Emma’s Note: Emma Walsh here, managing editor at Rogue Economics.
Regular readers know our beat here at Rogue is to help you preserve your wealth. We prefer to put our money into assets we can “stub our toe on,” like gold and real estate, rather than chase returns in the stock market.
But this week’s guest editor has come up with a way to potentially double your money… 10 different times this year… without buying a single stock. So we wanted to put that on your radar.
Jeff Clark is a master trader, who, thanks to his unique trading strategy, was able to retire from his private money management firm when he was only 42 years old.
Jeff predicts we’re headed for a massive “zero-sum market,” where huge swings will constantly wipe out stock investors.
But his strategy could help you double your money over and over again, if you know how to play these moves. For example, Jeff has already logged 14 different 100% gainers this year.
Read on below for details of what Jeff calls Traders’ Paradise…
Imagine a stock market that goes nowhere for the next 12 months. What would you do?
Would you stick with the old “buy and hold” strategy, knowing you won’t make any money at all? Or would you try to adapt to the environment and find a way to profit?
These aren’t unreasonable questions.
After all, history shows that buying stocks at lofty valuations usually generates subpar returns. So, with the S&P 500 currently trading at a lofty 22 times earnings, and with interest rates about as low as possible, the broad stock market is likely headed for a long period of choppy, back and forth action.
It’s quite possible most stocks will go nowhere for the next 12 months or longer.
How will that feel?
Well… just ask shareholders in IBM, Intel (INTC), AT&T (T), Citigroup (C), Exxon Mobil (XOM), and any number of other blue-chip stocks that haven’t done anything since 2018.
That’s right… all of these stocks trade today for just about the same prices they traded at three years ago.
Of course, these stocks didn’t just flatline. They had rally phases. And they had decline phases. But if you bought any of these stocks three years ago, and held on until today, you made nothing.
That’s what we call a zero-sum market.
Traders’ Paradise
That’s a tough environment for typical buy-and-hold investors. But, it can be a paradise for traders.
Think about it this way…
Buy-and-hold investors who bought shares of technology behemoth Cisco Systems (CSCO) two years ago have earned nothing. The stock has been higher, and it has been lower. And those moves have canceled each other out – creating a zero-sum movement.
Traders, though, could’ve had a much better experience – by waiting patiently for a very specific pattern to emerge, and then taking advantage of that pattern to achieve large, fast gains.
This is how I’ve booked 14 different 100% gains this year alone.
For example, I targeted Cisco for my subscribers last October. We had it on our watchlist and we waited patiently for a specific pattern to emerge.
As soon as it did, we booked a 120% gain… in just 16 days… on a single recommended trade.
Rather than buying and holding the stock for two years and making nothing, we traded CSCO and saw the chance to more than double our money in about two weeks.
M-Wave
And that’s the sort of action I expect we’ll see much more frequently over the next three years.
The pattern that triggers these fast, profitable trades is called an M-Wave. It shows up in stocks that are stuck in zero-sum movements.
It showed up in the chart of CSCO last October. It showed up several times in Citigroup (C) last year. It showed up in a lot of gold stock charts this past spring (which is how we’ve booked 9 different 100% gains in the precious metals market this spring alone.)
And, as the market morphs into a zero-sum environment, we should have lots of opportunities to trade this pattern in the weeks and months ahead.
Best regards and good trading,
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Jeff Clark, Editor, Market Minute
P.S. If you’re interested in learning how to spot these “M-waves,” be sure to watch the replay of the free special presentation I gave on Thursday.
In it, I show you the technique that could’ve helped you double your money 14 times over the past year… all without owning a single stock. And, I even gave away a free trade recommendation.
To watch the replay now, just click here.
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