'Plan the Trade, Trade the Plan' – How Optimism Shapes Successful Investing

Episode #314 | June 12, 2023

Episode #314 | June 12, 2023

'Plan the Trade, Trade the Plan' – How Optimism Shapes Successful Investing

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by Empire Financial Research analyst Enrique Abeyta. He's the editor of the Empire Elite Trader, Empire Elite Growth, and Empire Elite Income newsletters. In them, he gives his subscribers stock advice and provides commentary on the markets. And in this week's episode, he's sharing some of that wisdom and insight with our listeners.

Dan and Corey begin the podcast by talking about cryptocurrency and the U.S. Securities and Exchange Commission ("SEC") recently filing lawsuits against both Coinbase Global and Binance. The SEC's motivation stems from the fact that these platforms have been offering securities without obtaining the necessary licenses. As Corey mentions, "Nobody has defined these things as securities yet, except the SEC believes that they are."

Enrique then joins the conversation to speak about his mosaic approach to investing. It involves piecing together a wide range of data points and perspectives to form a comprehensive view of a stock or the overall market. However, Enrique recognizes that different factors may hold varying importance depending on the overall environment. So he emphasizes the need to adapt and stay attuned to changing dynamics...

I'm out there trying to give the data points without necessarily trying to give people the conclusion... People can make their own decisions.

Dan and Enrique later discuss the role technology has played in the maturation and evolution of both the asset-management and newsletter industries. Enrique posits that technology integration has transformed these sectors and enabled greater access to information, sophisticated analysis, and enhanced communication channels.

He also notes that it's growing more acceptable to combine quantitative and qualitative approaches. Though these two approaches were often seen as mutually exclusive in the past, there's now an increasing recognition that incorporating both aspects can provide a more holistic understanding of investment opportunities. As Enrique explains...

The business is just growing up. For whatever reasons, 30 years ago, the idea of adding quantitative to qualitative was just not... acceptable. I think our industries are beginning to evolve to take in those adaptations.

The discussion then shifts to the ongoing debate between value and growth investing. Enrique asserts that finding companies with the potential to increase their value is the ultimate driver of investment success, but investors need to be "optimistic" with discipline. He argues that regardless of whether one follows a quantitative or qualitative approach, identifying companies with substantial value growth potential offers a logical path to financial success.

Lastly, Enrique shifts to talking about a huge bet on banks. He believes that the bank failures provided a large lesson in human psychology, politics, and how the world really works. To hear his full breakdown and analysis, check out the podcast now.