In less than a month, we can finally put 2020 behind us.
But it doesn’t mean we are at the end of unprecedented times.
This year was dominated by the coronavirus. The pandemic impacted our daily lives and disrupted the global economy.
And the stock market was whipsawed on the news, dipping more than 30% in just one month before rallying to new all-time highs.
A lot of investors are hoping 2021 will get us back to a sense of normal.
Maybe it will — maybe it won’t.
One thing you can bet on, though, is that it will still be unprecedented.
Practically every year has some event that could be considered “unprecedented.”
Whether it’s the pandemic in 2020, an earnings recession in 2019, trade wars in 2018, tax cuts in 2017, threats of war in the Middle East practically every year, the Federal Reserve’s ballooning balance sheet … we could go on.
Some event will occur in 2021 that is unique for its time, for better or worse.
Here’s how to navigate it…
It’s Hard to Look Past the News
The thing most people forget is that there are always opportunities out there. Even in a pandemic, we can protect our retirement accounts and grow our nest eggs.
COVID-19 has wreaked havoc across the globe in ways we didn’t think were possible at the start of the year. But here we are at the end of 2020, and America has shown its resilience.
Vaccines are on the way. Treatments are getting approved by the Food and Drug Administration — all faster than ever before.
If anything, COVID-19 is proving that even the worst of times won’t hold America back.
That’s why you don’t want to listen to fear. There will be more reasons to get anxious — likely, even in 2021.
But it shouldn’t deter you from sticking to a profitable strategy.
How do we know? Because we’ve seen this happen before.
Take the following chart for example.
If you’d followed your emotions in the aftermath of the global financial crisis, you might have sold out of the market in early 2009 when unemployment reached over 5 million. Or you could have sold that summer when GM filed for bankruptcy. Or the next year, as BP spilled 4 million barrels of oil into the Gulf of Mexico.
But just remember, if you’d bought in early 2009 and just held on, you’d have been up 257% by 2017.
There will always be something happening in the world to make you want to sell — something to drive your emotions crazy. Bankruptcies, flash crashes, debt crises, government shutdowns, oil prices, elections … you name it.
There’s always something tapping into your emotions. And it will make you second guess the opportunities right in front of you.
Looking past these major events is hard. But you can do it by following a strategy.
Having a Profitable Strategy Will Protect Your Investments
That’s how you navigate even the toughest of times.
A sound strategy that has worked through previous unprecedented times — like the dot-com bubble, global financial crisis, new presidents, tariffs and wars — will continue to succeed going forward.
Think about it: If you just held through this pandemic, you are looking to wrap up this year with sizeable profits. If you’d stuck to an even more profitable strategy, you could be up even further.
If you’re like me, you’ve been seeing those bigger gains with options.
For example, in my favorite options research service, Quick Hit Profits, we are showing an average open gain of 40% over the last two months. The second half of our top winner is up 216%.
If you’d just bought and held stocks over that same two months, you’d be up just 7%.
I’ve been revealing the keys to success, like this, in a free weekly letter called Weekly Options Corner.
It’s a no-jargon, no-judgment training course in how to use options. Buying and holding stocks through a crisis is a good strategy. But if you’re looking to protect your nest egg in volatile markets, options are one of the best strategies out there.
Chad Shoop, CMT
Editor, Quick Hit Profits