Chris’ note: Our mission at the Cut is to help you find not only the best moneymaking ideas… but the best wealth-protection ideas as well. As inflation fears rise, the second part of that is more crucial than ever.
Yesterday, I hammered on the importance of taking positive asymmetric risks – staking minimal amounts of money for the chance at outsized returns. Today, colleague Dave Forest is sharing with you his favorite of this type of play. It’s a strategy that offers you the shot at life-changing triple- and quadruple-digit gains in exchange for staking what might be just six months’ worth of your coffee budget…
This is disturbing. In fact, it’s downright criminal – a sign of moral bankruptcy in our society.
The yield on the 10-year government Treasury bond is something everyone should be aware of… Something we all should be outraged by.
It doesn’t sound sinister. But for the hard-earned savings of millions of Americans, it is.
Because the yield on the 10-year Treasury has been relentlessly moving down for the last 40 years.
In simple terms, the Treasury yield shows how much we get paid to save money.
Very few charts in finance show a trend this distinct and sustained…
Back in the 1980s, we earned about 15% on our savings. That’s pretty good. For the average retiree over 60, who holds about $172,000 in savings, that would have paid nearly $26,000 interest yearly.
But you can see how things have changed.
After 2008, yields plummeted to 2%. Today, they sit as low as 0.5%. That same $172,000 in savings now pays about $850 in interest yearly.
That’s absolutely unbelievable.
If this frightens you… it should.
That means you’re ahead of the game. And you’re in a position to change it.
Fortunately, you can take back control of your savings.
And we won’t settle for a “pretty good” 15%…
Because I’ve found another way to work this retirement equation.
Instead of investing a large amount of money for paltry returns over time… we can invest a small amount of money at potentially very high rates of return – within months, not years, in some cases.
What do I mean by a small amount of money?
Let’s take a page from the government and say 0.5% of your savings – the same rate it thinks is appropriate to pay you on a 10-year Treasury.
For the average retiree, 0.5% of savings would mean investing about $850. That’s half the amount many people spend yearly on takeout coffee.
Can you really move the needle investing $850?
I’ve been helping readers do it for more than two years.
The key is something called warrants.
In most ways, warrants are like call options. They give you the right, but not the obligation, to buy a stock at a set price for a given period of time.
Many warrants are actually easier to buy than options.
They trade on major exchanges like the NYSE and the Nasdaq. You can find them easily in your brokerage account… if you know where to look. You don’t need special permission from your brokerage firm to trade them – unlike with options.
And there’s one critical difference between options and warrants. A company directly issues its own warrants.
That means there are far fewer warrants than options. Now, having fewer choices may seem like a negative. But it’s actually a positive here.
An option on a major stock might trade millions of dollars of daily volume. Many warrants trade just tens or hundreds of thousands of dollars of daily volume.
That low volume makes warrants too small for major players like hedge funds or algorithmic traders.
Those massive investors need to move millions, or even billions, for them to make a profit. So warrants simply aren’t worth it for them.
Warrants are too small for the big guys… but they’re a perfect way for regular investors (like you) to grow individual wealth.
Let me give you some examples…
One warrant I recommended to readers of my Strategic Trader advisory recently yielded a 393% return – turning an $850 initial investment into $3,340. That’s enough to cover rent, pay utilities for several months, or take a nice vacation.
Another warrant returned 2,805% for my subscribers. On an $850 investment, that would have yielded a return of over $23,800.
Yet another position we closed out returned 4,942%.
With that 4,942% return, if you’d invested just $850, you would have walked away with over $42,000. That’s enough to pay most of the yearly living expenses for an average retiree.
You don’t have to wait years for these warrants to take off, either.
Of course, not every warrant explodes higher. And full disclosure: I’ve got a handful of positions that are currently down. That happens. But remember, with these plays you have to make only small investments – $250, $850, or $1,000.
So if you’re down 20%, 30%, or even 50% on a position in the short term, is that so bad when there’s the potential for it to turn around into one of the big wins I’ve mentioned above?
As I write, I have 23 open positions using my proprietary warrants strategy. About half of them are up. In fact, one of my plays is currently up as high as 1,370%.
And I think it’ll go even higher from here.
Now remember, I’m not suggesting you plow your life savings into my strategy. In fact, just the opposite. The key is to invest a very small amount of money – and turn it into a meaningful benefit to your wealth and standard of living.
The best part is, even if the wheels came off – even if you lost your entire $850 investment – you wouldn’t come close to jeopardizing your financial future. Not even a year’s worth of takeout coffee.
And as I showed above, there’s plenty to gain using this unique strategy.
I believe this is the best way to protect your financial future during these unprecedented and dangerous financial times.
If the government wants to keep running experiments with our wealth, we’ll flip the game on it.
If you want to learn more about how you can use this explosive strategy in your portfolio… along with my top pick to get you started… I urge you to watch my free briefing here.
Keep walking the path,
David Forest
Editor, Strategic Trader