Nick’s Note: Have you ever noticed that some winners just keep winning?

Think of all-time greats like Michael Jordan, Wayne Gretzky, or Babe Ruth—athletes who’ve won multiple championships in their respective sports. These guys have some of the most successful track records in their fields. But they’re more than just winners…

What makes them truly special is that they’re “outliers.”

And PBRG Wall Street insider Jason Bodner has spent several years perfecting a system that finds outliers—in the stock market. You see, outliers make up only 4% of all stocks, yet they’re responsible for nearly all the profits.

So I reached out to Jason to find out how his system identifies these outliers…

By Nick Rokke, analyst, The Palm Beach Daily

Nick: Hi Jason, thanks for joining me today. Let’s get right to the topic: What got you interested in finding outliers?

Jason: Well, let me start by defining what an outlier is…

In his book Outliers: The Story of Success, author Malcolm Gladwell defines “outliers” as those who don’t fit into our normal understanding of achievement. They’re exceptional people who are smart, rich, and successful—and can especially operate at the extreme outer edge of what’s statistically plausible.

Think of all-time greats like Michael Jordan, Wayne Gretzky, or Babe Ruth—athletes who’ve won multiple championships in their respective sports. Yet it’s easy to identify outliers like them when they’re Hall of Famers.

But imagine you were building a team from scratch… Wouldn’t you want a way to pick Michael Jordan or Wayne Gretzky before they became superstars? It would give you a serious edge over the competition.

And that’s exactly what I wanted to do in the stock market: find the superstar companies before they became superstars.

I’m talking about companies like Facebook, Apple, Amazon, Netflix, and Google—outliers that go up 100%, 1,000%, or even 10,000%. The holy grails of stock-picking.

Nick: Why are outliers so profitable?

Jason: This is something most people don’t know… A 2017 study by an Arizona State University finance professor found that—over the past 100 years—just 4% of stocks have accounted for nearly all the profits of the market each year.

So these outliers are where the big money is hiding out. And if you’re not targeting these companies, you’re basically wasting your time as an investor.

That’s why my goal is to spot these outliers—and find them up to 30 days before they soar.

Nick: Can you give some examples of outliers in the stock market?

Jason: Most people have probably heard of the FAANGs—Facebook, Amazon, Apple, Netflix, and Google. Since 2013, while the overall market is up only 104%, this group is up an average of 882%. So these stocks are the elite of the elite.

But my system has identified another group of outliers that’s performed even better than the FAANG stocks. I call them the DANNNs: Domino’s Pizza, Align Technology, Nvidia, NetEase, and Netflix.

And since 2013, the group is up an average of 1,236%. So the DANNNs have not only outperformed the FAANGs by 1.5 times… they’ve crushed the overall market, too—by more than 10 times.

Nick: That’s incredible performance, Jason.

But to play devil’s advocate… It’s one thing to recognize winners after they’ve become popular. So can your system find outliers before they soar?

Jason: Great question. Like I said earlier, anyone can identify outliers after the fact. But my system does catch them before they rocket higher.

Take Align Technology, for example. It’s a medical device company that makes a popular brand of clear orthodontic braces. And since my system flagged it in April 2011, it’s up 1,307%.

Another example is Mastercard. It triggered my system in October 2007. And it’s up 1,528% since then.

More recently, my system identified The Trade Desk on July 27, 2018. Its stock is up almost 136% in just nine months since adding it to our Palm Beach Trader portfolio.

Nick: And for those who are unfamiliar with it, how does your system work?

Jason: I created my system based on my experience as a trader for Cantor Fitzgerald—a firm which helped develop the fastest high-speed trading system on Wall Street.

Once I built my system and ran it for a few years, I recruited a team of Ivy League engineers—the brightest from schools like Cornell and Columbia—to test and verify the results. They wrote papers on how well it can beat the market.

Now, my system scans nearly 5,500 stocks every day, looking for the best of the best that institutions are likely buying by the truckload. And I use 80 complex algorithms to score and rank each one of them for strength across 29 factors.

Among this group, the system will look only for the outliers—the one percent of the one percent. It’s like an automated stock-picking machine.

Nick: So where does your system say the next outliers will come from?

Jason: It’s seen immense buying in semiconductors since the market bottomed out last Christmas Eve. These companies make the microchips that go into all of our electronic devices and networks.

But last year, Wall Street hated the sector. Remember how the bears were saying growth was over? Well, semis bore the brunt of that negativity. 

Yet the sector is back with a vengeance now… The PHLX Semiconductor Index is up more than 45% since its lows last December. And we’ve seen tons of unusual buying in top semiconductor stocks—indicating there’s likely strong institutional interest.

So I think this institutional activity in semiconductors will continue, especially with the solid demand for new components as 5G wireless technology becomes widely adopted.

Nick: Thanks for talking to us today, Jason.

Jason: You’re welcome.

Nick’s Note: As Jason showed, semiconductors are seeing renewed interest from Wall Street’s big money. And his system has just identified a company poised to ride this wave. In fact, it could be a triple-digit winner in just a few months.

Several big players have already taken a stake… And Jason believes more are quietly snapping up shares and moving the stock higher. Plus, it’s a likely acquisition target.

To find out more about how to profit from it—and other future outliers—by using Jason’s breakthrough system, just watch his special presentation right here…

MAILBAG

Jason Bodner’s 2020 presidential prediction has readers chiming in…

From Dolores B.: President Donald J. Trump will cruise to victory in 2020!

From Ron T.: I think Mr. Trump should get rid of any traitors who talk bad about him!

From Christian K.: Concerning the Fed (which does “bad things” against Trump), you didn’t mention that raising interest rates had technically started under Obama—as it had already been decided under the Obama administration far before Trump became president. So the Fed really just continued its existing policies.

Also, Trump spends a lot of money that he simply does not have. He has let the government debt explode—which is a miracle for the economy in the short-term, but will end up as a big crash. That’s a global economic problem, and we’ll see what happens.

Further, Trump is a president who is hated around the world thanks to these taxes he’s implemented. He’s deregulating the world economy. And not only has he not had any success with North Korea, his political tactics with Iran are a catastrophe as well.

Do you think President Trump will “cruise to victory” in 2020? Or will his “catastrophic politics” destroy his chances? Let us know your take right here.

IN CASE YOU MISSED IT…

There’s an obscure metal that most people are completely overlooking today. And thanks to President Trump’s new executive order, it could actually soar in value in the coming months…

You see, it all has to do with something called “liquid energy cubes”—and you can get the full details in this brand-new video presentation.