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Exactly What You Need to Ask Your First Founder

 
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The Startup Investor
Monday, July 9, 2019
Exactly What You Need to Ask Your First Founder
Click to Watch
Dear Startup Investor,

Deciding whether to invest in a startup is a complicated process, and the first time you meet a founder can be an intimidating situation.

There are mountains of documents to pore over - financial statements, tax forms, resumes, intellectual property, term sheets, business plans, and more...

Not to mention the fact that half the time, you're trying to decide whether a product will be successful before it even exists.

It's kind of like trying to nail jelly to a tree.

But, after several years and hundreds of founder meetings, I've managed to outline seven questions that do the job.

Click here to see what they are.

Until next time,


Neil Patel

 
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WARNING: Earnings Reports Are Not Going to Reflect the Virus's Full Impact

The Internet Won’t Be the Same After COVID-19

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CASEY DAILY DISPATCH - Casey Research

Editor’s note: If you've been following the Dispatch, you know we believe there's an investment opportunity in nearly every situation – even in the middle of a crisis.

That's why we had to share another piece from tech expert Jeff Brown, who dedicated his career to finding the best money-making ideas in science and technology. That's why he's been closely following the global impact of the coronavirus… which he believes will ignite the rise of 5G – the next step in wireless communication.

On April 8, at 8 p.m. ET, Jeff's hosting a free event where he'll reveal the best 5G stocks to invest in for life-changing gains. You can register right here. Then, scroll down to learn how the coronavirus is already affecting the internet – and how the 5G rollout will fix it…


The Internet Won't Be the Same After COVID-19

By Jeff Brown, editor, Exponential Tech Investor

Teeka Tiwari

Numbers coming out confirm what we already knew to be the case…

COVID-19 is ushering in a societal change that is slowing down the internet.

This is great news for tech investors. More on that in a minute.

First, let’s look at what’s unfolding before our eyes…

Finnish telecommunications company Nokia is a global leader in 5G. It recently released data showing that most wireless networks around the world will see 30-45% growth in traffic over the next year.

But peak usage has already jumped 20-40%… over the past four weeks.

Business Is Booming

These numbers are beyond crazy.

It’s all because hundreds of millions of people who used to work in an office are staying home.

Videoconferencing traffic – for work and for socializing – has spiked 300%. Gaming traffic has exploded 400%. This is probably because millions of kids are staying home from school.

Network data traffic will more than double every 12 months if this persists. We’re talking about the definition of exponential growth.

It will overwhelm communications networks all over the world.

As a result, “cloud” data centers are building out additional infrastructure, as are wireless carriers.

The 27-member European Union (EU) has gone so far as to ask companies such as Netflix, Disney, Zoom, and Facebook to cut the quality of their video.

The EU hopes this will relieve some of the strain on its networks and free up bandwidth for healthcare and distance learning.

Bottom line: Business is booming for many technology companies right now.

Here’s why…

Demand Spike

Companies providing wireless services have seen a massive spike in demand.

Any companies making the products data centers use – wireless networks and 5G infrastructure – are getting slammed with new orders right now.

Sales are going up, not down. But their stocks have pulled back. That spells opportunity for savvy tech investors.

And guess what…

This shift to remote working and remote entertainment will have a lasting impact.

I predict we’ll see a second surge in COVID-19 cases in the fall. It won’t be as bad as the surge we are experiencing right now. But it will be enough to prompt many people to continue to work and play remotely.

We can expect these modified behaviors to persist through the 2020-2021 winter in the Northern Hemisphere.

The bigger picture is that remote operations just make sense for certain industries.

The transition to a more remote-based workforce was inevitable. COVID-19 was just the catalyst.

We’ll continue to see elevated network use even after the virus is just a distant memory.

I know investing after the recent spate of extreme stock market volatility seems counterintuitive to some.

But as my colleagues and I here at Legacy Research have been preparing you for, crises like this one are also great opportunities to build your wealth. They give you the chance to pick up quality stocks at “bargain basement” prices.

And providing the company you invest in doesn’t go bust (which won’t happen with the in-demand 5G companies I’ve selected), the lower the price you pay for a stock, the higher your profits will be when you sell.

Make no mistake: The crowd is running scared. And I understand the urge to panic alongside everyone else. But I hope you stay rational instead.

The world needs increased bandwidth and 5G wireless network services now more than ever.

That’s why I’ve been preparing my readers by recommending best-of-breed 5G and cloud-based companies.

They are all trading at bargain valuations right now. To learn more about adding these companies to your portfolio, go here to register for my free 5G summit on April 8 at 8 p.m. ET.

Regards,

Jeff Brown
Editor, Exponential Tech Investor


Reader Mailbag

Today in the mailbag, two readers agree with Doug Casey’s statement that we are living in a fascist system – and that the government has taken too much power into its own hands. As one reader puts it, “the march toward authoritarianism continues”…

I agree with you, Doug. Thank you for my continuing education. We need to go back to the gold standard. When the world was on the gold standard in the 1800s, we made more economic progress in those years than the previous six centuries combined. 

We now have $73 trillion in total debt. This is the largest debt accumulation in world history! Between us and China, we are holding approximately 45% of total world debt, which is $258 trillion!

The time to bring our country together is now! I believe that our creator in heaven chose us to lead the world. The only way to do this is to lead by example! We must bring the federal government into compliance with the Constitution: limited government with clearly defined powers!

– Robert

Of course there is no capitalism left in the United States! The sad thing is that even those who say they are capitalists, who cheer for capitalism, refuse to recognize that we no longer have it.

One might argue that small enterprises and local businesses can still operate freely. But regulations and red tape aside, no one in the nation can enjoy a free market with a fiat money system and a central bank.

Doug’s description that we are, in fact, fascist rather than capitalist is correct. And the march toward authoritarianism continues (and escalates with the pandemic). The whole political correctness movement is fascist in nature.

Like sheep, we have voluntarily succumbed to what amounts to martial law; in most cases they have not had to use guns (yet).


– Steve

Is the U.S. capitalist in name only? Can America’s “march toward authoritarianism” be stopped? Keep sending us your thoughts at feedback@caseyresearch.com.


In Case You Missed It…

Silicon Valley Genius Makes Next Big Tech Prediction

Angel investor Jeff Brown has put his money into 130 tech startups…

And he’s profited on 93% of them.

In three of the last four years, he picked the No. 1 Tech Stock on the S&P 500… before it went up.

Now, he’s found a new opportunity.

A company that makes the tiny device critical to every single new 5G phone.

Apple is expected to release their phone on or around Sept. 22.

When they do, shares in this tiny devicemaker could soar.

Find out all the details before it’s too late.

image

Casey Research
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Delray Beach, FL 33483
www.caseyresearch.com

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Caught in a Global Labyrinth

Gilder's Daily Prophecy

March 31, 2020

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URGENT UPDATE FROM JAMES ALTUCHER…
(Only good till 9:30 TOMORROW MORNING!)

please enable imagesThis isn't the first time James has traded in an extremely volatile market, but what he's accidentally discovered changes everything.
 
It's crucial you catch his latest update about life and making money in a post-coronavirus world.
 
James reveals exactly what readers should be doing to help protect their money and how they can even profit from his latest discovery.
 
This video is only online till 9:30 TOMORROW MORNING. Click here to watch his update now.

Caught in a Global Labyrinth

George GilderDear Daily Prophecy Reader,

Yesterday brought a reality check for Trump Administration generals, 5G microwave warriors, and tech strategists who believe that they can exploit the US semiconductor technology lead to bring down China.

Microchips provide a silicon backbone and central nervous system for the world economy. Everything ultimately depends on them — from finance, to medicine, to transportation, to defense. Over the last some thirty years, chip revenues have almost tripled as a share of global GDP.

People talk about 5G (fifth-generation wireless standards). Semiconductors pervade every generation of every new technology that entails sensing, measuring, storing, sending, receiving, accessing and processing information. From biotech, to agriculture, to automobiles, to aerospace, can you think of anything those functions don't cover?

Everybody agrees that in crucial ways, the US is the global leader, with nearly 50% market share, compared to China's roughly 3.5% in 2018. In Information Technology infrastructure, the US commands a 59% share. In military microchips, the US has an estimated 52% share.

Let the Asians lead in consumer, autos, and smart phones.    

With a mercantilist crunch, so it would seem, the US could stop the Chinese ascent through microchip bans and boycotts, "entities lists" of verboten Chinese companies and garottes of crucial tools and technologies.

Thus, the Trump Administration is currently banning sales to Chinese facial recognition device companies and purchases from Chinese telecom equipment companies.

No Fly Zone

Huawei and ZTE get out of here, and no Intel or Nvidia chips for SenseTime and HikVision. Should eventually stop them in their tracks, right?

But the title tells the story: "How Restrictions to Trade with China Could End US Leadership in Semiconductors." Written in conjunction with the Boston Consulting Group, the Semiconductor Industry Association (SIA) paper confirms that the US leads in 23 out of 32 categories of chips, from personal computer devices, to industrial, to information technology infrastructure, and was actually gaining share until 2018.

Over the last five years, US microchip company shares have produced an annual shareholder return of 14%, roughly four points above the S&P average. US semiconductor industry gross margins stand at 62%, 11 points higher than the rest of the world. With higher returns, the US industry has led the world in R&D with 17% of sales, twice the rest of the world.

Sounds imperial to me, and it is. The US position in the world largely stems from our bastion in microchips and other frontier technologies. We lose this bastion and we will eventually lose our world leadership.

In microchip trade, our microchip bastion gives us a massive surplus. Peter Navarro, Trump trade strategist, should relish it. In his world, a trade deficit confers direct leverage. President Trump has treated our trade gap as a direct loss to the country.

The Administration's mercantilist model is a zero-sum world where any deviation from trade balance means a loss for the party with the deficit. In the case of China, we were running a deficit near $250 billion in 2018, which represented a massive sluice of US wealth into China.  

We design the chips and own them, but most of the time we don't manufacture the devices that use them. Less than 25% of global semiconductor demand stems from the US domestic market.

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Nearly 80% of US microchip revenues come from export markets. In 2018, the Chinese market comprised 58% of global demand for semiconductors and 23% of demand for US chips. Chinese chip suppliers can provide only 14% of the needs of Chinese manufacturers. From the mercantilist perspective, these numbers give the US a tremendous position of power over China.

However, the logic of trade is hostile to all such exploitation. Fabrication of a microchip entails some 1500 exquisitely calibrated steps in some $16 billion plant bringing together complex equipment from around the globe.

It takes decades to establish these supply chains. The Chinese may be paladins at building cities and hospitals and are becoming brilliant at designing chips on computers. In value, they design 14% of the world's microchips. But they have yet to master the manifold maze of rigorous processes and techniques necessary on the ever-changing frontiers of chip manufacture.

So, the Chinese are caught in this global labyrinth. They are trying to escape, but have yet to succeed. They can issue as many papers as they want, targeting 70% share by 2030, and print as much debt as they need to finance the effort. But they will not change this global technology industry into an autarkic fortress.

However, it is not China, but the United States that imagines that it can convert this global asset into an American redoubt. The US with its dominance would seem to have a better chance. That is where the BCG paper offers a crucial corrective.

Today's Prophecy

Over the last two years of trade war, the US has already started to lose its lead. Since the trade war began, the median year to year growth of the top 25 US chip companies has dropped 90% — from some 10% to just over 1%. After restrictions on sales of chips to Huawei, the top US producers suffered revenue declines of between 4-9%.

The authors of the BCG report, Antonio Varas from the Silicon Valley office and Raj Varadarajan from Dallas, project the effects on the US semiconductor industry of an actual decoupling of the US and Chinese technology sectors. UScompanies, such as Intel, Broadcom and Nvidia would lose 18 percentage points of global share and 37% of their revenues.

These revenue drops, write the BCG team, would force severe cuts in R&D and capital expenditures and the loss of scores of thousands of highly skilled jobs in the US microchip industry alone. These jobs are the foundation for our national defense and prosperity.

But perhaps the warrior strategists can shrug off these losses if they inflict comparable damage on China. But China has alternative possible suppliers in Europe and Asia for perhaps 70% of these chips. Over the last two years, China has begun gaining share while the US loses it.

And if US boycotting actually crippled Chinese progress, they could redress the damage with merely one belligerent step. They could recover Taiwan, a country claimed by China and revealingly absent from the pages of the BCG-SIA report.

Even though the US dominates market share in chip sales, the center of global semiconductor fabrication technology is in Taiwan. Contrary to the assumptions of some strategists, Taiwan is not an island off the coast of California.

In future prophecies, I will explore the implications for investors of upsetting the delicate balance of policies surrounding Taiwan and pushing China toward recapture of this beleaguered island.    

Regards,

George Gilder

George Gilder
Editor, Gilder's Daily Prophecy

P.S. As the Wall Street Journal reports, "when [markets] get wild, the computers at [Wall Street's] firms start selling — helping make it wilder still."

If you do not have a way to fight back, then you are helpless while your investments will be swinging up and down for no reason. My colleague James Altucher has found a way to help you fight back and made a short video on how to do so.

Click here to watch it and learn how you could take back control of your money.

If You Use Apps, a Smartphone or Online Banking…

You'd better read this.

Because, says world-famous futurist George Gilder, we're headed for a stunning $16.8 trillion reboot that could impact the way you use every single one of those modern tools.

It could also radically transform the way you get paid, the way you save and — maybe most of all — the way you invest for retirement.

It's all in his brand-new presentation — you'll find it at this link.

What you'll see could change our way of life, the way microchips did. The way the internet did. The way smartphones have.

And, says George, it could make you exceedingly rich — click here to see why.