What Is Eric Fry’s Smart Money?

In the world of investment newsletters, besides offering paid advisory services, editors like Eric Fry also offer free e-letters.

Eric Fry’s Smart Money gives you access to his research and analysis that he claims has delivered massive gains derived from the biggest global macroeconomic and geopolitical events.

But does it live up to its promise? Does it offer tangible value?

In this review, I will be taking a closer look at what the free newsletter entails as well as provide you with an overview of the five stocks picks he will send you when you add your email address to the mailing list.

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What is Eric Fry’s Smart Money?

Smart Money is a relatively new free-to-join newsletter service that Eric Fry launched early in 2020. Through it, he shares his insights into the capital markets every week.

He identifies major megatrends in the industry that he feels are going to grow their earnings and deliver good returns.

Eric Fry's Smart Money Review

The first batch of recommendations come in the form of a free research report that contains “5 Tech Stocks Set for 1,000% Gains.” The title of the report is Top 5 Stocks For 2020 and we will dive into it later in this article.

Since the newsletter is free to join, all they require you to do is provide your email address.

It works like another free e-letter provided by Jeff Brown that I reviewed here called The Bleeding Edge.

Who is Eric Fry?

Eric Fry has spent over 30 years in the financial service industry as either a specialist in international equities or a professional portfolio manager. He is also an expert short seller.

Eric did not attend an Ivy League school and didn’t start his career at a major Wall Street firm. He graduated from UCLA with a comparative literature degree and started working at a beachfront restaurant in Malibu.

While working there, he started studying the markets and developed a global macro strategy that helped him embark on his investment journey.

He soon found himself professionally analyzing investments in Monte Carlo before moving on to work as a hedge fund manager in New York and San Francisco for seven years.

He wrote his first book, International Investing With ADRs: Your Passport to Profits Worldwide, and positioned it as a comprehensive guide to using American depository receipts to invest in foreign companies.

He worked with James Grant, editor of Grant’s Interest Rate Observer before he branched out and started his publishing firm, Apogee Research, which published content that was geared towards professional money managers.

He joined InvestorPlace where he publishes The Speculator and Fry’s Investment Report.

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What are the 5 Stocks For 2020?

As soon as you sign up for the Smart Money newsletter, you will receive an email from Eric Fry with a link to the free report with the five stocks he predicted at the start of 2020 would “be booming for a very long time.”

I signed up for Eric Fry’s Smart Money and within a few minutes, I received an email that looked like this:

Eric Fry's Smart Money Review

I clicked on the link to the free report and it led me to a “Special Report” page where he provides the names of the five stocks he thinks you should buy.

They all have to do with breakthrough technologies that are disrupting the market by creating megatrends. He says:

“These five trends are not merely delivering conspicuously strong revenue and earnings growth. Their growth trajectories are gaining momentum. These five megatrends – and these five Tech Profit Rockets – will be booming for a very long time.”

The five megatrends are:

  • Screen time
  • Payment processing
  • E-commerce
  • Artificial intelligence
  • Battery metals

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So what are these so-called five “Tech Profit Rockets”?

Pick 1: The High-Tech Miner (Battery Metals)

Since energy storage is booming due to growing demand from the nascent Electric Vehicle and renewable energy technologies markets, Eric Fry figured the best investment is a miner that supplies the elements needed to manufacture batteries:

“That’s why, generally speaking, I believe select ‘low tech’ mining companies provide better plays on the Second Electric Revolution than ‘cutting edge’ companies like Tesla.”

His stock pick is a copper mining company called Freeport-McMoRan Inc. (FCX).

He chose it because it has successfully tested artificial intelligence models at its mine in Arizona and intends to roll out its new technology to all its mines in the Americas. It is also expanding its production capacity in its Indonesian mines.

These factors will improve its annual production and boost their earnings.

Pick 2: The “Shelter in Place” Play (Screen Time)

This second pick targets the burgeoning industry of professional online gaming, also known as e-sports. Eric argues that the coronavirus pandemic has spurred the growth of gaming triggering a “Screen Time Megatrend.”

His pick for this megatrend is NVIDIA Corporation (NVDA).

“Thanks to the company’s dominance of the GPU market, it is at the very center of several powerful multidecade growth waves, including gaming, data centers, autonomous vehicles, artificial intelligence, and machine learning.”

At the beginning of the year, on January 2, NVIDIA shares sold at $239 and as I write this (August 12, 2020), the stock has seen a YTD rise of 44%.

Please note that in his initial list of 5 stocks, NVIDIA was not on the list. He appears to have slotted it in a few months into the year.

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Pick 3: The Square of Brazil (Payment Processing)

The third one is a Brazilian company that is the equivalent of Square Inc. (SQ) in the payment processing sense. It is called PagSeguro Digital Ltd. (PAGS) and it serves millions of customers in Brazil.

“PagSeguro enables small merchants to process digital transactions without having to use banking or credit card intermediaries.”

It is tapping into a new market in Brazil and has grown its customer base rapidly in just three years. However, Eric believes that it has barely scratched the surface of its potential target market.

Pick 4: A Retail Survivor (E-commerce)

Eric Fry’s pick in the retail space is Lululemon Athletica Inc. (LULU). Since it survived the market crash in March 2020, he believes that it is well-positioned to grow long term.

One of the reasons he chose it has to do with its healthy balance sheet:

“Lululemon has a fantastic balance sheet. In fact, it has a net cash position in its treasury. This means that if you add up the company’s cash and short-term investments, they exceed its liabilities.”

Since it has its short-term debt obligations covered and has very few long-term liabilities, it can withstand a sustained period of adversity.

He was also drawn to it because it has a vibrant international presence and is, therefore, not reliant on the US market, which is taking longer to come out of lockdown.

Finally, it has built its e-commerce infrastructure to create a direct-to-customer channel. This is particularly significant due to the closure of brick-and-mortar stores during the lockdown.

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Pick 5: The Smart Pick (Artificial Intelligence)

Artificial Intelligence (AI) is one of the buzzwords you will encounter in the world of investment newsletters.

Eric’s fifth pick is Ambarella Inc. (AMBA). It is a small tech company that manufactures products that facilitate the use of AI for autonomous driving. He describes it thus:

“…To generalize, these products provide ‘sight’ to the computers that run autonomous functions for automobiles. Already, the company’s products empower technologies like active driver monitoring systems (ADMS), blind-spot detection, and automated parking systems.”

This company will enable you to cash in on the autonomous driving trend.

Eric Fry’s Smart Money Conclusion

When you subscribe to Eric Fry’s Smart Money newsletter, you will receive weekly updates of new investment opportunities in your inbox.

The main complaint people make about subscribing to a free newsletter such as this one is that newsletter editors use them to promote other paid services offered by their publishers. While it is understandable, it can be an annoyance if they send you many emails within a short period.

Fortunately, if you decide that Smart Money is not working for you, you can unsubscribe easily.

I should mention that the five stock picks have changed since I first subscribed to the newsletter in January. Eric replaced the “Solar-plus-energy storage” and “online gambling” megatrends with “E-Commerce” and “Screen time.”

Therefore, by the time you join Smart Money, the above-listed stocks and trends may have changed. Keep an eye on that.

Before you go…

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This made us 6-figures in the last 3 months:

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