There’s no political force on the planet, which will bring back government bailouts anytime soon. Times have definitely changed in the U.S., since 2008, in terms of how people view intervention from the central banks. Today the people won’t stand for another TARP program, for example.
We’ve talked about this for a long time at Portfolio Wealth Global, but now it’s basically a certainty – billionaires are getting ready to test the resolve of the retail investor – let me explain how they’ll do that.
Since both Wall Street and foreign investors know that the Federal Reserve is tightening, using both interest rate hikes and the shrinking of their balance sheet, Wall Street and big banks will start shorting the market soon.
In order to smoke out all the rookies, who got back into the stock market in the past 2 years, we’ll see the biggest banking houses and funds playing both sides of volatility, going forward.
On the one hand, when the S&P 500 corrects down, they’ll be shorting the index to force individual investors to exit their trades and trigger margin calls. On the flip side, they’ll buy the dips first, wait for the retail crowd to follow, and bank the biggest gains.
Therefore, Portfolio Wealth Global anticipates extreme levels of volatility in 2018 and going into 2019, especially now that wage growth is a fact and inflation fears are looming.
Since smart money fully knows that there is no mommy and daddy to save the U.S. economy the next time around, the potential for a severe sell-off is very realistic.
In times, such as these, one of the best ways to generate income from the stock market and safeguard your portfolio is by utilizing specific trading mechanisms.
Next Thursday, on the 15th, we will be publishing a thorough breakdown of 2 simple trading scenarios, which we are using right now and are simple to execute.
On top of this, since market volatility is becoming a fact of life, up and down as much as 2% a day, the reason to own uncorrelated asset classes is gaining traction.
This means that additional allocation into commodities is very smart right now. We’ve never profiled a cobalt company before, mostly because there are few pure plays out there, but we’ve found a stock, which is about to start trading and I’m preparing the details now!
Thanks to tax cuts, THE corporate tax rate in the U.S. is becoming very attractive, and this will lead to foreign investments in the years ahead. One of the best ways to benefit from this is to incorporate and own real estate through a C-Corp, since taxes just dropped from 35% to 21%.
For many of us, it makes sense to use the many tax and legal benefits of this structure. Taxes are a big deal, especially for millennials, who are becoming the biggest demographic group in the U.S.; therefore, make sure you study their immigration patterns, since the states they are flocking to, like Texas, are booming.
Another important strategy involves the massive growth of renters throughout the U.S. – the days of home ownership, as an American way are not as ingrained in the culture as they used to be. This creates a large population group of permanent renters.
One of the easiest ways to create an additional revenue stream to supplement your main income source, especially if you’re in retirement, is to manage properties.
In the last 8 years, I’ve seen how my property managers are charging 6%-8% and mainly do the basics things, like collecting rent and marketing the property, in return.
With most middle-income properties, there aren’t many day-to-day issues, and the cash flow generated from the property managers is quite juicy.
If you’re looking for ways to increase your monthly income by $1,000-$3,000, you can do that relatively fast by managing 10-15 properties, or even hiring out a manager below you with his own salary.
Start by managing 1 property in your vicinity, and you’ll see how simple it can be.
As you see the market becoming more complex to trade, the deployment of creative secondary income streams could prove valuable. We’ll be featuring 3 additional ideas on how to quickly create a secondary revenue model in the coming weeks. This is the best time to be adding another source of funds to your life.