As Matt explained yesterday, the “smart money” is predicting a recession by 2020.
Banking giant J.P. Morgan… hedge fund guru Ray Dalio… the former Federal Reserve Chairman — everyone believes a major market correction is on the horizon.
If you’re retired, or you’re getting close to retirement, you need an investment plan that doesn’t rely on the stock market.
So today, we’ll show you three ways to protect and grow your portfolio…
Even if the stock market crashes.
Portfolio Growth Plan #1 — Bonds
When stocks are crashing, safer assets like bonds tend to rise in value.
Furthermore, bonds generate income, so you can make money with them two different ways.
Unfortunately, this isn’t a realistic way to protect and grow your portfolio right now.
You see, a 10-year Treasury currently yields just 3%.
Our goal at Crowdability is to help you grow your portfolio at double-digit or even triple-digit rates, even if the stock market crashes.
There’s no way you can accomplish that if you’re earning just 3% on your bonds.
Portfolio Growth Plan #2 — Go Short
When you buy a stock expecting its price to increase, that’s called “going long.”
But if you expect its price to decrease, you “go short” instead.
Going short is a bet that a stock’s share price will drop. For example, if its price drops by 50%, you’ll make a 50% profit.
But for long downturns like the one that’s predicted to start by 2020, this strategy won’t give you the returns you need. You see, when you short a stock, your profits are capped. So even if a stock drops by half over time, you’ll only make 50%.
Don’t get me wrong. If you could earn 50% returns quickly and repeatedly, that would be fine…
But if we face a downturn that lasts years, earning a 50% profit from a single stock in your portfolio won’t pay the bills during retirement.
Portfolio Growth Plan #3 — ETFs
Another investment option is something called an inverse ETF.
An inverse ETF moves in the opposite direction as the market.
So if the market tumbles, an inverse ETF will soar.
Unfortunately, this investment option has the same limitations as shorting stocks:
Your profits are capped.
So even if a diversified ETF gives you a 50% profit, that won’t be enough to pay the bills.
The Perfect Way to Grow Your Nest-Egg
As you’ve learned today, the traditional options for protecting and growing your portfolio during market downturns have major drawbacks.
Sure, these options can provide a small “hedge” to even out the normal ups and downs of the market. But they aren’t going to save your nest egg during a major recession.
The fact is, if you want to grow your portfolio during a market correction or recession, you need to start investing differently.
So next Wednesday, Matt will reveal specific investments that can help you protect and grow your portfolio during the coming downturn.
So stay tuned!
In the meantime, please click here and let us know what steps you’ve already taken to protect your portfolio »
Happy Investing.
Best Regards,
Founder
Crowdability.com
