Mike here with an important message. Like the sinking housing market I told you about yesterday, the fundamental evidence that the economy is also sinking is starting to pour in.
Third quarter GDP rose a meager 1.6%. Durable goods orders for the month of September — items that have a durable lifespan of more than 12 months, such as automobiles, refrigerators, and televisions — increased a tiny 0.1%.
Productivity for the third quarter was flat. Wal-Mart’s retail sales growth is sliding, and sales will be unchanged next month, the worst expected performance in 10 years! Plus, the median price of a new home just plunged 9.7% — the worst decline in almost 36 years!
Meanwhile, inflation is still rising. Gold — the best barometer of inflation and of a financial crisis — is up nearly $30 in two weeks. With the exception of a few sectors that are going to benefit from the upcoming slowing economic environment, I think all hell is about to break loose.
Many stocks are going to get killed. Others will soar. Huge derivative bets by hedge funds and investment banks may blow up, causing mind-boggling losses.
We believe you’re well-protected with Martin’s and my recommendations in our Safe Money Report. Most of your funds are in safe, liquid investments like short-term Treasuries.
You also have some defense stocks, key natural resource holdings, and a couple of plays on China, whose economy is now growing nearly NINE times faster than the U.S. Hold all these positions!
But with funds you can allocate to more aggressive strategies, I think it’s time to go after the great profit opportunities that are coming up.
For instance, while most investors were recently losing their shirts in New Century, with select put options on the company’s stock, you could have bagged gains of 111% — in just over one month!
In Home Depot (HD), which is clearly getting hurt by the slumping real estate market, select put options could have bagged you gains of up to 409%, in just 4 months!
And these are not flukes. While the Dow has been up near record highs (but getting very tired indeed), dozens upon dozens of key stocks have been getting creamed. And select put options on them? They’ve been spinning off whopping gains for astute investors, including …
* 154% gains on Caterpillar
* 172% gains on Martin Marietta Materials
* 356% gains on Whole Foods Markets
* 416% gains on Lowes Companies
Neither you nor I can go back and grab those gains but if you’re willing to peel off a portion of your portfolio and get a little bit more aggressive, you can go for the same profit potential …
A. Join in on the fun and aim for potential huge profits from select vulnerable stocks that will fall.
B. Hedge and potentially profit from a market decline!
Right now, you can buy select put options
on $57,416 worth of shares in three vulnerable stocks for a
mere $3,640
The examples of gains that I just mentioned were with the Dow still hovering around 12,000, which means that hundreds of companies will become candidates for put option profits as the stock market slumps.
For instance, if Wal-Mart is reporting declining sales and earnings, how many other retailers are out there in the same boat? Lots of them!
If Lennar and Pulte are getting killed by the real estate market, what do you think is going to soon happen to commercial real estate companies? When homeowners suffer, businesses suffer next. Office vacancy rates shoot up, and commercial property values fall.
Or how about banks that are heavily dependent on mortgages? Mortgage default rates are soaring. Foreclosures have surged 43% in the past 12 months.
Banks have had a field day over the past few years in the mortgage markets. But with housing and the economy slumping, they’re now about to give back huge portions of their earnings. Put options on select vulnerable mortgage banks will be like shooting fish in a barrel.
Many stocks are going to be shattered, torn to pieces. If you’re in the right put options on them and with the right timing, you could very well need a wheelbarrow to haul your profits off to the bank.
Right this very moment, I’m looking at a bundle of put options on three different companies that are extremely vulnerable to major setbacks.
* One company I’m watching right now has a HUGE market cap of $23 BILLION. Yet it’s almost entirely dependent on the real estate market. Its revenues rose a measly 2.2% in the third quarter as declining home loans are choking profit growth.
Yet its share price is up 17% in the past two months. It’s an insane situation, and I believe the company’s share price is going to crater. Put options could spin off some very handsome gains here.
* The second trade I’m eyeing — put options on an Exchange Traded Fund comprised of 87 different retail, office, and apartment Real Estate Investment Trusts. REIT shares have been flying lately, thanks to news of strong rent growth and a flood of money pouring into the sector.
My indicators are telling me that the bull market for REITs is over. The slowing economy is going to knock the legs out from under office rents and vacancy rates. The recent slump in retail sales is awful news for REITs that own strip malls and shopping centers.
Apartment REITs are in even MORE trouble. Investors have poured into these stocks on the assumption that the slumping housing market would boost apartment rentals.
For a while, that was true. But now thousands of former apartments that were converted to condos are being RE-converted to rentals. Result: Supplies of apartments for rent are going through the roof. Apartment REITs are going to take a big hit.
The real estate-related ETF I’m looking at to buy put options on is valued at a whopping 42 times earnings — almost two and a half times the Standard & Poor’s 500 Index. That’s insane. There’s lots of downside for this ETF … and lots of upside profit potential for investors with the right put options!
* The third company I’m eyeing right now for put options manufactures everything from flooring to bathroom cabinets.
But with real estate slumping, this manufacturer of home products is also getting killed. It recently reported that profits tanked for the third straight quarter. The company is also closing plants, moving production overseas and slashing jobs in a scramble to compensate for dwindling demand for its products.
Right now, with the select put options I’m eyeing, you can effectively control $57,416 worth of stock in these three companies — with different strike prices and expirations — for a modest $3,640. Since these are options, there’s no risk whatsoever beyond that $3,640, plus the minor commissions you pay your broker.
You cannot get a margin call for more money. Your broker cannot force you out of a position. You don’t have to check the markets a few times a day. You can sleep at night.
Even if I’m dead wrong on all three of these stocks, your risk is limited to your $3,640 modest initial investment plus broker commissions.
But if I’m right, you have the leverage of $57,416 worth of shares working for you. And the potential 172% … 356% … and 416% gains I told you about earlier could end up looking like chump change.
Naturally, there’s never any guarantees in the markets. You can lose money. But the beauty of options is you get huge upside profit leverage but with strictly limited risk.
LEAPS Power Trader:
Designed to Help You Put Your Profit
Potential on Steroids
LEAPS Power Trader is my service that takes advantage of unique situations like I just described, using select options designed to put your profit potential on steroids.
How? By mostly using LEAPS — long-term options with a time frame of 12 month to three years. They’re easy to buy, simple to follow, and they give you plenty of flexibility. And most importantly, they give you the best of both worlds: Huge profit potential combined with strictly limited risk.
Moreover, LEAPS Power Trader isn’t boxed into one side of the market. While there’s certainly going to be many companies whose share prices are going to fall in the weeks and months ahead, there are always going to be companies that buck the trend and do well. For those, I will buy call options, which can give you huge profits on the long side (but again with strictly limited risk).
All you have to do: Follow my simple instructions on what to buy (or sell), how much to pay, and when.
To get started, when you join LEAPS Power Trader …
FIRST, you’ll immediately be able to download my LEAPS Power Trader Operating Manual — everything you need to know about LEAPS, from A to Z:
How LEAPS provide you with incredibly powerful profit leverage. How they limit your risk. How to maximize profits.
I’ll also tell you about a unique strategy the service will use to help you compound your profits over time, with documented signals from a 15-year track record.
SECOND, I’ll send you your first recommendation as soon as the next signal pops, which could be any day now.
It could be one, two or all three of the companies I’m eyeing right now. Or it could be a different trade, even a call option on a stock that I think is going to do well in the weeks ahead, even if the economy is slumping.
But rest assured, no matter what the trade is, when you come on board, it’s going to be loaded with profit potential.
All you have to do is check your e-mail regularly and follow the simple instructions. It’s easy. It’s convenient. And you can place your trades online or with a simple phone call to your broker. Expect at least 10 – 15 trades per year.
THIRD, on each trading recommendation, I will tell you exactly what to buy, when to buy, how much to buy, and what to pay for it.
Every LEAPS Power Trader signal you receive — sent to you instantly via e-mail — will clearly explain what’s happening right now and why the trade is being recommended. All you have to do is read my simple instructions to your broker word for word … or send your broker a fax or e-mail.
FOURTH, well-timed buy signals are great. But they’re only half the story. You also have to know exactly when to sell.
For every single recommendation I make, I will send you follow-up instructions on when to take profits or cut a loss. My goal is to make it as easy as possible for you to make wheelbarrows full of money.
FIFTH, if you have any questions, no problem. We’ll be glad to answer them for you. You get full, unfettered access to Weiss Research’s Customer Care Representatives via phone, via e-mail, via fax, or whatever is most convenient for you.
As a LEAPS Power Trader member, you get a dedicated phone number. When you call, you get the red carpet treatment and first-rate service that you deserve.
Save up to $5,000 with Your
Charter Membership
The price of the service is $5,000. But if you join now as a Charter Member, you get a full TWO years of my LEAPS Power Trader for the price of just one year. You save 50%, or $5,000!
Or take a one-year subscription for just $2,700. You save $2,300! And down the road, you’ll still be able to upgrade to the two-year offer at the same Charter rate above.
If you can’t afford the subscription without losing sleep, then options aren’t for you. But if you can, and you want the opportunity to put your profit potential on steroids, then now is the time to get started, before all heck breaks loose in the markets.
Heck, on just the three companies I’m eyeing right now, you could turn a modest investment of $3,640 into as much as $8,934, less your broker’s fees.
Still not sure? No worry. You also get a money-back membership guarantee!
Naturally, no one can guarantee profits. But here’s what I can guarantee. If the service doesn’t deliver the kind of profits that make you absolutely delighted, you can cancel the service at any time in the first 60 days and receive a full, 100% refund on your membership.
Plus, if you cancel any time thereafter, you’ll get a pro-rated refund on the unused portion of your membership, with the first year valued at $5,000 for a two-year subscription, and $2,700 for a one-year subscription.
Three Limitations to This Offer
First, there are only 500 Charter Memberships available.
Second, this Charter offer is exclusively for active subscribers of Weiss Research publications. It is not available to the public.
Third, the Charter Memberships are available strictly on a first-come, first-served basis. Once they’re gone, that’s it. Membership will be opened to the public, and the huge savings these Charter Memberships offer will no longer be available.
Now’s the time. The economy is heading for some turbulent, volatile waters. The recommendations I’m eyeing right now could turn a modest investment of $3,640 into as much as $8,934, less your broker’s fees.
With strictly limited risk to boot!
Grab your slot before the 500 Charter Memberships sell out … save up to $5,000 … and get started now!
Call us at 1-800-453-9670 right away and mention your personal code of P446-66163. Or order online now.
Sincerely,
Mike Larson
Editor
For more information and archived issues, visit http://legacy.weissinc.com
About MONEY AND MARKETS
MONEY AND MARKETS (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, and Tony Sagami. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Amber Dakar, Monica Lewman-Garcia, Wendy Montes de Oca, Kristen Adams, Jennifer Moran, Red Morgan, and Julie Trudeau.
Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short blurb: This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://legacy.weissinc.com
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LEAPS Power Trader is designed to combine (a) one of the best documented, real-world track records known with (b) some of the most leveraged, limited-risk vehicles in the investment world.
Thus the 103-times profit potential cited in this letter is derived from the combination of:
(a) Actual published signals for buying and selling mutual funds. These signals are not based on hindsight and therefore provide a real world, reliable, and well-documented track record.
(b) Hypothetical trades assuming the signals were applied to the longest-term call option available on the stock representing one of the largest holdings of each fund.
The resulting hypothetical gains and losses were internally audited to ensure accuracy and remove bias stemming from the advantage of hindsight. However, all hypothetical performance records contain certain limitations: Due to the varying liquidity and volatility of the markets, the actual prices may have differed from those assumed. And the additional volume of trading generated by investors following our model portfolio could, in itself, have had an impact on the market.
For example, some of the trades assumed the purchase of single options in larger quantities than might have been available. In the LEAPS Power Trader, if the investor’s profits become so large that they create a similar problem, we may recommend that you (a) buy a broader diversity of similar options and (b) move a substantial portion of the funds from your trading account to other investments, such as Treasury securities or mutual funds.
In sum, the results cited in this letter are not what an investor actually achieved in the past. Rather, they are provided as an illustration of the great potential profits we believe our high-performance signals can produce when applied to LEAPS.
The track record is based on the following trading rules: (1) At the end of each calendar year, move your initial capital (e.g. $10,000 or $25,000) to cash and hold it in a money market account. Use these funds plus any interest income generated to help cover commissions and other costs. (2) Pay any taxes out of a separate account. (3) Invest the entire proceeds of each trade into the next trade. (4) When a buy signal is issued on a sector, purchase the longest term call option available on the stock or stocks representing the largest holdings in the sector. (5) Sell the option when a sell recommendation on the sector is issued or when the option closes at 20% or more below the purchase price of the option. (6) Repurchase the same option if the buy signal on the sector is still in force and the option closes 20% above the first purchase price.
Note: Any cash balances accumulated in the money market account could represent additional profits over and beyond the $1,032,504 or $2,581,259 results cited above.
For more information, see our terms and conditions.
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