Of course, you have some form of health insurance, auto insurance, homeowner’s insurance and life insurance.
But with a massive trade war . . . the global economy slowing down . . . nine of the world’s largest economies already in recession . . . the time to take out portfolio insurance is NOW.
Let me show you a proven way to make money when the market moves lower.
Most of the financial world claims that diversification means buying a basket of stocks and allowing Mr. Market to dictate our success.
Well, as you know, when the market declines that basket of stocks, while potentially minimizing our losses, doesn’t make us any money and certainly doesn’t allow us to sleep any better at night.
We need to take an approach to the market that allows us to make money in any type of market environment.
True diversification doesn’t mean simply buying a basket of stocks. True diversification is when you simultaneously use a variety of different strategies that take advantage of all market scenarios . . . bullish, bearish or neutral.
You now have the ability to not only protect your stock portfolio from bear markets (and sleep better at night) . . . you also have the ability to make good money during bear markets.
For instance, in late 2018, when the market pushed roughly 20% lower, my clients used this strategy to reap significant profits.
In 2018 we made 44 trades with an average return of over 12% per trade (this includes winners and losers). Think about it . . . that’s like 44 dividend payments paying out 12% each.
And we’re holding open trades right this moment that are making big gains from the market’s current volatility.
Want to learn more about using this simple but valuable tool to boost your overall gains, even while stocks are selling off? Click here to register for my free training session.
Jim Rogers, one of the world’s most renowned investors, said last February that the coming bear market in stocks will be one of the worst market downturns of his lifetime.
“When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime,” Rogers, the chairman of Rogers Holdings, said in a phone interview with Bloomberg. “Debt is everywhere, and it’s much, much higher now.”
Rogers has witnessed numerous downturns. In the last 18 years the Dow declined more than 50% during the financial crisis and 38% during the tech bubble.
And remember, we are in the midst of a historic, decade-long stock market party. In this period, we have seen stocks of the S&P 500 index create some $17 trillion in new wealth and push to record highs.
But you and I know that the market moves in cycles. Bear markets are simply a part of the cycle. They are inevitable.