[Strategy Week] Why You Should Like These Turbulent Times
Before diving into the specifics of our newest investing strategy for 2016 – I think it’s important you know our inspiration for developing it in the first place.
And that can only happen when you have a grasp for the economic, political, and general business environment we’re facing in 2016.
Of course, any discussion of 2016 is incomplete without referencing the upcoming election.
In addition to every other concern investors have, the election year brings that special kind of uncertainty that only comes around every four years. Additional doubt and anxiety will continue to build as investors wonder which political party’s agenda will rule for the next four years.
Do you make a bet on big government if a Democrat is elected, or cast your lot with the defense contractors and oil companies that should benefit if a Republican takes office?
And regardless of which party controls the White House, how will it manage to fix Social Security and Medicare while trying to balance the budget at the same time?
The stock market hates uncertainty, and there will plenty of it in 2016 until November’s election results are known.
2016 will also be the first time in forty years that OPEC has not controlled the world’s oil supply. We’ve already seen just how profound this development can be, as many energy stocks plunged in value during the past year while oil prices dropped in half.
Now that Saudi Arabia has effectively declared itself independent from OPEC’s authority, the energy sector could struggle for years to find equilibrium.
However, there actually IS good news in all of this.
Turbulent times produce the optimal conditions for certain investing strategies.
When fewer market participants feel confident of the market’s direction, we can expect far more stocks will become mispriced, in both directions.
And that’s why, over the past few months, I’ve been working diligently behind the scenes with our newest analyst, Linda McDonough.
Linda thrives in markets just like the one we’ve entered. She’s spent more than 20 years as an analyst and strategist for top-performing hedge funds.
As you’ll come to learn, this is very good news for all of us.
That’s because Linda’s specialty lies in structuring trades that generate positive alpha (aka: make money) in almost any market environment. Flat, down, or sideways.
Some in the investing business call her approach a “special situations” strategy. Linda’s coined her own term for them: Profit Catalysts.
In fact, she’s working diligently on finding her top Profit Catalyst trades right now, and as part of our special strategy week she’ll be releasing an initial watch list of 25 companies to everyone on our priority notification list.
To make sure you’re among the first to receive it, be sure to sign up for that list by clicking here now.