By: Steve Smith
Last year was a circus in so many ways, but traders who understand the market forces at work found a lot of opportunities.
Options360 was up a strong 48% on the year, winners and losers included…
I’m very happy about that!
As we look towards 2021, there are a few things I think we need to keep in mind.
First, the Fed seems ready, willing, and able to backstop any large correction. While we will see some pullbacks, I don’t expect to see any market crashes anytime soon.
That said there is a variable that no one can quantify reliably…
The willingness of the investors to keep buying as P/E ratios continue to move up.
If investors lose their taste for ever-increasing P/E ratios it could mean trouble for the market, no matter what the Fed does.
Still, the approach as we enter this new year should be cautious optimism.
Make sure you take advantage of the bull market, however, do NOT leave yourself open with any naked positions.
Yes, it will reduce your upside a little – but it will also ensure you don’t get caught in a sudden turnaround and lose everything.
2015: up 125% (S&P was down .73%)
2016: up 32% (S&P was up just 9.54%)
2017: up 48% (S&P was up just 19.42%)
2018 up 67% (S&P lost a whopping 6.24%)
2019: up 77% (S&P up jus 28.9%)
2020: up 48% (S&P was up just 14.55%)
You can still take advantage of the $19 New Year trial subscription to Options360 until the end of the weekend.
Don’t delay, make sure you get your 2021 started the right way. It’ll be the best money you ever spent.
To Your Success,
PS. You can expect some new trades next week, don’t miss out. Click here and get your trial membership right now.