Last week, I explained how Chad Shoop’s unique “Profit Stacks” strategy takes advantage of predictable cycles in the stock market — and turns buy-and-hold investing on its head.
We looked at one example: the financial sector.
But it’s only one of 15 sectors Chad and his team identified after poring over thousands of hours of market data.
That’s right: 15 sectors in the stock market have what Chad calls “stackability.”
You can take a look at them below.
And after I talked to Chad, we decided to add a special bonus for our loyal Saturday readers. We even included the prime dates to be in these sectors:
You might remember Chad’s first step for Profit Stacking: “stacking potential.”
Step 2 is Profit Compatibility.
As you can see in the table above, unlike traditional buy-and-hold investing, the typical holding period here is just a few months (November to May in the case of the financial sector).
Chad’s strategy is brilliant because it allows you to put your money to work in other sectors to stack the profits.
And based on these cyclical patterns, Chad has analyzed which ones have “stacking compatibility” — the ones that fit together.
So you’re stacking them. And it works because the predictable dates in these sectors repeat year after year. In today’s market, this is absolutely vital.
The Pharma and Telecom Profit Stack
Take the pharmaceutical sector, for example. This sector has historically shot up between November 12 and January 18:
This leaves you nine months to reinvest your profits elsewhere.
Chad and his team analyzed the sectors that will fit inside this nine-month window.
And more importantly, Chad found the ones that would give you the highest-potential profit margin.
In this case, the telecommunications sector would give you the best return. In fact, Chad’s analysis shows it has consistently rocketed between January 22 and July 23.
So, you invest in the telecommunications sector during those dates. And then, from November to January 18, you invest in the pharmaceuticals sector.
And if you followed this simple pattern over the last 10 years: buy on January 22, sell on July 23; buy on November 12, sell on January 18 — and repeat — you’ve stacked each potential profit on top of the other, turning every $10,000 into almost $38,000!
And this is just one Profit Stack!
But that isn’t all.
There’s a third step. Chad calls it “stacking optimization.” It’s what he and his team use to maximize the profits in every stack.
This step has led to Chad’s trend of increasing annual returns for his readers.
In 2019, they achieved a 43.64% average return on all six stacks as one Profit Stack went up by 74.58%, while a second Profit Stack doubled.
You can find out more by reading Chad’s exclusive interview here.
And I’ll be back next Saturday to show you exactly what Chad means by stacking optimization.
Finally, we have more great content to share with you.
Check out Our Latest YouTube Videos!
Apex Profit Alert Editor John Ross’ new 11-minute Reading Tea Leaves video, “OPK’s 85% Rally on the Pandemic Frontline.”
Real Wealth Strategist Editor Matt Badiali’s five-minute Marijuana Market Update, “Game On: It’s Time to Invest in Cannabis.”
And Alpha Investor Report Editor Charles Mizrahi’s six-minute video, “2 AI Stocks to Buy as the Market Recovers.”
Stay tuned. On Monday, Matt Badiali will reach out to you with more about the cannabis rally.
That’s all for this week!
Good investing,
Senior Managing Editor, Winning Investor Daily