Been Dead Since 2008

Nearly a decade.

That’s a long time to still be flogging this dead horse.

I’m talking about buy-and-hold investing.

It’s dead.

Been dead since 2008.

But not buried yet.

Instead, mom and pop investors still fall into the trap. And they pay dearly for it.

There’s a better way: finding a system that excels during times of increased volatility, especially on the downside.

That is, following a quick-hit strategy that gets you into AND out of stocks, bonds, and commodities at the best possible times. That has rules to follow. That’s easy to use. Maybe even something you can set and forget.

Just NOT buy and hold.

And if you want to juice their returns, they could even pick a strategy that uses options.

Options are frightening to the uninitiated. I get that. Although they really shouldn’t be.

But if you haven’t done it before following someone who tells you exactly what do to, and how to do it, and even gives you the precise ticker symbol is a tremendous benefit.

One of my favorite options strategies right now relies on volatility to grab quick gains. I’m talking double and triple digits in as little as a week.

Skeptical?

Good. You should be.

But it’s entirely true. Here’s an example…

Lance Gaitan is our Treasury’s guru. On June 16, 2016, he emailed subscribers with the following note:

The next day, he explained…

So, the Fed decided to keep rates right where they are, as we expected. They blamed shrinking job gains and low inflation for not hiking at this meeting.

I listened to Fed Chair Yellen drone on for an hour in her press conference, where she talked a lot but said little. She just about put me to sleep, and none of what she said was very enlightening.

Yellen said the Committee expects inflation to remain low because of earlier declines in energy prices. But obviously, the key in their decision not to hike was the declining job gains in the recent jobs report.

Even though it wasn’t mentioned specifically in the written statement, the Fed was also concerned about the looming British vote to exit the European Union. Yellen responded as such to a question in her Q&A. In any case, and not surprisingly, the vote not to hike was unanimous.

The Bank of England (BoE) also held steady on their policy decision yesterday. With the Brexit vote coming into view, the BoE inaction was expected.

And the central bank most boxed into a corner also held steady. The Bank of Japan (BoJ) was widely expected to further stimulate or go more negative with interest rates. The yen strengthened even more and the NIKKEI 225 stock index fell over 3%!

In fact, global equities are faltering on central bank inaction. What else can central bankers do, add more stimulus? Even though U.S. stocks have moved lower over the last week or so (and bounced slightly yesterday), we haven’t seen a big sell-off yet.

Central banks are running out of bullets and the markets are starting to realize this. The inaction this week of the Fed, BoJ and the BoE seems to be a possible tipping point for a major fall in stocks…

Remember, this is actually good for us. My model works best when we have high volatility. So, as far as I’m concerned, I welcome a good stock correction!

In the meantime, bond yields continue to plummet. Global sovereign bond yields are the lowest in history… as in they have literally never been this low before. The lows for the long-term Treasury are coming into view and volatility is increasing. This is good news for our short-term strategy, which triggered an alert to bet on a snap-back in yields.

On June 23, just one week later, Lance sent out an alert to close the trade for profits of 76%! See for yourself…

And do you know how he does this?

He plays the markets overreaction to economic announcements, like the nonfarm payroll report, the ISM manufacturing index, GDP (first release), consumer confidence, retail sales, housing starts and personal income.

Even better, he picks an instrument that’s considered so boring, most aren’t even aware of the micro moves constantly shuffling the board.

Here are other examples of the effectiveness of Lance’s system:

  • When comments from the Fed moved yields higher, Lance jumped into a trade and his readers had the chance to make a 113% gain in four days on half of their position and 137% gain on the other half shortly after.
  • When poor retails sales moved yields lower, they had the opportunity for a 99% gain in seven days.
  • Poor wage growth gave Lance and company a chance to grab gains of 86% in three days as yields snapped back.
  • The Greek default led to Lance capturing gains of 47% in just one day.
  • A poor ISM Manufacturing Report helped Lance and his readers bank 76% in one day.
  • When one Jobs Report surprised to the upside, Lance’s system grabbed 69.37% in a day.

The list goes on!

The great news is that I expect volatility to pick up sharply in the coming months… and that juices Lances’ trades and gains even more. Volatility creates the opportunities for snap-back moves.

The early stages of the next downturn are likely to see a continued rise in longer term rates due to late stage inflation (a lagging indicator) and fears of the Fed finally tapering down its balance sheet slowly.

But when the economy finally starts to crash, along with stocks, bond yields will plummet dramatically. Lance and his Treasury Profit Accelerator subscribers will be ready to grab the profits.

Next Tuesday, Lance is “hosting” a Q&A session called “Raid the Reserve: How to Turn Boring Fed Reports into $1,300 in Four Days” to explain exactly how he’s able to do this. Don’t miss it.

And, of course, if you have any questions you’d like him to answer, send them to us at economyandmarkets@dentresearch.com.

Harry
Follow me on Twitter @harrydentjr

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About Author

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.