How has your portfolio performed in 2020?
Click here to see how we made more in a few trades than most investors have made all year.
Bear markets have a knack at pointing out the glaring weaknesses in each of our portfolios. And it is during these times of distress that we learn the most valuable investment lessons.
After speaking with thousands of investors over the past two decades, I’ve found that one common weakness that bear markets expose the most: the illusion of a diversified portfolio.
Most investors think they have well-diversified portfolios prepared for any market, but in reality, and unfortunately, most do not. When the losses start to mount in bear markets, the lack of diversification is stark and often leads to emotional decisions.
A few investors learn the lessons offered up by the market, but unfortunately most do not. They fall prey to bear markets, perpetuating the disappointing investment returns.
“An investor’s worst enemy is not the stock market but his/her own emotions.”
The best way to ensure you are properly diversified is to use a combination of quantitative strategies that take advantage of different market scenarios (bullish markets, bear markets, neutral, low volatility, high volatility).
Notice I used the word quantitative above. Why? Because I want statistics to be my guide, not emotions. I don’t have a crystal ball. No one does. But you and I do have the ability to use strategies that offer us an 80%+ probability of success using a mechanical strategy.
Yes, these strategies exist. But, only during select times of the year, when volatility is known to be higher than normal.
Well, it’s that time of the year again. Earnings season is upon us.
In 2020, the year when most investors have struggled mightily, I’ve made 23 trades using my earnings season strategy. Eight-seven percent of my trades, yes 87%, have been successful. Cumulatively, my gains total 222.4%, which makes the average return of each trade 9.8%. So, 23 trades, 9.8% return per trade. Not bad.
Best of all, the strategy offers us a wonderful way to diversify our portfolios using a quantitative approach that is completely independent of the current market environment.
I’ve been running the strategy now for three years and the results have been outstanding. More importantly, the strategy has displayed consistency through bull, sideways bear markets.
Here are all the trades I’ve placed (and sent to my subscribers) in 2020.
The track record speaks for itself.
If you are interested in learning the step-by step process on how I use my earnings season strategy please do not hesitate to attend my upcoming webinar. It’s free — CLICK HERE for details.