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Oh my gosh! Not a recession! Run for the hills. Sell everything you own and just run! Yeah, okay, so I’m making fun of the panic, and I’m doing it for a good reason. There is no need to be afraid of down market.

First of all, remember that a 0% return beats a negative return. You can go into all cash if you want to.

Of course, you’ll still have a negative return because of the fact that the US dollar is declining. And there is the problem of trying to time the market.

It can be done, but it’s not easy if you don’t practice at it. So overall, it’s not recommended.

Let me ask you a question. If there is risk of your house burning down, what do you do? Buy fire insurance.

If there is risk of you dying, what do you do? Buy life insurance.

If there is risk of a car crash, what do you do? Buy car insurance.

If there is a risk of your portfolio declining, what do you do? . . .

Well?

Buy stock insurance?

Exactly. And that takes the from of put options. Put options give you the right to sell a stock at a certain price for a set amount of time.

So if you bought a 12 month option with a strike price of $80, that would mean that for the next 12 months you could sell that stock for $80 no matter what. Even if the price dropped to $0.05, you could still sell that stock for $80.

Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”

Request your free copy here: Click here for your free CD

Article Author :Nathan_Pennington

Tags: insurance, trad, Investing, stocks, irs

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Tags: insurance, Investing, irs, stocks, trad