Porter Stansberry’s crisis update: This is what will happen next

Tuesday, September 27, 2011

From Porter Stansberry in the S&A Digest:

In Friday Digests, I always do my best to teach you something new about finance… something you’re unlikely to learn on your own… something your broker would never mention… something valuable… something that gives you a better “toolbox” as an investor.

It’s funny that I continue to write these messages because I don’t believe in teaching. Or as I like to say: There is no teaching. There is only learning. Few subscribers actually want to learn anything. It’s a wonderful thing to be confident about your ability to invest successfully… to always know how take money out of the market in any environment. What I’m really trying to do is to broaden your horizons and inspire you to learn more about finance. Having access to this knowledge has greatly enriched my life.

Take the short positions in my newsletter, for instance. Since the market peaked on April 29, I’ve recommended seven short sells against only two long positions. That means, while most people were losing money in stocks this summer, we’ve been able to make a lot of money – about 22% on average for each position. And all the recommendations have been profitable.

Did I know exactly when the market would peak? No, of course not. Do we make money on every single short recommendation? No, of course not. But… as you watched the market turn over this year… it didn’t take a rocket scientist to see why adding short positions made sense. If you’re familiar with shorting stocks, employing this strategy was simple and kept you in the market this summer. But if you’ve never tried it… if you don’t understand it… you were probably left absorbing losses with no good way to hedge.

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via Porter Stansberry – Porter Stansberry’s crisis update: This is what will happen next.

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