Dear Reader, Here is a story about what not to do... It's really important that you read it, regardless of whether you decide my top stock strategy for the next 5+ years is right for you or not. This is one of the most important lessons in all of investing (and the solution), no matter what approach you choose. I've already shown you – with proof – that: - Small-cap stocks historically outperform the big ones that everybody buys by as much as 4x over the long term.
- They're poised to outperform the S&P 500 by as much as 4x just in the next year, based on a historical signal with a perfect track record.
- An even more overlooked group – mid-caps – could do better still. (No one "gets" this and it's probably the single most overlooked opportunity in the entire market.)
Having said that... Smaller doesn't automatically mean better. I know my readers are too smart for that. Smaller stocks are where you'll find companies with paper-thin financials... dubious business models... and even outright frauds. And many of these same companies "sound" great. They know how to market their "story" about changing the world... raking in money... and making early investors a fortune. If you've spent any time in the markets – or financial research, for that matter – I'm sure you're familiar with this. The single biggest risk for any investor is getting sucked in by these "stories" – and refusing to change your view, no matter the evidence. And it doesn't just happen to a handful of inexperienced market "gamblers." It happens to the very best investors in the world. (I explain the dead simple way to avoid that risk, right here.) Perhaps you've seen one of the films about how many very smart folks got taken in by the Theranos fraud, for example. Theranos never traded in the public markets. But the same kind of thing definitely happens in publicly traded stocks. And if you're going to be a small- or mid-cap investor, it's the No. 1 thing you need to avoid. For example, about 9 years ago, a company called SunEdison got very popular. It was going to be the biggest developer of solar projects in the world. And back then, solar was a very hot sector. Famous hedge funds like Omega Advisors and Glenview Capital Management were pouring in. The biggest cheerleader was David Einhorn of Greenlight Capital. Now, Chaikin Analytics was not around back then in its current form... But I will tell you that I saw this idea mentioned in quite a few financial newsletters at the time. It was a bit of a "darling." And guess what? It ran up as much as 2,000% during one period. (You might call it the "hype" phase.) I know you probably see where this is going... But don't ignore how much "fear of missing out" a lot of folks probably felt during that 2,000% run. SunEdison promised massive dividends... and basically a whole new way of making money that no one had ever thought of before. But, to put it bluntly, it wasn't a real business. It was a whole lot of financial engineering. It didn't have any real technological advantage. What it did have was an impossibly complex financial structure, with spin-offs and so-called "funding warehouses." As the Financial Times put it: "It used the slogan 'Simplifying Solar', but its corporate structure was exactly the opposite." Anyway, I'll get to the point... SunEdison was a ZERO. Within a couple of years, it was bankrupt. And the New York Times estimates that those eager hedge funds that piled in lost a collective $3.5 billion. And if this kind of mistake can suck in David Einhorn and some of the smartest hedge funds in the world... It can certainly get you and me, too. The solution is to have an objective, outside way to "keep you honest" – and honor what it tells you. I spent half a century building a tool like that... And I never make the mistake of thinking that I'm smarter than the signal. I'm human. I make mistakes. Like you... David Einhorn... and everybody else... I can get sucked in by a good "story." But I never let that ruin my financial results because I have the Power Gauge to keep me honest. And it's why I'm so excited to take advantage of the most historically lucrative area of the entire market... The stocks Warren Buffett laments he can't "play" in anymore (but we can)... Without undue risk. Again, I hope you'll take this lesson to heart no matter what investing strategy you choose. Nothing is more important. I also hope you'll take full advantage of the highest-upside market setup I've ever seen... knowing we have the Power Gauge to "keep us honest" every day. Unfortunately, your invitation to try this ends on Monday. Please look it over today, before time runs out. Click here for full details. Regards,
Marc Chaikin
Founder, Chaikin Analytics P.S. The invitation I'm making today includes full, unrestricted access to a more advanced version of my Power Gauge tool (normally $5,000 per year by itself) for FREE... On top of HALF OFF my newest research service and a slew of additional FREE bonuses worth thousands. Meaning you can use the Power Gauge to stay "honest" on every investment opportunity, big or small. It's the work of my entire professional lifetime. And this is – by far – the No. 1 best way I've ever found to put it to work. | 
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