Newsletter Subject

How We're Planning To Weather This Market Storm

From

thetradingadvisors.com

Email Address

newsletter@thetradingadvisors.com

Sent On

Wed, Sep 28, 2022 08:39 PM

Email Preheader Text

I woke up this morning to pounding rain as the outer bands of Hurricane Ian sweep across Florida. Th

I woke up this morning to pounding rain as the outer bands of Hurricane Ian sweep across Florida. Then I flicked on Bloomberg to see the British pound get pounded as the Bank of England felt the need to intervene and buy gilts (bonds) to try to stabilize their markets. For now, England's issues are […] September 28, 2022 [Option Sensei] [How We're Planning To Weather This Market Storm]( I woke up this morning to pounding rain as the outer bands of Hurricane Ian sweep across Florida. Then I flicked on Bloomberg to see the British pound get pounded as the Bank of England felt the need to intervene and buy gilts (bonds) to try to stabilize their markets. For now, England's issues are mostly isolated. But make no mistake, in this interconnected world, the economic storm hitting the epicenter of Europe's financial infrastructure could very well ripple onto U.S. shores. The Bank of England's actions were apparently to prevent some major pension funds from blowing up. We like to beat up on the Fed and Chairman Powell but, boy oh boy, what a mess of policy mistakes the U.K. has made in just the past few weeks. They are raising rates while simultaneously providing fiscal stimulus — which is akin to stepping on the gas and brakes simultaneously — and last night's intervention is like throwing the gears in reverse to stop the car from hitting a tree. Try steering away first, man. Of course, this accident has been a decade in the making as markets were happy to speed along burning through all the free money central banks across the globe had been printing in with their ZIRP. So, even though U.S. markets are stabilizing today, the bursting of the “everything bubble” is not over. Yes, the most speculative stuff from crypto/NFTs to SPACs and the profitless “disruptor” stocks (AKA Cathie Wood Funds) have popped. But the major stock indices and the real estate market are still vulnerable for further price compression. Higher interest rates will cause stocks to be awarded lower valuations simply on the basic discounted cash model. The reduced access or higher cost of money will rein in the growth at any cost models many companies and their stock prices had been running on. In the housing market, I don't foresee a crash or anything close to what happened during the 2008 financial crisis; there simply isn't anywhere near the type of leverage that was used to create that bubble. But we do need to see some pullback in prices as home prices and rents have become unaffordable and therefore unstainable. The average home price is now nine times the average personal disposable income, and rents in most major cities are above 50% of average income. Thankfully home prices did show a decline in August — their first in 19 months. I'm not sure how all this will play out, but at the moment a storm is brewing and financial markets are very jumpy. Liquidity is starting to dry up global bond and currency markets, leading to price vacuums and oversized moves on whatever the latest data point is. To go back to the hurricane analogy, the Tampa Bay basin is currently bone dry as Ian sucked up all the water (as you can see in the screenshot below). Now it’s a question of where, when, and how much will surge or be dumped back. Personally and professionally, I'm giving both a wide berth. For [Options360]( that has meant a sharp reduction in both the size and number of trades we are making. Currently, we are down to just two positions. For me, even though I’m on the opposite coast (about 150 miles from where the storm will make landfall), I’m still leaving my house. I'm on a barrier island, which is prone to flooding and I don't feel like waking up in the middle of night with water seeping under my door if Ian is still packing a punch as it moves across the state. It's easy enough for me to take a short drive and stay with a friend a bit south and inland. Likewise, it's easy enough to stay out of harm’s way regarding the market. Sure, it would be thrilling to try to ride out a hurricane or try to catch some big move or market crash, but I'm getting too old to want to try to rebuild my house (which I rent) or my portfolio. [Navigate the markets alongside a pro with Options360]( Remember the math; if you find yourself down 50%, it will take a 100% gain just to get back to even. That’s a tough hill to climb, even for the best traders. SPONSOR [Top 5 Cheap Stocks to Own Right Now]( While finding safe stocks with the potential for monster gains isn't always easy, we've found a few that could pay out well. In fact, within our report, "Top 5 Cheap Stock to Own Right Now", we have identified five stocks we believe could appreciate the most even if you just have $1,000 to invest. [Sign up here to get your free report now.]( Copyright © 2022 Wealthpop | All rights reserved. Financial Answers, 1 Penn Plaza, Suite 3910, New York, NY 10019 [Contact]( / [Terms & Conditions]( [Click here to unsubscribe](

Marketing emails from thetradingadvisors.com

View More
Sent On

29/12/2023

Sent On

28/12/2023

Sent On

27/12/2023

Sent On

26/12/2023

Sent On

19/12/2023

Sent On

15/12/2023

Email Content Statistics

Subscribe Now

Subject Line Length

Data shows that subject lines with 6 to 10 words generated 21 percent higher open rate.

Subscribe Now

Average in this category

Subscribe Now

Number of Words

The more words in the content, the more time the user will need to spend reading. Get straight to the point with catchy short phrases and interesting photos and graphics.

Subscribe Now

Average in this category

Subscribe Now

Number of Images

More images or large images might cause the email to load slower. Aim for a balance of words and images.

Subscribe Now

Average in this category

Subscribe Now

Time to Read

Longer reading time requires more attention and patience from users. Aim for short phrases and catchy keywords.

Subscribe Now

Average in this category

Subscribe Now

Predicted open rate

Subscribe Now

Spam Score

Spam score is determined by a large number of checks performed on the content of the email. For the best delivery results, it is advised to lower your spam score as much as possible.

Subscribe Now

Flesch reading score

Flesch reading score measures how complex a text is. The lower the score, the more difficult the text is to read. The Flesch readability score uses the average length of your sentences (measured by the number of words) and the average number of syllables per word in an equation to calculate the reading ease. Text with a very high Flesch reading ease score (about 100) is straightforward and easy to read, with short sentences and no words of more than two syllables. Usually, a reading ease score of 60-70 is considered acceptable/normal for web copy.

Subscribe Now

Technologies

What powers this email? Every email we receive is parsed to determine the sending ESP and any additional email technologies used.

Subscribe Now

Email Size (not include images)

Font Used

No. Font Name
Subscribe Now

Copyright © 2019–2025 SimilarMail.