Average returns expected for investors
What else is there to add to a historic week (and not in a good way!)? The markets declined, just in the month of October a percentage roughly equal to the crash in 1987. All the various acronymed bailout packages have not done the trick and confidence among banks is very low. We keep hearing of lack of lending between banks, a lock-up in the bond and money markets as well as commercial paper markets. Industry as we know it could come to a screeching halt without the grease of loans to buy goods for inventory or to make daily/weekly cash commitments. The economy matters little at this time and it is all about liquidity - who has it, where can it be had and at what price. And as the price rises, fewer are able to afford the borrowing. Over the weekend the major industrialized countries all came together to hammer out a concerted plan providing the needed liquidity to allow the markets to function. The hope that all the countries would put together a plan allowed the markets on Friday to cut their losses, but they remain nearly half of their levels of just a year ago with market losses well in excess of whatever the government has pledged or added to the financial system. Fear and cash are king in today's market. But we are becoming convinced that among the rubble are opportunities.
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Quite frankly, The Elite Option Service is not for everyone. Not all investors have what it takes to become an "elite" option trader. Many have tried and millions have failed. If you feel you have the patience and the "brass balls" to hold an option from $2.00 to $90.00 like I have, continue reading! If you feel you do not have the "brass balls" that are required to join the "elite" and battle like a Spartan Warrior on the front lines of the battlefield, there are plenty of other services available, that will produce profit margins similar to a bank C.D.! If you are still reading that means you take the road less traveled and are not comfortable making anything less than $250,000.00 a year.
It should come as no surprise that many of our indicators are on their bellies, awaiting some indication that the world will not end and thereby providing the tinder for a market surge. The rubber band has been stretched by the persistent selling and is due to snap back on the hint of good news. A couple of notes on how low things are today. The market is trading below its 200-day average by the largest amount since the crash of '29. Our valuation measure is showing an estimated return over the coming 3-5 year period of mid-teens, the highest level for that indicator since the early '90s. While all the indicators do not mean the market is turning around tomorrow, we are of the belief that the odds are now in our favor that the next few years should provide above average returns for stock investors. As a result, we will be using available cash and bond proceeds to increase our equity exposure over the next few weeks/months to take advantage of what we believe is a good long-term buying opportunity.
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The most profitable single trade of all time revealed for the first time to the first 100 to subscribe!
FACT: 99% of investors do not have a clue how to trade the markets. They ride the crashing wave of buying the highs and selling the lows. Only the strong and truly savvy are able to will and manipulate their trades and continue to profit from Wall Street.
I call it the "Wolf Pack Strategy" headed up by street smart, self made billionaire Kenneth Maseka. At the age of 15 Maseka knew he wanted everything Wall Street could bring. Growing up in Manhattan, the upper half, the place nobody talks about "Hells Kitchen". An extremely talented and bright investor, it's been said that he can simply look at the numbers and they just make sense; almost as if they are actual living things. Maseka has been quoted as saying the quotes are as clear to me as a musical score is to a great conductor. I see the symbols as a rhythm, a heartbeat, a pulse, and that makes beautiful music - it all makes perfect sense to me.
The bond market is essentially broken. Trying to sell a good quality corporate bond or heaven forbid a financial related issue is difficult at best. This is also true of municipal bonds, as investors have fled these issues in favor of Treasury issues that provide the needed liquidity. This is the reason for bond yields on Treasury paper held for six months is just a hair over 1.3%. The Fed cut rates by a half a percent earlier in the week and are expected to do so again before yearend - just to keep the juices flowing for the credit market. As a result, the bond model continues to point to lower rates ahead, buying longer dated maturities is getting hazardous for conservative investors. However, for those with an appetite for risk may find some very good bargains in bonds for those willing to accept some volatility in their holdings.
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You see, it's really much more than all of those things combined. Let me explain...
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