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Tech Titans Declare War - Who Wins and How You Can Profit

2012-01-31T20:18:51Z

An epic battle is underway as we speak for nothing less than the future of the digital age.

Today's four Tech Titans--Apple, Amazon, Google and Facebook--have declared an all out war the likes of which we haven't seen since the epic Microsoft, IBM, HP and Dell battles of the 1990s.

At stake? Every revolutionary technology of our times...tablets, smartphones, online streaming, social media, online music, cloud storage and more.

Take a moment now to watch this FREE Video Alert and learn about:

Google's entry into the tablet market is finally on the way--and what it means for the iPad and Amazon's Fire.
What to expect with the iPhone 5 and iPad 3.
Facebook going public--should you buy into the biggest IPO since Google?
The more than $150 billion in cash these tech titans are sitting on.
The coming war over your TV.
Discover the only one of the four tech titans I recommend you buy today.
One of these current high-flyers is in danger of becoming the next AOL--learn who.
And much more!

Just click below to watch this Special Video Alert--it's yours absolutely free.

P.S. $10,000 invested in Amazon, Apple and Google just 8 years ago would be worth a jaw-dropping $402,452 today. Once you watch this video, click here to learn about today's innovative, high growth gamechangers that can deliver stellar results in the years ahead.

Dear Mr. President: Regulation is Killing America

2012-01-24T16:34:57Z

I recall sitting in the green room at Fox News and a very prominent fund manager was in a rush to head to Boston to see his elderly mother. I asked him how many siblings were in his family. He said, "Seven, I mean none, I mean seven, well, actually, my mother was an alcoholic and neglected me back in the 1950's. A loving childless couple that lived on the block took me in, raised me as their own, educated me and that's really my mother who I am going to visit today."

I was taken aback by his story. Imagine a similar situation today. His story would be complicated by a dozen different temporary foster homes, trips to court and endless paperwork. A loving couple wouldn't have had the chance to raise a productive and honored member of society.

Instead, this man has a thriving firm full of employees and has become one of the most respected managers on Wall Street.

I thought of this encounter last winter when we realized that a young girl in my daughter's kindergarten class didn't have a coat to wear. When the parents of another student wanted to subtly buy one for her, the teacher told them that they were prohibited from getting involved due to a Department of Education policy.

Why all this red tape when people are simply trying to do the right thing?

This is one of the things wrong with our country today. We have become overwhelmed with regulation in the wrong places. Veterans struggle for their benefits, Medicare recipients find their doctor's leaving the system, and our children are being left behind.

It's no different in the business world, where new regulations can strangle innovation, growth and productivity.

Regulation Is Killing Innovation

During tonight's State of the Union, the very LAST thing I want to hear from President Obama is anything that has to do with MORE regulation.

Over the past 15 years, almost 60,000 new federal rules have been created - and that doesn't include state regulations. According to the Small Business Administration, compliance with all these regulations alone costs $1.75 trillion annually.

These costs hinder job creation, since the more businesses have to spend on regulatory demands, the less they have to spend on hiring.

Even if a company did have the cash for new employees, many executives are reluctant to hire because they don't know what the regulatory landscape may be down the road and can't make strategic growth plans. For executives, it makes more sense to sit on the money and build up a reserve for what may lie ahead.

Business regulations can also hurt innovation--the key to advancing our world. The opportunity to experiment and make mistakes to figure out what works is what has led to some of the most ingenious creations of our time. But in this age of guidelines and endless red tape, entrepreneurs are beaten back and discouraged by the process, and creativity is left by the wayside.

But those affected by regulations aren't staying silent. This week, a huge Internet groundswell resulted in House and Senate leaders abandoning plans to move forward two pieces of controversial legislation: the Stop Online Piracy Act (SOPA) and the PROTECT IP Act (PIPA).

These anti-piracy acts would allow the government to block access to certain web sites that contained copyrighted content. Founders of companies like Google, Twitter, eBay and Wikipedia led the charge against the reforms that they said could stifle innovation and censor free speech.

Southwest CEO Gary Kelly has also been vocal on how regulations have hurt his business, and is fighting a recent ruling that requires the company to display fare totals that include taxes on its web site.

When you buy a new shirt at the mall, does the price tag show the final cost with sales tax? How about a bottle of wine at the store? Typically, regardless of the industry, the cost of goods and services do not include taxes. I just watched a great interview where Kelly argues Southwest is no different. He goes on to talk about the unnecessary layer of complexity and how much the additional costs will hurt during an already brutal environment.

The freedom to innovate is critical to continuously moving our society forward and growing our economy. If we, as a society, are willing to sacrifice innovation for regulations, then we've just kicked ourselves out of the global innovation race.

And that would have dire consequences that would make the Great Recession look like a walk in the park.

I'll be watching the State of the Union closely tonight to hear the President's ideas for creating a robust, job-creating economy--and listening closely for new innovation-killing regulations and proposals. What will you be watching for?

P.S. Innovation isn't just good for society...it's good for us as investors, too. Investing in the visionary companies behind today's biggest tech and medical innovations is the key to outsized profits. Innovation is the reason my GameChangers readers pocketed 15 double-digit winners in 2011 while the market went nowhere. Start putting my proven profit strategy to work for you in 2012.

Is This Obama's Biggest Mistake Yet?

2012-01-23T18:30:04Z

President Obama set off a firestorm last week when he rejected the Keystone XL pipeline that would bring oil from Canada to Texas.

Environmentalists, who had threatened to withhold support for the President's re-election if he didn't reject the project, cheered.

Republicans pounced, attacking the President's move as putting politics ahead of our energy security and jobs.

So now it's your turn to weigh in...

Do you agree with President Obama's decision to reject the Keystone XL pipeline?

Does This Seem Like a Good Idea to You?

2012-01-12T16:12:49Z

Fixing the housing crisis is a lynchpin of fixing the economy. I have been saying that for the better part of two years, yet here we are with the housing crisis still raging--some might say it's even getting worse...

•After stabilizing a bit, housing prices have resumed their fall.
•48% of Americans now say owning a home is the American nightmare rather than the American Dream.
•Foreclosures are about to surge as banks ramp back up their actions against delinquent owners.
•There are almost 2 million homes in the late stages of foreclosure.

Beyond foreclosures, an increasing number of "strategic defaults" may hit the market this year. More and more homeowners who CAN afford to make their payments are choosing to walk away from their mortgage anyway. They are so far under water that they know they have no chance of recovery, so they are cutting their losses. Sad but true.

Look, until people are able to make their mortgage payments and stay in their home, until people are able to sell their home and move to where they can find a job or get a better one, until people again build up some equity in their homes, this economic recovery will remain shaky.

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The government has poured trillions of our tax dollars into failed government agencies like the FHA, Fannie Mae and Freddie Mac.

The government has already created no fewer than 21 programs aimed at stabilizing the housing market. And all of them have been a complete and utter failure and waste of our money.

But here comes yet another new government attempt at addressing the housing crisis. At least this one is a somewhat innovative approach.

The program would sell the more than 250,000 foreclosed home that are now owned by Fannie Mae and Freddie Mac to investors in bulk. Those investors would then have to convert them to rental properties.

The program's goals as stated in a CNN Money article:

"In addition to getting the properties off the government's books, officials are hoping putting the homes back into productive use will stabilize neighborhoods and housing values. Also, it is looking to expand the supply of rentals, which are increasingly in demand."

The pilot program is set to kick off early this year.

So, it's your turn to weigh in ...

Do you think the government's new program to sell foreclosed property to investors in bulk is a good idea? Share your thoughts below.

Weekly Roundup: Tips to Prepare for a Profitable 2012

2012-01-06T19:33:06Z

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This month's issue features two hot-off-the-presses gamechangers that are hitting the sweet spot in their respective industries. The first pick has pioneered a new, non-invasive procedure that removes stubborn fat--say goodbye to those "love handles." In the first nine months of 2011, revenues from the system sales increased 219%, and procedure fees increased 597%. The second pick is at the cutting edge of how medical information is processed. The stock is up an incredible 29% in a tough 2011 with revenues growing 18% during the first nine months of the year, including a 24% increase in the third quarter. Jump start your 2012 today--get the full story on these two gamechangers before they run higher.
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» Innovation Nation: Reinventing a $30 Billion Industry

Talk about a gamechanger...a smart entrepreneur with an innovative idea has revolutionized a "boring" industry and built a $40 million business in just 5 years! Get the full story.

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An Epic Cancer Breakthrough
The last time I recommended a little-known biotech stock with a cancer breakthrough, it rocketed 38% in just 3 days, and I'm expecting even bigger returns this time around. This small biotech company has developed one of the most exciting medical advances of the last 30 years. Its breakthrough drug is effective in nearly HALF of all patients who had stopped responding to the currently available drugs--HALF! The company now sits on the cusp of the Holy Grail--EU and FDA approval for its ground-breaking treatment. Even a hint of approval could send this stock soaring literally overnight. Get the details on this stock plus five additional gamechangers that you must own in 2012.
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» 2012 Market Outlook

I visited Nightly Business Report again last week to share my 2012 market outlook and some of my top stocks. To watch the video, click the link below, then select the "Street Critique" tab in the video player box and select the video titled, "Stocks to Watch in 2012". Watch it now.

» Want to Get Rich? Become a Politician.

Washington's political rolls have long been filled with wealthy Americans like the Kennedys, Guggenheims and Rockefellers. But today nearly HALF of all members of Congress are millionaires. Look, I don't begrudge ANYONE who works hard and creates success and wealth for themselves and their families, but something doesn't smell right with this one. While the median net worth for Americans dropped by 8%, the median wealth of members of Congress jumped 15%! Another sign of a system gone amok...take a look and decide for yourself.

Then take a minute to comment below.

2012 Predictions

2011-12-23T20:28:44Z

2011 will go into the books as the year of Europe, at least when it comes to the biggest influence on stocks. It was a year of volatile swings and sudden reversals, and with no disrespect intended to our European friends, it's time to move on to the NEW market-moving stories of 2012.

And today I have my 10 market predictions for 2012 covering everything from Facebook to commodities...from housing to oil...I'll even give you my take on where the S&P is headed from here...as well as give you my predicted winner of the 2012 Presidential Election.

And the Winner Is ...

2011-12-20T15:34:48Z

As we wrap up 2011, we can be sure it will be remembered as a year with more than its share of major stories. We asked for your help in picking the biggest GameChanging events of the past year, and I thank you for a terrific response!

Nearly 30% of you said the main GameChanging event of 2011 was the European debt crisis. You'll get no argument from me. It dominated the news and the markets for much of the second half of the year and will continue to have an impact into 2012.

Dysfunction in Europe was your top choice, but dysfunction here in the U.S. was second. More than 18% of you said political feuding in the U.S. and the inability of our elected officials to agree on much of anything was the biggest GameChanger of the year.

Here's how the top 10 shook out:

1. The European debt crisis rages on, threatens the euro and holds markets hostage. (28.94%)
2. Political feuding and dysfunction reaches new heights in the U.S., culminating with the failure of the debt "Supercommittee." (18.46%)
3. Continued unemployment and housing crisis. (16.45%)
4. Arab Spring--revolutions spread throughout the Middle East, toppling governments in Egypt, Tunisia, Libya and more. (10.90%)
5. S&P downgrades the United States, stripping our pristine triple-A rating for the first time. (6.73%)
6. The Federal Reserve runs out of bullets. The economic recovery hangs in the balance while the Fed's arsenal dwindles. (5.62%)
7. Historic market volatility. (5.07%)
8. Massive 9.0 earthquake in Japan and the ensuing tsunami. (4.30%)
9. The Occupy Wall Street Movement. (2.01%)
10. Enemy #1 Osama bin Laden is assassinated. (1.53%)

Big Trouble Brewing in China

2011-12-12T20:32:26Z

With all eyes on Europe week after week after week, many investors are missing a much bigger danger to the world economy--a slowdown in China.

China spent the last two years trying to cool down an economy growing at a blistering 10% pace, and combatting skyrocketing inflation. Well, as you can see from this chart, inflation is no longer the problem...

Chinese inflation slowing

The real danger now is that the Chinese government's slowdown efforts worked too well and that the world's second biggest economy is in serious danger of a dramatic slowdown that would have devastating global consequences.

Let's look at a few of the red flags we're seeing...

China, one of the largest holders of government debt in the world, appears less interested in the debt of other nations and for the first time since 2007, it sold more sovereign debt in the past month than it purchased.
China's November PMI (purchasing managers' index) showed contraction in manufacturing activity, with a reading of 48, compared with a slightly expansionary 51 in October. That's the first contraction since early 2009.
China's real estate market is in serious trouble. Property transactions in China's 15 largest cities fell 39% last month. Plus, the government has put curbs in place to bring down real estate prices that were soaring out of reach for most families.

Should this trend continue, there will undoubtedly be pressure on China's real estates prices, the developers who built the properties and the banks who financed them.

Developers are offering sharp price discounts to spark sales (and causing unheard of protests by people who bought property at peak prices). Things are so bad that I just read about one developer that was offering people a new BMW free if they were one of the first 150 people to buy an apartment in a residential development. Other builders are offering Louis Vuitton handbags, extra garden plots and free cruises as incentives for buyers.

A building slowdown would lead to a decline in demand for the raw materials and equipment used to build modern China, and that could impact the stocks of U.S. companies like Caterpillar (CAT) that sell such goods.

I'm not saying the real estate situation in China will turn into a crisis of equal proportion to the one that followed the collapse of the U.S. housing bubble, but it is certainly a risk factor I'm watching closely.

China's national government was forced to bail out local governments earlier this year to pay the costs of imprudent economic investments.

There is precedent for cracks in China's growth story. There is also precedent for the Chinese government stepping in forcefully.

The government already eased credit curbs for banks in order to encourage loans and business spending.

In addition, U.S. Commerce Secretary John Bryson said that China plans to spend $1.7 trillion to boost certain sectors over the next five years. That's twice as much as China spent to stimulate its economy during the global financial crisis.

China has said before that it wants to become more high tech and that it will focus spending on alternative energy, biotechnology and advanced equipment manufacturing. One thing about a centralized authoritarian government -- you don't get gridlock.

This spending should be good news for the bargain-priced Chinese biotech company on our GameChanger Buy List, as well as one of my top three picks for new month this week, a GameChanger with a big presence in China's green tech initiatives.

Has Warren Buffett gone mad?

2011-12-08T22:17:38Z

Master investor Warren Buffett is NOT a fan of technology. He has made that perfectly clear over the last 20 years.

So investors were blown away when Buffett announced recently that he had invested a massive $10.7 billion stake in good old Big Blue, IBM.

Some people griped that he paid too much. IBM is up 28% so far this year--the biggest gainer in the Dow Jones Industrial Average.

But Buffett has played this game--and won big--before.

In 1988, he invested $1 billion in Coca-Cola, which had doubled in the four years before he bought it. Many questioned his decision and complained that he paid too much.

Coca-Cola stock has gone up 10 fold since then.

Follow Buffett's Lead

I don't know if IBM's a ten-bagger from here, but I do know this...Buffett is right to change his tune on technology stocks.

Some of the best opportunities I'm finding in the market today are innovative companies that are capitalizing on the unstoppable, fastest growing tech trends.

Cloud computing, mobile payments, smartphones and tablets...these amazing technological breakthroughs are still in the early stages of a massive growth curve.

We've already profited handsomely with stocks like Motorola Mobility up 42%, and Apple, up 68.5%. And my newest recommendation, which I posted just a few hours ago, will continue that trend.

It may seem as though smartphones have taken over the world--more than 80 million people in the U.S. now own a smartphone. But the market has more explosive upside both here and around the world as more and more people upgrade in the coming years.

You can buy different phones, you can use different wireless carriers, but there is one thing every single smartphone on the planet has in common...

When you get a new phone, you need to activate it. And that's where my brand-new recommendation comes in.

This company provides automated software and cloud technology that enable customers to activate their accounts and synch their devices to the Internet. Their customers are the wireless carriers and device makers, who rely on its technology to automate the activation process and content management for their subscribers' devices.

Their client list is a Who's Who of the wireless, cable and technology industries... AT&T, Verizon Wireless and Vodafone; cable operators Cablevision, Charter Communications, Comcast and Time Warner Cable; and original equipment manufacturers Apple, Dell, Panasonic and Nokia.

The company has the first and only legal solution for licensed content transfer from an old device to the new one being activated.

Not surprisingly, the company makes the bulk of its money from transaction fees. Approximately 75% of revenues come from transactions, with the remainder generated from professional services and software licenses.

With more and more devices connecting to the Internet -- such as cell phones, tablets and now even automobiles -- the growing number of transactions from these devices will generate growth for years to come. Another strong trend that will benefit the company is the growth in ecommerce, which will also boost the number of transactions.

In fact, the company recently announced it will continue to play an important role in the iPhone 4S activation process and support all iPhone transactions through AT&T's online channel.

35% Growth in Good Times and Bad

And talk about recession proof... since 2004 (the first year public information was available following their 2006 IPO) revenues have grown at a blistering annual rate of 35%. Profitability improved from basically breakeven in 2004 to $23 million in 2010.

Results have stayed strong here in 2011. Through the first three quarters, revenues increased 41% thanks to increased transaction volumes from and expansion into new programs with existing partners.

Operating income increased 46%, which is extremely impressive since the company is also investing heavily for future growth with additional R&D. They nearly doubled spending on R&D in the first nine months of 2011, taking it from 16.76 million last year to 31 million this year.

I'm targeting a quick 30% move in this new GameChanger if you get in at today's price. My last 3 new recommendations shot up 30%, 17% and 22% in just a matter of weeks after I recommended them. Please don't miss the early gains on this one!

Click here to get all the details in the alert I just posted and add this new GameChanger to your portfolio today.

IPO Market Comes Roaring Back to Life (quick--hide your money)

2011-12-06T20:08:07Z

Last week we got big news about two of the most anticipated IPOs of the year--mobile game maker Zynga and Facebook.

The Facebook rumor mill has kicked into overdrive (again) and this time claims the much-ballyhooed IPO will take place in the first half of 2012.

Meanwhile Zynga, the company behind wildly popular social network games such as Farmville and the biggest maker of games on Facebook, is planning the biggest internet IPO since Google.

The company amended it's SEC filing last week to reflect a higher stock price and a lower number of shares available (that's the same low float strategy Groupon used in its IPO).

The IPO will raise as much as $1 billion and values the company at more than $9 billion.

Look, from the very first day I launched GameChangers, I have been on my soapbox urging you to stay away from IPOs of all shapes and sizes.

Trust me, I understand how strongly the siren song calls...breathless news articles, a huge PR push touting why this is "the next big thing," dreams of getting in on the ground floor of the next Google.

BUT if all of my warnings haven't gotten through, maybe this chart will do the trick...

RENREN (RENN) -86% from post-IPO high

DEMAND MEDIA (DMD) -34% from post-IPO high

EPOCRATES INC (EPOC) -75% from post-IPO high

PANDORA MEDIA (P) -64% from post-IPO high

ZIP CAR (ZIP) -55% from post-IPO high

ANGIE'S LIST (ANGI) -40% from post-IPO high

GROUPON (GRPN) -39% from post-IPO high

And these losses aren't the exception--they're the rule!

An amazing 68% of all 2011 IPOs are underwater! Yet investors just keep lining up to lose their money. Please don't be one of them!

There are much smarter, safer, more profitable ways to profit from the next big thing. We're doing it every day in GameChangers by investing in proven innovative growth companies behind the biggest breakthroughs in technology, medicine, energy and more.

We've pocketed 15 double-digit winners in the last twelve month ( see my top 5 stock picks for 2012 here).

Why on earth would you put your money at risk in the next hot--and likely money-losing--IPO when you can rack up gains like that?

Speaking of losing money, now that Groupon's share price has plunged 40% from its IPO high, I've heard from many of you asking whether or not now is a good time to buy. Watch this video for my answer...

There is a MUCH safer and more profitable way to play the "next big thing." Learn all about it here.

Look Who's Getting Away with Insider Trading

2011-12-02T19:44:29Z

Billionaire hedge fund manager Raj Rajaratnam got 11 years in prison and a $93 million dollar fine when he was found guilty of insider trading.

Martha Stewart for goodness sake, got jail time for using insider information to avoid a $51,000 loss.

But if either were a member of Congress, profiting from inside information would have been considered business as usual.

You see, the inside trading rules that govern investors, traders, corporate executives and 99.9% of all Americans simply don't apply to Congress.

In case you missed it, take a minute to watch this story on how members of Congress are getting rich off inside information any of us would go to jail for using to our advantage.

Banks Got Secret Fed Loans Worth TWICE as Much as TARP

2011-11-29T22:51:41Z

We will NEVER know everything that happened behind the scenes during the darkest days of the financial crisis in those days after Lehman Brothers collapsed.

And that's partially because The Federal Reserve and big banks fought for years to keep as many of the details secret from us--yes, us...the people who were writing the checks!

But we are now learning that the highly controversial $700 billion TARP program was small potatoes compared to $1.2 TRILLION in secret loans the Fed was doling out during 2008.

Click here to read the infuriating (yet fascinating) details.

Critical Week Ahead for the Market

2011-11-28T22:41:38Z

On the heels of the worst week since mid-September, the market rebounded today soaring 3% at the open on record-breaking sales Thanksgiving weekend (more on that in a minute) and yet another round of optimism over the Europe debt crisis.

The question, of course, is will it hold?

Wall Street has been positively manic-depressive over the European debt saga--soaring on slivers of hope and plunging on any wrinkle.

But I see traders shifting their attention to issues much closer to home as more and more data is released that shows clear signs of economic recovery.

You can see it in today's reaction to a massive 26% jump in Black Friday sales over last year. It's another clear sign that consumers are still willing to spend (on the heels of last week's announcement that consumer spending grew at a 2.3% annual rate--the highest of 2011).

That's why this week will be crucial. We have a slew of key economic data being released, starting with today's new home sales numbers and ending with Friday's employment numbers.

Take a look at what's on tap this week:

Nov. 28: New home sales

Nov. 29: Consumer confidence

Nov. 30: Productivity

Nov. 30: Chicago PMI

Dec. 1: Jobless claims

Dec. 1: ISM

Dec. 1: Construction spending

Dec. 1: Motor vehicle sales

Dec. 2: Nonfarm payrolls

Dec. 2: Unemployment rate

Black Friday Sales Soar

Let me take just a moment to give you a run down on the Black Friday shopping numbers that Wall Street is so pumped about...

Black Friday sales surged 26% over last year.

Sales were up 16% over the Thanksgiving weekend.

Consumers spent $52.4 billion over the holiday.

Average spending per person was up 9%.

Big winners were Best Buy, Macy's, and Walmart, all of whom had very smart deals, started their Black Friday discounts earlier than last year and did significant advertising.

Cyber Monday (today) is expected to be big as well. 80% of all retailers offering discounts online and 122 million shoppers are expected to shop online today looking for those deals.

It all bodes well for a solid retail season despite 9% unemployment.

EPAR Technology: A Fascinating New GameChanger

2011-11-25T15:42:55Z

I'm constantly on the prowl for new game-changing technological and medical breakthroughs. Today I want to share a short video on a new technology with far-reaching, life-saving applications. Click here to watch it now.

Is QE3 on the Way?

2011-11-25T15:39:42Z

The just released minutes from the Federal Reserve Open Market Committee meeting earlier this month reveal talk about a third round of quantitative easing.

The Fed revised its previous 2012 growth forecast from June down significantly--from 3.3-3.7% growth to just 2.5-2.9% growth. After that revision and discussing dismal projections for unemployment through 2014, Federal Reserve Chairman Ben Bernanke certainly opened the door to QE3 with this statement...

It is certainly something we would consider if conditions were appropriate," Mr. Bernanke said in response to a question at a news conference following a two-day meeting of Fed officials.

The notes go on to say:

A few members indicated that they believed the economic outlook might warrant additional policy accommodation. However, it was noted that any such accommodation would likely be more effective if it were provided in the context of a future communications initiative, and most of these members agreed that they could support retention of the current policy stance at this meeting. One member dissented from the policy decision on the grounds that additional monetary policy accommodation was warranted at this time.

Decoding Fed speak can be a full time job, but this language is actually pretty easy to decipher...it's clear that multiple members of the FOMC are promoting another round of stimulus. The question seems to be timing.

Turkeys in Chinatown

2011-11-24T15:35:39Z

351 days a year, the butcher shop windows in Chinatown are filled with handing pigs, ducks and chickens.

But for a few days a year, something odd shows up...turkeys.

I recall going to a Wellesly classmate's home in Chinatown in the evening after Thanksgiving dinner. Most of the people in the room hadn't mastered the art of being understood in the English language and the post-meal mahjong tables buzzed with intensity. But the pride of being American and celebrating like everyone else (with turkey and pumpkin pie) oozed from this small apartment in a lower east side (now Chinatown) project.

This same project had been the launch pad for now successful and long-gone families of Irish, Italian, and Jewish descent.

In different neighborhoods around the country today the turkey, gravy, stuffing and sweet potatoes may also be served with manicotta or knishes or curried lamb or raw tuna but the meal remains the same: re-enacting the feast of the pilgrims who worked hard, who survived trying times and took a day to give thanks for the freedom and sustenance that America had given them.

As an American, that's what makes Thanksgiving so special. We all celebrate, regardless of our religious, ethnic or cultural background.

Our country was founded by those seeking to practice their beliefs and express their ideas freely. It was founded by those willing to work hard and then celebrate the fruits of their labor and share the bounty with their neighbors.

Thanksgiving is a holiday that celebrates a group of bold individuals that came to this country because they wanted religious freedom. And they didn't just survive--they eventually thrived and created the work ethic and prosperity that marks our country's cultural greatness.

The reason Latin American has struggled while we have thrived comes from a theory I developed after ten years living and working in the region: the Spaniards and Portuguese came to pillage and take the resources of the land. There was no interest in building a wider community or investing in the future of a country. It was about bringing gold and silver and jewels BACK to Europe and not about starting a new life.

This spirit of giving, not just taking is core to our spirit. It is who we are.

It's why there isn't a food bank or church I know of here in New York City that is short of volunteers today. Thanksgiving is a day when Americans give of themselves and enjoy the sharing and feeding those less fortunate.

We do this even as we struggle with a recession, under-employment, sagging home prices, and a stock market that as been cruel for the past 12 years.

A few greedy people created a tough environment for all of the rest of the millions of Americans, but we are on the other side of the mountain and the healing has begun.

We will survive this--we always do. We need to have faith, count our blessings, let our voice be heard and help our neighbors.

Today, the Thanksgiving tradition lives on and is celebrated by all of us as we share our meal and give thanks for the miracle of life, liberty and the ability to reach for our dreams, regardless of when and from where your feet, boat or plane arrived on these glorious shores.

God bless you and God bless America.

P.S. I would love to hear your thoughts on Thanksgiving, what you are thankful for. Please share your thoughts in the comments section.

Supercommittee Shines Spotlight on What's Wrong with Washington

2011-11-23T15:32:27Z

In a rare display of bipartisanship, the so-called "supercommittee" finally agreed 100% on something...

That they were a complete and utter failure.

You weren't really surprised, were you?

Charged with finding ways to reduce our national debt by $1.2 trillion, the supercommittee failed spectacularly, sunk by the same gridlock responsible this summer for the United States losing it's pristine AAA credit rating for the first time ever.

The reaction was swift and painful with the markets plunging as much as 361 points Monday.

The issue here is not the committee's failure to cut $1.2 trillion--as ridiculous as it sounds, that's not a large enough amount to make a material impact on our current $15 trillion debt.

The issue is that this debacle highlights yet again how terribly broken Washington is, and our government's complete inability to work together to make tough decisions and develop solutions to the major challenges facing our country.

In the 24 hours after the committee announced they were giving up:

--Barton Biggs, the hedge fund manager who correctly called the market bottom in 2009, says the odds of recession in 2012 have jumped to 60-70% thanks to the supercommittee's failure and the global debt crisis.

--The CEO of PIMCO, the world's largest bond fund, called the state of the U.S. economy "terrifying."

--Analysts began to warn that if the payroll tax holiday expires early next year as planned, it could imperil consumer spending and therefore our fragile recovery.

--Congress immediately started to look for ways to get around the automatic $1 trillion across-the-board spending cuts that will be triggered now that the committee failed.

--President Obama promised to veto any measure that tries to undo those automatic spending cuts--especially cuts to the defense budget.

The bottom line here is that both sides of our dysfunctional are more dug in than ever--and I expect that to only get worse headed into an election year.

That means no significant steps in reducing our out of control national debt anytime soon--and that imperils our economy and our future.

So tell me, who do you blame for the "supercommittee's" epic failure:
a) Democrats--we don't have a revenue problem, we have a spending problem
b) Republicans--tax revenue must be part of the solution
c) The President--he didn't lead
d) The whole lot of them share equal blame

Let me know what you think in the comments!

Is it time to buy US automakers?

2011-11-22T15:27:23Z

Last Friday marked one year since legendary U.S. stock General Motors (NYSE:GM) had it's IPO after the carmaker came out of bankruptcy.

At the time, I told you to avoided the GM IPO, and I hope you heeded that advice. The stock opened for trading at $35, nudged as high as $39 in the following weeks, but it's been downhill ever since.

Over the last 12 months, GM stock is down 37%.

Bailing out the automakers like GM and Chrysler was one of the government's most controversial moves during the financial crisis.

Just based on the stock's value, the move hasn't worked out so well with U.S. taxpayers sitting on a $5.7 billion loss right now.

The ONLY major US automaker to avoid a bailout and bankruptcy during the financial crisis was Ford. So how has Ford faired in the last year?

Ford, the second-largest U.S. automaker, is down...37%. That's right, GM and Ford stock have been almost identical twins in the past year.

So are both stocks are in trouble and should be avoided? Or does this big drop give us a good buying opportunity?

My answer: opportunity. I view both GM and Ford as what I call "fallen angels" -- legendary companies that were once considered blue-chip or growth darlings that have fallen out of favor with Wall Street and investors but are on the verge of again flying higher.

Here are three reasons I think both stocks deserve a look (in a minute, I'll tell you which one I would buy now):

1. Better quality = better image. Both automakers got serious after some very difficult times about doing what they should have been doing all along: producing quality cars that American consumers will pay for.

Ford's Fusion and GM's Chevy Malibu each sold nearly 200,000 cars last year, making them the most popular American-made family sedans. They're still outsold by Toyota Camrys and Honda Accords, but the gap is closing, and I expect it to narrow even more over time.
And don't forget trucks. Ford's F-150 and Chevy's Silverado remain the most popular pickup trucks in the U.S. Nearly 400,000 F-150s were sold last year, as were almost 290,000 Silverados.

2. Competitive labor costs. GM and Ford also fell on hard times in part because of high labor costs, which ate into profits and put the companies at a big disadvantage to foreign carmakers with much cheaper labor.

Both recently negotiated new contracts with the United Auto Workers union that are much more competitive, roughly 30% below what they were paying before the financial crisis. (Ford also agreed as part of its contract to repatriate jobs in Mexico back to the U.S.)

3. The stocks are cheap. Ford sells for just 6.6 times 2012 earnings estimates, and GM is even cheaper at 5 times 2012 estimates. That means both offer solid upside potential as well as lower downside risk, which is important given the crisis in Europe and slow global growth right now.

Both companies could cut their earnings estimates if conditions weaken further and their stock prices would likely remain pretty firm.

I expect both stocks to rise in the coming year, but one much more so than the other...

The One I Would Buy Is...

Even though the two stocks have tracked each other closely in 2011, I expect that to change in 2012.

Ford is the better bet.

I like Ford's vision of the future and the ambitious program it has undertaken to get there. The company realizes how important energy savings will be, so it has focused efforts on becoming profitable in smaller cars.

CEO Alan Mulally and his management team also understand the economy's global nature, so it is focusing more on emerging markets than GM. These are long-term trends that may not show up quarter to quarter, but they should pay off nicely in the future.

Ford also doesn't have the stigma of being bailed out by the federal government. I realize that was a while ago for GM, but perceptions are important in investing, and the fact that Ford was able to survive without a bailout brings it some respect in the market. The perception has fiscal reality as well because Ford has net automotive sector cash (which excludes the finance subsidiaries) of over $30 billion.

And while we're digging into the finances, let me say I like Ford's flexible cost structure. The problem with auto companies historically is that they bleed a good bit of cash when times go bad.

Ford has tried to limit the impact of downturns by working hard to lower breakeven points across many of its businesses. Again, that's important in the current environment, and I believe it will ultimately lead to a higher valuation.

So one year after GM's IPO, let's give kudos to both companies for their comebacks after the mistakes of previous years and the devastating financial crisis. But I expect Ford to outperform GM.

Plus, there's an excellent chance Ford will announce a dividend soon, which will make it even more attractive.

I have a $20 target on F, just about a double from current prices.

This is just one of the money-doublers my GameChanger readers are snapping up at good prices thanks to the latest market pullback. Are you invested in stocks that will double your money in 2012? Get immediate access to my top stocks for 2012 when you start a risk-free trial to GameChangers--just click here to get started!

60 Million Downloads and Counting

2011-11-18T19:15:54Z

In my hunt for the next GameChanger, I'm always on the lookout for medical and technological breakthroughs that can lead us to the next great investment.

In the explosion of apps for our smartphones and tablets, one company has developed a game-changing app that introduces a brand-new technology.

It's been downloaded 60 million times already, making it the seventh most popular iphone app ever. It has application for both business and personal use and more developments are on the way.

Check out this quick video to hear the CEO explain how it works and what's ahead...

The Real Surprise in Buffett's Buying Spree (hint: it isn't IBM)

2011-11-17T19:08:54Z

Warren Buffett made headlines this week by announcing that he had made a major investment in IBM.

The Oracle of Omaha made a huge bet on IBM, buying a hefty $10.7 billion worth of shares, making it the second biggest holding in his portfolio behind Coca-Cola.

But lost in the headlines about the IBM move is another very interesting bet Buffett is making. Here is a list of his top 30 holdings. Take a look at the items I've highlighted below...

Warren Buffet’s Portfolio (Top 30 Holdings)

Stock Name/Symbol	Shares Owned	Position
Coca Cola (KO)	200 million	Unchanged
International Business Machines (IBM)	57.4 millon	+ 32.5 million
Wells Fargo & Co (WFC)	361.4 million	+ 9 million
American Express Co (AXP)	151.61 million	Unchanged
The Procter & Gamble Co (PG)	76.8 million	Unchanged
Kraft Foods Inc (KFT)	89.8 million	Unchanged
Johnson & Johnson (JNJ)	37.5 million	-5.2 million
Wal-Mart Stores Inc (WMT)	39 million	Unchanged
ConocoPhillips (COP)	29.1 million	-700,000
U.S. Bancorp (USB)	69 million	Unchanged
Moody’s Corp (MCO)	28.4 million	Unchanged
Washington Post Corp (WPO)	17 million	Unchanged
M&T Bank Corp (MTB)	5.4 million	+18,220
Costco Wholesale (COST)	4.33 million	Unchanged
Intel Corp (INTC)	9.3 million	New
Visa Inc (V)	2.3 million	New
CVS Caremark Corp (CVS)	5.7 million	New
DIRECTV (DTV)	4.3 million	New
General Dynamics (GD)	3.1 million	New
Dollar General Co (DG)	4.5 million	+3 million
Torchmark Corporation (TMK)	4.2 millon	Unchanged
Verisk Analytics (VRSK)	4.2 million	+2.1 million
Sanofi (SNY)	4.1 million	Unchanged
Mastercard Incorporated (MA)	405,000	Unchanged
General Electric (GE)	7.8 million	Unchanged
USG Corp (USG)	17.1 million	Unchanged
United Parcel Service (UPS)	1.4 million	Unchanged
GlaxoSmithKline PLC (GSK)	1.5 million	Unchanged
Bank of New York (BK)	1.8 million	Unchanged
Exxon Mobil (XOM)	421,800	Unchanged

As you can see, I've highlighted three new positions Buffett has added since the last Berskhire report--CVS Caremark Corporation, DirectTV and Visa.

Altogether, he invested almost half a billion dollars in these new positions.

In addition, I've highlighted Dollar General, in which Buffett tripled his shares.

To me, these trades all show that Buffett and company are banking on continued growth in basic consumer spending--on health and personal care, satellite TV, and an increase in credit and debit card spending.

I agree. Positive retail sales, a decrease in the consumer savings rate and increased consumer confidence all show a slow but steady return of consumer spending.

That's why we've added a restaurant chain (one I think could be the next Chipotle), a major health care company and an online payment processor to our GameChangers portfolio.