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I just answered dozens of questions and comments here on my blog — and I must say; the conversation is fascinating!
Q: Phil G. writes, “Larry, Your advice over the past 3 years has been ALMOST PERFECT. I just sold everything on July 22 and the profit from last November to this July was OVER $50,000.”
A: Congratulations, Phil — stick with it — if history is any indication, there should be a LOT more where that came from!
Q: Roberta says, “Larry, Your work is interesting and I appreciated seeing it. I must tell you that I was disappointed with you for being so gleeful about a coming collapse in the markets. Don’t you realize that it will be a real hardship for many people?”
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A: Roberta, I think you may have misunderstood me. I am deeply worried about the millions of people all over the world who will be devastated by this crisis.
I am so concerned, in fact, that I flew half-way around the world to deliver my forecasts in person. And I am still so concerned that I am spending hours every day answering questions about this crisis on my blog.
I do believe, however, that every crisis brings opportunities — and the greater the crisis, the greater the opportunities are likely to be. So while I am deeply concerned for those who will fail to prepare, I also can’t help being excited about the enormous amounts of money that could be made by those who do.
Q: Frances asks, “When exactly will U.S. stocks fall? Will it be before Oct. 7th or after Oct 7th? And when will the money from other countries begin to flow into U.S. stocks. Will that be roughly after Oct 7th?”
A: I see some minor weakness in U.S. stocks now and we may see a moderate correction — a normal event in every great bull market — at some point in the next few months. But increasing flows of flight capital from Europe will make any short-term correction short and relatively shallow.
The timetable suggested by my cycles research indicates that the meltdown in Europe will begin in earnest after October 7. Japan will follow suit, defaulting on its debt most likely in the first half of 2016. The third domino to fall — the United States — will likely collapse in 2017.
That means you have plenty of time to prepare — and plenty of time to make money as Europe and Japan implode between now and 2017. That way, you should have plenty of wealth to invest in inverse ETFs and options on U.S. stocks when the crisis comes to America.
Q: Scott asks, “Larry, it is my understanding that in addition to stocks, funds, ETF and leveraged ETFs, you will be ing options in Supercycle Trader.
“While I realize that options represent a unique investment option with high rewards, there are certain risk-associated aspects that I am not comfortable with.
“Can you please describe the type(s) of options that you plan to use? Thanks!”
A: Great question, Scott! The way I see it, the #1 mistake options investors make is that they get greedy. To go for maximum profit potential, they buy extremely cheap out-of-the-money options that often have very little time left.
We are taking a much more moderate approach in Supercycle Trader — with moderately priced options that give us plenty of time for each trade to work out in our favor.
Naturally, nothing can eliminate all risk, but before I recommend any options trade, I will:
1) Clearly define the risk; the maximum we stand to lose if the trade moves against us and set mental stops that will tell me when it’s time to take our money off the table.
2) Clearly define the profit objective, making sure that each trade gives us a risk-to-reward ratio of at least 3-to-1. For every ONE dollar we could lose in the worst-case scenario, we have the potential to make at least $3 if we’re right.
3) Clearly define the exit point at which we will take profits off the table.
This is how I trade options and it’s how I’ll be formulating my recommendations in Supercycle Trader as well.
Q: Larry asks, “My IRA account won’t allow option trading will the supercycle report still work for me?”
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A: You should still be able to use this strategy, Larry. While the options we trade are likely to provide the most dramatic profits, the ETFs we’re using could also make you quite a lot of money.
Take the ordinary inverse ETF on European stocks, for instance. If those stocks fall just as far as U.S. stocks fell in 2008 and 2009 — no further — you could be looking at a gain of nearly 60% …
The 2x version of that ETF could pay you nearly 120% … and the 3x version could pay you 180%. That’s nearly a triple.
Now, imagine also tripling your money as the euro currency disintegrates … as the yen crashes and burns … as Japanese stocks implode … and finally, as U.S. stocks are decimated by this crisis.
The key of course, will be timing and I’ll give you my precise “buy” and “sell” signals in Supercycle Trader.
And frankly, since your five year subscription works out to less than $1,000 per year, Supercycle Trader could prove to be an excellent investment for you.
So now it’s your turn to tell me;
why won’t Supercycle Trader work for you?
Senior Analyst, Weiss Research
Editor, Supercycle Trader