Strategic Investment

  Since the monthly issue hit your inbox yesterday, I’m going to keep today’s weekly short and sweet. With the silver market imploding after yesterday’s crash, we have some housekeeping to tend to. First, take a look at a chart of silver… As you can see, it’s gone “parabolic” since the year began. These types [...]

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It is said that investors “climb a wall of worry” during a market rally. Over the past few weeks I’ve shown you just how worried we are. From the end of QE2… to high gas and food prices… to insolvency of the EU… there is much too worry about. Yet, the market’s climb higher… The [...]

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It always seems like big things happen in the market when I’m traveling. Right now I’m in San Francisco, California with my wife. On Tuesday I attended a Hedge Fund conference sponsored by Citigroup. The highlight of the one-day event was a quip from an executive from CALPERS about his shock that his company had [...]

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A budgetary catastrophe was avoided on Friday. Somehow the Republicans and Democrats were able to agree on spending cuts of about $37 billion. That represents about 1% of the total budget. Yet, that measly amount of cuts almost shut the government down. Sounds crazy, doesn’t it? It does to me and nearly everyone else who [...]

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It doesn’t seem to matter that Europe is on the verge of blowing up… or that Nuclear radiation is leaking in Japan… or even that the US is still engaged in Libya. The market just keeps moving higher. Up, Up and Away As you can see above, the Dow Jones has just barely closed above [...]

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Your March 2011 Issue is now available here: http://sovereignsociety.com/wp-content/blogs.dir/1/files/2011/03/FINAL-Strategic-Investments-March-2011.pdf

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“If China’s population doubles, I’m afraid crickets and ants are going to be on the menu around the world.” That’s the startling conclusion I came to while having lunch with James Davidson at the Copacabana Palace hotel in Rio de Janeiro yesterday. Not that we were eating crickets… Filet mignon, salmon, and chicken cacciatore were [...]

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Over the last two weeks the market sold off for the first time since January. So is all the selling over? And if not, what should you do about it? Let’s answer these questions today… But first, let’s talk about the importance of confirmation… waiting for a technical indication to buy or sell stock. Trading [...]

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Sometimes what moves the markets are the things you don’t anticipate…

The “black swans”…

And the Japanese earthquake definitely classifies as a black swan.

Not only did a 9.0 earthquake decimate them, but they also felt the destruction of a devastating tsunami… and now a potential nuclear meltdown.

To be sure, these kinds of big, game-changing events don’t happen very often. But when they do, we must stay nimble and open to any changes.

Thankfully, we’d already taken all the precautions we needed… Continue Reading »

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As each day passes, the market gets more and more risky.

If we want to stay ahead this year, we have some gains to protect. And the best way to do that is by hedging the Strategic portfolio against any potential market drops.

Considering all of the risks facing the financial markets right now (like Libya and the European debt crisis), the S&P 500 could easily fall another 5-7% from today’s levels. Making matters worse, technically, the S&P finally broke under its 50-day moving average.

The last time it did that, the S&P fell nearly 12% over the next two months.

Fortunately, I’ve got a way you could turn that drop into a triple digit gain. In fact, all it would take is a 5% drop in the S&P 500 to bring you a 100% gain.

What to do: Call your broker now and buy an SPY April 128 Put Option (SPY1116P128) for no more than 2.70 a contract. Keep a 50% stop-loss on the position.

Place no more than 5% of your funds into this.

Until next week,

Charles Del Valle
Co-editor, Strategic Investment

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