| Make a Killing... With Bonds | Steve McDonald, Bond Strategist, The Oxford Club | Retire Rich on One Stock! Virginia stock-picking millionaire says forget diversification! Buy one single $3 stock - that trades under a secret name - and you could retire rich. His instructions are here. | | Editor's Note: As Steve writes in today's piece, volatility isn't always a bad thing. In fact, bond investors who bought during dips (like the one we had last winter) have been able to make 19 times their original investments. Click here to learn how to take advantage of the "daily bull market" Steve's readers use to profit from even the most dismal sell-offs. - Mable Buchanan, Assistant Managing Editor The volatility in the stock market in December, May and August has produced two positive results. Yes, I know - an 800-point drop in one day and the pounding we took in December don't appear to have any positives on the surface. But it's all about your perspective. As anyone who has followed me for any period of time knows, the average investor's perspective on the markets is 180 degrees out of sync with reality and is badly in need of realignment. | | And the positive outcomes of the recent market volatility are so absolutely essential to your success as an investor. They have to be etched into every person's consciousness no matter what their age is. The first positive is best illustrated by a conversation I had at The Oxford Club's recent New York City Private Wealth Seminar. A Member of my bond trading service, Oxford Bond Advantage, approached me at one of the cocktail receptions, and, with a glow and giddiness that are usually reserved for the faces of children on Christmas morning, he described how he's making a killing in our bonds. The word "killing" is rarely used in conjunction with the word "bonds," I know, but as he said, "I did exactly what you told us to do and bought on the dip." Several times in my video updates in December, when it seemed like the world was ending, I implored my bond Members to use some of the cash they have on the sidelines to buy the bonds in the portfolio that had been dinged during the sell-off. This Member stated he did exactly that, and he showed 20% and 30% capital gains between December and the July meeting. (Thirty percent capital gains in six months is nothing to sneeze at... But since 2015, investors who play the "daily bull market" I've found for my Oxford Bond Advantage readers have had the chance to turn $10,000 into $1.1 million. That's in just two years. That's the power of a properly balanced portfolio. To learn more about the "daily bull market," click here.) | | The Holy Grail for Income Investors Imagine getting a 100% income yield... every single year... without options, leverage or any other gimmicks. It's finally possible... thanks to something we call "Extreme Dividends." If you're an income investor, you don't want to miss this. | | The beauty of this is that this isn't brain surgery. The Member simply waited until the greatest number of lemmings were going off the cliff and added new positions to the bond portion of his portfolio at the discounted prices the sell-off produced. The only requirement to make that kind of money in investments as conservative as bonds is to accept the fact that sell-offs are buying opportunities, not the end of the world. Once that concept becomes ingrained in your thinking and causes a shift in your perspective, you'll become a shark in the market, looking for blood in the water that is always spilled by those who panic-sell. If you can achieve this shift in perspective, you will have joined the successful members of the money world who pray for sell-offs. The second positive outcome of the brutal volatility we've been experiencing is that a clearly defined risk envelope (corresponding to your age or the number of years you have left until retirement) can virtually eliminate the effects of volatility in your portfolio. Creating a well-defined risk envelope is not brain surgery either, but it is something most small investors fail to do... or they take the easy way out and go overboard on the side of safety. The fact is, if their investments - bond or stock - adhere to a well-defined, acceptable level of risk, except in very rare circumstances, a person closing in on retirement or a retired person should experience virtually no losses... I define an acceptable level of risk as the kind of holdings that you don't worry about or feel compelled to sell when the markets do their kamikaze routine. Is it an easy transition from the gambling mentality most novice investors have to the more mature market perspective of waiting for the winners to come to you? No, it is not! But if you're ever going to get out of the rut of buying after the market has moved up and establishing losses in the name of cutting your losses in the inevitable sells-off, it is an absolute requirement. Most of us have no way to replace the money we have put aside for retirement. So it's either sit in savings accounts and CDs and lose money every year to taxes and inflation, or adjust your perspective, define your risk envelope, and get realistic about your holdings and the risks they pose. The volatility we've seen in the markets this past year isn't just going to disappear. It's time to adjust our perspectives and get off the pie-in-the-sky roller coaster or prepare for the consequences. Good investing, Steve P.S. Last fall, I told Wealthy Retirement readers to rethink their asset allocation - in other words, "get out of stocks" that you don't plan on holding long term. When I gave that warning to my Oxford Bond Advantage readers, they listened - and for those who did, I've seen opportunities for gains as high as 2,050% in eight months. If your portfolio was disappointing in comparison, click here and learn more about joining Oxford Bond Advantage. The "daily bull market" I've discovered for those readers is just getting started, so there's plenty of time to join the charge. | | | | | | - More From Wealthy Retirement - | | | | | | Do you own gold? See that volume spike? Somebody just decided to buy a LOT of gold. And I think I know why... it's all about a meeting that's scheduled for September 18. If you own gold (even just a few ounces of it) you've got to see what's happening. The big announcement is just days away. Click here now. | | | |
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