Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | It's Not Kareem's Skyhook … But It's Close By Charles Sizemore
Chief Editor, The Banyan Edge | Banyan Nation, Most men my age grew up idolizing Michael Jordan. And while I have nothing against His Airness, I got into basketball at a younger age than most of my peers. I grew up idolizing Magic Johnson and Kareem Abdul-Jabbar.
Abdul-Jabbar, by the way, was widely considered to be the GOAT (the greatest of all time) before Jordan rose to dominance.
And you get it. When he retired at age 42, he was the all-time leader in points, games played, defensive rebounds and blocked shots.
He was one of the few players to truly change the game. Abdul-Jabbar was so dominant in college, they literally outlawed dunking for a time in a futile attempt to slow him down.
And to this day, he has the one and only truly unguardable move in basketball: the skyhook.  (From SBNation.) Abdul-Jabbar was 7’2” and had a 9-foot wingspan. And when he would pivot around for a skyhook, he had the width of his body between the defender and the ball.
You couldn’t stop it. You just had to hope he missed.
I was pondering this as I read An Economist Goes to the Game by Paul Oyer, which I mentioned in yesterday’s Banyan Edge.
Oyer got into the game theory of why star pitchers didn’t use their best pitches more often. And the answer is obvious. If they used the best pitch every time, the batters would know it was coming … and it wouldn’t be the best pitch anymore.
Stock trading can be the same way.
“Anomalies” are a dime a dozen. But once a trader finds one and exploits it, it’s just a matter of time before other investors start front running it, and it becomes less effective.
In this way, investing strategies often have a short shelf life of success.
There are a couple of exceptions though, and one is the size factor. Small-cap stocks outperform their larger peers over time, despite the “small-cap effect” being known for decades.
Why? Because large traders can’t operate in that space, thus they can’t close the anomaly.
Is the size factor as deadly as Kareem’s skyhook?
Well, let’s not get ridiculous. But it’s still awfully darn effective.
This is something Adam O’Dell explains in his latest research — which shows that the top small-caps in the current market (priced $5 or under!) could surge as high as 500% this year. Go here to get all the details!
And now let’s see what the rest of the crew had to say this week. | | | In both 2009 and 2002, the average price of the top 10 stocks was below $5. Yet those stocks have gone on to surge more than an average 6,900% and 16,500%, respectively.
Now, Adam O’Dell says this can happen again in 2023. His research shows the top $5 stocks today could soar as high as 500% this year. Click here to see for yourself. | | | Weekly Recap - China’s Labor Problem, AI Automation & Chip Supremacy
China has problems … and there are no solutions.
The country is expected to lose 100 million to 200 million people over the next 30 years. That’s the equivalent of a country the size of Mexico or Brazil. Its cheap-labor model can’t survive that.
But China’s leaders are no dummies. They know what they’re up against. And we know how to profit.
- Tesla 10X in 3 Years?
Tesla has been slashing the prices of its cars. And Wall Street has been reacting by slashing the price of Tesla’s stock!
Cathie Wood believes Tesla’s stock (Nasdaq: TSLA) will be up 10X in the next three years. Maybe it will … or maybe it won’t. But there is an underlying trend here that stands to boom either way.
- Onto the NEXT 200% Winner
You want to make decent money? Buy an S&P 500 index fund and be done. You’re going to do better than 90% of professionals.
But if you want to really make money, you need to go where the pros can’t. You need to take good, hard look at neglected microcaps.
- Your Retirement Is Trapped in Low-Quality Stocks
If you take a look at a handful of household names (American Airlines, AT&T, Goldman Sachs and Ford, to name a few), you might assume you were looking at a high-quality portfolio.
Wrong! Some of America’s biggest and most well-known companies are also objectively some of the lowest in quality. Here’s why you should avoid these potential bombs and focus on high-quality stocks.
- That $2,000 Tesla Forecast Has a Huge Blind Spot
That 10X runup in TSLA’s share price that Cathie Wood is expecting? It revolves around one big premise: That Tesla will successfully roll our driverless taxis … and that Americans will line up to ride in them!
Even on the surface, that would seem a little dubious. But even if it were proven safe beyond a doubt, if the regulators signed off on it and passengers dropped their reluctancy to ride — there’s still one more massive issue that Wood seems to be ignoring altogether…
Remember to tune in The Banyan Edge Podcast on Monday! I’ll be joined by Ian King, Adam O’Dell and Amber Lancaster for the “Banyan Book Club.” We’ll be sharing about the interesting books we’ve been reading, about finance, sports economics, fallen civilizations and more!
Until then,
Charles Sizemore
Chief Editor, The Banyan Edge P.S. Are you enjoying The Banyan Edge? We’d love to get your take on our research, and we love answering questions. So if you have any questions, insights, or just want to leave us a note, please send an email to BanyanEdge@BanyanHill.com. | | | Get The Banyan Hill App And start experiencing that "total wealth" freedom for yourself. | | | (c) 2023 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice
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