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Recession?
Tariff troubles?
Rate hikes?
The list goes on and on.
Face it, we’ve been witness to nine years of positive returns in the S&P 500. It’s the longest streak in market history. The returns have been amazing! But all good thing must come to an end, at least temporarily, in the endless, ongoing cycle of a market economy.
Easing monetary policy has been the driving factor in propelling this market higher from the woes seen back in late 2008/early 2009.
But the market drivers are showing signs of weakness. Well known FAANG stocks such as Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX) and Google (NASDAQ: GOOG), have all shown weakness for the last four months.
Semiconductors, particularly those propped up by the crypto hype, have suffered declines upwards of 40%.
There is no doubt that growth is slowing.
Some of us were lulled, one last time, by the injection of tax cuts, which resulted in large spending increase. But the injection was short-lived.
Now reality has one again slapped us in the face. We need to be prepared for what’s ahead.
I’m not saying the end is near, but I am saying that the easy money is behind us.
If we know what’s coming isn’t it imperative to find appropriate investment strategies to help us through lean times? After nine years of positive returns, would it not be prudent to protect our profits? Or even have the potential to make some profits when a flat-to-lower market occurs?
Just look at 2018.
The S&P 500 is essentially flat on the year. Investors have made little to nothing in the major market index . . . and that includes the annual dividend.
And that’s what matters, right? Returns. Yes, it helps to be familiar with the ongoing economic mumbo-jumbo, but just remember…it only creates a narrative. And the narrative changes.
It’s our job to use investment strategies that help us through the three market narratives that drive our returns . . . bullish, bearish or neutral. And most have the first one covered. It’s the other two that go unnoticed, mostly out of laziness.
Just look at 2018. Most investors are flat on the year . . . and for some reason that’s an acceptable return for most investors. Why? Laziness. We plop our money in ETFs and mutual funds and hope for the best.
Now, I’m not saying that’s not a viable strategy. Long-term investing is essential and index funds are a wonderful tool to accomplish those long-term goals, but that’s only one tool in the toolbox.
It’s time to consider the best options strategy. Our strategies act as an essential complement to those long-only portfolios.
So far, we have seen cumulative gains of 220.2% in our Weekly Options Strategy, 223.0% in our Iron Condors strategy and 269.1% in our *Bear Calls* strategy. And all three will continue to perform well in a flat to lower market.
If you would like to learn more about our best options strategy, please attend our upcoming educational webinar on Tuesday, Dec. 11 at 2 p.m./ ET.