You have seen my free posts and probably have seen me in interviewers I have done. Now I want to help you step up your trading and investing game with access to my Premium Addicted to Profits Trading Service. We are seeing the start of big swings in the markets that bring opportunities by buying into the new trends now emerging and by betting against some bad stocks that are now dumping on market down days when they happen.
1. In a overvalued stock market you must be careful in chasing everything. So we will buy cheap beat up companies that can rebound no matter how the market does in the short term.
2. We will short companies that are in industries that will have a tough time adjusting as rates have already gone up and companies that have used financial leverage too growth through M and A or prop up earnings through buybacks as we feel that long term corporate interest rates are headed higher and companies using financial engineering will be punished.
3. We will use a put call option strategy with a roughly 70-30 put to call ratio in stocks that we feel have a chance to have a big move in either direction. Such a ratio will allow us to roughly break even or make money if the bull market continues or make a killing if there is a finally a bust.
4. The long term trend in rates is up. We have specific trades to profit from this trend (we put these trades on a few weeks ago).
I’m sure you have owned stocks before and watched them rocket up in value. You know the excitement. Last year was a great year. It’s a feeling I’ve experienced time and time again and so have the people who have taken advantage of my AddictedtoProfits stock market advisory service.
However, if you are like most people I’m sure you have also had the opposite experience of buying a stock or mutual fund only to watch it fall week after week. You probably held on hoping it would go up. But it didn’t. Then you just couldn’t take it anymore so you took your loss. You bought the wrong thing at the wrong time.
Odds are that you got in this bad investment thanks to the "advice" of a newsletter writer, stock broker, investment advisor, or because of some article you read or person you heard on TV.
If you are like me you have discovered that most of the advice out there is wrong. Terribly wrong.
I learned this myself when I started my career as a writer and advisor. It seems like it has been so long ago. Now a days I travel all over the world and speak at investment conferences in the United States and Canada where I am known as an expert on the commodity markets and gold and as someone with an incredible track record.
You need to follow and listen to someone who knows that they are doing in the stock market – right now. The markets are changing and you have got to adapt to them.
Last year was a great year, but now the market is shaky in floating land and money is rotating into new sectors that will be the big plays of the year.
I’m a regular guest on ROBTV and BNN – Canada’s version of CNBC – where my opinions on the stock market and commodities are sought out – and where investing outside the box is not a crime. As a result my advisory business has experienced rapid growth while my name reputation has spread far and wide.
But I’m not as well known in the United States, because I have never been on CNBC. You see they don’t want to hear about anything else, but buying US stocks.
And I suspect they may be afraid that I’ll encourage people to get out of the US stock market – which is what the mutual fund companies that advertise on CNBC make their money off of – keeping you in their US stocks.
You see if you buy a mutual fund through a broker that broker gets a trail from that fund as long as you continue to hold it. That’s how they make a living. This gives them a vested interest in having you just hold the fund forever. If you sell it they lose the trail commission the fund is paying them and so does the brokerage house.
The brokerage business is geared to do one thing – get control of your money and stick it in these investments so that they can make money off of you. Almost all of the people I met in the industry over the years were bullish on the market all of the time and that’s why almost all of the advice you get about the stock market is dead wrong.
My success in the markets has come by applying what I call a "quartet" of security analysis that includes:
1 – Mass Psychology – measuring the sentiment of the masses to identify extremes of bearish or bullish sentiment and taking a contrarian position
2 – Technical analysis – using charts and trend analysis to determine when the right to take a contrarian position is and then knowing to sell.
3 – Monetary conditions – factoring in the broad macro-economic environment and keeping my pulse on the actions of the Federal Reserve and its effect on the money supply and various asset classes and currencies that make up the global financial system.
4 – Fundamental analysis – understanding how valuation and earnings is likely to impact an individual stock in order to narrow down my investment positions to only the best stocks in the market.
I also have nurtured contacts in the commodity world so that I know what is going on with individual mining and energy companies ahead of the general public. It’s not secret knowledge I got, but hard work and talking to the right people that makes the… Read more…