We’ve said it before, and we’ll say it again…
The Keystone Pipeline is the greatest symbol of Washington dysfunction in the 21st Century.
This political beast won’t die.
Arguments for and against its construction are tired and full of fallacies.
Pictured in the graphic above, the proposed pipeline would ship more than 800,000 barrels crude oil each day from Alberta, Canada, all the way down to the refinery network along the Gulf of Mexico…
For six years, our President has held up construction. He says the pipeline requires approval from the U.S. State Department because the project crosses a national border.
Not only is six years almost the amount of time it took for the U.S. to once put a man on the Moon, but the White House has also permitted several pipelines to cross the Mexican border.
Meanwhile, Republicans continue to pedal tired talking points about the pipeline’s benefits; however, it’s no longer an economically viable project, and it certainly will not create “thousands” of good-paying jobs, since these are not permanent positions for American workers.
Well, this week, the soap opera continued.
On Thursday, the Senate voted 62-35 to complete work on the Keystone pipeline bill.
That sets up a final vote that should result in the bill landing on President Obama’s desk.
The White House has already said that it will veto the bill. This means we are going back to the drawing board in the House of Representatives, and wasting time on a no-longer-needed pipeline at a time when more pressing issues like tax reform, healthcare glitches – virtually anything and everything but the Keystone pipeline – require Congressional attention.
Regardless, we are looking at this event through the lens of investors. When the President pulls out his pen to veto the Keystone Pipeline, which stocks are poised to profit?
As we explained this week at Money Morning, several companies will benefit from Washington’s petty pipeline battle. For the full list, check out this piece at Money Morning.
AN INVESTMENT MASTERCLASS
Becoming a good investor requires a lot of research.
And it’s always helpful to have good examples to study – the wins and losses – of history’s most successful investors and entrepreneurs.
That way, others’ hindsight can be your foresight in life, business, and investing.
That’s why we curated some of the best advice ever on business and finance from the titans of industry. From Mark Zuckerberg’s views on risk-taking to Jeff Bezos on long-term thinking, there’s an applicable money-making tip for every type of investor, to give that inspired edge.
And the best advice is not just tied to finances.
It provides guidance on how to be successful in any part of life.
Take a look at 10 of the wisest, most eye-opening phrases we’ve ever heard… right here.
Then, when you’re done, share some of your additional favorites by dropping us a line at Dispatch@MoneyMapPress.com.
We’ll run a few of our audience’s favorite quotes in an upcoming issue.MEET THE NEW BOSS, SAME AS THE OLD BOSS
Oil prices had their seventh consecutive monthly loss in January, fueled by rising supplies in North America and fleeting demand in Europe, China, and several other struggling economies.
On Friday, WTI oil, which is priced in New York City, slipped below $45 per barrel. Meanwhile, Brent Crude, which is priced in London, hovered just below $50, a level.
On the global front, falling oil prices have pitted U.S. shale producers against Saudi Arabia, the largest producer in the world’s biggest energy cartel, OPEC. The Saudis have said that they will not cut production, and firmly believe that U.S. producers will blink first in this standoff.
But this week, the nation’s King Abdullah passed away at 90 years old. With King Salman taking over in Saudi Arabia, many have wondered how the OPEC country will handle its oil policy.
So, will they reverse course and cut production any time soon?
Our Global Energy Strategist Dr. Kent Moors appeared on CNBC recently to discuss how Saudi Arabia could handle its oil policy now. Kent is a 35-year expert in oil and gas policy, and regularly meets with oil policymakers from around the globe.
Here’s what he says investors can expect now…
OUR “UNLOVED” PICK OF THE WEEK
The tech sector was the center of focus this week, as headlines flashed the earth-shattering report from Apple that its iPhone sales shot into the stratosphere. The stock popped more than 4.5% this week, and it hit a new 52-week high during Friday’s trading session.
But what about the tech stocks that didn’t have a good week?
On Friday morning, Alibaba Group Holding Ltd. (NYSE:BABA) had fallen more than 14% in five sessions.
That was fueled by a one-day slump of more than 8% after the Chinese e-commerce giant reported weaker than expected quarterly revenue. The news shattered Yahoo! Inc. (Nasdaq: YHOO), which still owns a big share of the Chinese firm.
Alibaba stock has slid more than 27% from its 52-week high, and you might be hearing concerns that analysts could downgrade the stock. All 22 analysts currently have a “Buy” rating on the stock.
But this week’s dip actually represents a great buying opportunity for Alibaba stock.
In fact, our Chief Investment Strategist Keith Fitz-Gerald says long-term investors would be “foolish” to not take this chance to add to their positions. The company’s huge margins, innovations in mobile payment systems, and access to the largest e-commerce market in the world are recipes for big performances in the future.
Alibaba is a stock that investors will want to hold onto well into the next decade.
In a can’t-miss look at Alibaba’s breakout potential, Keith does his post-earnings breakdown right here.
TOP TECH PLAYS FOR 2015
Keith isn’t the only one of our gurus who is bullish on Alibaba going forward.
Our Technical Trading Specialist D.R. Barton dissected an important list of tech stocks that investors are piling into after recent earnings reports.
This week, D.R. sat down with Gregg Greenberg of The Street to explain that some big names warrant a little bit of caution before you dive in today.
He’s being careful on Google Inc. (Nasdaq:GOOG, GOOGL), but loves it in the long term.
He also weighed in Apple Inc. (Nasdaq:AAPL) and Tesla Motors Inc. (Nasdaq:TSLA).
To see Barton’s rundown of tech stocks to buy in 2015, check out his appearance on The Street right here.
LET ME FINISH
On Wednesday, the Federal Reserve released its most optimistic statement on the U.S. economy since the 2008-2009 financial crisis.
The Fed cited “solid” economic growth and “strong” job growth.
Of course, this suggested that the central bank would maintain its course to raise interest rates in 2015.
The Fed has remained cautious about its approach to increasing rates from their current near-zero levels. But the markets slumped on Wednesday after the FOMC statement. The hawkish statement implied that we would finally see a rate increase after six years of near-zero rates.
But then… something funny happened.
Janet Yellen, the chair of what is supposed to be an independent central bank, privately informed a group of Senate Democrats that there would be no immediate rate increase.
Sen. Chuck Schumer (D-NY), whose four largest donors over his 26 years in Washington just happen to be Wall Street banks, informed Bloomberg of this “private lunch conversation.”
“Her message is that the economy’s getting better but there’s still a ways to go in terms of job creation,” Schumer said. “That worry seems, in her mind, to be paramount and that’s why she is not going to raise rates immediately.”
Stocks reversed course. The Dow surged at the end of the trading session on Thursday.
There is something seriously wrong here.
The Federal Reserve made a hawkish statement to the public leading many to assume that interest rates would be increased sooner than later…
But then its leader takes a dovish stance when speaking only to one political party behind closed doors.
Last week, we asked a very important question after the Swiss National Bank removed its cap on its currency to the Euro. After several hedge funds and currency brokers collapsed, we wondered if we can ever trust a central bank at its word on monetary policy again?
But judging from Janet Yellen’s private audience, it looks like our own bank is already answering that question for us…
This also calls into question the integrity of the central bank, but that’s assuming that it had any in the first place.
TOP THREE PROFIT OPPORTUNITIES
Keith Fitz-Gerald, Chief Investment Strategist
How to Profit from the Five Scariest Stocks on Wall Street Right Now
Shorting stocks isn’t for everybody – it takes a lot of guts and more than a little conviction to do it profitably. Not to mention a whole lot of discipline. But done right, you can bank huge returns while others are cowering in foxholes – or losing their shirts. Here’s how to profit from the five scariest stocks on Wall Street, without owning them.
Michael A. Robinson, Defense and Technology Specialist
60 Biotech Companies to Go Public Before April 1
Biotechnology is tech’s fastest-growing sector. More than 100 biotech companies will go public in 2015. One reason is the sheer number of new “blockbuster” drugs expected to reach market. By this time next year, the FDA is expected to approve as many as 11 new treatments. Here’s how you can profit from the best of them…
Dr. Kent Moors, Global Energy Strategist
The Renewable Energy Market Gives Us a License to “Grow” Money
A new energy balance is taking hold around the world, and it will ultimately have less and less to do with crude oil. As our Dr. Kent Moors recently discussed, this new world will include a massive move into renewables like wind and solar power. But the truth is even bigger than that. This new era will be driven by a major move into biofuels as well. In fact, the projected future size of this market is nothing short of eye-opening. Here’s how you can profit from this earth-shifting trend.
Please drop us a note at Dispatch@MoneyMapPress.com if you have any feedback or questions.
Until next week,
Mike