Over my three decades on Wall Street, I had a track record of making unpopular—but correct—market calls.
In 2003, I was leaving the retail brokerage business to manage an exclusive hedge fund. My parting gift to my clients was recommending Apple… when it was on the verge of bankruptcy and no one was buying shares.
Not everyone was on board, though. Many thought I was nuts. But over the next decade, a $1,000 investment would’ve ballooned to nearly $50,000.
And then there’s April 2016, when I recommended bitcoin. Even my publisher thought I was crazy at the time. But since then, bitcoin’s up 2,277%—despite last year’s brutal Crypto Winter.
Being the guy with the least popular idea is usually a sign I’m on the right track. It’s a price I’m willing to pay in the pursuit of spectacular returns.
And right now, I’m ready to buy into one of the least popular markets in the world.
I think we’ll see a fire sale for the ages. Certain companies will soon be selling at massive discounts. And it gives us a chance to be greedy while others are fearful.
So today, I’ll reveal why you need to act before October 31 to take advantage of this opportunity…
An Unloved Market
The British market is getting no love from investors.
As you may recall, Brits initially voted to leave the European Union on June 23, 2016. The media called the decision Brexit.
And the markets panicked…
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The S&P 500 plunged 5.4% on that day—its largest drop since 2011.
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The British pound crashed about 10% against the U.S. dollar—its largest intraday drop in history.
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Wall Street’s fear gauge, the Volatility Index (VIX), spiked 49% to 25.76. That marked its highest level since February 11, 2016—when equities hit their lows of the year.
The UK economy continues to suffer in the aftermath, too:
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Today, the British pound trades at historic lows compared to the U.S. dollar.
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According to Financial Times, nearly $25 billion has fled UK stock funds since the Brexit vote as investors look for other places to grow their money.
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And Goldman Sachs says Brexit has cost the UK economy $734 million per week since the 2016 vote. British companies are relocating to other European countries to maintain access to EU markets.
Here’s the thing… I believe this is a typical market overreaction.
While most mainstream pundits are stoking fears about the breakup, foreign firms have been quietly buying up British companies.
For example, a PricewaterhouseCoopers study after the original Brexit vote predicted the UK would lose up to $240 billion in merger and acquisition (M&A) activity if it left the EU.
However, the exact opposite happened.
In the two years prior to the referendum, overseas companies acquired 294 UK firms for a combined $146 billion. But two years after the vote, Bloomberg reported an increase to 475 acquisitions for a combined $232 billion.
That’s nearly 60% more acquisition spending—despite the ongoing drama. And therein lies our opportunity…
Brexit Redux
The initial 2016 vote started the clock on a process over two years long. It was supposed to end with the UK’s exit from the EU on March 29, 2019.
But the two sides couldn’t reach an amicable divorce. So they extended the deadline to October 31. And it’s increasingly looking like Brexit will happen with no deal…
Just yesterday, Queen Elizabeth approved Prime Minister Boris Johnson’s request to suspend Parliament in September. With the new session beginning in mid-October, British lawmakers have even less time to stop a no-deal Brexit.
Now, we don’t need to get into all the details. Just know that a withdrawal with no deal would send shockwaves across British society… and lead to another panic in the markets.
Under this scenario, certain stocks could quickly lose 40%, 50%, or even 60% in price. It’ll spark the greatest buying opportunity we’ve seen since October 2008.
So how do we play it?
Well, in my elite Alpha Edge trading service, we’re using a little-known strategy to capture huge gains from this coming turmoil.
It’s an approach used for years by hedge funds and savvy traders. So if you’re an Alpha Edge subscriber, don’t worry. We’ve got you covered.
If you aren’t a member yet, we recommend keeping a cash hoard ready. Chances are, we’ll see lower prices across all stock markets as Brexit plays out.
And one exchange-traded fund to keep an eye on is the iShares MSCI United Kingdom ETF (EWU). It consists of stocks trading primarily on the London Stock Exchange. It’ll give you broad exposure to a UK rebound.
Let the Game Come to You!
Teeka Tiwari
Editor, Palm Beach Daily
P.S. Tomorrow at 1 p.m. ET, I’m releasing what may be the most important investment update of the year…
During my special briefing, I’ll show you how to take advantage of a time-sensitive Brexit opportunity between now and October 31.
It could unlock $300 billion in profits for U.S. investors—and put you on the path to collecting thousands or tens of thousands of dollars (and perhaps even over $100,000). But you’ll only have a few hours to act if you wish to take part.