Big Brother is real.
Our government and large corporations monitor and record every electronics communication you have – over the phone, over the internet… in some cases, even in person.
This was shown in the documentary Citizenfour, detailing how whistleblower Edward Snowden shed light on the U.S. government’s massive surveillance operations.
Snowden wanted to show global citizens that their privacy was both compromised and being exploited. The truly scary part, though, is that everyone has become so reliant on modern technology and the way it’s made our lives easier, that these revelations didn’t result in any major change.
Citizenfour came out in 2014. Since then, things have only become more chilling.
Worse still, we’ve taken on the mindset that an individual likely won’t ever notice the government’s snooping, and as long as we don’t do anything wrong, there’s nothing to worry about. So, we quietly accept the convenience of a digital world in exchange for our freedom of privacy.
That may sound bleak… But it’s possible to escape this era of constant digital surveillance, and even become financially free from it, with a shift in perspective. And today, I’ll show you how…
Turning the Tables on Big Money
Working Wall Street’s biggest stock deals in the early 2000s, I quickly learned that the big boys run the show. Everyday investors – even my actions as a professional – were a drop in the ocean.
It didn’t matter if a stock was a terrible business or a great one, overpriced or underpriced. If a big-money investor wanted it, the price would go up. Every single time.
That’s how I realized that gaining an edge as an investor meant tracking the big money. And like what Snowden uncovered a decade later, I would figure out a way to quietly stalk the markets and see where the big money was placing its bets.
I didn’t have to know who they were or the reasons behind their actions. I just had to track and record their moves. And if I could see what the masses couldn’t, I could flip the odds in my favor.
I felt I could predict with a degree of accuracy which stocks would rise. All because I did something even better than becoming a big money player: I figured out a way to watch all of them safely from afar.
The single broadest gauge born out of this is the Big Money Buy/Sell Index (BMI). It tells us when aggregate big money is buying or selling.
That information is immensely powerful. Looking at the BMI chart, it’s clear: the big money often knows and acts ahead of major market moves. And they don’t just know these moves are coming… their actions often dictate the moves themselves.
Notice in early February, big money buying slowed and reversed lower. This happened while the market kept trudging higher all month, until late February when the reality of COVID-19 set in.
In other words, the big money began selling a full month earlier than the rest of the market.
In September stocks began to sag – consistent with previous election-year volatility. But look how the Big Money Index began falling slowly from July then accelerated its drop in late August. Once again, it was ahead of the move.
“What Can I Do About It?”
The hard truth is that the big forces of the world will always have the upper hand. Big corporations, big government, and big money will always use their natural advantage.
So, the natural question is: “What can I do about it?”
When it comes to avoiding big government snooping… as hard as it seems to go off the grid, it’s not impossible. Use an encrypted email account, delete your Facebook and other social media, live outside of major cities, and strictly use cash. Impractical? Maybe. But not impossible.
Prevailing as an investor, however, may be much easier. And once you achieve financial freedom, the freedom of privacy becomes that much easier to attain.
Here’s what I mean…
When it comes to thriving in an era of unquestioned government surveillance, it pays to know your enemy.
Axon Enterprise (AAXN), a company that makes body cameras for law enforcement, has returned over 400% since 2014. Software cybersecurity company Fortinet (FTNT) has done just as well with a 383% return since 2014. Palo Alto Networks (PANW), another big cybersecurity company, traded as high as $269 per share this year – over a 100% gain since 2014.
Of course, you must do your own research before investing in any company. And if you want to lower your risk exposure, I would recommend the ETFMG Prime Cyber Security ETF (HACK). Since it debuted in 2014, it’s returned nearly 100%.
It’s clear that Snowden’s whistleblowing only strengthened the prospects of cybersecurity companies in America. So, investing in cybersecurity companies in this brave new world is a high-odds bet.
Patience and process!
Editor, Palm Beach Insider
P.S. My investing approach is simple. Even a bit “boring.”
I look for big trends taking shape… apply my unbeatable stock-picking system to see where the big money is going… then pick the absolute best name to take advantage of both factors. Once that’s done, you just hold on and wait for the money to roll in.
It’s not a fast-paced moonshot option trade or finding the next micro-cap lotto ticket. But it’s how our current model portfolio shows five triple-digit winners – some that have multiplied the initial investment by four times – with many more to come.