Most years, I don’t give Labor Day a second thought.
When I get a day off from work and the markets, I take it, I enjoy it, and I tend not to question it.
But as the team and I were talking about what to publish today, it seemed silly for Chad to run his typical Unusual Options Activity series. Markets are closed!
So I decided to take more than 10 seconds to think about WHY markets are closed…
And it took me down a Labor Day rabbit hole.
Rest assured, I’m not going to spend today waxing poetic on the “meaning” of Labor Day.
Instead, it got me thinking about a big trend that affects your income, and a solution Chad Shoop is working on…
The Dark Origin Story of Labor Day
Back in the late 19th century, workers’ rights were a sham.
Folks were working 12-hour days, seven days a week, to fuel the new industrialized economy.
Eventually conditions became so poor, labor unions formed. And, rightfully, they demanded better hours, better conditions and better pay.
Everything came to a head in 1894, when the federal government dispatched troops to quell a rail workers strike in Chicago that led to the death of 12 laborers.
You can guess what happened next…
The country went into uproar … Congress passed an act … and President Grover Cleveland instituted Labor Day as a federal holiday.
Working conditions eventually improved in the years that followed — chiefly with the widespread acceptance of an 8-hour workday.
And for a while, things were good.
But nowadays, new problems are cropping up.
It’s Happening Again
Today, we’re seeing what I’d wager a guess is the start of a new labor movement.
Just, from a different source.
At the start of the pandemic, the government mandated an economic shutdown that forced people to quit their jobs. They even gave them money to stay home.
And now, some people have discovered they liked not working so much … that corporations are now BARGAINING with workers just to get them to come back!
It’s become an opportunity to fight for higher wages, which have been stagnating for a long time.
Here’s a recent headline from Business Insider:
(Click here to view larger image.)
I remember when the minimum wage was last increased. I was still at my first job, a Chik-fil-A in South Carolina, working for $5.15 an hour.
Then one day, magically, my paycheck bumped by $2.10. It was a great day!
Since then? Zero. Zilch. Nada. The minimum wage is still $7.25.
And look … I’m not calling for an overnight minimum wage increase. But we have to consider the facts.
When people are angry, they demand change.
You’ve probably heard that the minimum wage hasn’t kept pace with inflation for the last half century.
What you might not have heard … is that the minimum wage also hasn’t kept up with productivity in the economy for the last 50 years.
If it had, the minimum wage would be $25.
Source: Center for Economic and Policy Research
(Click here to view larger image.)
Of course, there are reasons for this. Unskilled laborers don’t reap the benefits in an economic bull market. And technology has boosted productivity beyond measure.
But with inflation on the rise, minimum wage earners have less spending power than ever. The dollar has lost 86% of its purchasing power since 1971.
The pandemic is finally bringing this issue to the forefront. All the talk of money printing from the Fed is starting to wake folks up to what’s happening.
Wages will rise. Benefits will increase. Many corporations are already taking the $15-per-hour plunge. Even offering big signing bonuses for entry-level work.
And this will likely further fuel inflation that’s already been stoked … leading to bubbles in real estate, financial assets, etc.
Eventually, the bubble will pop. But before then, prices will rise so fast most people won’t know what hit them.
Personally, I’m leaning in.
I think the coming months will see a repeat of the surge we saw in speculative assets between November and May (when stuff like crypto and small caps in the Russell 2000 went absolutely bananas).
But there’s a far safer way to play this trend than trying to exist at the top of the bubble.
And in the right hands, this method actually serves as a huge supplement to your income.
The Safer Way to Trade Through Chaotic Times
If you hear all of this and shake your head and you just want to call the stock market quits, I’m going to beseech you to consider one final solution before you do.
If you absolutely hate the risk that is associated with the stock market…
If you hate losing on more trades than you win…
Or you simply just ain’t satisfied with the profits you’re making…
Chad’s been cooking something up just for you.
Next week, he’s holding a live challenge on Facebook where he’ll walk you through a special type of options trade …
Across 270 trades and almost nine years of trading, this strategy has shown a 92% rate of success.
Yes, Chad has a special type of options trade that, for the better part of the last DECADE, has won on 9 out of 10 trades.
The way this works is … instead of trading options the “normal” way, you flip the script.
Because as you know, when you BUY an option, your position can quickly drop to zero.
It’s risky! And some of us like that. Personally, I LOVE the thrill of seeing options trades swing down 50% one day and up 100% the next.
Not everyone does. And I get it! I’m a young guy, I’ve got time (and money) to kill.
You might not. If your risk tolerance is lower, Chad excels in an option trade that (when you do it the way he recommends) cuts out the vast majority of the risk and can help you win on 9 out of 10 trades or better.
The best thing about this trade, is that it actually deposits money right into your brokerage account when you open it.
It’s a great way to boost your income, in a time where wages are struggling to keep up with inflation.
Chad’s giving his next trade away for FREE during the challenge. You just have to go here to sign up for it, also for free.
Consider this your tip to work smarter, not harder this Labor Day.
Enjoy the rest of your holiday. Markets reopen tomorrow.
Ciao,
Chris Cimorelli
Chief Editor, True Options Masters
