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How to Collect 50% a Year on Stocks You Don't OwnBy
Friday, November 28, 2008
The collapse in stocks this fall was historic. Last week, the Dow Jones Industrial Average broke through its October lows. It's down 36% this year. So rather than buying stocks right now, you should consider simply selling insurance, via selling put options. You can capitalize on the fear in the market right now, without having to buy any stocks at all. The key to this strategy is knowing what the real risks are in owning the stocks. You don't want to insure just any stock. Identify stocks you like and would want to own. Then insure them at a price they are unlikely to fall below. No matter what happens, you win. If the stock falls, you buy a stock you wanted to own at a great price. If the stock doesn't fall into your lap, you keep the insurance premium free and clear.
Further Reading:
How to Make Money – Safely– in a Bear Market Market NotesGOLD IS ALSO SOARING AGAINST STOCKS
Today is part three in our "gold is soaring, you just don't realize it" series.
To recap, most folks believe gold has performed terribly this year. Gold's "underperformance" is a crazy thing, considering it normally soars when the economy and the stock market hit the skids. But we now know that gold is actually soaring when measured in European money and tangible things you can burn as fuel or eat. Today, we see gold is soaring against stocks as well. Let's take a look at how much of corporate America an ounce of gold will buy you... Let's look at gold versus the S&P 500. The S&P 500 is loaded with the biggest and best companies in America. ExxonMobil, Johnson & Johnson, Procter & Gamble, and Microsoft are large components of the index. As you can see from today's chart, gold is soaring against stocks. A line rising to the upper right means gold is steadily buying more of the profits, book value, and dividend payments of the best companies in the world. We repeat: Despite what most people believe, the bull market in gold is alive and well! |
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