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If everyone followed the advice that our most advanced investors posted on my blog yesterday, I don’t think anybody would lose money when markets crash.
To the contrary: Following that advice could probably turn more investors into millionaires than anything I’ve seen coming from the overwhelming majority of advisers on Wall Street or elsewhere!
The question of the day was:
“What should a seasoned investor be doing right now to get positioned for substantial profits as the stock market dives?”
And by a long shot, the most popular first step to take began with a simple four-letter word: “S-E-L-L!”
For the second step, Bob B. cut right to the chase. His two-word post: “Get short!”
Chris R. agreed, recommending inverse ETFs.
Eric O. went into greater detail, giving us his comprehensive 4-step plan:
1. Get to safety.
2. T-bills are not safe.
3. Move money to Canadian bullion funds like: CEF, PHYS, etc.
4. Get into inverse ETFs NOW!
Marnie L. says, “For fixed income people, cash is not a very good option, so I think that the best defense is to go on the offense, take a little bit more risk and look for opportunities outside the U.S.”
All are great answers — and there are many more ideas on my blog for growing your wealth through the coming crash; too many to list in a short email. So if you haven’t checked them out, be sure to do so — just click this link!
I don’t agree with all the suggestions; and I also feel strongly that no SINGLE investment gives you the complete, end-all-be-all answer. But I can say this: You can learn a lot more from your peers on my blog than from most brokers or advisers in the world.
IMPORTANT: In a few days, I’m going to make a major announcement regarding the extreme measures my company has taken to help you aggressively grow your wealth as stocks fall. Be sure to watch your inbox for it!
In the meantime, though, please help me with today’s question: For all the reasons I cited yesterday — plus the fact that the S&P broke through crucial support levels yesterday — it’s now abundantly clear that we’re about to see a massive decline very soon.
So just click this link and leave a comment to join the discussion on today’s question of the day …
What would it take for you to have the confidence to play this decline with highly leveraged investments — for instance, those with the potential to produce three-to-one, five-to-one, or sometimes even ten-to-one returns in times of market turmoil?
Good luck and God bless!
Martin
{ 78 comments… read them below or add one }
Looking at Caterpillar. With their move out of U.S. manufacturing and over to Brazil, a possible uptick coming? But hesitant because it still U.S. based.
should i hold gold stocks tks.
It would take an overdose of Keynesian economic policies, short-sighted new anti-business laws, and technical confirmation that a major down move has begun. Come to think of it, all of the foregoing have already occurred. So, I’m ready to play the decline.
Not much, I have been waiting for the signal that the decline is happening. I saw it coming last time and did nothing. I can’t afford to do that again.
I would allocate part of my portfolio in inverse ETFs, but inproportions:
50% in one-to -one
35% in two-to -one
15% in three-to -one
Puting all in leverege, might prove high risk.
It appears that inverse ETFs are going to be one way to make gains, along with options and some short selling.
I need help!! what to short or what inverse ETF to buy
Why does if have to cost so much for good info for people that just don’t have the resources that a lot have. We have a total savings of $50,000.00 in Cash (We pulled out of the Stock Market before
the drop started), We would love to have great advise, but I guess unless we are willing to pay a premium for it we just can get it. When does someone have enough money that they are willing to help others who need good advise but can,t afford it. We are a 70 year old couple been married this year 50 years, but failed to begin saving early on…..so not we paying for negligence on our part.
Any way thanks for your ear…
I think going short is the right strategy while also investing in gold. I do not know all the best instruments to used to achieve this, but am taking advise from your publishers.
what about gold and silver
As we have heard before, don’t let a crisis go to waste. Markets decline faster than when they rise.
Leverage would be an excellent way to increase profits in a declining market.
Are Ginnie May funds safe
I need a place to get a more thorough education concerning entering the arena
of investment. I bought your contrarian services a year plus ago but did not
at the time have the capital to do anything with it. If pointed in the right direction
as to how to get started I could take it from there.
A lot more info than I have to date.
I’m already invested in one highly leveraged investment and would add more if I don’t see a big bounce in the next few days.
yep…
yes very interesting
Question? What do you thik of Gold ETF’s and how will they fare during the coming crash?
put all your money in the weiss money market fund which Mr. weiss
has indicated for the past 10 years or more is ok even if the dollar
goes down and the economy crashes. Great call, Mr Weiss.
put all your money in the weiss money market fund which Mr. weiss
has indicated for the past 10 years or more is ok even if the dollar
goes down and the economy crashes. Great call, Mr Weiss. Also great calls during past 10 years on inverse funds and when to
get back into the market.
great website. very efficient and easy to navigate, sometimes.
It would take an execution-only broker willing to handle online deals on the US market in commodities. Most are selective ( if they offer ANY access ) and the list of eligible stocks changes frequently. It’s a no-go area without good broker support. And setting stoplosses in dollars seems to be outside the capacity of UK-based firms. Has anyone had a different experience ?
I smell yet another high priced service commercial coming disguised as a blog.
Bottom line you currently have so many things going on (many of which are no better than 50-50 success), it would be better to spend time getting them to all agree with each other, then getting them all to be successful.
Depends upon the cost of the information – don’t have much to invest – not over $100 for a few good recommendations. Must recover cost within one day of trading and then go on to make 2x-3x that mech over the following two days.
If Israel and iran go to war what is a good play on oil options
Yes, get into inverse ETF’s……..name some…I signed for all reports and do not have these in my head A gentleman that was to phone me….never did…………now I am sinking.
Sell MOST STOCKS ….KEEP OIL,GOLD STOCKS, INVERSE ETF, & SHORT TERM US TREASURIES.
I am from the conservative camp, so highly leveraged investments to produce (3X) or (5X) would be unlikely for me. I have used inverse ETF’s no greater than (2X) which I feel more comfortable.
what is and inverse ETF ? Well aware of holdingd precious mentals.
Martin,
In your recent article today “Stock Crash Windfalls Ahead” one of your subscribers said that
“T-Bill are not safe”. You have always said that 3 month T-Bills are the safest investments around. So are you changing your position on T-Bills safety?
Leveraged ETF with 5 to 1 or 10 to 1 leverage is not investing – it’s gambling.
Guess I need to get a new subscription to the ETF letter. How do i find it?
Discretionary cash I could live with losing.
I gutted my portfolio today when Claus finally confirmed a bear. Some of those stocks I really loved!
Tomorrow I’m even selling my small speculative stocks that I KNOW would have done very well in a “normal” market.
I’m betting on Larry’s predicition of a major bull market in the future, waiting to bottom feed and NOTHING would induce me to gamble with highly leveraged anything now. My risk adversion is fully loaded.
I do have some double inverses, but that’s it.
SELL MOST STOCKS
What are your comments on dividend stocks mentioned in Crisis Profit Hunter
Dear Mr. Weiss & Mr. Edelson -
I have positioned myself in small, mid-tier, and large gold/silver producers as well as owning some physical gold, CEF, and cash. Looking at buying some physical silver as well as to add to my stock positions. I would be interested in possibly subscribing to your leveraged investment strategies providing the price is reasonable.
I enjoy reading Mr. Edelson’s real wealth reports and listening to his weekly video regarding energy, precious metals, and stock market. However, I’m reluctant to pay 100% of his up front fee for Real Wealth Trader of $2,850 prior to any gains. I am willing to pay 50% upfront and the other 50% after I have realized the gains to cover the fee.
Regards and thank you for your educational and informative articles.
Greg Barrington
This has been a tough market to time. Timing models such as on MTRIG.com and Vector Vest had had a rough time. Now with everyone on the band-wagon to go short seems even more that a bounce or small summer rally may come. The sell in may and go away was sure on the money this year (so far).
One other way to earn some money is wait until 1 week before option expiration, and use the Naked Put search engine on MTRIG.com and find some put options that can be sold with a high chance that the options will expire worthless and you keep the premium.
What about spdrs and etf on bric countries ? What’s your view ?
I was listening to Robin Griffiths the other day (King World News Site) as he made comments to the effect that the broad US markets will rally short term up until July 26.2010 and then turn down…so as yet I have been very hesitant about going short at this time…it now appears that major technical support was broken today with the S&P now below 1027…
My gut says the market has much more down side at this time…a possible clear turning point in the markets anytime now….???
It would be hard to confidently enter the market playing it in either direction right now. However, we can be fairly confident that volatility will remain high, which provides an excellent opportunity with options (particularly intermediate to long expiration terms), perhaps even simultaneous puts & calls. It seems that the options markets generally have not fully priced in the volatility yet. The question to ask yourself is: “How likely is it that I’m putting on this position at the absolute high (for the call) or low (for the put) that the underlying security will reach prior to expiration?” If you are willing to take the ride, you are bound to get an exit opportunity along the way for both ends of the trade with an attractive return. If the market surprises big in either direction, you’re still very likely to cash in one side of the trade that will cover the loss on the other.
HELLO DOWNDRAFT
I agree with Max -July 1, 2010 at 3:19 PM
I am a 91 year old woman, not well, and expect to leave this world shortly. There is enough money for my needs but I would like to leave my 3 children some as I believe they will need it. However, it appears that my estate will have to be deposed of at it’s lowest. Thus I am between a rock and a hard place. What would you suggest to me? I have no local person to consult with on this matter.
What do we do if we don’t know how to “get short”.
Give us a lesson on “how to get short”.
A step by step learning process would certainly help.
I’ve always been long and I have lost so much I’ve given up.
I even fear buying gold at this level.
Should we sell ever if we have mostly losses and few if any gains?
Did you follow those reco’s , they are loosing a lot of money. Idid not put money in the market , thank god.
Makes for good reading though
Maurice
I have never used leveraged investments. While I agree in principle that such investments can result in substantial profits, there is an equal if not greater chance that much greater losses can occur. I might as well gamble in Atlantic City or Las Vegas. At least there, I get free drinks and sometimes free meals and free entertainment.
I believe in investing in the stocks of companies that produce tanigble goods and services. I can look at such facts as how much debt they are carrying, the P/E ratio, dividends, etc. and then make an educated decision if their stock is the “right fit” for me. To paraphrase the old ad slogan from one of the major investment firms: “I make money the old-fashioned way, I earn it.”
I have Gold and Silver. A lot of CDN Gold juniors and larger Gold stocks. I am considering selling Call Options on the Eurodollar for about $300.00 at a time. Interest rates will not go lower and I feel it is a safe play. I can make safe amounts of money each month until as Sean Brodrick says, “WTSHTF”.
Brian Riordan
What would it take to have confidence in using highly leveraged instruments? Daily newsletters spelling out in detail which instruments to use with an entry and exit point defined. I am frustrated by following newsletters with good suggestions, i.e. buy into gold, etc. and then getting killed when those stocks drop right along with everything else. A weekly or monthly newsletter doesn’t hack it when the market can turn in the last 15 minutes. I would like immediate information during these critical turning points. If you want to keep me as a customer, your staff will keep me informed more closely when things happen quickly. Don’t leave me hanging until next week when NOW counts!! I need help TODAY or at least encouragement to hang in there when the recommendations don’t appear to be working out right away. Thanks.
Someone asked what inverse ETFS to buy. I have been making a list which you will have to evaluate to see what is right for you: BEARX, GRZZX, DOG, PSQ, SH, QID, DXD, QID, DTO, SPXU, SKF, SSG, UNN, CYB, SDS. All of these short something.
Possible Gold stocks: GG, AEM, GSS, KGC, AUY, NGD, IAG, GLD, RGLD, GBG, USAGX, CEF, PHYS.
Be advised that I am just another average Joe trying to get my meager retirement fund in shape. I am not an expert, but I do try to listen and take notes of what is out there. Good Luck!
I keep reading that I should get into Inverse ETFs. I know very little about them except that they go up when the market goes down, as it’s been doing for several days. I’m 68 years old and have tried to be prudent in building our IRAs but I feel like a salmon swimming upstream.
If you have the potential to make 5 to 1 or more than risking 20% of your capital would result in a doubling of your money. Not a bad trade off. Not sure what etf’s move like that, as the tripple short ones sometinmes move counter to the stock or commodity that they are shorting. So if you could filter the ETF’s that actaully produce a result that you would expect . ie if financials go down 10%, then the Short financial ETF rises 30%, then I would be interested.
Hoping it is not as bad!
For a small percent of funds I plan to select some inverse leveraged ETFs. Need help with selection.
Which inverse ETF is the best suited for a stock market decline?
sorry,bonds are not my thing at my age
I am carefully monitoring my stocks
Are inverse etfs kept longer than a day? I never know when to sell them so have always lost money in the past.
I’m a novice and am trying to get up to speed on all of this. Have no idea what inverse EFT’s are, don’t know how to invest in any of these. I guess get a Scottstrade acct and put money it it so you can do it yourself? Which ones to invest in is another matter, not sure about that either. Should I be investing in mining shares right now to start? I have some gold and silver coins put away, but that is it. What’s next?
I would buy GLD (SPDR gold trust with every stock I had if I were in Gail’s situation. It would be the easiest situation for my heirs to settle.
What inverse ETF funds should I buy.
Capital preservation is always the key. You also have to have rules that you follow. Having rules to follow will save you money, believe me. Let’s say you have long positions and the market is in an uptrend. Great. Then let’s say the market conditions start to deteriorate. Well, you could sell your positions and take any profits. Great. Another thing you might consider is buying puts as insurance and holding onto your positions. You could also sell calls against your postions and collect some premium. If things continue to go south you could sell your positions and buy back your calls (cheaper of course), hold the puts and make some leveraged coin with them. You can always buy the stocks back later if you wish.
Some problems. One, many people want to get every penny of profit out of every trade and will invariably end up losing more because of it. IMO it’s not the very bottom to buy or the very top to sell. The meat is in the middle. The other problem is that many people won’t spend the extra money on the protection even if they have a good profit at the time.
Some points. Some of the comments are people looking for someone else to tell them what to do and when. It’s just not that easy. We, as trader’s/investor’s need to take full responsibility for our actions. We would do well not to look to blame others for things that don’t go as planned. There are many different ways to trade/invest and as many people to tell you what you should do. Personally, I get alot of my information and stats from IBD. That’s just me. I think there are many good indicators to follow that are available there. So, try to figure out what approach fits you then do your research to find the best trades for you. Start small and manage your account. Also, sometimes the best trade is no trade at all. There is so much more. Discipline. Trade size. Thinking like a contrarian. Thanks Sam. Hope this helps more than confuses. Good luck.
PS. Since the question was concerning leverage I would just like to say that highly leveraged investments can go for you and against you very quickly so I would not play anything but small here and not more than one could stand losing. Living to fight another day is a noble endeavor.
What about recommendations in Crisis Profit Hunter, Rapid Millionaire, and others on your wezite?
Kim, nobody can predict the future, but in turbulent times like this you might want to consider a gold ETF like IAU Annual Return YTD 8.84%
1 YR 24.06%
3 YR 21.79%
5 YR 22.90%
You would have to look hard to find a stock with that kind of record. Another Gold ETF, GLD did essentially the same.
Need advise on inverse ETF and where can I locate them.
Obama and his band of communists will have to move to Siberia permanently before my confidence returns.
I would make a move into those sorts of instruments if I was confident in the timing to buy, there was no counter-party risk & if I had a clear target to capture not all but most of the move to know when to get out & take profits.
I want to know your recommendations and be added to your newsletters.
dear sir,
Would like to have your view on indian finantial markets since its at 52 weeks high do u see any problem for the indian markets ahead.
NIKLAI KONDRATIEV MEETS OSWALD SPENGLER IN 2012 ?
We live in interesting times.
The long term bond market is also adisaster in waiting.
I would like to find an investment service or advisor (with a history of good to excellent returns year after year) to direct me, or manage my money, on investments, i.e., what to buy, when to buy, and when to sell.
Hello,
I think you are ABSOLUTELY correct in your predictions for the November elections.
Americans are waking up from their stupor. It is a beautiful thing.
Sincerely,
Joyce Alison Cappello
Although we’re having considerable effect at replacing Republican legislators with responsible adults we’re about 20 years late on the scene. The GOP “Pledge to America” says let us Republicans drive the bus and we’ll slow it down before it goes over the cliff.
A Tea Party organizer and group leader.
GOT SILVER ?
I am so confused on what to do about our 401-k!!Right now we are back in secure! Our adviser invested some of our monies from Jan. to June in some risky areas and of course he didn’t contact us at all when the stock market peaked and went down, down, down till we contacted him, so he put everything in to a secure area! I am reading about how we can make money here and there, but it the market is like a hilly landscape. Up down, Down up, and over and over again!!!What do you see out there for now till the end of the year?? Also reading many articles about the year 2011 is worry some for my husband and I. We are both drawing S.S. and he is still working and is 67 and if his health permits would like to keep working. “We don’t see a actual retirement in the near future unless we take a severe downturn in our cost of living,which would include selling our home that we worked for for 46 years!!
Dianne, at our age preservation of capital is a more important consideration than growth of capital with risk. Every paper investment out there represents someone elses liability. Commodities are in a bull market and the right commodities can protect a store of value from inflation. Although I prefer to have metals in hand, physical gold or silver can be owned by a 401K. If you can copy and paste the below link into your browser you’ll see a perfect picture of the Gold bull market in progress. I do believe however that silver has more upside with the same level of security. Just my opinion. You know how it is. It’s like a few other things. We all have one.
http://www.kitco.com/charts/popup/au3650nyb.html
SITUATION TODAY WAS CAUSED BY CONGRSS. BOTH PARTIES RAN THE GOVT ON THEIR BELIEFS, NEVER THINKING AHEAD AS TO HOW THESE POLICIES WOULD AFFECT THE COUNTRY IN YEARS. THEY SELDOM COMMUNICATED WITH OTHER MEMBERS OF CONGRESS SO THEY CAN SOLVE ALL PROBLEMS TOGETHER.. WE HAVE TO TIGHTEN OUR BELTS DRASSITLY AND THERE WILL BE MANY HARD TIMES AHEAD TODAYS CONGRESS DOES NOT CARE. THE CRASH OF 2006—2008 WAS CAUSED BUY SUB PRIME MORTAGES. THE BIG BANKS DID NOT CHECK THE NEW MORTAGES—THEY THREW THEM INTO VARIOUS PILES (MIXED UP) AND SOLD THEM AS IS TO OTHER INVESTORS THE FOUNDER OF AMERCATRADE INVESTMENT ISSUED APPROXIMENTLY 170 BILLION IN SUBPRIME MORTAGES TIME: SEPT–NOV—2010 PAGE 24
I’m into TZA and ERY both inverse funds. I think these ETFs are going up.
It is volatile now with the market rallying at times. However, if you look at
DJIA and COMP—-it is trending down despite, the brief rallies. Gold and
Silver look to be trending down in the short term so, I am waiting and see
on those. At some point, Gold and Silver can be good buys. Short the Euro
thru FXE by buying put options on FXE. “Do not buy” FXE because it is going
down.