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Since the coronavirus pandemic early this year, the threats to your income have been rampant …
The biggest cuts in stock dividends since the Great Recession.
The worst unemployment since the Great Depression.
And adding insult to injury, the lowest yields for your money in the history of civilization.
But starting in late March, the stock market has enjoyed one of its sharpest rallies of all time.
What gives? What explains this great disconnect?
Much of it can be explained with two words: False hopes.
But not all of it.
The Great Bifurcation
In addition to the great disconnect, we also have a great bifurcation — a split between two entirely different worlds, each moving though time along two divergent pathways.
The first world is the traditional realm of brick and mortar. It’s where people work in offices, go to school, shop in stores, sit patiently (or impatiently) in doctors’ waiting rooms, travel to conventions and … try to continue jogging through life as if nothing has changed.
The second world is in the digital realm, where people work remotely, students rely on distance learning, shoppers get nearly everything they need online, where patients consult with their doctors via telemedicine and millions attend virtual conferences — all from the comfort of their living room … or from anywhere on the planet.
In the brick-and-mortar world, we see a tsunami of financial failures — corporate bankruptcies, personal bankruptcies, even government bankruptcies.
In the digital world, we see a tidal wave of revolutionary technological innovations.
In the one, unprecedented wealth destruction; in the other, unprecedented wealth creation.
And as I’ve said all along …
Our Weiss Ratings can be powerful
tools for both sides of the equation.
In the Tech Wreck, for example, the Weiss Ratings clearly warned investors away from nearly dot-com stock on the Nasdaq, saving them from wipe-out losses that averaged 75%.
But once that storm has passed, our Weiss Ratings went on to issue “buys” in a slew of stocks that led the internet revolution.
That includes Citrix Systems, which has delivered a total return of 815%, Cognizant Technology Solutions giving investors a 902% return, Global Payments (1,332%), Intuit (1,424%), Manhattan Associates (1,285%), Lam Research (1,580%), Fair Isaac Corporation (1,230%), Amphenol Corporation (1,245%), Ansys (2,836%), Tyler Technologies, 3,450% and many others.
It also includes leaders like Microsoft (1,034%) and Apple, which performed 15 times better, delivering a total return of 15,631%.
In each case, the Weiss Ratings for these stocks issued a clear “buy.” And in each case, our ratings continued to tell investors to hold or buy more until those returns were achieved.
Now, as the pandemic drives billions of Internet users from the brick-and-mortar world to the digital world … and as it attracts countless new users for the first time, similar opportunities are possible.
But never forget: You probably won’t make it to the finish line unless you can avoid the sink holes long the way.
That’s why our ratings formulas give a heavy weight to what we call “stabilizing factors.”
Not just earnings, but consistent earnings.
Not just dividends, but a history of rising dividends.
Not just good upside price momentum, but also limited downside risk.
Not just profit potential, but also relative safety.
Here’s how to access this powerful tool.
1. Go to https://weissratings.com/.
2. If you don’t yet have an account, sign up now.
3. In the upper right side of your screen, click on “My Watchlist.”
4. Then, add your favorite companies.
All our ratings are on the same scale:
A = excellent
B = good
C = fair
D = weak
E = very weak
But please bear in mind that we offer two different kinds of ratings:
1. For stocks, ETFs and mutual funds, they are the equivalent of medium- to long-term “buy-sell-hold” ratings. Thus,
B- or higher = “buy.”
D+ or lower = “sell”
C-, C or C+ = “hold”
2. For banks, credit unions and insurance companies, our ratings are similar to bond credit ratings. Use them to avoid riskier institutions and find safer ones.
No ratings can be perfect. But you can certainly make good use of them — to protect your money, improve your income, and go for substantial profits.
Good luck and God bless!
Martin
