As the chaos of the trading room washed over me, I leaned back in my red leather chair and breathed deeply…
“Teeka, the market is booming. Why are we buying government bonds?”
It was the summer of 1990. I was a 20-year-old wealth manager. The guy on the phone was my biggest client. I had him in $2 million worth of 9% government bonds… And he was mad.
We had bought a ton of stocks in January 1990 that were doing great. But since the early summer later that year, I had stopped buying new stock positions. I knew the market looked good over the long term… but I was fretting over the short-term action.
There were a few things that had me worried:
Saddam Hussein was massing troops on the Kuwait border.
The U.S. commercial real estate market was falling off a cliff.
The U.S. banking sector was chock full of bad loans.
“Jim, you’ve got to understand I love the market long-term. I think we go much higher, but short-term, the market looks toppy. The smart play here is to hide out in safe income,” I said.
“But the market keeps going up,” he retorted.
“And we’ll make a ton of money on that action with our open positions,” I shot back.
During the summer of 1990, I had to field dozens of calls like this one. The market was on fire. Everyone was bullish and I was the guy telling my clients to be cautious and buy bonds.
One of the hardest things about managing money is explaining market nuances to folks. Most non-professionals think in terms of black and white. They want to be all in when the market is going up. And out at every dip.
But that’s not how investing works.
All I knew was I loved the market long-term but didn’t like it short-term. I knew if I could convince my clients to be patient, better deals would present themselves. And that is exactly what happened.
Saddam invaded Kuwait. The junk bond market blew up and took the nation’s banking system with it. Along the way, commercial real estate values crashed. From 1990–1991, the market dropped 20%.
All of the uncertainty caused the Federal Reserve to drop rates. That caused my “boring” government bonds to soar in value. We were making money hand-over-fist in the bond market.
Most important of all, we were able to redeploy those bond profits back into stocks at much better valuations. While everyone was licking their wounds, terrified to touch stocks, we went on a buying spree.
It was a wonderful time to be a buyer. My clients were ecstatic. I’m sure they bragged to all their friends how smart they were to go all in when the market got hammered. I didn’t argue with them. My commission checks that year were huge.
It was a battle to stay the course. But most fund managers just roll over and do what their clients want.
And that brings us to the situation today…
Uncertainty Leads to Profits
Investors have a million reasons to be uncertain about the future.
Who will win the presidential election? Will Congress pass another economic stimulus bill? Will we have a COVID-19 vaccine by the end of the year?
The list goes on and on.
Wall Street hates this kind of uncertainty. But I’ve grown to love it.
You see, after the Gulf War, I realized you could safely profit from uncertainty – without the need to put your current lifestyle at risk. But I did make the mistake of thinking all of these uncertain events were random.
What I later found out was that some seemingly random events aren’t random at all. In fact, they’re 100% guaranteed set to occur with the regularity of my Swiss watch.
One involves a 28-day period that can literally pull forward a lifetime’s worth of stock market gains from safe, boring blue-chip stocks. I call this period the “Anomaly Window.” And it occurs like clockwork.
Here’s what I mean…
This 28-day window opens every four years in the stock market because it has this unbreakable link to the presidential election. It’s always there, even if most people can’t see it.
Take the 2016 election, for example…
If you remember, it was very similar to the election we’re headed into today. It was just this deluge of news 24/7… all pretty much talking about the same thing: uncertainty. So let’s look at some of those headlines:
“U.S. election, rate uncertainty rattle Wall Street.” That’s from Reuters.
Here’s one from The New York Times: “Uncertainty about the nation’s future paralyzes business.”
And look at this one from Quartz: “Uncertainty is making voters physically ill.”
Now, I’m not here to talk politics. I’m here to talk about your wealth.
But if you knew what to do ahead of time, the outcome of the 2016 election didn’t matter. Regardless of who won, the 28-day window could’ve dramatically moved the needle on your wealth.
Take Skyworks, for example. It’s a $25 billion semiconductor company. Over the last six years, Skyworks is up almost 200%. But if you had made one simple move during the Anomaly Window, you could’ve cashed out on November 18 with a return of 191%.
That’s six years of returns in less than a month from a safe blue-chip company.
The Safest Way to Make Huge Gains
As I advised my client Jim during the Gulf War… the most “boring” investments become the most exciting ones during times of uncertainty.
And we saw this same 28-day window of uncertainty open during the 2012 presidential race. If you knew about this window, none of it mattered. You really could care less about the media circus. Because it didn’t matter who won and who lost.
All you had to know was the window was about to open, like it does every election cycle.
During the previous 28-day windows, you could’ve seen gains on so-called boring stocks, like 773% on United Airlines and 3,000% on Cardinal Health.
I can’t think of a safer way to make gains like this from the stock market.
In fact, my research has narrowed down a list of 30 elite stocks with potential to pull forward 39 years’ worth of gains during this 28-day window.
In normal times, these stocks generally follow the market. But in times of uncertainty like we’re seeing now… these boring names become exciting opportunities.
I’ve put together an entire presentation to show you how to profit from these elite names. All you have to do is click here to watch it.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. And just for watching my presentation, I’ll send give you the names of the 30 companies on my list for free. Click here to learn more…