By that, I mean stop watching, reading, or tuning in (unless it’s to figure out what NOT to do).
I’ll also unveil a special new project my colleagues here at Legacy Research and I have been working on.
It’s a new free resource that will help you navigate the coronavirus outbreak and market crash it’s triggered.
But before we get to that, a quick look at today’s market action…
And if you’re like most folks, you may have spent the day panic-checking your 401(k).
Despite the Fed taking interest rates down to zero, stocks are a sea of red again today.
The plunge has wiped out most of the record single-day gains we saw on Friday.
I (Chris) am writing to you from Europe, where the coronavirus is putting entire countries into lockdown. The main stock index this side of the Atlantic – the EuroStoxx 600 – ended the day down almost 5%.
Our regular stand-in for the U.S. stock market wasn’t far behind. The S&P 500 ended the day down 11%.
The drop came after the New York Stock Exchange’s circuit breaker halted trading for 15 minutes.
The only assets that aren’t down a lot today are safe havens gold and government bonds. The price of an ounce of gold bullion dropped by just 1%, while long-dated U.S. Treasurys rallied 6%.
Not only do you have to worry about your portfolio… you also have to worry about staying physically safe as the coronavirus spreads.
And if you’re anything like my friends and family, you have a slew of questions and worries.
What should I do with my money? What will happen if the stock market shuts down? How long could this last? Will the economy tip into a recession?
Rest assured, we’re here to answer them.
Our publisher at Legacy Research, Amber Mason, put it best in a note to me this morning…
What we do right now as the alternative financial press matters a lot more than what we’ve done for the past 10 years.
Amber is right. Your financial future is on the line right now. It’s our job to make sure you get through this safely… with your wealth intact.
The mainstream media has been doing nothing but shouting and screaming at viewers.
Networks are ramping up the natural fears people have of the virus to get higher ratings.
Frankly, a certain amount of panic is baked in at this stage. It’s why you’ve seen bulk buying in supermarkets… and stores running out of essentials.
Instead, it’s vital you keep calm and follow the simple wealth-protection plan we’ve been laying out for you.
Already, my colleagues and I have shown you how to protect your wealth by owning plenty of cash and gold.
I’ve also been begging you to follow a sensible asset allocation strategy to protect your wealth from shocks exactly like these.
And I’ve showed you how following a trading strategy can actually make you money in times of crisis.
But there’s nothing more important to us than helping you navigate whatever this crisis may throw at you.
For as long as the crisis lasts… we’re going to share with you the best insights and guidance from our paid advisories.
We’ll send it all to you in a morning version of this newsletter… The Daily Cut AM.
It will be where you’ll find our best content – paid or free – on the pandemic and its impact on markets.
Now, we can’t give you everything for free.
As I told you in the letter I sent to you earlier today (check for it in your inbox under the subject line “We’re Tearing Down Our Paywall for as Long as This Crisis Lasts”), we still need to run a business and take care of our staff.
But your peace of mind is paramount. So we’ll be working extra hard on your behalf over the weeks and months to come.
Make sure to catch tomorrow’s Daily Cut AM in your inbox for all the latest on what our team of experts is recommending right now.
It’s always been our view at the Cut that you should play both offense and defense in your portfolio – at all times.
When the good times are rolling, that means adding “hedges” to your portfolio that go up when stocks go down.
The easiest way to do this is to own gold.
But as our paid-up Crisis Investing readers know, you can also protect against a crash using put options.
These are “side bets” that pay off when stocks go down. Crisis Investing editor Nick Giambruno added put options on the S&P 500 to the model portfolio back in February 2019.
They’re up 302% at this writing. That’s the perfect example of a hedge working out. The uplift from these put options cushioned the blow of falling stock prices.
Crises like this test your mettle as an investor. But they also often present spectacular opportunities to profit.
Already, for instance, colleague Teeka Tiwari has taken advantage of the chaos in the market by using call options on gold miners. He closed out trades with triple-digit gains of 133% and 350%.
Over at Teeka’s Palm Beach Quant trading service, he uses a powerful computer program that detects patterns based on decades of data to forecast the future price movement of stocks. And so far, his system has proven successful, with recent option trades closing out for gains of 52%, 57%, and 60%.
This won’t be for everybody. But Teeka believes exactly such an opportunity is presenting itself right now in the crypto market.
As he told readers of our Palm Beach Daily e-letter earlier today…
While global financial markets burn to the ground… while gold and bitcoin fall off a cliff… a tiny subsector of the crypto market is getting ready to explode in value. But no one is paying attention because the world is gripped with fear over the coronavirus.
Teeka believes this story of explosive growth emerging in the crypto market can’t wait.
That’s because the catalyst is 100% guaranteed to take place in roughly 50 days.
The last time this scheduled event happened was four years ago… and it will be another four years before it happens again.
That’s why, this coming Wednesday, at 8 p.m. ET, Teeka will reveal all the details of how you could make as much as $5 million from investments of just $500.
I know that may sound crazy at a time like this. But Teeka is convinced that it’s a rare opportunity to profit.
To join him on Wednesday… and find out what he’s discovered… sign up to attend for free here.
Regards,
Chris Lowe
March 16, 2020
Barcelona, Spain
P.S. I’m in lockdown in Barcelona. Flights are canceled. Restaurants, bars, and cafes are shut. The cops are fining people who leave their homes for “nonessential activities.” Basically, that covers buying anything besides food or medical supplies… or going to or from work.
Here’s a picture of a usually busy street. As you can see, there’s almost no traffic left. It’s a strange feeling. But I’m staying well. And writing you these updates from my hotel.
What about you? What’s your situation? How are you staying safe? I’d love to hear your stories. Write me at feedback@legacyresearch.com.
Like what you’re reading? Send your thoughts to feedback@legacyresearch.com.