This rare event will have you decluttering your wallet

While the current market downturn may offer a chance to grab some stocks in your favorite company, it may also be a chance to declutter your portfolio a bit.

It pays to be picky, especially when it comes to your investments.

Marie Kondo, the “decluttering” guru, has made millions by devising and popularizing a common-sense method for purging a home of unnecessary and unwanted “stuff.”

His philosophy is simple: objects that spark joy should stay; those who don’t should leave. And this method isn’t limited to the dusty, unread books in your collection or the waffle maker you haven’t used since your wedding…

Investors can also adopt some of Kondo’s cleanup tactics.

Even some of the most seasoned and savvy investors fail to arrange their portfolios as they should. Indeed, tidying up a wallet requires an explicit commitment to do so…as well as an unbiased analysis that asks some version of the question, “Does this item elicit joy?”

Not all worthwhile investments will “spark joy,” of course, but they should elicit some sort of powerful and obvious positive reaction.

Remember, your goal is to identify the items you want to keep, not the ones you want to throw away. The discard is simply the byproduct of what you want to keep.

And those looking for new opportunities to add income to their portfolio will want to read on to find out where I found the next megatrend. The location might surprise you… but even more surprising is the profit potential.

Spark “Yes!” »

If you look at every stock in your portfolio and honestly ask yourself, “Is this stock going to create wealth?” or “Will this stock be a 10-bagger?”, the answer should always be a “Yes!”

But if the answer is “no,” the stock doesn’t belong in your portfolio, even if it’s a solid investment or a popular household name.

These types of investments may be suitable. But very few investors turn to “good,” because in the world of investing, “good” is synonymous with “opportunity cost.”

It’s definitely not right in my book.

“Opportunity cost” is a term of regret that sadly refers to “what could have been”; it describes the consequences of an erroneous or suboptimal choice between competing possibilities.

Opportunity cost analysis can and should be part of an investment discipline that emphasizes buying extraordinary investments, rather than ordinary or “quality” investments.

Based on decades of stock market history, we know a few key details about what produces investment success over time. For example, we know that…

• Fast-growing companies tend to produce better investment results than slow-growing ones…
• Cash-rich companies tend to produce better investment results than highly leveraged ones…
• And companies with a formidable “moat,” as Warren Buffett calls it, tend to produce better investment results than companies with no particular competitive advantage.

So when we look at the stocks in our portfolios, we should favor those that possess one or more of these winning traits.

You don’t want to pursue the success of your investments by betting on luck. Instead, you want to stack the odds in your favor as much as possible.

And I found a way to do it…

Buy recession-resistant stage 2 stocks

Have you ever heard of second stage actions? According to Luke Lango, they’re the holy grail of investing because they can earn up to 500% in just 21 days and pay you an extra $10,000 or more in recession-proof cash every month. Here’s how.

The “Portfolio purge” formula

Calculate the size of a company’s net debt, then divide that number by the company’s annual revenue… to produce a simple ratio: [Net Debt Divided by Trailing 12-Month Revenues]

Generally speaking, the higher the ratio, the more a stock is likely to deteriorate over the next five years. The lower the ratio, the better a stock’s likely performance over the next five years.

That’s it. That’s the whole process.

I regularly use this simple test to identify potential investments. (Obviously, my research doesn’t end there.) But once I’ve identified a potential investment, I qualify that stock by conducting additional targeted qualitative and quantitative research.

That’s what a portfolio purge is all about: avoiding the underperformers in order to make room for the overperformers. It’s a process that can bring a lot of joy.

A powerful megatrend poised to spark joy

I give my readers the chance to play an emerging phenomenon – with the potential to win millionaires. Along with naming my #1 way to play this megatrend, I’m also going to show you five ways to multiply your initial bet by 10…and focus on the surprising area of ​​the United States where all the action is taking place.

Keep an eye on your inbox for a special announcement and be one of the first investors to participate in this flagship event.

The next investment opportunity is on the horizon…and it’s sure to bring joy.

Cheers,

Eric

PS What is Louis Navellier’s BIG ENERGY BET?

Legendary investor Louis Navellier says if he had to invest every penny of his life savings in one sector of the markets… this would be it. Find out what it is here.