Quantcast
What to Expect in 2021…

What to Expect in 2021…

Posted On January 2, 2021 11:00 am
By:

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. 

This approach is why Options360 has beaten the tar out of the S&P 500 for the last 6 years straight.  

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,

Steve

PS.  You can expect some new trades next week, don’t miss out.  Click here and get your trial membership right now.

 

 

 

 

 

 

 

 

About author

Steve Smith
Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

Leave a reply

Your email address will not be published. Required fields are marked *