This is the perfect time to talk about something I know has been on a lot of folks’ minds…
What happens next?
I’ve gotten emails from a number of our Members – Pam, Ryan, Jim, Jane, Mia, Hao, Ronaldo, and more – you know who you are – asking, “Where do we go from here?”
Well, that depends on a number of what I call “wildcards.”
Right now, there’s simply so much headline risk that you have to be prepared for a big move in either direction – up or down!
Now, contrary to what a lot of folks think instinctively, this is not a bad thing.
Remember what we do every day: We identify the world’s best investment opportunities, and we invest accordingly.
And guess what: If the markets are going nowhere, there aren’t any opportunities.
That’s why we want the markets to “go somewhere” – there’s plenty of profit potential. Up or down, it matters not a bit; what matters is that you’re prepared.
So I want you to do two things…
How Every Investor Should Prepare for “What’s Next”
First… to get ready for rising markets, I want you to be “in to win.”
This means following the Unstoppable Trends we talk about all the time in my Total Wealth research, because they’re backed by trillions of dollars, and there’s little or nothing politicians in Washington or anywhere else can do to thwart them.
We want to align our money with must-have companies that supply must-own products and must-use services – and that have tested, quality leadership.
And we’ll want to use constant risk management, bolstered by unwavering discipline, to capture profits as the market hands them to us using trailing stops and the “free trade” model we pioneered.
That brings us right to my second point: Make sure your trailing stops are in place to control downside risk. Your goal is to stop small losses from becoming catastrophic portfolio killers.
Forget about the notion that this is a one-and-done activity. Your goal is to live again to fight another day. You can always re-enter the stocks you want to when things calm down… and I might add, often at far lower prices – something I love to do.
If you want to trade aggressively, right now is the time to start nibbling into the specialized inverse funds we talk about frequently, like Ryder Inverse S&P 500 Inverse Fund (MUTF: RYURX) or its ETF cousin, the ProShares Short S&P 500 (NYSE Arca: SH).
What’s more, to maximize upside, aggressive traders will want to consider purchasing put options on individual stocks or the indexes themselves.
At the end of the day, I know this takes a while to sink in. What we’re talking about isn’t necessarily a natural thing to think about, but is most definitely profitable.
— Keith Fitz-Gerald
Source: Money Morning