| By Nick Rokke, analyst, The Palm Beach Daily Nick: Thanks for joining me today, Jason. Bitcoin has finally caught a bid. It’s up over 150% since bottoming out in February. Is there a way to gain exposure to this rally in the stock market? Jason: First, I just want to say I’m not an expert in cryptocurrencies. Teeka has the best edge in this space that I know of… so I’ll defer to him when it comes to cryptos. But is there a way to gain exposure to this rally in the stock market? Sure, there is. As you know, I’ve been big on semiconductors for months. These companies make the chips and circuits that go in our electronic devices. Some people call them the “brains” of computers. I’ve seen a lot of smart money buying this sector all year. The iShares PHLX Semiconductor ETF shot up nearly 37% from January to April 2019 before the recent pullback. Now, that run up may or may not be related to the crypto resurgence. But crypto mining is computing intensive. So miners will need the powerful computer chips made by these companies. In fact, global consulting firm Accenture says growing use of blockchain technology will fuel demand for semiconductors. That’s just one reason to be bullish on this sector. Nick: But semiconductor gains have been cut in half since April. Does that worry you? Jason: No. In fact, I think the pullback is healthy. The sector has pretty much gone up in a straight line all year… and nothing can go straight up forever. Eventually, it has to take a break. And that’s what’s happening right now. So it’s a good time to buy the dip. Nick: What do you think caused the pullback? Jason: It’s simple: Trade ware fears. You see, traders used the geopolitical strife as an excuse to take profits. And some quant funds realized they could use the knee-jerk reaction to push prices down even further by selling more. That caused a quick decline in semiconductor prices. But again, I think the pullback is temporary… As I’ve said before… this trade war rhetoric is nothing more than saber-rattling. At least that’s what the smart money thinks. If investors really believed there’d be a full-fledged trade war, they’d pile into safe-haven stocks like utilities, health care, and consumer staples. We’d see major volume in those sectors. But we’re not seeing that. Instead, we’ve just been seeing money leave the semiconductor space over the past few weeks. That suggests investors are sitting on cash. And they’re not going to do that for long… If they do, they’d lose about 4% per year, due to inflation. So I predict once we see some kind of resolution to this trade dispute, the semi space will quickly recover. The fundamentals haven’t changed. It’s still the fastest-growing sector in technology. Not only are semis seeing huge demand from blockchain and crypto projects… but from artificial intelligence and internet-of-things technology, too. And that’ll be good for prices moving forward. Nick: Great. Before I let you go, can you let us know if your market outlook has changed? Jason: Nope. I’m still long-term bullish. As of this week, 97% of S&P 500 companies have reported their first-quarter earnings. Of those, 76% reported positive earnings surprises. And 59% reported positive revenue surprises. Those are healthy numbers… And it shows that companies continue to beat expectations. I believe that’ll continue. Even after these beats, most companies are leaving their full-year guidance unchanged because of trade war concerns. No company wants to raise its guidance and then have to lower it because of the uncertainty. But if these past earnings numbers are any indication, future guidance is conservative… So barring any major catastrophe, companies will be beat them going forward. That being said, my proprietary ratio just dipped below 50%... That means sellers are in control for now… and that could lead to some short-term volatility. But that’s normal for this time of year. When earnings season ends, liquidity dries up. And the summer is always a volatile time for stocks. So I expect a little choppiness—especially after a huge run like we just had. | Recommended Link | America’s #1 Currency Expert Finds Strange Clue in Trump Hotel President Trump loves gold. His buildings are covered in it. He once accepted $200,000 in gold bullion as a lease deposit. And he’s repeatedly called for a return to the gold standard. Now, it appears the president may finally be getting his wish… According to currency expert Teeka Tiwari, several American cities (including Trump’s hometown of New York) could be on the verge of rolling out a new “gold standard.” All based on a breathtaking new technology. “It’s incredible,” says Tiwari. “Not only will this make America ‘great again,’ but it will also help make countless individuals rich.” Teeka has located 4 companies poised to gain from the new “gold standard,” including one currently priced under $1. For all the details, click on the button below: | | | -- | Nick: So what should investors do in the meantime? Jason: I’m using any pullbacks to add to my positions and buy into new positions. That’s the way to use this volatility to your favor. If you stick to your investing plan… and hold on to the great companies that institutions are buying… you’ll come out ahead. Nick: Thanks for your time Jason… and for telling us how to take advantage of the crypto trend in the stock market. Jason: You’re welcome.
Nick’s Note: Investing in semiconductor stocks is an indirect play on the Crypto Spring. But if you really want the potential for life-changing gains, you need to invest in the actual tokens… And with bitcoin breaking out to annual highs, now’s the best time. That’s why for the first time in 10 months, Teeka Tiwari went live on camera Wednesday night for a cryptocurrency “Ask Me Anything” webinar. And we're rebroadcasting the event for a limited time for anyone who missed it. During the event, Teeka told us why the smaller, lesser-known cryptos are about to follow bitcoin’s lead… Plus, you’ll hear how he’s delivered recommendations that reached as high as 1,241%… 2,050%… and even 14,354%. Watch the rebroadcast right here… 
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