A Cure for the “Buy and Hope” Blues

By TradeSmith Research Team

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Allow me to offer some true, if uncomfortable, investment advice.

You will never get rich following the crowd.

Deep down, you know this. It’s common sense. Most people don’t get rich. And most people invest the exact same way.

But it’s hard to break from the crowd when:
  • Your investment advisor mindlessly sticks you in high-cost, underwhelming index funds, preaching “buy and hold” until the cows come home.
  • Icons like Warren Buffett claim to use the same approach (while quietly doing something very different – more on this shortly).
  • And every needle-moving trend of the past several years – think AI, crypto, pot stocks – either slips through your fingers or turns on you at the worst possible time.
And now, the crowd’s “buy and hope” retirement plan is at a standstill. The S&P 500 – the basis of most retirement portfolios – is at about the same level today as it was in June 2021.

That’s 27 months of zero returns…

And that doesn’t even factor in decades-high inflation. With an average annual inflation rate of nearly 6% from 2021 to 2023, that puts your returns firmly in the red.

Everything costs more these days. Food is up 4.3% from a year ago. After dropping from last year’s highs, gasoline is now up 10.6% in the last month alone. Even the cost of borrowing money itself is more than double what it was last year.

Whether inflation runs fast or slow, it will slowly destroy your retirement if you sit idly by. Add on falling stocks, and you can bet on it.

That is, if you take all this sitting down…

You see, there are plenty of strategies out there to help you break free from the “buy and hope” crowd. Rather than leaving your wealth to the fate of the S&P 500, you can use these methods to quickly draw cash from the market – whether it moves up, down, or sideways.

Strategies like this are essential to staying ahead of inflation and keeping your dream retirement on track.

One such strategy, helmed by TradeSmith’s income expert Mike Burnick, offers consistent cash payouts as often as every single day.

These payouts can help offset broad market declines, negate inflation, and give you buying power to add to quality stock positions – all at once.

In exchange, it only takes a few extra minutes of work and a small amount of calculated risk.

And when I say small, I mean it. Of the nearly 200 trades the Constant Cash Flow strategy has produced since March, more than 99% of them were winners.

Safe to say, this is a must-have strategy for your investing toolkit. Let me show you how it works.

Make Cash Every Day With ’Buffett’s Dirty Secret’

Chances are, you’ll read the next paragraph of this essay and click away. But I hope you’re open-minded enough to stick around.

That’s because this incredible income strategy involves options. And unfortunately, most folks think “options” is a dirty word.

They associate options trading with basement-dwelling GameStop speculators. Or cut-throat hedge funds.

But the truth is, options are just as effective of a moneymaking tool as stocks, bonds, real estate, or any other financial asset – so long as you know what they are and how to use them.

Owning options simply gives you the right to buy or sell a stock, at a price you decide, on or before a certain expiration date. You can also trade them on the open market.

Think of it like an insurance policy. You can exercise options to sell stocks at higher prices if they fall, or buy them at lower prices before they soar.

But here’s the thing…

If you know anything about insurance, you know that 99% of the time, you aren’t using it. You’re just paying the insurance company to cover you in case you need to. Then a year goes by, your policy expires, and you renew.

In that regard, using the Constant Cash Flow options income strategy is like being an insurance company with the world’s best underwriters.

Instead of buying options to use as insurance, Constant Cash Flow takes the other side of the trade and sells put options (or “policies”) on stocks.

When you do this, cash instantly hits your account balance. Then, all you have to do is to wait for the option you sold to expire, and the cash is yours forever.

If the buyer decides to exercise the option, you’ll simply buy the underlying stock (often for less than it’s worth) and hold it in your account.

This technique is much more common than you’d think, even from risk-averse investors.

Warren Buffett, “buy and hold” zealot that he is, has sold put options to generate fat reams of cash for his entire career.

Back in 1993, Buffett sold 50,000 put option contracts on KO to generate $7.5 million in cash for his firm. And he used them throughout the 2008 financial crisis to generate cash while also giving him the option to buy stocks on the cheap.

How’s An Extra $10,000 Sound?

Think of the potential of using this strategy, grabbing cash day… after day… after day.

One day, you might sell an option on Eli Lilly (LLY) for $56, like the CCF strategy recommended on Sept. 26. Not bad for a minute’s worth of work.

Other days, like when CCF recommended selling a put on VMWare (VMW) on Sept. 23, the cash payout is closer to $145.

Taken together as of last week, CCF’s winning trades add up to an astounding $9,707 in income – at minimum – since our readers started trading them on March 15.

(By the way, you would’ve had to invest more than $100,000 in the S&P 500 back in March for the same result.)

What would you do with an extra 10 large? Personally, I’d be shopping for some great stocks… or dollar-cost averaging into ones I already own.

Now, there are a couple things you’ll need to get started with this strategy. It’s not much, though – just some starting capital and a few minutes of time to get your account set up to sell options.

There’s also a bit of a learning curve, but we’ve done a ton of work to help you climb it. The Constant Cash Flow advisory is chock full of masterclass videos, special reports, tutorials – everything you need to get up and running, quickly.

The system also shows the risk of every trade down to the percentage point, filtering out only those with high odds of success.

And every week, Mike Burnick will keep you in the loop on what he’s seeing in the broad market, and how it will affect the Constant Cash Flow trade recommendations, in his Money Line video updates.

For investors with a mature investment account looking to get ahead of this stalling market, there’s almost nothing better out there.

So here’s what I’d encourage you to do….