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How to Invest with Zero Downside and Unlimited Upside

By Dr. Steve Sjuggerud
Tuesday, August 27, 2013

In 2005, I found a no-downside, unlimited-upside deal...
It seemed to be too good to be true. So I flew to London to check it out.
The worst-case return was 7% annual interest for 10 years. But if the asset went up more than that, I could sell it and pocket the gain.
In short, there ARE deals out there with zero downside and unlimited upside... even today, as I'll show you...
When I found that deal in 2005, the asset was Beatles autographs. So the Beatles have been hanging on my wall for eight years now. (I have two more years to go on this contract before I decide whether to sell or take my 7% a year.)
The terms were so good, it almost didn't matter what the asset was...
And I'm always on the hunt for an "unfair" deal like this... one where my downside is limited (preferably zero) and my upside potential is unlimited.
I've often shared these deals with my paid subscribers, and even for free in DailyWealth. I showed you another deal on autographs right here. I explained another deal on stocks right here.
Today, one safe source of these no-downside, unlimited-upside deals is MarketSafe CDs from EverBank.
Here's how EverBank's website describes it:
You can't lose with a MarketSafe CD. When the CD matures, the least you'll get back is 100% of your deposited principal.

Of course, that would only happen if the market (or reference index) it's tied to loses ground over the CD term. Conversely, if the market performs well, you'll earn a market upside payment on top of your principal.

EverBank hasn't issued a MarketSafe CD in a while, but it has a new one out now...
Similar to my 2005 Beatles deal, EverBank offers you unlimited upside potential. The sky is the limit – your return potential is not capped. And your investment is FDIC-insured – so your downside risk is protected. Now that's the way I like to invest!
EverBank has added a great wrinkle in this deal as well... If the underlying investment is up by any amount at all when the CD expires – even by just 0.001% – then EverBank will pay you out a minimum of 15%. If the actual return is higher than 15%, you will be paid out whatever the higher percentage is.
So there are three possible outcomes:
•   Zero loss. If the underlying investment loses money, you don't.
•   A 15% return. If the underlying investment returns is greater than zero and below 15%.
•   A return higher than 15%. If the underlying investment goes up by more than 15%.

EverBank calls this particular CD the Evolving Economies MarketSafe CD. Your money is invested outside of the U.S. dollar, in emerging-market currencies. These currencies were hit hard in the 2007-08 financial crisis, and EverBank put this CD together believing they could be ripe for recovery.
As far as I can tell, your only downside risk here is TIME... It's a five-year CD. That's shorter than my Beatles deal, but it's still five years.
My favorite deals are no-downside, unlimited-upside deals. They're hard to find – but they do come around. They're out there.
One worth looking into now is the Evolving Economies MarketSafe CD from Everbank.
You can learn more about EverBank's MarketSafe CDs right here.
Good investing,
P.S. Just to be clear, I don't receive any money for writing about EverBank in DailyWealth. I write about EverBank because it offers interesting products and has always taken great care of my readers. But in the interest of full disclosure, you should know that EverBank does have a marketing agreement with my publisher's parent company, Agora.

Further Reading:

"Jeremy Grantham delivered the best stock-market forecast in our entire generation," Steve writes. And "there's only one paper asset he believes will outperform over the next seven years... stocks in emerging markets." Learn the most popular way to trade emerging-market stocks right here.
Steve believes there's a simple way to look at all investments through the same lens – whether it's stocks, bonds, real estate, or something more exotic. And right now, he says, "it shows a clear winner in the global investing landscape." Click here to learn the measure Steve uses to gauge any investment... and what it says about emerging markets today.

Market Notes


Today's chart shows how a great innovation story can still produce monster stock returns...
Back in the late 1990s, you needed just two things to send a stock hundreds of percent higher: A good technology story and a ticker symbol. During the tech boom, the right stories could produce hundreds – even thousands – of percent gains in just a few years. But after the tech bust, folks became a lot less likely to buy tech stocks.
The case of 3D Systems (DDD) shows that while people are less likely to buy tech stocks, the right one can still gather interest. 3D Systems is a premier "3-D printer" manufacturer. 3-D printing is the printing of solid objects... rather than conventional "on paper" printing. The industry uses computers and special materials to "print" things like tools, guns, and toys.
Like most every stock, 3D Systems sold off during the 2008/2009 crisis. After spending months in the $2-$3 per share area, the innovative printer took off in late 2009... and it's gone up ever since. Yesterday, shares reached $53 to reach an all-time high. It's a 26-fold gain in about four years... and it shows that a great innovation still pays!

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