HOST: Hi, I’m announcer Dan Lindell. I’ll be your host for tonight’s big event. We’re going to kick things off here in a moment, but before we do, let me introduce you to the woman of the hour, Dr. Nomi Prins.
Dr. Prins is a former Wall Street executive who’s received critical acclaim for her bold calls on the economy and the markets.
She’s held almost every position imaginable at four major Wall Street Banks... she was an analyst, a Senior Strategist, a Senior Managing Director and then Managing Director at Goldman Sachs. Now she makes her work available to the public through a non-partisan research group called Paradigm Press.
Because of her work, she’s been featured on Fox Business, BBC, CNBC, MSNBC, CNN, NPR, Talks at Google, Bloomberg, and more.(References)
She’s also the author of best-selling book Collusion: How Central Bankers Rigged the World. Welcome Nomi.
NOMI: Dan, thank you for having me, happy to be here.
HOST: Nomi, I’m excited to get started but just know I’m not going to take it easy on you tonight. People get pulled into these kinds of forecasts all the time. And there’s certainly no shortage of so-called experts putting out their predictions. So I have to ask, going back to the beginning of 2020...how have you been able to read the tea leaves of this market so accurately?
NOMI: Well look... on January 7 of last year, while most people were anticipating just another normal year, I told people, I said...
I also said...
That was 44 days before the market crashed.
Now to be honest Dan, part of why we were so early at understanding the full picture of the economy, exacerbated by the pandemic... some of it was just dumb luck. I mean I had a TV segment on Fox Business’s Making Money with Charles Payne that was canceled because of the virus. And that’s really when it hit me that this wasn’t going to be another case of American exceptionalism... that this virus wasn’t just in Wuhan or northern Italy, that it was going to spread here in America too.
HOST: Obviously a lot has changed over the last year... I mean since the crash we’ve seen all the major indices hit all-time highs... the economy has started opening up more ... and I know tonight is all about that. So can you be more specific about what this economic super convergence all about? Does it have anything to do with recent economic news out of the Congressional Budget Office?
NOMI: That’s part of the story, I mean look... back in February 2021 the CBO projected...
And I agree with that. But that’s really just the first line... the opening sentence of what I see happening.
In short, there are three trends I’ve been closely following... three stories that have all been barreling towards each other. Originally, I was tracking each of these things on their own... trying to see which would gain steam first.
But now, all three appear to be accelerating rapidly... and based on my research, I’m convinced it won’t be long before they converge on each other. And when that happens, I expect parts of the economy will boom unlike anything we’ve ever seen.
What’s equally surprising to me is that nobody, not a soul is talking about these three trends converging on TV or even on social media. I mean you’d think with the way Twitter works someone would be talking about this. But nothing... not a word... nada.
HOST: So is there any kind of timeline for this to play out Nomi? I know every day it seems like we’re seeing more news trickle out on the state of the pandemic... so I wonder how much time people have to prepare for this.
NOMI: Well, based on the research I’ve found, this super convergence could peak just on August 31. But it could also happen sooner than that. This is a fast-moving story and I’ll explain later why we’ve also circled June 24 as a possibility. The bottom line is... if everyone had an exact date, the opportunity we’re going to talk about tonight wouldn’t exist. So that’s why right now is the best time to position yourself.
Not August. Not June. I repeat – and let me be clear about this – Dan, the best time to prepare was yesterday. But the second-best time to prepare... is right now.
HOST: So you’re saying this economic super convergence is going to make the whole market go up big? Does that mean people should be loading up on all kinds of stocks now?
NOMI: Well, it’s not that simple. There are different areas that will reopen in different ways. People can do whatever they want, but no I wouldn’t recommend loading up on all stocks.
So, look, it might sound odd since we’re calling for an economic super convergence. But you have to remember, the economy we have now is nothing like the one we had before the pandemic.
Some industries are simply too far gone... they’re already on life support, and soon I expect a wave of bankruptcies.
So yes, while certain sectors are about to go boom... and some stocks in these sectors could take off even faster... other parts of the economy could take years to recover, if they recover at all. So not all stocks are good buys, you only want to buy the stocks that will benefit.
HOST: And that makes all the difference in the world... because you’re saying people have two paths here... and picking the wrong one could be devastating.
NOMI: Exactly. That’s why I said this event had to happen now... because I would hate for someone to make the wrong investment... especially when we’re about to show all our viewers the right way to play this.
HOST: Sounds like this event couldn’t have come at a more critical time for investors.
NOMI: Definitely. Look I know it’s irritating to miss out. I know a lot of people at home are dealing with FOMO...I mean everything has gone up since last year... how can you not be?
Especially when you see headlines in the media, like this one from Bloomberg...
And sure the 2009 rally was over a decade ago but if you missed out there, I’m sure that’s even more reason you feel you can’t miss out this time around.
HOST: Well, I know the viewers at home don’t want to miss out while other people get rich. So folks don’t go anywhere, we have a lot to talk about... starting with Nomi’s big prediction for the rest of 2021... this economic super convergence she says that could happen by August 31. But also potentially much sooner than that... maybe as early as June 24, What’s the best way to play it? Nomi’s going to be talking about her #1 recommendation later... this is what she calls her Reopening America Index. And you’re going to see why these stocks in her Index could beat many names in the S&P 500 by a factor of 10.
NOMI: It’s going to be a fun evening for sure. And of course, because we know everyone’s time is valuable, we want to help people watching make some money. But what kind of event would this be if we didn’t have some other surprises in store.
HOST: That’s right, thank you for reminding me, I almost forgot... Nomi’s promised to give everyone a free gift. It’s the name and ticker symbol of one the top stocks on her watchlist. This is a stock she’s been following but she’s going to give it away for free to all of you watching tonight. So definitely make sure you stick around to get that free pick. Wow, what an event.
Alright, so now that we’ve got everyone’s attention...let’s start from the beginning.
Nomi, you’re calling for an economic super convergence. You mentioned this is about three specific trends all converging.
Can you explain those trends so people at home know what they should be looking out for?
Okay, so the first trend we’re following... is stimulus. All that money printing from the Fed. I mean when you have trillions worth of stimulus entering the market, it’s hard for stocks to go anywhere but up. It’s why doom and gloom investor Jim Rogers has even said...
HOST: Nomi, I know you’ve been pounding the tables on the Fed inflating markets for years... you wrote about this in your best-selling book, Collusion... and you’ve been asked to speak about this on live TV... here’s a clip of you on Fox Business...
NOMI: Right, and I said it then, I’ll say it again now, markets aren’t supposed to just get trillions of dollars’ worth of assistance out of thin air. So while all this cheap money will no doubt have consequences at some point, right now it’s a huge reason we’re predicting this economic super convergence.
I mean just look at how big the Fed’s balance sheet has swelled. We’re at $7.5 trillion now... and we think there could be another $2.5 trillion in stimulus entering markets this year. At $10 trillion. that would be twice as big as what we saw the Fed do after the Great Recession.
We know the Fed’s stimulus moves markets... it kickstarted the longest bull market ever in 2009... and it’s what launched this epic rally last year.
But remember this super convergence isn’t JUST about stimulus.
Sure, stimulus is what’s sending stocks up now. But the boom that’s coming will be unlike anything we’ve ever seen – with three huge economic events all hitting at once.
So, again, stimulus... that’s just our first trend. If we’re right, we expect this story will converge with these two other trends we’re following...and that’s our economic super convergence. As everyone is about to see, this could peak on August 31. But it could also happen much sooner than that, potentially as early as June 24.
HOST: And like you said, its critical investors play this right...because you’re expecting certain industries will go boom while others stay dormant. And so you don’t want to be on the wrong side of this.
NOMI: Right, we’ve done all our research already and the stocks we’ve added to our Reopening America Index model portfolio... we see these names beating other stocks... the popular ones most people will buy... by as much as 10 to 1.
HOST: Ok so stimulus is trend #1... what’s trend #2?
NOMI: This is the vaccine story, Dan.
Now I know you may be saying well yeah that’s obvious... as Jim Cramer has pointed out...
And yet we know most people still aren’t making the obvious moves to take advantage of this. We see most people buying popular stocks like Apple, or Google or Amazon... and yet we’re NOT recommending any of these names or any names in the S&P 500 in our Reopening America Index model portfolio.I’ll explain why later. Also, it’s easy to get lost in the science of the vaccine here.
The part of the story we’re focused on... is the number of vaccine doses states are administering daily... PLUS the number of people who’ve been confirmed positive for the coronavirus... PLUS the estimated number of people who’ve had the coronavirus but haven’t been confirmed position...
HOST: So people who’ve had the vaccine... people who’ve had COVID, confirmed or not...
Basically, you’re tracking how much of the population is now immune from the virus?
We’re looking at the trend line here of how many people have immunity...
Because, for example... as more doses of the vaccine are given out, as more people develop immunity...
That’s good for the economy, and good for stocks.
So just looking right now at vaccine dosages...
That number is 2.3 million daily doses.
Here let’s get this on screen, so everyone can see where we’re headed...
Add that to the approximately 64,000 diagnosed cases or so a day...
Plus, the roughly 42,000 or so people who’ve said they have tested positive for COVID or who are pretty sure they’ve had it...
And the number of people with immunity are quickly, quickly adding up here in the United States.
That’s why the daily cases have plummeted since the start of this year.
And look, we know the battle against the pandemic is far from over... but there’s finally a light at the end of the tunnel.
As The New York Times said...
New cases are down... hospitalizations are down... deaths are down...
HOST: So the vaccine story is obviously huge, butdon’t you think markets have already priced this in? I mean many stocks have already hit new highs...
NOMI: Many household-name stocks have moved too far too fast, yes. But the stocks we’re following... the names in our Reopening America Index... these are companies that uniquely benefit from pent up demand as the economy booms. Demand that has yet to be unleashed.Demand that can only happen when most of the country gets on planes again... or goes to the movies... or shops at the malls... or eats out at nice restaurants... or goes to ballgames. And according to a recent survey...
So we know most of the country is itching to start throwing money at the economy again.Of course, that can only happen at a very specific point in time... the day America reaches herd immunity.
That’s trend #3.
HOST: Ok now I’m following you, that makes a lot of sense, but how do you figure when herd immunity could happen? I know medical experts are still debating this...
NOMI: You’re right. And the models are changing all the time... But what we do know is Dr. Fauci has estimated around 80% of Americans need to be vaccinated for herd immunity. That means the target is 267 million Americans. At 2.3 million vaccine doses being administered a day... we could hit herd immunity on August 31.
So you have trillions in stimulus that we know moves markets...
You have the vaccine everyone’s been waiting for...
And then now we have an estimated date for herd immunity.
That’s our economic super convergence.
The date all three of these lines converge.
See it there on the chart?
HOST: But earlier you mentioned two possible dates. You said August 31. But you also said June 24.
NOMI: That’s right. Why? Because it depends on the number of daily vaccine doses being administered. If nothing changes from here, then we’re targeting August 31. But if we get better and faster and vaccinating people, which seems likely... that changes our timeline completely. If we can simply get from 2.3 to 3.3 million daily doses... we could see this thing happen on June 24!
HOST: And because the models could change at any time...it could even be earlier or later than that.
NOMI: Exactly. These trends are all accelerating rapidly. Plus there are other factors at work... I mean you have Johnson & Johnson’s single dose vaccine that’s now being administered. That’s huge. It’s a complete a game changer. People can now get vaccinated in one shot... instead of two. And you have the White House which has suddenly promised all American adults will be able to get their vaccine by May 1.
Like I said before, that August date assumes we don’t get better or faster at vaccinating people... which clearly is not the case. So this super convergence is getting closer and closer every day. And remember, you only get one shot to take advantage of this. There’s no redos... no mulligans... no second chances. That’s why you really want to position yourself now. Because if we’re right, the opportunity will be historic.
HOST: So that’s the boom you’re predicting...
NOMI: Yes. It’s like basic physics. You pull a rubber band down and it’s going to snap back immediately. The same thing is going to happen with our economy. We’ve been pulled down so far here that when these three trends converge... we’re going to see an economic boom of historic proportions.
And like we said, you have to know which sectors to look at. We know Americans will spend those stimulus checks immediately for basic needs and with an eye towards investing. We know everyone will want to get out and about again... So people who pick the right stocks tied to certain sectors could see enormous gains... like we’ll show everyone in a moment.
HOST: And what about the other parts of the economy?
NOMI: It’s complicated but we don’t see the whole economy ever getting back to where it was before. There are just too many industries that have been changed forever.
For example, what does the future of work look like? Will most Americans return to the office? Will remote work from home take over?
Fitness is another big one... will gyms get people to pay their monthly memberships again... or will people prefer working out at home?
And healthcare... healthcare is huge... you have all the people who’ve been doing telemedicine... will they want to give that up? Will they want to hop in the car and drive to see their doctors? I could go on and on, you get the point.
HOST: Right that makes sense. So to make sure people play this right, where should they be looking to invest? I know you’re not recommending any companies in the S&P 500. Does that mean you think America’s largest 500 companies won’t benefit from this economic explosion?
NOMI: No, those companies will benefit. They certainly will. But the biggest gains won’t be made from household name stocks that everyone knows about. Stocks like Apple or Google or Amazon... the biggest gains will be made in lesser-known small cap stocks. These are the kind of stocks we’re recommending in our Reopening America Index model portfolio. And we’re convinced it’s these names that could beat large cap stocks by a factor of 10.
HOST: Wow, that’s a pretty bold call... Have we ever seen small cap stocks outperform large caps across the board like that?
NOMI: It’s a rare opportunity for sure... the last time something similar happened was all the way back in 2009.
HOST: You mean at the beginning of the last bull market?
NOMI: No, at the end of the last recession. June 2009 is when most historians say the Great Recession ended.Here let’s look at this chart of the S&P 500...
Specifically, I want you to focus on what happened between June 2009 and June 2010...
HOST: Ok, I’m following you, so the S&P 500 had a nice bounce there, I can see that.
NOMI: Correct, and it happened pretty fast right. But get this... over that same 12 month period, small cap stocks crushed large caps. In fact, they returned 100% more on average...
And keep in mind, that was just the average. As Jim Cramer’s company TheStreet wrote that year... “the top-performing small cap stocks led the market, with many doubling and some even tripling or quadrupling.”
In fact, from June 1, 2009 to June 1, 2010, the best performing small cap stock inTest Corp returned 2,306%...
And there were 100 small caps that delivered gains higher than 155%.
12 Month Return From June 1, 2009 – June 1, 2010
|Commercial Vehicle Group Inc||879%|
|Urban One Inc||868%|
|Jazz Pharmaceuticals PLC||656%|
|Catalyst Biosciences Inc||631%|
|Nexstar Media Group Inc||577%|
|Entercom Communications Corp||530%|
|Patrick Industries Inc||459%|
|Entravision Communications Corp||435%|
|Mercer International Inc||425%|
|Wabash National Corp||408%|
|Nova Measuring Instruments Ltd||405%|
|Onto Innovation Inc||402%|
No wonder The Wall Street Journal also wrote that year... “funds that invested in small cap stocks ruled the roost, accounting for six of the 10 top-performing diversified U.S. stock funds...”
HOST: Wow. So of course, the hedge funds got rich while regular people missed out. But I wonder, I mean this happened so long ago, couldn’t you say the way small caps beat large caps was a coincidence? I mean we had to go all the way back to 2009 for a recent example. So that’s a pretty small sample size.
NOMI: Yes, this kind of outperformance is rare. But I’m a history buff too! And we saw the same thing happen a decade earlier too...when the dot.com bubble burst. That recession ended in November 2001. Over the next 12 months, most large cap stocks got crushed. Yet small cap stocks did 48% better!
As CNN Money wrote in December 2001...
The article goes on:
HOST: Wow. Alright, so small cap stocks have definitely beaten large cap stocks after the last two recessions. Are there any other examples you can show us?
NOMI: The Recession of 1973 is a good one. Look that was during the Vietnam War. You had the oil crisis that year... I’m sure there are people watching who remember having to pump gas on even or odd days. It was a mess. But despite all of that, look at what happened 12 months after that recession ended. Small caps once again dominated large caps... beating them by 82% on average.
HOST: That’s incredible. I had no idea...
NOMI: The Recession of 1980 is another example. We were dealing with another energy shock, the 1979 oil crisis...Yet again, take a look at what happened 12 months after that recession ended. Small cap stocks again crushed large caps... this time by 125% on average.
NOMI: Fast forward a decade to the Recession of 1990... and 12 months after that recession ended, small caps beat large caps once again... doing 106% better on average.
We’ve seen this pattern repeat itself over and over again... after 9 of the last 10 recessions.
It’s happened during both republican administrations... and democratic administrations... going back to Dwight Eisenhower. Coming out of a recession,small cap stocks just simply dominate the market! I mean look at all these charts...
HOST: So it sounds like people really need to make sure they get the timing right. That’s the urgency here. You have to be in small caps over this 12-month period after a recession ends... or else you miss a historically dominant opportunity for unparalleled short-term gains.
NOMI: Exactly. And the smart money knows this. It’s why 330 hedge funds targeted a handful of small cap stocks last year. I know the top 100 hedge funds manage around $1 trillion... So just imagine how much money could be piling in behind the scenes.
HOST: Yeah, that’s certainly not something most people are aware of. So what does that rush of money tell you?
NOMI: It tells me nobody wants to miss out. The time to act is now. And look I don’t want people taking away from this that they should dump any buy and hold large cap strategy. Because that’s not what I’m saying here... what I’m saying is that right now you have an extraordinary opportunity in front of you with small cap stocks. Think about it, the last recession was in 2009. That was over a decade ago. So if you don’t position yourself now under these circumstance, you may have to wait until the 2030s for another shot like this. And I’m not just saying that, I’ve actually switched all my new 401K allocations to small cap growth.
HOST: I mean that’s true conviction right there. That shows a lot that you’re actually acting on this forecast. I mean, do you have any hesitations at all? It doesn’t sound like you do.
NOMI: Of course I do. Everything you buy in the market has risk that it could go down. You just have to understand the risk of what you’re buying and decide if the potential reward works for you. Just because I’m comfortable with my retirement money in small caps doesn’t mean other people should do that. Investing is hugely dependent on your personal situation, of course never risk more than you can afford to lose.
HOST: But Nomi, I have to ask... are you concerned that small caps moved too much already? Do you think the biggest gains have already played out?
NOMI: Not at all. We’re anticipating this is the beginning of a multi-year bull rally in many small cap stocks. Remember, this super convergence will create a boom unlike anything we’ve ever seen. We’re talking a huge snap back in the economy as it opens up...
People will rush to spend.
And that spending will be a cash tsunami that hits the balance sheet of small cap companies.
Remember all those charts we just went through? All those big examples of small caps crushing large caps... that was what historically happened 12 months AFTER the end of a recession. But guess what, we’re STILL in a recession. The small cap index had its best month ever last November... and yet we’re STILL in a recession. That’s why I’m convinced the upside here is historic. Unfortunately, I know some people won’t realize this... and there will be lots of people who miss out.
HOST: So what is it about the end of a recession that’s so magical for these smaller companies?
NOMI: It’s simple really. Because that’s when the economy picks back up again. And small cap companies are heavily tied to economic growth. 80% of their revenue comes from the domestic economy. 80 cents of every dollar they make is because America is doing well. So as things open up further, these companies are going to soar. Wall Street has tried to keep this under wraps, but when you have an opportunity this good... eventually word starts leaking out. In fact, I saw one analyst who wrote, “If you want to win a stock-picking competition in 2021, then pick a low-price, small-cap stock.” And I saw another $17 billion fund manager who’s told people around him... “We’re at this point where monetary policy and fundamental economic growth, at least in our opinion, line up. On top of that, you have the fiscal stimulus.”
HOST: Is there a reason why we’re not hearing more about this opportunity on TV? I mean why isn’t the mainstream media talking more about small cap stocks?
NOMI: As someone who’s frequently on TV, you have to know the only thing the media cares about is ratings. So let me ask you this, what do you think is going to generate higher ratings? A segment about Apple which everyone knows about... or a segment about a tiny company like Tabula Rasa HealthCare?
HOST: Ok I see what you mean.
NOMI: What’s ironic is that many of these tiny stocks that get almost no attention are going to dominate the big-name stocks that do. Like I’ve said, we’re predicting the names in our Reopening America Index could beat many stocks in the S&P 500 by a factor of 10. And there’s no telling what happens after that. I wouldn’t be shocked if some of these names experience so much growth that they eventually replace other companies in the S&P 500. Most people don’t realize it, but many of today’s biggest stocks got their start as small caps.
Look at Apple. Apple went public with a $1 billion market cap. Now they’re worth over $2 trillion... that’s 199,900% growth from 1980 to today...
Or how about Amazon. Amazon went public as a $438 million company. Now they’re worth over $1.6 trillion... that’s 365,196% growth from 1997 to today.
Nvidia started at $626 million, now it’s worth over $330 billion...that’s 52,615% growth from 1999 to today.
Netflix went public with a market cap of $300 million... now it’s worth over $240 billion...that’s 79,900% growth from 2002 to today.
And of course, you have Tesla. Since going public with a market cap of $1.7 billion, it’s now worth over $800 billion...that’s 46,958% growth from 2010 to today.
It’s crazy... I mean the thought of owning just 1 of these stocks and sitting on it for a decade or two while they transform into mega billion- or trillion-dollar companies is mind blowing. Do all small caps turn out this way. Of course not. But that’s how a $2,500 investment turns into $1 million. Now I doubt anyone was able to do that. But you don’t have to. You just want the right risk for the right reward... and as you can see, all you need is a fraction of that reward for the investment to be worth it.
HOST: What’s truly amazing is how these companies are now part of retirement plans across the country. So that’s how far these small cap stocks have come. But since those world beating gains took years, decades even, I have to ask...what happens if there’s another crash this year? Could that derail your small cap thesis?
NOMI: Look you never say never, but I don’t see a crash like what we saw last year. Now I know we’ve seen some sell offs... but that’s been part of a natural rotation as the covid story winds down and the economy gets stronger. The big reason last year’s crash was so violent was because of uncertainty. It was uncertainty over what life during a pandemic would look like. Do you remember the great toilet paper shortage of 2020?
How crazy was that? Did the virus mean the world would suddenly run out of toilet paper? Of course not. That was uncertainty at its finest. And that kind of uncertainty today is gone. I understand these sell offs can be difficult... but people should see them for what they really are... which is a buying opportunity.
HOST: For large caps and small caps?
NOMI: Sure. Look at Ark Invest’s Cathie Wood who picked up $120 million worth of Tesla when the Nasdaq sank in February. Then when things rebounded in March, her fund had their best day ever.
You have to recognize when you see a selloff, you’re getting the chance to buy stocks at a discount to where they were priced before. Good companies that make money never go out of style. And look, we’re not saying small cap stocks are going to move up in a straight line. Because that’s not how stocks move. There’s always ups and downs... and seeing a correction during any year is actually pretty common.
S&P 500 Booms After Corrections
|2019||7% Correction||32% Higher|
|2016||10% Correction||12% Higher|
|2009||27% Correction||27% Higher|
Even when stocks finish higher. 2019 saw a 7% correction... and the S&P returned 32%. 2016 saw a 10% correction... and guess what... the S&P 500 still returned 12%. Even in 2009 when stocks were down 27% at one point, the S&P 500 still finished 27% higher.
HOST: That is pretty wild... you never think of the market that way. People just expect things to go one way or the other.
NOMI: Right. But you have to remember the best time to buy is when others are selling. And if you plan ahead for these dips, drops, whatever, and you have your “buy list”...for our followers that would mean our “Reopening America Index”... then all you have to do is pull the trigger when you see a big pullback.
HOST: I hope people realize the wisdom you’re bringing tonight. I mean this is just incredible insight from a true market expert. And I don’t want people to hear it from me, I actually have a few notes from some of your followers from other services I want to share if that’s OK.
This is what Tonya C. from Allentown PA has to say about your work Nomi...
And David L. from Cleveland, Ohio wrote...
And here’s one from James H. from Towson, Maryland who said...
And he’s right, you travel all over the world to meet with insiders. Before the pandemic, you even went to Vancouver to meet with the Founder of a fund with more than $16 billion in assets under management.
Your followers are lucky to have you guide them through the financial markets. And the same goes for people who are watching tonight. You’ve already given everyone an inside look at what to expect for the rest of the year. You’ve explained the urgency behind this historic small cap opportunity... and we haven’t even gotten to that free stock pick you’ve promised to give away.
Now we’ll get to the free pick shortly. But if you’re wondering whether it’s possible for you to get even more access to Nomi... to get more market insight like what she’s shared with everyone tonight... and to learn more about her “Reopening America Index” model portfolio... I just want to start off by saying yes, it is possible. But possible right now is the key word.
HOST: That’s because Nomi has prepared a very special offer that she hasn’t shared with anyone before tonight. Can you tell us more about this opportunity Nomi?
NOMI: Sure. Look, my team and I expect to see a multi-year rally for these small cap stocks. We’ve already done all the research and if you’re interested in taking advantage of it, we’ve put together a model portfolio of my favorite small cap stocks right now, what I call the “Reopening America Index.” The reason I’m calling this list of power plays an index even though it’s not technically... is because these are all small cap stock recommendations that share one thing in common. We’re convinced each of them could return 10X more than large caps as the economy opens up. The group includes our favorite small cap stock... a bunch of other companies we like over the next 6 months, 12 months or longer. And there’s even a few moonshots we recommend that could generate unprecedented gains as we get further and further into this rally. Now these are our best picks, what people decide to do with them is up to them.
HOST: And what about the free stock pick you’re giving away to everyone watching tonight?
NOMI: Yep this is the top midcap stock on our watchlist. We’ll be going through this company and giving the ticker symbol away on camera shortly. We’ll also be sending out a free report with details about it. This stock has outgrown its small cap status but we still like the upside here.
HOST: So how can people get these small cap names?
NOMI: We’re giving away free access to my “Reopening America Index” Model Portfolio to anyone who joins our brand-new research service tonight. That also includes our monthly analysis as well. This research service is entirely dedicated to small cap stocks, we call it... Rapid Growth Opportunities. This is the only place you can access our recommendations... starting with the names in our Reopening America Index. We won’t be making this research available anywhere else. I can’t get into a whole lot of detail here but let me just talk briefly about each one...
Stock 1 is a tiny energy play that has been on fire recently. And management has proven they’re all in... scooping up 25% of all outstanding shares. This is a company we think could at least double by the end of the year, and maybe even triple at some point in 2022.
Stock 2 is a backdoor way to play the booming EV industry. As more and more electric vehicles hit the roads from Tesla, GM, Ford, and others, this small stock could rise at least 200% in the next few years.
Stock 3 is our favorite tiny stock to profit off the massive infrastructure trend. These are words straight from the CEO... “We expect the reopening up of the economy to positively impact our business.” Revenue should hit $1 billion the next 3 years which is just huge for this small player. And we’re convinced a potential 200% gain is in the cards over the next few years.
Stock 4 is an industrial stock that’s also set to boom with new infrastructure. This tiny stock boasts over 40,000 customers... and is coming off a monster year. It generated $3.5 billion in revenue in 2020... which is incredible. Get this, their revenue is more than 5X bigger than the value of the entire company. It’s why we think shares could triple over the next 2 years.
Stock 5 is a very small company we think has huge potential as people start going back to restaurants. It owns a stake in more than 2,200 restaurants, which is huge for a company of its size. And it’s why we’re convinced the stock could double in a matter of months, and rise several hundred percent over the next few years.
HOST: Wow that’s great stuff. So Nomi with these picks, are these small cap stocks you think every American should own right now?
NOMI: Absolutely. I don’t see how you can be in stocks today without having exposure to at least some of these companies. All the names we’re looking at take advantage of permanent shifts in the market. Etsy is a great example of what this approach can do for a small company. It’s been on a tear as more and more people look to e-commerce. A $2,000 investment in January 2018 would’ve been worth over $20,000 by January of this year.
In that time frame, Etsy has exploded from a small $2.6B company to a $26 billion company. Now imagine if Etsy were to catch up to Amazon, the leader in e-commerce. Of course, Amazon is worth $1.7 trillion. But if Etsy somehow managed to do that, the stock’s valuation would grow 65X over. I’m not saying it will happen, but that’s just another reason you want to get into small companies early on.
HOST: So Nomi, how do you find the next Etsy? I mean what should people be looking for to find these kinds of companies?
NOMI: Well, that is the million-dollar question right. So look I have decades of experience in the markets, I know most people don’t come from Wall Street like me, but what I can tell you is that selecting the right stocks requires a combination of analysis, a broad view, and experience. And finding the biggest gains takes extreme due diligence. There’s a famous investor Thomas Phelps who’s done a lot of research on this. In fact, Morgan Stanley actually sent out a note to their clients about his work. They said...
We don’t have time to get into the details here... but there’s a lot more that goes into finding these companies than what Wall Street would lead you to believe. It’s not all about earnings... you want to look at revenue growth, does the company have a good management team, do they have a strategic moat, free cash flow...This is huge for small caps. A growing business is obviously how a company makes more money. This is just some of the stuff we look at with names inside our Reopening America Index.
HOST: Fascinating. I know everything you do involves understanding the numbers, the trends, looking at the data, you wrote computer programs at age 10 didn’t you?
NOMI: I did. While my friends were having fun, I was studying. Look, if you want to find the best stocks in the market, it takes a lot of work. That’s why we’ve put together this Reopening America Index for our followers. We’ve done all that hard work already.
HOST: Would you say these stocks in your Reopening America Index are the only small cap stocks people should be buying?
NOMI: No of course not. There were more than 1,676 publicly traded small cap companies last year. And that number continues to grow as more names get added through IPOs or direct listings or spinoffs or SPACs... So there’s loads of small cap stocks you might want to buy. Just to give you an idea, my team and I pay $23,220 a year for a data science machine just to keep track of many of these companies. So for everyone who joins our brand-new Rapid Growth Opportunities research service tonight, not only will you get the names in our Reopening America Index, but you’ll also get at least 1 new recommendation every month... along with all our research and analysis. You’ll also get our weekly updates... and real time buy and sell alerts.
HOST: And I know that’s just part of this special offer you have in store for everyone. I won’t steal your thunder, but I’m sure people are wondering how much access to Rapid Growth Opportunities is going to cost? Can you tell us more about the details?
NOMI: I think special is the key word here. Because we’re offering this research on our website right now for $5,000 a year. And for the amount of work and money involved we think that’s a more than fair price. But for people who join us through this event here tonight, we’re going to drop that price all the way down to $1,998.
HOST: Wow so that’s a $3,000+ savings on the retail price right off the bat. That’s a crazy deal. And of course that includes your “Reopening America Index” model portfolio... all your analysis... at least 1 new recommendation a month... weekly updates... the real time alerts...
NOMI: Yes, all of that.
HOST: Folks you can see this incredible offer is now live. When you click that button below, you’ll be directed to a secure order page where you can see how to join Rapid Growth Opportunities immediately. Nomi, with a deal like that, I bet your customer service team is about to get all they can handle.
But here’s the really exciting part. Everyone who joins us today will also get a second year of Rapid Growth Opportunities... for free. So that’s access to $10,000 worth of research for just $1,998. That’s over $8,000 in savings instead of paying the retail price.JOIN NOW»
NOMI: But here’s the really exciting part.There’s still a few other surprises we have for new subscribers as well. We’ll touch on those later.
HOST: Look if you’ve seen enough and you want to get more of Nomi through her Rapid Growth Opportunities research service, you can go ahead and do that right now. We’ll make sure to send you that free stock pick along with a report Nomi is going to give away... plus after Nomi goes through a Q/A session later, we’ll send you a link so you can replay that too. So if you’re ready just go ahead and click the button below and you’ll be taken to a secure order form with all the details. We’re going to keep moving on, we still have a lot to cover.
HOST: Alright, so Nomi are you ready to share that free stock pick?
NOMI: I think now is the perfect time. So the name of the company is Pool Corporation (POOL). If you look on their website, you can see they’re “the world’s leading distributor of swimming pool supplies, equipment and related outdoors products.” They boast a corporate client list of 120,000 customers. And with Americans looking to travel again and enjoy the great outdoors... And community and hotel pools gearing up to reopen... POOL is poised to take advantage of some huge pent-up demand. This is a great way to get exposure from the reopening of America.
But this is really important for people to understand. The reason POOL isn’t part of our Reopening America Index is because the stock has gone from being a small company to a mid-sized one. Now this is still only a $13 billion company. So there’s still plenty of upside for the stock to grow even bigger. But like many of the best reopening plays, shares have really taken off recently. So if you can wait to get in on a pullback, say around $260 or so, that would be the best way to play it.
HOST: Wow, again that level of insight is the difference between Nomi and any other so-called expert out there. Where else are you going to get that kind of insight and deep level thinking on a free stock pick? And don’t forget about the free report Nomi is going to send to everyone that contains her full write up about this company as well.
NOMI: Yes, be on the lookout for an email from my team. If you’re interested in buying this stock, I’d strongly encourage that you read all the information in this report first.
HOST: See, that’s what I love most about tonight’s special offer Nomi. You’re giving people all this information, all this high-quality research... and you’re saying here’s the best way to act on it. You’re not pigeon-holing anyone into anything. You’re not saying, hey this is my system. You either fit my system or you’re not going to make any money. You’re taking what you do best and letting people act based on their own financial situation.
NOMI: That’s exactly right. And remember, all readers of our Rapid Growth Opportunities research service, will get at least 1 new recommendation every month. If you miss one, it’s no big deal. Plus, you’re getting all the most promising names in my Reopening America Index. And with our recommendations, we’re taking a balanced approach for people to profit as our thesis plays out. Some opportunities will be short term focused... others will be more longer-term situations. And because these companies are so tiny, the stocks will be that much cheaper for people to buy. You can decide how much you want to put into each play and of course the more you invest the more you risk, but it’s also the more you can make.
HOST: And Nomi, you’ve made your research service incredibly straightforward for people to use. They don’t have to do any extra digging. They don’t have to find these companies... or read through the financials... or look at complicated metrics. Because you and your team do all the hard work. And look, at the end of the day, you can’t beat this price. You’ve dropped the price from $5,000 on your website... to just $1,998 for two years through this event. That’s a savings of over $8,000 off the retail price. Just to break that cost down... over the course of one year that works out to $5.47 a day... pocket change for the chance to get all the stocks in Nomi’s Reopening America Index... at least one new recommendation a month... the weekly updates... the real time buy and sell alerts... and of course all the high-level analysis you’re seeing from Nomi tonight. So please folks, don’t forget to hit the button below to take the next step. You can get all of this now through this special event offer tonight. Alright, with that I think we’re about ready to get into the Q/A session here. Nomi anything else you want to add?
NOMI: Nope that about covers it. I know we have a lot of questions we want to get through for people still watching.
HOST: We sure do. And if you still have questions about this opportunity, this is your chance to hear even more from Nomi. She’s going to field questions on everything we talked about from earlier to topics we haven’t yet covered like Bitcoin... gold... and more. And she’s going to share some more information about a few other bonuses she’s giving away to people who join her Rapid Growth Opportunities research service tonight. Otherwise, for everyone else who’s ready to take the next step... just hit the button below. It will take you to a secure order form where you can get everything we talked about. You’ll also see the other free bonuses Nomi plans to discuss shortly.
HOST: Alright Nomi, first question here... I think this is a good one to start with.
I know small cap is a specific term, but how small are these companies you’re looking at in Rapid Growth Opportunities? I mean is there a range in market cap people should expect?
NOMI: This is a great question. So look, traditionally a small cap stock has always been considered a company with a market cap of $2 billion or less. But we think that’s an outdated perspective that could cause people to miss out on great buys. Because the truth of the matter is... new startups today are simply waiting longer to go public. They’re waiting until they have more money and a better business so they can list at a higher market cap on IPO day. So it’s pretty rare to see a new company list at $1billion... now those companies are opening at $5 billion, $8 billion, maybe even $10 billion. The market cap may be higher than what Wall Street would call a “small cap stock” but these are companies we’re definitely watching with our Rapid Growth Opportunities research service. We want our readers to get exposure to the best small companies as our thesis plays out, so we’re looking at stocks anywhere in the range of $500 million to $10 billion. Something like that.
HOST: So next question... is there a minimum price people should expect to pay per share for these recommendations?
NOMI: In terms of share price, that’s really not the way you should judge these recommendations. The share price is just the company’s market cap divided by how many shares they issue. So it really has nothing to do with the size of these companies. Or whether one is better buy than the other. I mean take a stock like Ford. Ford is a $50 billion+ company and their shares have been around $12, $13. If you’re only looking for cheap share prices, you’d think Ford was a small cap company... meanwhile in reality Ford is 5X larger than the largest stock we might consider recommending. That’s why it’s so important to focus on the market cap and not the share price.
HOST: So how much money do you think people should be investing into each of your recommendations?
NOMI: What’s great about Rapid Growth Opportunities, is that because we’re recommending small companies, these are stocks that for the most part will be $20 or less per share. In terms of how much to invest, we think our readers should consider each buy based on a potential percentage return. For instance, say we identify a company and we see the potential for a 50% return from when we recommend it. You could invest $100... you could invest $1000... the more you’re willing to risk the more you can make of course, but we want people to feel comfortable with their buys. There’s no right or wrong answer, everyone has a different risk reward tolerance, and this way people can decide what’s best for them. And we make it easy for our readers by putting a price target next to all our recommendations. Over time as things change, we’ll update our price targets to reflect any update in our bull case for each stock. So if you want, you can always get started with a small amount, and then put in more if you see our price targets move higher. Whether or not you decide to invest is totally up to you.
HOST: I just want to point out that this deep analysis and expert insight... this is what you get when you have someone like Nomi on your team. If you’re ready to get started, just click the button below. It’ll take you directly to our secure order form.
HOST: We’re getting closer to the end of our show so pleasemake sure you lock in this amazing offer Nomi has for you tonight. She’s dropping the price from $5,000 to $1,998 for two years. That’s over $8,000 in savings... you get her Reopening America Index... you get all those new recommendations... all the insight and research, the weekly updates, the buy and sell alerts and more.
HOST: Alright, Nomi, so what would you say to someone who’s only ever bought large blue-chip companies, who’s never bought a small cap stock before?
NOMI: So first of all, it’s no harder to buy a small cap stock than it is to buy a large cap stock, you just type in the number of shares you want and you click buy. So no material difference there. And we aren’t talking about penny stocks. These small cap stocks are all established companies with real businesses. What’s nice is that buying smaller companies is the natural next step for investors who buy large cap stocks. Look you get your feet wet buying Apple, you make some money... you understand the process... and then you realize... wait a minute Apple can’t move all that much. It’s a $2 trillion+ company. Apple would have to hit more than $4 trillion to double from here. Whereas when you buy stocks in the $500 million to $10 billion range... think about how many times that company could double before it got anywhere near Apple. A $10 billion company would have to jump 100 times before it hit $1 trillion. So if you’re new to this style of investing or even investing in general, I would just say start with small position sizes. There will be plenty of recommendations... pick a few you love and just put a little money in, just remember not to invest more than you can afford to lose. That’s all. You can’t make any money if you don’t invest.
HOST: This is a good one... how much time should people anticipate having to put into this? Will they need to be by their computer watching the markets all day?
NOMI: I’ll answer that one with another question... how much time do you need to read a buy alert and log into your brokerage account? No but seriously, we’re the experts here, we’re going to do all the work for you, do all the research, do all the high-level analysis, track all the metrics on our data science machine, and then send you a trade alert with a buy up to price that’s easy to follow. With our research service, you can even set up text alerts that let you know when we’ve sent out a new trade recommendation. There’s no need to watch the markets all day. Leave that to us. All you have to do is read the alert and decide what you want to do.
HOST: Do you plan on recommending any companies listed on foreign exchanges?
NOMI: No. Our plays are all going to be listed on the U.S. stock exchanges. And some people might say, well but couldn’t you miss out on other opportunities in emerging markets... the answer is yes, we could. But when you invest on exchanges outside the U.S., there’s all sorts of other risks you take on. You have to know all the regulations; you have to be familiar with the politics of the situation... I mean look at Alibaba... a $700+ billion company. This is one of the largest companies in the world and they are getting crushed by the whims of the Chinese government. And that’s a Chinese company listed on a U.S. exchange. Imagine what could happen to a foreign small cap company listed on a foreign exchange.
HOST: So if we go wider and look at the bigger picture here, are there any sectors you’re extremely bullish on?
NOMI: Sure. We really like renewable energy and related infrastructure. Look, you have the Biden administration, which has come out and said they’re going to invest $2 trillion in sustainable energy. If you remember back in 2016, the Trump administration said it was going to double military spending from $500 billion to $1 trillion... and defense sectors soared. As CNBC reported in May 2017, “Defense stocks soar to all-time highs.”
Between January 2016 and May 2017, Kratos Defense went up 164%... Mercury Systems went up 117%... and Ducommun went up 96%.<
And that was the impact from $500 billion worth of new government spending... now we’re talking about $2 trillion with renewable energy and infrastructure. So the impact this time around could be 4X bigger.
The other point I want to make is that we see this pivot to clean energy as a permanent shift in the energy space. If you just look at what’s happening now...I saw already 70% of new electric generating capacity will rely on solar or wind this year. That’s crazy. It’s basic economics. As The International Energy Agency reports, the best solar products offer “the cheapest electricity in history.” We think renewable energy and infrastructure has the chance to be one of, if not the biggest stories of the decade. And we plan to take full advantage of that for our readers.
HOST: Remember to take the next step and see how you can subscribe to Nomi’s Rapid Growth Opportunities, you have to hit the button below. That will take you to a secure order form to get started.
HOST: We’re running out of show here, so please don’t forget to click that button if you’re ready to order. This is an incredible deal Nomi has for you tonight. I would hate to see anyone who wants these recommendations and research miss out on this offer.
HOST: Moving onto our next question here... so you’ve gone on TV a lot to talk about what you see as collusion in the markets between the Fed and Wall Street. Now I know most people would agree, investing is hard enough to begin with, but you’ve said for lack of better words, regular people are playing a rigged game. Can you tell us more about this?
NOMI: Sure. And to be clear, let’s call a spade a spade here... because this is a rigged game. My best-selling book Collusion talks about all of this in detail. And we’re going to give away a free copy of Collusion to everyone who joins our Rapid Growth Opportunities research service tonight.
We want our readers to know the full truth so they can make the best decisions for their financial wellbeing.
HOST: Are you willing to pull back the veil just a bit? Can you explain just briefly what’s happening?
NOMI: Sure. Absolutely. So look, we talked about money printing from the Fed tonight. Now let’s talk about how all that money enters the market. Because this is where it all starts. And while you might think this happens automatically, there’s no button the Fed can push to flood $2 trillion into the market. What really happens is that they have to transfer this money through what’s called a primary dealer... a Wall Street bank. I know all of this because my former employer, Goldman Sachs is one of the Fed’s biggest primary dealers. So using Goldman as an example, the way the Fed would do this, is to buy these securities from Goldman... in exchange for cash. And then Goldman would just invest the Fed’s cash. Can you see a potential conflict of interest there?
HOST: Yeah, sounds to me like the textbook definition of collusion. Ok so to piggyback off that, here’s another question for you... doesn’t that mean small cap stocks are essentially a rigged game too?
NOMI: Look the truth is that unless something dramatic happens, Wall Street will always have an unfair advantage over retail investors. They have teams of traders using computerized algorithms that would make your head spin. They have access to information and data and machines that regular people just can’t even imagine. But when it comes to small cap stocks, that’s actually one of the only places in the market where the little guy can beat the institutional investors. The smaller the company, the bigger advantage to retail investors. I mean if a company is worth $2 billion, Wall Street can’t dump in billions of dollars... because at the end of the day, that company is only worth $2 billion. And because Wall Street can’t take up massive positions in these stocks... some firms just ignore them completely. It’s not worth their time for such a small reward. And we think that makes our small cap thesis even more attractive for people who are tired of playing a rigged game.
HOST: I feel like after talking about all this corruption, I have to ask you about what happened with WallStreetBets, what’s your take on that?
NOMI: This is a really interesting topic, because for the first time I can remember, you have the little guy trying to find a way to beat Wall Street at their own game. The group found an inefficiency in the market...and took advantage of it. You have to applaud that. I mean how many times have we heard of some strange thing Wall Street has done for the same reason. Remember the flash crash a while back? That was caused by high frequency traders using milliseconds to gain an advantage over everyone else. So I’m intrigued by what these retail investors are doing.
Of course, the other part of that story is that a lot of people felt like the brokerage firms, firms like Robinhood, that they colluded with the hedge funds and Wall Street to prevent these retail investors from trading. You had the Texas Attorney General Ken Paxton who even said he was investigating, and these are his words... “@RobinhoodApp, @discord, and hedge funds who rigged our free mkt for the benefit of Wall St elites. The US econ should be transparent, open.” So you asked my take, look you know I have to agree with him. I wrote a piece about this in the New York Daily News... where I said, “ After the GameStop revolt, all should understand that Wall Street is fundamentally unfair.” This massive corruption is why I quit Wall Street years ago... and why I served on advisory teams to draft legislation to reform the Federal Reserve. So change there is good, I like that.
HOST: And just so people at home realize what an incredible opportunity this is to have an anti-establishment, ex-Wall Street insider like Nomi leading the way, I want to read a few notes from some of her other subscribers from her other research services.
HOST: Again, we’re almost done with tonight’s show. We’re getting down to our final minutes here. You don’t want to miss this amazing opportunity to join Nomi’s Rapid Growth Opportunities tonight... you’re saving more than $8,000 with this special offer. So don’t forget to click the button below to get started.
HOST: Ok so we have to talk about Bitcoin for a moment... I mean what kind of market forecast would this be if we didn’t talk about Bitcoin. So Nomi, what advice do you have for someone who wants to know if now is a good time to buy Bitcoin?
NOMI: First off... I’d like to point out we just talked about all this collusion, this corruption of the system, whatever word you want to use to describe it. Well, Bitcoin is the perfect response to that. In fact, it was created just after the financial crisis of 2008 hit. I mean if you hate the Fed, and you hate how they just seemingly print an endless amount of money, and you hate the control they have over what happens to the value of this money... other than silver or gold, why not look at Bitcoin? You can’t create unlimited Bitcoins... there are only X number of Bitcoins in supply and that’s it. Period. And once every four years that supply gets cut in half because that’s just part of the code. When you have scarcity in any asset, whether its avocados or Bitcoins, you’re always going to see the price increase in that asset. So here’s my advice to people looking to buy Bitcoin. Look, I love the idea of storing some of your money outside the U.S. government...but you have to be smart about it. At the end of the day, Bitcoin is still an investment at the moment, so you should treat it like your other investments. Don’t go betting the farm. Bitcoin has shown it goes up big, then goes down big, and always seems to go back up. So what I would recommend is you wait for the next big pullback... and then put 1%, 3%, maybe 5% of your investible assets into it. Losing 1%, 3%, or 5% has never bankrupted anyone.
HOST: Great advice. I wish I had done that years ago and just forgotten about it. Alright so our next question is along those lines...
HOST: What do you think about precious metals like gold or silver?
NOMI: We like precious metals for the same reason.They’re a proven store of value outside the U.S. dollar, away from the Fed. And what was really interesting last year is that as stocks soared higher, gold and silver had their best year in more than a decade. Gold jumped 30% and silver shot up 84%. We think more fed stimulus could continue this trend. I would also point out that people who like Bitcoin because of scarcity should consider precious metals for this reason. Plus, some precious metals, like silver or copper for that matter, have use values beyond wealth storage value which is important, and even complements some of the names and sectors we like in the small cap space.
HOST: I think we have time for one more question... so last question here... are there any other assets you would recommend people look into?
NOMI: Yes, and that’s why we’re giving everyone who joins Rapid Growth Opportunities tonight video access to a Wealth Conference I participated in.
For three days, my colleagues and I spoke about everything from 5G to real estate. There’s also CNBC star Jon Najarian who revealed a little-known option strategy he uses that’s done wonders for him...And many others.
The conference was a hit and we sold tickets for $499, but we’re giving all our new readers who subscribe tonight access to this video for free.
If you can’t tell by now, we put a lot of time and effort into this event tonight to help regular Americans. I grew up in a middle-class neighborhood in upstate New York. Both my parents worked hard for every dime they earned. My mother was a substitute high school teacher and my dad worked himself through school to be a world class computer programmer and statistician. Ever since I quit Wall Street, I’ve made it my mission to help everyday people like my parents. I know we’re just about out of time here, so I won’t hold this up any longer. I just want to say thanks again for joining us tonight, we’re looking forward to an incredible rest of 2021 with Rapid Growth Opportunities. I know our newest recommendations will be out shortly. So if you want to join us, make sure you don’t forget to click the button below. Thanks again Dan.
HOST: Nomi, it’s been a pleasure having you on the show tonight. What an incredible evening. I’ve learned so much in so little time. But before we sign off here, I’m going to say this one last time... please make sure to take advantage of this amazing opportunity.
HOST: You have a world-class investing expert, a former Managing Director from Goldman Sachs, who wants to help YOU make money. In today’s world where the rich only care about getting richer, how rare is that? I hope you recognize how special of an opportunity this is to have someone like Nomi on your team.
HOST: And to get a $8,000 savings on her brand-new Rapid Growth Opportunities research service, it’s a no brainer.
You still have time to get your order in now before we sign off tonight. Just make sure to click the button below to get started. And with that, I’m Dan Lindell saying goodnight from Dr. Nomi Prins’ “Economic Super Convergence” Event and thank you again for joining us this evening. We hope you enjoyed it.