Inflation last month was 4.2% year over year.
This is mainly due to higher oil prices
Bloomberg forecast this week's inflation is also 4.2% year over year.
I think it's going to come in lower.
Crude oil prices have been falling in June.
My forecast for inflation this week is less than 4.2% which should boost the market higher.
So last Friday, we adjusted the model Investing Accelerator to close off our hedge and go back to long.
Hedging is a method we use to reduce drawdown if we think the market is going down.
It is like buying insurance in case the market goes down.
This is particular useful when the market is forming a top or when we think the market is turning around.
Hedging is taught extensively in Investing Accelerator
Cheers,
Eric
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Eric Seto
Chartered Professional Accountant (CPA)
Chartered Investment Manager (CIM)
Whether or you are retiring with $50K, $100K, $300K or more, it is important to figure out the right strategy for you.
For people with lots of capital, they can afford to throw it all into CDs / GICs and earn a low 2-3% return.
However, if you are looking to generate cashflow with a few hundred thousand, then you would need to look deeper
You need to find a more capital efficient strategy and still achieve your target monthly cashflow (for retirement or simply working less)
In Investing Accelerator, you will learn two strategies:
First, we focus on buying options to buy discounted stocks to multiply our profits for long term gains
Second, we focus on selling options to generate interest premium which serves as a more predictable stream of cashflow
We use these strategies on blue chip companies like Apple, Microsoft, Visa, Mastercard etc
We place 1 trade a week for monthly passive income to smooth out our cashflow
This allows us to split the portfolio into 2 parts
- Low risk low return with index funds or bonds
- Higher return higher risk cashflow generating option strategy
Disclaimer: This communication is provided for educational and informational purposes only and does not constitute investment advice, a recommendation, or an offer to invest in any fund or strategy. No advisory relationship is formed by receipt of this content. Any references to strategies or markets are general in nature and do not reflect the performance of any client account or investment product.