Can't say we're surprised. As I write this, the S&P 500 is back to where it was at the start of the year.
The rally that began in March? Never mind. Fear and loathing are back in the market. Which is why I wanted you to see the latest report from former Whiskey contributor Dan Amoss.
You haven't heard much from him lately because since the start of the financial crisis, he's been busy executing what he calls the Fear Factor strategy.
It works like this: For every $1 a certain stock tanks, you collect $3. Or as much as $7 if traders get really fearful.
The Fear Factor strategy's track record: An average gain of 103%.
At least one of Dan's latest recommendations, issued late last week, is still below his buy-up-to price. But I don't know how long that'll last. So read on to learn how to make the Fear Factor strategy work for you.
Today we write so we can show you a method to use their folly to your advantage.
Dan Amoss calls it the 'fear factor' strategy, and he put it into effect just five days after the start of the financial crisis.
The idea is simple: For every $1 a stock tanks, you can pocket $3. Or if traders get really fearful...up to $7.
The results are phenomenal: An average gain of 102%. And individual plays returning up to 462%.
There's still time to act on at least one of his most recent recommendations - if you jump on it soon. Dan's report below tells you exactly how to put the 'fear factor' strategy to work.
The Fear Factor Strategy:For every $1 these stocks tank, you could pocket at least $3…and as much as $7
While the S&P 500 crashed 43.3%… this strategy has bagged average 102.9% returns
Since the start of the financial crisis, the Fear Factor strategy has crushed every asset class - top stocks to buy, bonds, gold, you name it
It's proven to turn $1,000 into $2,619… $3,383… even $5,718
To get in on the next Fear Factor play, you have to act now. It could come out in the next 24 hours.
I love it when panic grips Wall Street.
The more fearful they get, the more greedy I get.
Traders can send a retail stock tanking 45%… and you can collect a gain of 238% from the same exact move.
Think about that for a minute.
For every $1 someone else loses on that best stock, you pocket more than $5.
Or a bank stock. It gets whacked 39%. You gain 220%.
So for every $1 someone else loses in a panic, you calmly collect nearly $6.
Months before Lehman Brothers blows up, the stock plunges 68%. You bag a gain of 462%.
Every $1 some poor guy loses during that time because he can't keep his head, you make nearly $7 without breaking a sweat.
That's the Fear Factor strategy in action.
Let me explain a bit. I don't profit from other folks' misery.
I simply figured out a way to tell when a company is set to crumble.
And then I show you how to profit from the inevitable fall.
It works for me. It can work for you.
No fuss. No effort.
The Fear Factor's strategy worked time and again since the financial crisis got cranked up.
I've used it to close out just 23 plays in 18 months. And the average return is 103%.
That's right ― it's the same as doubling your money ― 23 times in a row!
Compare that to a 43% loss in the S&P 500.
Every $1 somebody lost on an S&P index fund? You could've made more than $2.
I don't know of any other method that makes more money, more reliably, in this crazy market.
And the concept is so simple:
1. Zero in on top stocks set to crash and burn
2. Then execute the Fear Factor strategy
It's proven to work over and over again.
How the "Fear Factor" Makes You Money Whenever You Put It to Work
See, falling top stocks market have something I call a Fear Factor Multiplier.
That's not a made-up term. It doesn't describe a common figure like the price-earnings ratio. Or free cash flow. Or anything like that.
Instead, the Fear Factor Multiplier is your key to the profits you can make from top stocks set up for a big fall.
No other analyst uses the Fear Factor Multiplier to generate gains this reliably. There's simply nothing else like it.
I'm thinking of a clothing maker. It has a Fear Factor Multiplier of 2.96.
What does that mean to you? It means every $1,000 invested turned into $1,666 in just over a month.
There's a retailer with a Fear Factor Multiplier of 5.28.
That means $1,000 turned into $3,383 in less than three months.
Lehman Brothers, before it collapsed, had a Fear Factor Multiplier of 6.94.
Translation: Every $1,000 invested turned into $5,717. In 77 days. Less than three months.
And if you had plugged in $10,000, you'd make $57,170!
The broader best stock market? It has a Fear Factor too. It's 2.38.
Every $1,000 invested using the Fear Factor strategy has turned into an average $2,029.
Just days after the start of the financial crisis, I started using the Fear Factor strategy. It exploits Wall Street's panic and paranoia to generate steady, reliable, stress-free gains.
How is the Fear Factor multiplier calculated?
I'll get to that shortly.
Right now, here's the important thing to know. The higher the Fear Factor multiplier… the more money you could have made.
Here's a sample of top stocks to buy, their Fear Factor multipliers… and how much money they could have made you following the Fear Factor strategy.
How the Fear Factor Delivers Triple-Digit Gains, Time After Time
What makes the Fear Factor strategy such a winner?
Simple: It exploits the fear that's gripped the markets since August 2007.
That was the month the financial system started going haywire.
Credit markets froze up. Mortgage lenders imploded. Hedge funds melted down.
The Federal Reserve ordered an emergency cut in interest rates on August 17.
And five days after the Fed acted, I told a select group of readers to begin executing the "Fear Factor" strategy.
They targeted stocks in some of the most vulnerable sectors of the economy. Banks. Homebuilders. Selected retailers.
Their first target: The regional bank TCF Financial.
Using the Fear Factor strategy, a $1,000 investment becomes $1,969 in just over eight months. Almost a double!
Even better: Another regional bank, PNC Financial.
The Fear Factor strategy applied to PNC turns $1,000 into $3,220 in just 109 days. Less than four months!
A vulnerable retailer of computer gear called Systemax?
The Fear Factor strategy turns a $1,000 investment into $2,733 in 104 days. Again, less than four months!
Their biggest haul? A bet on the fall of Lehman Brothers.
The Fear Factor strategy applied to Lehman transforms every $1,000 invested into $5,617.
That's the power of the Fear Factor.
I know the Fear Factor multiplier sounds mysterious. But in a few more moments, I'll tell you exactly what it means and how it's calculated.
Now… here's the most remarkable thing about the Fear Factor strategy.
The Fear Factor Strategy In Action…Money-Doubling Gains Without Constantly Trading In and Out
You already see how the Fear Factor strategy could have reliably doubled your money since the start of the financial crisis.
You've also seen how individual Fear Factor plays can make you three times, even five times, your money.
But get this. It's been 18 months since I put the Fear Factor strategy into action. And in that time, I achieved these results using the strategy on just 23 plays.
And yet, with 23 plays, I could have doubled your money 23 times. Even after you take a handful of losing plays into account. Average performance through the first quarter of 2009 was a gain of 102.9%.
And, the Fear Factory strategy has blown away top stocks for 2010, bonds AND gold since I created it.
First, let's compare the Fear Factor track record to the performance of the S&P 500…
The Fear Factor strategy got off to a slow start in late 2007. The S&P held steady, while the Fear Factor strategy generated a modest loss.
But look at what's happened ever since. Every quarter has closed out with average gains of a minimum 72%.
And it's not just top stocks 2010 that the Fear Factor strategy outperforms by a mile.
Look how it crushes the bond market.
Panicked best stock investors have sought "safety" in Treasuries during the financial crisis. But even during bonds' best quarter in late 2008, the Fear Factor strategy did three times better.
How about gold? Gold has held up very nicely as a safe haven during the financial crisis.
But using the 23 plays of the Fear Factor strategy, you could have doubled your money. 23 times! Even factoring in the losing plays, the "Fear Factor" strategy delivered average gains of 102.9%.
Again, that's just with 23 plays over 18 months.
So executing the Fear Factor strategy won't take up a lot of your time.
You won't be on the phone with your broker every day. You won't be tracking performance on the internet every 15 minutes.
And you won't rack up a lot of fees and commissions.
So now you understand the power of the Fear Factor strategy.
Now I'm going to show you exactly how the Fear Factor multiplier is calculated… and how it can mean big, big money in crazy, crazy markets.
The Fear Factor Multiplier Revealed ―For Every $1 These Stocks Tank,You Could Collect $3… $4… Even $7
OK, I've made you wait for a full explanation for long enough.
It's time I reveal exactly what the Fear Factor multiplier is. What it means. And how it translates into the money you make.
It works like this.
For every $1 a top stock falls in price, the Fear Factor Multiplier is the amount of money you could have made using the Fear Factor strategy.
So the retail stock I mentioned with a Fear Factor multiplier of 2.96? That was HanesBrands. For every $1 it fell in early summer 2008, the Fear Factor strategy delivered $2.96.
The retailer with a Fear Factor multiplier of 5.28? That's the fabric outfit Jo-Ann Stores. Every $1 it fell in late 2008 delivered $5.28.
Lehman Brothers? Recall its Fear Factor multiplier was 6.94.
So in the late spring and early summer of 2008, every dollar it fell could have meant $6.94 in your pocket. Nearly $7 for every $1 the best stock tanked!
Remember, the higher the Fear Factor multiplier, the more money you could have made!
And don't forget the broad market, either. The S&P 500 crashed 43.3% from the onset of the financial crisis through the first quarter of 2009. The S&P's Fear Factor multiplier during this period? 2.38.
So if you invested an equal amount of money in all 23 of the Fear Factor plays over the last 18 months, every dollar would now be $2.38.
So you see the Fear Factor is a powerful strategy that can deliver you big, big profits.
But I have to be absolutely upfront with you.
There's a tragic catch to the Fear Factor. It means there's only one way you can make it work for you and generate reliable money-doubling gains.
Skittish About Options? Don't Worry. Here are Five Ways I'll Help You Use the Fear Factor Strategy to Make Easy Doubler after Doubler
Maybe you got excited reading about the Fear Factor strategy. But then you read that it involves options. Scary. Intimidating.
I'm here to put your mind at ease.
If you've never traded options before, Strategic Short Report is the best way I know how ― especially if you're just getting started.
Let me lay out five reasons why.
1. You won't place a lot of trades. That's not what I'm all about. I've generated my money-doubling track record over 18 months with just 23 plays. That's about one play every three and a half weeks. So if you want to get in on the action, this won't take up a lot of your time and energy.
2. You won't have to obsess about the positions. These are usually longer-dated options. That means they don't expire for several months out. So you don't have to check websites four times a day to see how they're performing. Of course you can if you like, but it's not necessary. I give you a comprehensive email update every Friday afternoon.
3. I'm with you every step of the way. Every new recommendation ends with the exact words you can read to your broker if you want to execute the trade. And when it's time to book profits, I'll let you know right away. Once again, you can have the exact words in front of you on your computer screen when you call your broker.
4. You're consistently beating the odds in the options market. Maybe you've read about how 80% of options positions expire worthless. Well, that's true, and maybe that's scared you out of the options market till now. But that's never happened with one of my positions. A handful have lost money. But the biggest loss I've booked through the first quarter of 2009 is 20%. Compare that to…
5. All the money you can make! Go back to those charts showing how the Fear Factor strategy has demolished top stocks to buy, bonds and gold since the start of the financial crisis. Every $1,000 invested in the Fear Factor strategy is now $2,029. And some of the individual plays have delivered gains of 173%…224%… 238%… 334%… even 461.7%.
I've prepared a special report just for you ― the options newcomer ― ready to use the Fear Factor strategy to double your money in 18 months. It's got everything you need. Who to call, what websites to visit, the works.
It's called The First Timer's Handbook: Using Options to Generate Triple-Digit Fear Factor Profits. It's yours FREE with your subscription to Strategic Short Report. Read on to learn how to get your copy.
The Tragic Catch to the Fear Factor ― and the Only Way You Can Use It to Generate Steady, Reliable Triple-Digit Gains
Maybe you've figured it out already.
The catch is this. The "Fear Factor" strategy isn't something you can do on your own.
You can't just pick a random best stock, calculate its Fear Factor multiplier, and execute the Fear Factor strategy if the multiplier looks high enough.
After all, you'd have to know how much the best stock for 2010 was going to fall.
And how much money you could make by applying the Fear Factor strategy.
You could never know those things in advance for certain, but how in the world would you go about estimating the potential?
You'd have to crunch dozens of numbers. Pore over a company's balance sheet and income statement. Study its filings with the SEC.
And you'd have to consider the bigger picture. The Federal Reserve. Monetary policy. Political decisions in Washington. And how all those things affect both the company and the sector it competes in.
Sounds overwhelming.
To understand a company's numbers, you'd need to be a chartered financial analyst.
To understand the bigger picture, you'd need a rock-solid grounding in macroeconomics.
But you don't need any of those things to execute the Fear Factor strategy and bag average gains of 102.9%.
Because I do all of that for you.
All you have to do is read and follow my Fear Factor recommendations.
It couldn't be easier. I've closed out only 23 plays in 18 months.
So it doesn't take a lot of time, or energy, or extra money.
No obsessively checking on your positions eight times an hour. No endless commissions to fork over to your broker.
In a few moments, I'll show you some concrete examples of how I pulled off some of the incredible Fear Factor results ― results that can turn $1,000 into $2,619… $3,383… even $5,718.
I'll walk you through it step-by-step. When you see the Fear Factor strategy in action, you'll see how sensible, how logical, and how understandable it is.
That's because it uses the same common-sense principles that make investors good money during bull markets. Only it turns those principles on their head to make even better money during bear markets.
Most of the time, I recommend my readers do it using put options.
Don't let that scare you off if that's new to you. In a few moments, I'll show you five ways I'll help you use the Fear Factor strategy to make doubler after doubler.
So by now, you're probably wondering about my background. What I bring to the table with the Fear Factor strategy. So allow me to introduce myself.
How I Developed the Fear Factor Strategy… and How It Can Double Your Money 23 Times in 18 Months
My name is Dan Amoss.
And I'm one of those lucky people who feel like they're born to do the work they do.
Everything that's happened in my life has led me to where I am now ― executing the "Fear Factor" strategy to double the money of people just like you.
I developed an early interest in business and finance. So I was admitted to a good school with a good reputation for teaching those things.
That's not unusual. Here's what is.
I started college around the time the dot-com boom started to bust.
My classmates hardly noticed. No offense to them, but they were too busy partying. So they had enough trouble just learning how to read a company's balance sheet and income statement.
For me, it wasn't just enough to ace those things. I got really curious: How did the tech bubble get so big? What were the root causes?
I sought out tons of information in books, in journals, and online. (In fact, I was one of the earliest readers of Bill Bonner's e-letter The Daily Reckoning.)
At this moment, I got a really lucky break. The first of three, actually.
The Three Lucky Breaks That Led Me to Create the Fear Factor Strategy ― and Give You the Chance to Double Your Money Over and Over
See, I majored in business. But I took economics courses on the side. And I found a mentor in a professor named Thomas DiLorenzo.
Maybe you've heard of him. He's a senior scholar at the Mises Institute. And he's written popular books like How Capitalism Saved America and Hamilton's Curse.
DiLorenzo introduced me to the works of the great "Austrian school" economists like the Nobel laureate Freidrich von Hayek, and Hayek's mentor Ludwig von Mises.
So I started putting the pieces together. All that insane speculation in dot-com stocks that had no earnings? It couldn't have happened without the easy-money policies of the Federal Reserve in the 1990s.
Of course, that's almost common knowledge now. But I already understood it while it was happening.
So then I graduated, and it was the worst possible time to look for a first job. The tech bust had hit full force. The economy was hitting bottom.
I wanted to stay close to my family in the Baltimore area. But the big finance firms in town ― T. Rowe Price and Legg Mason ― had a hiring freeze.
This turned out to be another incredibly lucky break.
I landed an analyst job at a company that managed a top-ranked small cap mutual fund. Instead of being an anonymous drone at a big firm, I came under the wing of another mentor, fund manager Robert McDorman.
So right away I got up close and personal with CEOs who came into town to make their case for the fund to buy their shares. With Bob's guidance, I quickly figured out when a CEO was being straight-up… and when he was giving a song and dance.
And all the while, I continued my education… completing three years of rigorous training as a chartered financial analyst (CFA).
As great as this experience was, I was starting to chafe a bit. Sure, I enjoyed studying companies' business plans and raw numbers.
But I had little opportunity to flex my economics training. I knew the housing boom was a bubble that had to burst sooner or later. I knew the financial sector was making way too many irresponsible bets.
I knew it wouldn't end well. But I couldn't put that knowledge directly to work to make money for folks like you.
That's when I got still another lucky break.
Bestselling author Addison Wiggin was looking for an editor to add to his industry-leading team of analysts at Agora Financial ― a team that called the housing bubble way back in 2004.
It was the perfect match. Especially since I could do both the bottom-up analysis of a company's numbers, and top-down analysis of the big economic picture.
So I jumped at the chance… and got down to work right away, developing the outlines of the Fear Factor strategy.
Born at the Start of the Financial Crisis… The Fear Factor Strategy's Proven Record of Average 102.9% Gains
On August 22, 2007… five days after the financial crisis hit full force and the Fed launched its emergency interest rate cuts… I put the Fear Factor strategy into effect.
And I was finally doing what I was born to do ― using all of my skills to make big money for people like you.
During 2008, thousands of my readers racked up gains of 92%… 162%… 173%… 238%… even 462%.
Some of them were making the first option trades of their lives.
Others are recently unemployed… but now think they can retire this year.
Reader Marty R. writes, "I feel almost guilty at all the money I've made."
Wouldn't you like to have that "problem"?
For still others, their biggest worry is how their stellar performance will affect their tax bill.
Wouldn't that be a nice problem to have?
Especially at a time like now. That's what many readers of my premium service, Strategic Short Report, tell me:
| Grateful in this market environment "I have you to thank for an approximately 450% gain. I am very grateful, especially in this market environment." |
― Pat M. |
| If only I'd found you sooner! "Actual profit less commissions… 442%. If only I had found you before I lost 85% of my resources following other services!!!!" |
| ― Bruce H. |
| Safe harbor in a bear market "I could not thank you enough for doing this service. Without it, I would have lost a lot more money in this bear market." |
| ― Wyzzy" |
And they don't tell that just to me. They shout it from the rooftops.
Strategic Short Report is the highest-rated premium research service by readers of investment newsletters on stockgumshoe.com.
Folks there don't mince words. If they think a service is lousy, they'll say so. But when they talk about Strategic Short Report, they say…
| Made double my subscription cost in 3 months "I've made over double the subscription cost in profit in 3 months." |
| ― "Tampat" |
| I value this service the most "Dan seems to have an almost uncanny ability to spot opportunity. I have several services and this is the one I value the most." |
| ― "ahappyfred" |
| Best service I've used "This is the best service I've used. I've lost lots of money with other newsletters, but had some big gains in this one. I think Dan will do well in any kind of market." |
| ― Dustin |
But I don't want you to just take the word of other people how much money Strategic Short Report can make for you.
I want to walk you, step-by-step, through real examples of real recommendations that made real money for real people.
If they can do it, so can you.
78 Days to a 462% Gain ― Step by Step
Step 1: Friday, April 25:
Strategic Short Report readers received an e-mail with the subject line, "The Next Bear Stearns."
I spell out all the reasons that Lehman Brothers is the next big investment bank to start circling the drain.
Then I spell out the exact words readers should tell their brokers if they want in. "Action to Take: 'Buy to open' the January 2009 $40 LEH Put Option (VHEMH) up to $6 per contract."
Step 2: Wednesday, June 11:
Lehman shareholders had taken a hit of 49% in 48 days. But Strategic Short Report members are already up 224% on those put options.
Now, you need to know something about me. I don't like to get too greedy. I don't like to tempt fate. I think you've already got the sense that I'm a pretty conservative guy.
So I issue an e-mail alert telling members to close out half the position ― and lock in that 224% gain.
Step 3: Friday, July 11:
Lehman shares are down nearly 70% in 78 days. The Fear Factor multiplier has shot up to 6.94… and the remaining half of the puts that I recommended is now up a staggering 462%!
So I issue an e-mail alert: "The chances of a sharp rally in LEH are very high. So let's take profits on the second half of your put position."
It's that simple. While your neighbors fret about the index funds in their 401(k) plans, you could be pocketing $5,617 on an initial position of just $1,000.
Nobody who got in this trade complained!
| $2436 becomes $9799! "For the Lehman puts, I invested $2436. After the two sales, I got $9,799 back!" |
| ― Gary W. |
| 250%… But I'm Not Complaining! "I got too conservative on the LEH puts and only made 250%. I am not complaining, I don't think I have made anywhere near 250% in any of my trades and I have been trading for over twenty years." |
| ― "Wyzzy" |
| $32,348 on my first option trade! "My buy price was 4.65 and I got out at 18.15 for a profit of $32,348. Not bad for my first option trade!" |
| ― Robert K. |
| 567% profit! "I held on to the 2nd half of my Lehman Brothers Puts until 9/10/08. I sold them at that time for a 567% profit. Thank you for this outstanding recommendation!" |
| ― Paul J. |
| Up to $20,000 in Profits! "I haven't added it all up, but total profits are well over $15K, perhaps even $20K. Hell of a nice return on my subscription price. The only negative I can think of about subscribing to Strategic Short Report is going to be my tax bill. I think I can handle it." |
| ― David M. |
| Ex-Lehman Employee pockets $200,000! "As a Lehman alum I was hesitant to put this one on. A cool $200,000 profit later, I'm a Strategic Short Report disciple!" |
| ― Wilson R. |
But gains like those are just half the story.
The other half is why I picked Lehman puts in the first place.
My Keys to 462% Gains: Painstaking Research ― and a Refusal to Follow the Herd
Let me share with you the "back story" on just what made that trade so lucrative.
Friday, April 25: Look, a bet on Lehman's fall looks obvious now. But back then, I was really putting myself on the line. Conventional wisdom had it that Lehman wouldn't go under.
But there's something huge that conventional wisdom overlooked.
I explained it in my first e-mail alert. See, at the time the Federal Reserve was willing to backstop Lehman bondholders. But Lehman stockholders? They'd be the first to take any losses.
And I was right. Those losses turned out to be nearly 70% in 78 days. And my readers gained 462%. Not bad, huh?
Thursday, June 5: In one of my weekly e-mail updates on our existing positions (I told you, I hold your hand through the whole process), I cite a recent New York Times story in which Lehman sold more than $100 billion in assets to clean up its balance sheet.
I told readers something was fishy. How could Lehman dump all that toxic junk without taking a huge loss? I speculated Lehman might have financed the sale to a hedge fund run by someone who used to work for Lehman.
Six days later, I tell Strategic Short Report members to take 224% profits on half of their Lehman puts.
Thursday, July 3: Bloomberg columnist Jonathan Weil publishes an expose that confirms my theory.
It turned out that the buyer of all that junk ― an outfit called R3 Capital Partners ― was owned in part by Lehman. And it was run by several recently-departed Lehman executives!
Thursday, July 10: Lehman files a document with the Securities and Exchange Commission called a 10-Q. It confirms all the dirty details about R3 Capital Partners.
The next day, I tell Strategic Short Report members to take 462% gains on the remaining half of their Lehman puts.
The timing couldn't have been more perfect. Lehman shares rallied 32% in the following week.
For many of my readers it wasn't just the big money that made them feel so good.
It was the guidance I gave them every step of the way. It gave them the knowledge and the security that they were doing the right thing, and not just blindly following some "guru."
But I'll let them speak for themselves…
| "Thorough analysis" for a 304% gain "$4319 gain for 304%. Thank you very much! Always enjoy reading and appreciate your expert and thorough analysis." |
| ― Heng L. |
| "In-Depth Research" Pumps Out $21,980 "I just sold 10 contracts of LESMH for $26.45 which I purchased for $4.47 for a total gain $21,980!! This is very exciting stuff...keep 'em coming like that if you can. I really appreciate your hard work, in depth research and thorough detailed coverage. Awesome trade Dan! You are the man!" |
| ― David Y. |
| 450% Gains During the Market's Worst Year in Decades "I have you to thank for an approximately 450% gain on this trade. I am very grateful, especially in this market environment." |
| ― Pat M. |
| 442% ― "If only I'd found you first" "Actual profit less commissions ― 442%. If only I had found you before I lost 85% of my resources following other services!!!!" |
| ― Bruce H. |
| 428% ― "Best market deal I've ever had" "I paid $4.93 on May 6th at a total cost of $1501.92 and then sold at $26.50 netting $7,922.92. I made profit, after fees, of $6,421 or 428%. The best market deal I've ever had!" |
| ― Steve S. |
So there you have the story of my biggest win ― so far ― in the 18-month history of Strategic Short Report.
I wanted to give you an idea of the thinking that goes into every Fear Factor play.
Let me show you another example. This is from a few months later. By this time Lehman is gone and the best stock market is in full-blown meltdown mode.
And yet… one smart play on one shaky retailer netted a 238% gain.
How "Big-Picture" Thinking Nets 238% More Gains
Thursday, September 25: I recommend put options on the fabric retailer Jo-Ann Stores.
Four Wall Street analysts cover the best stock. I think every one of them is wrong about falling sales. I write:
"Are these optimistic analysts reading the newspaper? Mileage driven by U.S. consumers is down, so retail foot traffic is down. Foot traffic is vital to Jo-Ann. As it slows, Jo-Ann will have to step up its spending on promotions and advertising."
"Expect lower discretionary spending in the coming months ― right when Jo-Ann needs it to meet earnings guidance."
Of course, I also took a good hard look at Jo-Ann's balance sheet. I found a huge rent bill it pays to the owners of shopping centers. "After paying suppliers, employees, landlords, creditors, and the tax man, Jo-Ann is left with precious little cash to return to shareholders. A slower consumer economy could easily shut down Jo-Ann's current trickle of free cash flow."
Friday, November 7: Jo-Ann reports its quarterly sales figures are down. I tell readers to hold on tight.
Friday, December 5: Jo-Ann reports poor earnings. I say the chain faces a real challenge getting shoppers in the door: "Jo-Ann must sacrifice profit margin to generate sales volume." Steady as she goes.
Friday, December 12: I tell readers in my regular Friday update to expect monetary "shock and awe" from the Federal Reserve. The Fed would meet the following week to decide on interest rates.
I figured on a big rate cut to goose the stock market. So I gave readers a heads-up: Expect a sell order before the announcement is made on Tuesday the 16th.
Tuesday, December 16: I issue an alert first thing in the morning: "Let's take some profits ahead of today's Fed meeting."
The Fear Factor multiplier on Jo-Ann had reached 5.28. Time to cash in those Jo-Ann puts for a gain of 238%.
Hours later, the Fed slashes rates to historic lows. The Dow rallies 4.2%. JAS shares rallied 30% over the next two weeks.
Once again, the appreciative e-mail poured in.
| A 252% Gain! "I bought for $2.50 on 9/25, and sold for $8.80 on 12/2. Thanks!" |
| ― Bob K. |
| Up 232% ― No complaints! "I cashed mine in over a month ago. Bought at $2.40 and sold at $7.92. No complaints!" |
| ― Michael F. |
| An $1100 profit! "Pulled the plug at $8 for a $1,110.00 profit. Keep up the good work!" |
| ― Patrick G. |
| 222% Profit! "222% profit on this one. You are doing a really great job!!!!!!!!!!!!!!!!!!!!" |
| ― Herb K. |
(Yes, those 20 exclamation points were his, not mine.)
So now you have a pretty good idea how I weave together the strands of retail trends, a company's balance sheet, and Fed policy into gains of 238%.
By now, you might telling me: "Sure, you do a fantastic job when the market is tanking. But what about when the overall market is flat, or even rallying? There are fewer top stocks to buy against. How do you make the Fear Factor work when there's less to be fearful about?"
A great question. It deserves a great answer.
How about a 338% gain?
An "Uncertain" Investing Environment… But Not for Strategic Short Report Readers Who Bagged 338%
Friday, November 14. An incredibly tough time to figure out where to invest.
The stock market was recovering slightly from the body blow it took in September and October. Would the recovery last?
A new president had just been elected. What would he do?
It was what the business press calls an "uncertain" investing environment.
But on this day, I was certain about one thing. I wrote, "There's every reason to expect radical new inflation policies in the coming months."
Remember, I'm keeping an eagle eye on the Federal Reserve and on Washington, D.C. On top of the income statements and balance sheets of literally dozens of companies.
"How can you profit from this unprecedented inflation?" I continued. "By owning precious metals and precious metals stocks."
I tell readers to pick up call options on GDX ― an exchange-traded fund (ETF) made up of gold mining stocks.
Again, I'm really swimming against the tide on this one. Mainstream analysts see no inflation threat on the horizon. But the potential payoff becomes apparent in just one week.
Friday, November 20. GDX rises 20% in one day, after rallying much of the week. The calls of course are up much more. But I say it's not too late to get in.
Friday, January 2. The GDX options have now tripled. But I say hold on tight, they've got more room to run.
Friday, January 16. GDX has climbed back down from its year-end 2008 highs. Readers are getting nervous. But I say stay the course. "I don't think Bernanke and the Fed are bluffing, and I recommend you operate under that assumption."
Friday, February 20. I issue an alert to sell. "It looks like day traders are piling into gold just because it's going up. So there's a good chance that gold prices and GDX will correct in the coming weeks."
Result? A gain of 338%.
Oh, and sure enough, GDX fell 20% in the following three weeks.
No, not a play on falling top stocks market. But my readers weren't complaining…
| 275% profit! "In at 3.20, out at 12.00 = 275% profit." |
| ― Brian R. |
| Nice job, good call! "I sold at $12 booking 287% profit. Nice job, good call." |
| ― Daniel C. |
| Well worth the price "I got in at 3.00 and exited today at 12.10 for a 303% profit! Not too shabby for 3 months. You are well worth the price of a subscription. Great work as usual, Dan!" |
| ― Derek L. |
| 330% gain! "I bought in at $2.75 and sold at $12 for a 330% gain! My only wish was that I would have bought more. Keep up the good work. Can't wait for the next recommendation!" |
| ― John K. |
| Nearly 5 Times My Money! "Excellent trade... I split my buy at $3.00, $2.50, and $2.00. Today I exited at 11.80 and booked a 4.8x return. Dan is the man!" |
| ― Quint B. |
So you see, it doesn't matter whether the market is going up or down. I make the Fear Factor strategy work even when fear isn't sweeping the markets. Strategic Short Report has you covered either way.
So when do I issue the next Fear Factor play, you ask?
The Next Fear Factor Play ― Coming Out in as Little as 24 Hours
Here's the thing.
I don't issue my Fear Factor plays on a set schedule.
I think by now you understand why.
At any given time, I'm evaluating the income statements and balance sheets of literally dozens of companies. And all the while, I'm keeping an eye on what the Fed, the White House, and Congress plan to do next.
That's a lot of variables to watch.
Point is, the stars don't align for the ideal Fear Factor play like clockwork.
I call 'em when I see 'em. And I strike when the opportunity is hottest.
I said earlier that on average, I issue a new Fear Factor recommendation about every three and a half weeks. Call it 25 days.
But… I've gone as long as 35 days between recommendations. And I've gone as little as three days.
My most recent recommendation? June 19. It's not too late to get in on that one… but it could rocket up past my buy price very soon.
Point is, I could issue my next Fear Factor recommendation literally any day now.
I mean, less than 24 hours.
You wouldn't want to miss out on the next chance to bag a gain of 92%, 162%, 173%, 238%, even 462%, would you?
But just in case you're still skeptical, I'd like to give you the chance to try out six months of Strategic Short Report - absolutely FREE.
Get Six Months of Strategic Short Report - Absolutely FREE
How much would you be willing to pay for access to a proven strategy that's doubled every dollar invested since the start of the financial crisis?
How much would you be willing to pay for access to a proven strategy that's turned $1,000 into $2,619… $3,383… even $5,718?
Fact is, you could have bought just one contract of every position I closed in 2008… and you'd have enough money to pay for a one-year subscription to Strategic Short Report four times over.
And that's if you paid full price of $1,995.
That's how much we normally charge for Strategic Short Report.
That's more than enough to cover the gains of the most conservative investor who puts the Fear Factor strategy to work.
But until I issue my next recommendation, you can access a year's worth of service for the price of just six months.
That's right ― a full year of Strategic Short Report at HALF off ― just $995.
That's not much money to ask for a service that recently sent out a play that rocketed up 462%. A service that averages 103% over every single play it's ever published…
But this offer is strictly limited to only the most enthusiastic and able readers.
It expires as soon as I issue my next recommendation.
I'll say it one more time. I don't know exactly when that will be. It depends on dozens of variables. I've gone as long as 35 days between recommendations. And I've gone as little as three.
My last recommendation came on June 19. So my next one could come literally any time now. Within 24 hours even.
And when that recommendation hits the inboxes of my current subscribers, this offer is over. You can still sign up after that ― but only at the regular price of $1,995.
Besides, why would you want to miss out on even one of my recommendations when our average performance is a gain of 102.9%?
With a track record like that, you'd pay for your already discounted membership in just one or two plays, anyway…
Try Strategic Short Report With
Absolutely No Risk
When you sign up to try out Strategic Short Report for six months FREE, you'll have 60 days to take advantage of all these member benefits:
All of this is yours to study risk-free for 60 days. If at any time during those 60 days, you decide the Fear Factor strategy isn't your bag, you can call a toll-free number and cancel. You'll get all your money back, and you can keep your FREE special reports.
I think that's a plenty fair deal, don't you?
But I believe so much in the power of the Fear Factor strategy, I want to take this protection to a whole new level.
Our One-of-a-Kind Guarantee: The Fear Factor Strategy Gives You a Chance to Double Your Money… or Your Money Back
I'm going to take this guarantee one step further. A guarantee keyed directly to the performance of my recommendations.
It works like this. Once the 60-day unconditional refund period is up, you still have a performance-protection guarantee. My recommendations during your one-year membership must average 100% or better… or you can ask for your money back.
In other words, my average performance has to work out to double your money… or you're entitled to a full refund.
That's been my performance for the first 18 months of Strategic Short Report's existence. I think that's the least I can guarantee for you.
And that guarantee applies for your entire subscription term.
So if on the 364th day of your subscription, I'm not generating average money-doubling gains, you can still call and get your money back.
But I'm confident you'll never have to place that call. I think you'll be more than happy with the triple-digit gains you'll have socked away.
Better yet… you'll have the security of knowing you can use the Fear Factor strategy to generate steady, reliable triple-digit gains while everyone else is losing their heads.
That's real peace of mind. And isn't that what you're looking for at a time like this?
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