My Favorite ‘Investment’ Strategy for 2023 Might Surprise You

By TradeSmith Editorial Staff

I’ve given the TradeSmith team some extra (and well-deserved) time off this week for the holidays. So, today’s Money Talks will be brief.

I just wanted to ensure you didn’t miss out on all the great (and free) content we’ve been sharing over the past several days.

Earlier this week, I gathered three of TradeSmith’s most experienced analysts – Mike Burnick, Jason Bodner, and Justice Clark Litle – for our Crisis and Opportunity 2023 event, where they shared their detailed outlooks for the year ahead.

In support of this event, I asked these folks – along with several of our other top analysts – to record a brief video with their answers to six pressing questions: 

  • What’s your general outlook for 2023 and why?
  • What was your best call this year?
  • What’s the one thing you’re predicting that no one else sees?
  • What areas of the market will offer the biggest opportunities in 2023?
  • What investment should folks stay far away from?
  • What would you do if you had only $5,000 to invest for the new year?

We’ve been running these videos in our free sister publication – TradeSmith Daily – each morning this week. And we’ll conclude the series with a video from “yours truly,” where I’ll share MY answers to these same questions.

TradeSmith Daily readers can look for this video in their inboxes on Monday morning.

However, I wanted to give Money Talks readers a “sneak peek” by sharing my answer to one question in particular: 

If I only had only $5,000 to invest for the new year, what would I do with it?

You see, my answer to this question is a bit different from any of the analysts on my team. In fact, I wouldn’t “invest” that $5,000 at all.

Instead, I would use it to take advantage of my favorite moneymaking strategy: selling short-term puts that have a high probability of expiring worthless.

I’ve personally been using this strategy to make around 1% per week on my money this year.

These returns probably don’t sound too exciting – until you consider they can add up to as much as 50% a year.

That’s a phenomenal return in any market environment, let alone an inflationary bear market like we’ve experienced in 2022.

You’ll hear more about why I love this strategy on Monday. In the meantime, if you’re interested in learning more about selling options for income, be sure to check out the following editorials from my options-focused series last year: