How to Make 200+% on the Coming, Inevitable Market Correction!

The market has gone up 41% since March 9th. Lots of investors are wishing they could have pocketed that 30% gain so they are jumping in now, hoping the ride will continue.But for three irrefutable reasons, the three-month-run up virtually guarantees a correction. Those Johnny-Come-Latelys won’t profit in the near future, they’ll get crushed.

But you can make much more than 41% if you follow my advice. In fact, you stand to make 200% — maybe more – by taking advantage of a little-known strategy I’ve been using (and teaching Sound Profit readers) for some time.

Let’s start with an observation: When a market surges like this one did, a correction is a sure bet. There aren’t many givens in the stock business, but this correction is a given.

I can give you a dozen reasons why, but the following 5 should convince you:

1. The S&P broke through the 200 day moving average which is the beginning of the retreat
2. Upside trading volume has dropped by as much as 50% since late April. Always a downward indicator
3. We have had an increase of the ratio of flat to down market days to up days.
4. Oil has doubled in price which in every market has been a downward signal.
5. But the biggest and most significant red flag is that everyone in the market believes we must have a pullback. We have run too far and too fast.

If you act now you can save whatever gains you have made since March and parlay that into a small fortune. But to do so you may have to stretch your emotional envelope a bit and follow a strategy that might violate some “beliefs” you’ve had about investing.

But if I could show you – with certainty – how to make 200%+ on your money by unlearning a “belief,” would you be willing to listen?

Good.

Let’s begin by disposing of that “belief.”

Markets do not have to go up to make money!

The market is down 66% of the time. If you ignore the short side you are missing two thirds of the gains.

Still don’t buy it? Go back and count your stocks that went down in the last two years. That should do it!

The first step to capturing 2/3’s of the gains the market has to offer:

Admit this market has to go down. It will go up through 10,000 and then 15,000, but right now it is going to sell off.

Capture the downside using Inverse ETF’s.

Is it difficult? It’s like buying a stock that has twice the return and two times the probability of working. It’s that easy!

Some Inverse ETF’s return 200% of an industry’s or index’s downside. 200%! Why settle for average when you can get 200%.

Get out of the herd! Stretch the envelope and turn this correction into a huge return.

Take a look at the Sound Profits newsletter. It specializes in making big returns in strategies like this with easy to understand step by step explanations.

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This post was written by:

Steve McDonald

Steve McDonald - who has written 44 investment articles on Investors Daily Edge.


Steve McDonald is a weekly contributor to Investor's Daily Edge. He is also editor of the red-hot Bond Trader - which has provided subscribers with substantial double-digit returns.... without stock market risk. Steve's first foray into "risk management" came at an early age, when he served as a pilot in the Navy. He served his country for eight years before beginning his career in the markets as a broker and analyst. Steve's specialties are bonds and fixed income investments. His career in the investment field has been dedicated to finding conservative investments for those who want to avoid the risks of the stock market, but still get the returns it offers.


4 Responses to “How to Make 200+% on the Coming, Inevitable Market Correction!”

  1. Dr. Longuet says:

    Do you proof-read your articles at all? Three reasons, a dozen reasons, five reasons are all mentioned in your article and some of your reasons actually indicate the market may not correct. Go back to bond recommendations. Please!

  2. Phillip Francis says:

    Thanks for the article. Hope you are right along with all the others as you mention in reason #5. However, I will concentrate on buying great companies with solid earnings and dividends when they go on sale rather than attempting to go short like all the rest. I have found that when everyone is going in one direction they eventually get their head handed to them along with their wallets!!

  3. Allen Novotny says:

    If, as you say, most people think we will have that correction, then we probably won’t. You say, “get out of the herd”. Well, I try to be a contrarian.

    Allen

  4. Dale Evans says:

    Dear Steve,
    I too am a Navy pilot although much earlier than you.
    My question has to do with how much capitol is involved with each monthly trade you recommend. Unless a person has a hugh pool of money he would not be able to take advantage of the rec’s.
    I would love to hear from you.
    Dale ( VA-23 USS Midway 1961-64 )

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