What’s the secret to beating the market 10-to-1?

If you’ve studied investing, you may think this is a trick question. You may think it’s impossible to beat the market 10-to-1.

After all, legendary investor Warren Buffett has beat the market just 2-to-1 since 1965. And Stan Druckenmiller, who some consider the greatest trader ever, only beat the market 3-to-1 from 1986 to 2010.

It’s true that it’s virtually impossible to beat the market 10-to-1 for long stretches. However, a skilled investor can earn these kinds of huge returns over shorter periods. That’s exactly what E.B. Tucker, editor of The Casey Report, has done for his readers over the past six months.

As of yesterday, The Casey Report portfolio was up 27% this year. Meanwhile, the benchmark S&P 500 has risen just 2.6%. You can see in the chart below just how well our readers have done this year.

If you don’t subscribe to The Casey Report, you might be surprised to learn how E.B. achieved these returns. He didn’t recommend buying or selling options. He didn’t take part in risky, illiquid “private placement” deals.

He did it mostly by buying stocks on the New York Stock Exchange that anyone with a brokerage account can buy.

In today’s issue, we’re giving you a window into our flagship publication. We’ll tell you how E.B. made 36% this year investing in a company that “feeds the masses”…another 21% in five months betting against an iconic American company…and three gains of 60%-plus in the precious metals industry.

And we’ll show you how you can join in on these profits right now as part of a great deal for new subscribers.

But before we look inside The Casey Report portfolio, you should get to know E.B…

• Like Casey Research founder Doug Casey, E.B. is a contrarian…

He sees the world differently from most people. This allows E.B. to spot opportunities (and threats) most folks can’t see.

Consider what E.B. did in early 2009. As you probably remember, the U.S. housing market had just imploded. U.S. stocks had crashed. The economy was in its worst economic downturn since the Great Depression.

Fear was in the air. There were few buyers. E.B. used that to his advantage. He raised millions of dollars to buy a portfolio of more than 40 single-family houses. He bought many of these houses for as little as $0.10 on the dollar. In other words, he turned a crisis into an opportunity to make a lot of money.

• Last September, E.B. called the end of the bull market in U.S. stocks…

He titled that month’s issue of The Casey Report, “R.I.P. 2009 – 2015 Bull Market.” He warned that we were entering “a very tough time for stocks and the economy.”

It was a bold call. The S&P 500 had rallied 215% over the past six years, one of its biggest rallies ever. And the Dow and NASDAQ had hit all-time highs just two months earlier.

But the call was spot on. The S&P 500 hasn’t set a new high in 14 months. And as we’ve been pointing out, the stock market continues to look extremely fragile. The S&P is overpriced, and companies in the S&P are going through their longest earnings drought since the financial crisis.

• With a call like that, you might think E.B. has been avoiding stocks…

But that’s not the case—E.B. has several stocks in The Casey Report portfolio right now.

You see, while E.B. thinks the bull market in stocks is over, he doesn’t think all stocks are headed lower. Instead of avoiding stocks altogether, E.B. is buying companies that can make money no matter what happens to the economy and stock market.

One way he’s doing this is by investing in companies that “feed the masses.” One of these companies is the Archer Daniels Midland Company (ADM). It produces everything from processed wheat to cornmeal used in tortillas. In other words, it makes food the average American eats every day.

That allows the company to make money in any environment. Americans may cut back on luxury goods when times get tough, but they will always buy food. This stock has jumped 36% since E.B. recommended it in January.

In next week’s new issue of The Casey Report, E.B. will recommend another “crisis-proof” company. This company makes replacement parts for used cars. It’s the type of business that will continue to make money even as most Americans become poorer.

• E.B. has also shorted two of America’s most vulnerable companies…

Shorting is when you bet that a company’s stock will fall.

Earlier this year, E.B. bet against American Airlines (AAL), one of the most vulnerable airlines in the U.S. As you may know, the airline industry has been booming since the financial crisis ended. The Dow Jones U.S. Airlines Index, which tracks major airline stocks, surged an incredible 861% from March 2009 through December 2014.

In February, E.B. said the airline industry’s good times were ending. His American Airlines short is now up 21% in just five months.

• E.B. is also shorting a major U.S. jewelry store chain…

Like many U.S. retailers, this company lives on borrowed money.

Nearly 62% of this company’s customers pay with credit. A “spend now, pay later” business like this can work when the economy is growing. It doesn’t work well when the economy stalls and folks stop buying stuff they can’t afford and stop paying their bills.

This is already happening at the jewelry company E.B. is shorting. Last year, the company’s “bad debt” expense jumped 30%. It rose 50% faster than the company’s credit sales. E.B. says it will only get worse:

We think there’s more pain to come as credit financing dries up…sales continue to drop…and more loans go unpaid.

• E.B. has also encouraged his readers to own gold and silver as protection…

Casey readers know gold and silver are real money. Both precious metals have preserved wealth for centuries because they have a rare set of characteristics: They’re durable, easily divisible, and easy to transport. You can take a gold or silver coin to any country and folks will immediately recognize its value.

Gold and silver are also safe haven assets. They often do well when the economy or stock market is in trouble. This year, gold is up 28%. Silver has soared 43%.

• E.B. thinks both precious metals are headed much higher…

That’s why he recommended two gold stocks and one silver stock this year.

If you’ve been reading the Dispatch, you know mining stocks are leveraged to precious metals prices. A 20% jump in the price of gold can cause a gold stock to surge 40%…60%…or even 100%.

One of E.B.’s gold stocks is up 62% since March. The other is up 63% since April. E.B.’s silver stock has shot up 74% in less than three months.

These are huge gains for such short periods…but we believe this rally is likely just getting started. During the 2000–2003 gold bull market, the average gold stock jumped 602%. The best ones surged more than 1,000%.

• If you’re nervous about stocks or the economy, we encourage you to try The Casey Report

As we’ve shown you, E.B. has positioned his readers to make money even if stocks tank or the U.S. economy unravels.

You can invest alongside E.B. by signing up for The Casey Report. If you sign up today, you can access E.B.’s top investing ideas for just $49 a year. That’s 50% off the regular price, and a great deal considering how much money a subscription to The Casey Report could make you. To learn more about this limited-time offer, watch this short video.

In it, E.B. explains why we’re in the early stages of a major financial disaster. This coming crisis could put thousands of stores out of business…cause unemployment to skyrocket…and trigger a huge stock market crash.

By the end of the video, you’ll see why it’s never been more important to “crash proof” your wealth. Click here to watch. It’s one of the most important messages we’ve ever put out.

• REMINDER: Doug Casey will be in Las Vegas next week…

Doug will be at FreedomFest 2016: Freedom Rising, an annual festival where free minds meet to talk, strategize, socialize, and celebrate liberty.

Doug will be giving several speeches, and he’ll also receive an award for his new novel, Speculator. He’ll join an all-star roster of speakers that include Judge Andrew Napolitano, Forbes founder Steve Forbes, and Agora founder Bill Bonner.

FreedomFest takes place July 13–16 at Planet Hollywood in Las Vegas. To learn more, visit www.freedomfest.com. Enter the code SALEM to get $100 off the ticket price.

Chart of the Day

Casey Report readers stand to make money no matter which direction stocks are headed. That’s because E.B. uses a “market neutral” approach.

If you’ve been reading the Dispatch, you know a “market neutral” approach doesn’t depend on stocks rising or falling. Investors who use this strategy have both “long” and “short” stocks in their portfolio. A long position simply means you own a stock, so you make money when the stock rises. A short position makes money when a stock falls. This allows you to profit no matter if the broad stock market goes up, down, or sideways.

Today’s chart shows this strategy at work. It shows the performance of the Archer Daniels Midland Company (ADM) and American Airlines Group Inc. (AAL) this year. As we said earlier, E.B. is long ADM and short AAL.

You can see that Casey Report readers are up 36% since E.B. bought ADM in January. They’re up 21% since he shorted AAL in February. If the economy runs into trouble like E.B. expects, Casey Report readers could reap even bigger gains.

Again, you can invest alongside E.B. by signing up for The Casey Report. To learn how, watch this short video.


Justin Spittler
Delray Beach, Florida
July 8, 2016

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