I came back from vacation with quite a few questions about this latest Ian King promo, and I’ve also gotten it myself a few times in the past couple days so I guess it’s still being actively mailed… and we’re going to take a few minutes to figure out what his “Great American Reset” pitch is all about.
Like so many pitches these days, this teaser ad for Ian King’s Automatic Fortunes ($49 intro price, renews at $97) comes in the form of a “special presentation” that’s done cable-news style, with an interviewer — in this case, Jeff Yastine — quizzing the newsletter pundit about his exciting idea… here’s a little taste of the transcript:
“JEFF: You’ve gone on record to say that America is about to undergo unprecedented economic growth…..
“IAN: About every decade, the economy takes a small step backward in order to take a giant leap forward. I call it a “reset” because the weak, inefficient companies die out during these times, while forward-thinking, innovative companies propel the economy forward.
“JEFF: So, it’s a shakeout. The weak die. The strong thrive.
“IAN: That’s right. And by “strong” … I’m talking about innovative companies that can quickly adapt to a new era. And if you invest in those companies, you won’t just double your money — you could triple, quadruple or even 10X your investment.
“JEFF: Incredible. That’s enough to turn $1,000 into $100,000. And gains like these are now possible because we’ve just entered one of these resets?”
We’ll not harp too much on the bad math there (no, “10X” does not turn $1,000 into $100,000… that would be, wait for it, 100X), but that’s a reasonable if oversimplified way of looking at economic cycles. Recessions create opportunities when stale old firms get into trouble and are supplanted by new startups, who can more easily disrupt the marketplace because of the weakness of those larger players.
Of course, this ain’t a regular recession… and we have no idea how it will play out. Sometimes the old players with strong balance sheets are the survivors while the new guys who are burning cash flounder, it all depends on who is helped and hurt… and, of course, the monsoon of easy money from the Fed could help prevent a lot of older and less innovative companies from going out of business even if this coronavirus recession is prolonged.
King basically says that “recessions bring better markets,” and perhaps that will be true, if you can predict the next year then you’re way ahead of me. This is a little more from the ad:
“Over the last four decades, we’ve had four resets … 1987, 2000, 2008 and … 2020.
“In each instance, the stock market dropped by 30% or more, triggering a reset, and then bounced back … by leaps and bounds.”
I guess that’s true, though the market has already recovered from its 30% drop in March, and was priced pretty optimistically before that… so other than some bankrupt retailers and hurting airlines and similar companies who got the direct and immediate impact of the shutdowns, there hasn’t been much of a “reset” just yet, the longer-term recessionary impact of the pandemic is still really just being guessed at. And, of course, those “bounce back” moves don’t always move on a predetermined schedule — King is right about saying that the market “bounced back” by 400% after the 2008-2009 collapse, but that’s 11 years later, and if you held through the collapse in 2008 you probably didn’t get back to “even” until sometime in 2012 or 2013.
But we’re not here for the big picture about a “reset,” nobody knows what the market will look like over the next 18 months (he says “We have a one- to two-year window to profit from the Great American Reset of 2020. But if you want the biggest gains, you will want to act now” — but, of course, without “act now” pressure people are less excited to sign up for your newsletter)….
No, we’re here because partway through they dangled the real bait of the ad, that Ian King has a little stock that will lead the way to 10X returns and make us all buckets of money.
Or, in his words:
“I’ll discuss a stock that our viewers can buy for about $10 in just a moment, so they can have the chance at these kinds of profits.”
So… let’s dig through and check the clues, shall we?
Here’s the lead-in:
“When it comes to investing in forward-thinking, innovative companies, I want a lot of reward and limited risk.
“To do that, I find ways to stack the odds in my favor.
“And my research team just came across one very powerful way to do that…Are you getting our free Daily Update
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“By my estimate, this virtually guarantees a specific technology will lead the U.S. economy out of this reset and surge higher….
“It’s Presidential Memorandum O-2518. It declares that ‘America must be first’ in a new technology called Spectrum. The president made this declaration in 2018, and I think that it will virtually prevent America from ever suffering from another economic pandemic like we had with the shutdown.”
Hmmm, King had a long-running ad that pitched this mysterious notion of “Spectrum” last year — is he just re-touting the same thing?
Let’s keep an open mind, but so far it sounds that way. What other clues do we get?
“Those who invest in the companies at the forefront of Spectrum technology will reap massive gains. And today, I’m going to reveal the company at the forefront of it all. It trades for about $10 a share, but I could see it zooming much higher in the years ahead.”
And then plenty of blather that’s pretty light on the clues…
“No. 1-rated stock to buy today….
“It’s a little-known company that isn’t just positioned to profit from Spectrum technology … it will be at the forefront of this massive shift.
“If it performs like other stocks in prior resets … it could potentially double, triple or even 10X in the years to come as Spectrum technology’s rollout transforms America.
“Of course, there is always risk with any investment, so I’d never recommend putting in more than you can afford to lose. But with a $10 stock, even a small starting stake can set you up for big returns.”
So “Spectrum,” of course, is still just a semi-mysterious way to tease 5G — the massive upgrade to mobile data networks that is now underway, and expected to dramatically increase wireless data transmission speeds, which should make a lot of other big advances and heretofore unimagined products and services possible in the coming years.
And as the ad implies