Building Wealth Porter is armed and dangerous...
He and his team of analysts have talked through the volatility problems... tested their strategy with historical data from the Chicago Board Options Exchange (CBOE)... and discussed some of the challenges of their trades with me.
What he has developed in the Big Trade may be the No. 1 way to speculate responsibly next year...
I've always thought that Porter was better at "home runs" on the short side than the long side... Like his huge call on the demise of Fannie Mae and Freddie Mac back in 2008. No one else on Wall Street was even close to being in the same ballpark.
That's why when I get my issue of the Investment Advisory, I always make sure to look at the short recommendations. For example, I've been following his October recommendation to short car-rental companies Hertz (HTZ) and Avis (CAR)...
I've been a longtime user of rental cars. I take close to 100 flights a year... and when I get to my destination, I often rent a car.
But lately, I've been taking Uber more and more often. It feels easier to hit a button instead of schlepping to the rental car sites... and to have a driver, so I can work while I Uber around town. I'm not the only one making the switch...
A few months ago, expense management provider Certify surveyed business travelers' habits on the road. It found that for the first time, ride-hailing services like Uber and Lyft are making up the majority of business expenses and receipts...
Uber and Lyft took a 52% share of expenses, while car rentals made up just 36%... And it's no surprise why: Uber is cheaper, and in many ways better.
The average taxi taken by a business traveler cost $36... while the average Uber was only $23. And the experience of taking an Uber was ranked about 20% better than a taxi.
As Porter detailed in his short recommendation of Hertz, the car-rental business operates on razor-thin margins. Competition from Uber and other app-based services have only increased the pressure on these companies... So it doesn't take much to send earnings and cash flows plummeting.
That's what happened last week with Hertz... dropping as much as 50% after reporting its third-quarter earnings. And as the stock plunged 50%, the price of certain options increased far, far more. As Porter detailed in his Friday Digest...
What you're really waiting for is the day when the market's pothole comes from one of your covered sectors... or even better, from one of your put-portfolio companies. Just imagine if you'd bought puts on Hertz before it fell 50%. You'd easily see the value of your puts increase tenfold.
And it will only take a few of those big winners to make your entire campaign a big success.
Porter's newest service, Stansberry's Big Trade, is perfect for his mentality too.
He recognizes that right now there is an exceptional opportunity to "buy low volatility" near the later stage of the market's long bull market run... It's picture-perfect genius.
The Big Trade is a combination of strategy, tactics, and a crack team of analysts... They've got powerful trading weapons to bomb lots of already teetering targets.
That's the beauty of it...
Porter doesn't need to be right about the broad stock market. He doesn't need to be right about the economy. He just has to be right... once or twice... out of a series of 10-20 trades, to pay for the entire strategy.
And I expect that he'll be right far more often than that.
His team tells me they've identified 30 super-risky companies. These have major debt, a lack of significant cash flows, and Porter's team will be following them closely over the next several years – trading in and out on spikes of volatility that will allow you to essentially hedge your entire portfolio with "house money."
I think that if Porter is right on with his prognostications, his strategy will make people small fortunes...
To learn how you can speculate responsibly through the next year... and trade volatility so that your entire portfolio is hedged with "house money"... click here for a full explanation of Porter's strategy.
Even if you don't subscribe to the Big Trade, learning this strategy will give you a powerful tool to make significant gains – upward of 10 to 20 times your money – on the market's worst companies.
I'll leave you with this powerful prediction from Porter:
We can profit by trading around these positions as volatility ebbs and flows. That should earn us enough profits to begin investing with "house money" long before the crisis with corporate credits begins in earnest.
Next year, we'll see dozens of situations like Hertz. And in 2018, we'll see hundreds.
Even if we only "hit" on five or 10 of them, we'll make huge profits overall thanks to the massive leverage available to us via put options and the extremely low price of those options right now. The defaults are coming. It's only a matter of time.
To hedge your portfolio with the biggest-upside "chaos hedge" that I know of, click here.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Retirement Millionaire Daily Research Team
Baltimore, Maryland
November 17, 2016