Q: What's the difference between investing and trading? A: This quotation from Benjamin Graham, the father of value investing sums up the difference: "In the short run the market is a voting machine. In the long run it's a weighing machine." Investing is a long-term proposition, where the value (i.e., the weight of discounted cash flows) of a stock eventually determines its price. By contrast, trading is a short-term activity, where supply and demand (i.e., the votes of buyers and sellers) determine a stock's current price. Successful traders use a plan and have the discipline to stick to it. The fact that some traders are billionaires suggests that short-term trading can be profitable if you do it right. Editor's Note: When it comes to profitable trading, few experts are as successful as Jim Fink. We've just released Jim's new presentation. It explains how average retail investors can use one simple technique to earn steady income payments of $1,150, and $1,500, and even $2,800... every single week. This is something you won't want to miss. Here's what one loyal follower recently wrote: "Your investing technique is simply outstanding! I've been using it to make steady income for over two years now." Would you like a $1,692.50 "paycheck" on Thursday, July 11? And every week after that? Click here for details. | 
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