Any person could make funds investing in stocks or stock (equity) funds in a fantastic stock market – but handful of earn money investing inside a bad market. If 2014 and/or 2015 turn ugly, there is slightly “secret” about the finest stock funds you’ll want to know for anyone who is into stock investing.
I competed in the final CNBC international stock investing contest and beat 99.9% in the competition. This was in late 2011, plus the field of competitors incorporated about half a million investment portfolios (trying to win the $1 million 1st prize). The market place took a hit, and that is what I was betting on… so I loaded up on the ideal stock funds accessible in the time. Secret: You do not earn money investing in equities (stocks) by attempting to choose winners in a poor market place. You make money by betting against the industry. And that is what I did, taking benefit of each of the monetary leverage the contest would enable. Most investors don’t understand that you’ll be able to bet around the downside.
With all the industry UP about 150% because the lows of 2009, the years 2014 and 2015 could spell trouble for stock investing and investors who assume they are able to pick winners. Within a BEAR market the VAST MAJORITY of stocks fall and also the most significant winners of yesterday become today’s large losers. Period. The fantastic news is the fact that as of late the process of betting against the marketplace is simpler than ever. All you need is often a brokerage account having a main discount broker. Then the ideal stock funds to produce dollars investing in stocks in a bad market are readily available to you at a cost of about $10 a trade.
These ideal stock funds are known as “inverse equity” funds. Merely stated, they are index funds referred to as ETFs (exchange traded funds) and they trade just like any other shares do. To get your feet wet, I will provide you with an example. The symbol SDS is really a bet that the market (as measured by the S&P 500 Index, which represents the 500 greatest, ideal known corporations in America) will FALL in value. If the stock market (the S&P 500 INDEX) falls 1% in a day, SDS really should go UP 2% (inverse leverage of 2 to 1). If the marketplace in general falls 50% in 2014 and/or 2015, the price of SDS should really go UP 100% (a double).
During the great DEPRESSION of your 1930s, some investors got rich as the market unraveled. In 2000-2002 and again in 2007-2009, the industry tanked and some folks got rich by “short selling” or taking a “short position”… by betting against the marketplace. Today, taking a short position is easier than ever before… and even the average investor can do it with inverse equity ETFs. You basically buy them and hope the stock market falls. Then, you try to time … Read More