Rick is currently the Editor-in-Chief of The ETF Options Trader and the Triple Wave Investor. At the age of 23, on the third options trade he had ever placed, Rick turned $1,800 into $22,000 in less than a week, when the company he bought became the target of a takeover. He admits it was a stroke of luck, but it was a memorable education as to the leverage that options can provide. He lives near Delray Beach, FL with his wife and three children.
Investors can now trade triple-leveraged ETFs. That means three times the return (or loss) of the underlying index. Rick Pendergraft says stocks could be in line for a major rally in the first half of 2009. If it does, the Large Cap Bull 3x Shares ETF (NYSE:BGU) will ensure huge profits for investors willing to “think big”.
Rick Pendergraft says you shouldn’t underestimate the lift that tumbling gas prices can give consumers in 2009. Compared to the $4 a gallon peak in July, drivers will save $162 billion a year at today’s prices. Add that to a boost in confidence from the Presidential changeover, and Rick says a slow recovery could be on the horizon.
Rick Pendergraft says the public will soon become desensitized to the ugly news that keeps coming out of the economy. That’s when individual investors will return to action. And that’s when it will be time to buy stocks again.
Rick Pendergraft says we won’t see an economic recovery before one of the housing, auto or labour markets stabilize. Friday’s nasty unemployment data and earnings reports from GM (NYSE:GM), Ford (NYSE:F ) suggest that our hopes are resting on real estate.
The stock market is due a bounce after the election, regardless of who wins. But after that, the voter’s choice will have a big impact on industry winners and losers. Rick Pendergraft says biotech and alternative energy stocks should get a lift under Obama, while defense and oil will benefit from a McCain victory.
Barely one week from the US presidential election, Barack Obama is clear favourite to win the White House. Rick Pendergraft says the stock market will get a post-election lift, regardless of the victor. The end of election uncertainty, combined with oversold markets and over-the-top negative sentiment, should spark a late-year rally.
Recent market volatility is verging on the insane, says Rick Pendergraft. And panic selling has reached unprecedented levels. Rick says the Dow is now more oversold than it has been since 1974…more oversold even than during the Great Depression.
The markets are swinging with “insane volatility,” says Rick Pendergraft. Right now, the Dow is more oversold than since 1974. This means a short-term bounce is likely. It may be the time to get involved.
Can I start by suggesting that we start calling this something besides a bailout plan? This is not a handout to Wall Street, it is an investment by the government. The term bailout has rightfully earned a negative connotation over the past year. The purpose of this article isn’t to argue the semantics of “the plan”, but rather to look beyond any plan and what impact it will have on the market and the economy.