Source: http://ift.tt/wCCKdg --- Wednesday, May 31, 2017
Low volatility spawns new opportunity. The impossible becomes a reality in one simple move. The best way to play Apple’s coming historic moment. Also recommended: Blue chip stocks get small-cap makeover. It’s getting tougher than ever to pay up for pricey stocks. As I write, the S&P 500 is trading at 19.7 forward earnings — just below a 10-year high. Of course, that’s not to say that bargains can’t be found in the market or that some stocks haven’t earned a premium valuation. But as senior analyst Jonathan Rodriguez pointed out last week, the lack of volatility in the stock market presents investors a unique opportunity. He revealed a little-known trading strategy that helps investors bypass lofty stock valuations and significantly increase their returns over stocks, too. Today, he’ll dive even deeper and show you exactly how to grab these gains… Ahead of the tape, Louis Basenese Chief Investment Strategist, Wall Street Daily Why Low Volatility Is Your Friend, Not Foe I’m sure you’re constantly hearing financial talking heads warning about the “dangers” of low market volatility (low vol). Granted, it’s true that investors should keep an eye on the force of market moves. But make no mistake, low vol offers far greater rewards than risks. One such reward is the stock replacement strategy. As you recall, this strategy uses long call options in place of stocks during periods of relative calm in the market. This strategy is incredibl ...
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