“Symmetry is for suckers”… That’s storied speculator Doug Casey, one of the founders of Legacy Research. What’s he talking about? Not physical beauty… Studies show we find symmetric faces more beautiful than asymmetric ones. Great architects, artists, and designers also prize symmetry in their work. But when it comes to speculating in financial markets, great investors look for the opposite – asymmetry. They look for setups where small stakes can deliver big wins. I (Chris Lowe) am talking about gains of 1,000% and up… with stakes as small as $100. As you’ll see today, one overlooked investment type fits the bill perfectly. It’s already given Legacy readers the chance to make returns of 1,363%… 2,805%… and 4,942%. And an event next month could lead to an even higher gain. But before we get to that, some important perspective… The 4,942% gain I mentioned turns $1,000 into more than $50,000… If you double that stake, you net just over $100,000. That’s enough to move the needle on most folks’ wealth. You could use it to pay off a big chunk of student debt… or a chunk of a typical mortgage. It’s also enough to take the vacation of a lifetime. Now, not every asymmetric speculation will pay off that much. And as with other strategies, you’ll have some losers along the way. But if you put $1,000 into 10 separate trades like this, the most you can lose on each is $1,000. Your total amount at risk is just $10,000. And here’s the beauty of asymmetry: Even if just one of your trades pays out $50,000, that more than makes up for any losses among your other nine bets. So where did this 50-to-1 winner come from? It was a trade using something called a stock warrant. And it was in the model portfolio at our Strategic Trader advisory, which Dave Forest heads up. Daily Cut regulars know Dave trained as a geologist and made his mark as a natural resource explorer, financier, and speculator. He first used warrants as part of his investments in mining companies. Now, he uses them to target returns of 1,000% and higher on some of the most powerful market megatrends we track in these pages. Dave’s open warrant recommendations include ones related to precious metals, self-driving cars, and 5G. Typically, a smaller company issues warrants to sweeten the pot for investors who buy its shares. So you can often scoop up warrants for pennies. TRENDING: Jeff Brown's Big Reveal in Silicon Valley If the company’s share price rises above a certain agreed-upon level, known as the strike price, you can exchange your warrants for newly issued shares. You pay only the strike price for each share. That’s what makes warrants such low-risk, high-reward bets. If the company’s shares hit the strike price, you get to own them for a tiny fraction of what you would have paid if you’d bought them directly. More on this from Dave… There’s risk in everything… even in holding dollars in your pocket. But with warrants, the dollar amount you’re speculating with is much less than when you buy shares outright. So you can control your risk. To use a simple example… if shares in a company trade for $10, and its warrants trade for $1, the warrants let you control the same number of shares for a tenth of the cost. If you control 1,000 shares via warrants, the most you risk is $1,000. That’s instead of the $10,000 if you invested in regular shares directly. And when warrants pay out, the gains can be massive. That’s why billionaire investors like Warren Buffett and Carl Icahn love them. They’re a speculator’s dream. That 4,942% win at Strategic Trader is a case in point… It was on warrants issued by mattress retailer Purple Innovation (PRPL). At the time of the recommendation, in February 2019, regular PRPL shares were selling for $5.75. But the company’s warrants, trading under the ticker PRPLW, were on offer for just 19 cents. And by October 2020, when Purple Innovation’s shares had risen from $5.75 to more than $30 – a 432% gain – its warrants had shot from 19 cents to $9.57 – up 4,942%. That’s a roughly 11.5x outperformance over the regular shares. And this quadruple-digit gain came in just under two years. That’s not to say it’s easy to find warrants that soar this high… It’s not. Fortunately, Dave is a seasoned speculator. And he’s teamed up with former investment banker John Pangere to help him sift through hundreds of tradable warrants to find the best possible setups. That’s good news for you… Because once you know these speculations exist… and the experts to follow… the rest is easy. Back to Dave… Unless you’re a billionaire financier, you’ve probably never heard of warrants. They’re kind of a Wall Street secret. But they’re actually incredibly easy to trade. You can buy and sell them through your regular online brokerage account. You don’t need any special accreditation. And you don’t need specialized expertise, like you do with options trading. Warrants aren’t for the rent money. I always remind my subscribers to never bet more on them than you can afford to lose. But if you’re looking to make real changes to your financial situation, you can’t afford to ignore them. Warrants are high-impact trades. They give you the chance at exponentially larger gains than we see with regular stocks. At Legacy Research, we’re all about leveling the playing field between you and Wall Street elites. So it’s great to see a guy with Dave’s proven track record home in on this opportunity. | Recommended Link | | Stop Reading. Urgent Buy-Alert Just Issued. Teeka Tiwari called Apple in 2003… Recommended Bitcoin before it soared 15,045%. And his NEO pick skyrocketed an astonishing 151,523% He’s just issued his next urgent buy-alert… An opportunity so potentially lucrative, a billionaire’s taken a huge stake in this tiny company. | | | -- | |
Dave already has his eye on the big warrant win… It involves an event next month related to Jeff Bezos and the company he founded, Amazon.com (AMZN). Dave says he’s never seen an opportunity to make his readers as much money as he foresees from this one. I talked to him all about it recently. I’ll pass along the Q&A of that conversation tomorrow. I hope you stay tuned. Dave says folks who get in on this trade before mid-November stand to make 49 years’ worth of profits… in just one year. It’s why he’s holding his first live event ever – for free – next Wednesday, October 20, at 8 p.m. ET. It’s called the “Zero to Retirement Summit.” It’s a way for you to get the inside scoop on this asymmetric bet. You’ll also receive a five-part training course on warrants just for signing up. So make sure to secure your spot here. In the mailbag: “We’re setting up for a Roaring ’20s of the 21st century”… Switching gears, we’re turning the spotlight on “billion-dollar trader” Jason Bodner at our Outlier Investor advisory. We call him that because he was one of the few guys on Wall Street authorized to make trades worth $1 billion and up. He now helps his subscribers profit in the stock market using a strategy he developed based on his experience. In a recent edition of The Bleeding Edge, Jason compared the flu pandemic of 1918 to the COVID-19 pandemic. And he reached an optimistic conclusion… Immediately following the flu pandemic, the 1920s saw America’s economy grow 42%. After years of pent-up demand, consumers flooded the economy with cash when they finally could. This coincided with mass production pushing products into every household. Modern automotive and airline industries were born in the wake of the pandemic. Progress, excess, wealth creation, and the “high life” all blossomed. In the wake of the COVID-19 pandemic, we’re setting up for a new Roaring ’20s of the 21st century. But one of his readers remains unconvinced… You might be right. But there is one caveat: In the 1920s, the U.S. dollar was tied to gold. Now, it has no connection to gold whatsoever. As you know, the government printed trillions of dollars out of thin air. The price of gold is being manipulated by the Fed and its agents. This is a major discrepancy between then and now. You should not ignore it in your analysis. – Vladimir M. Do you agree with Jason that we’re on the cusp of an economic boom? Or do you share Vladimir’s view that we can’t directly compare the 1920s with the 2020s? Have your say at feedback@legacyresearch.com. Regards, Chris Lowe
October 13, 2021
Bray, Ireland Like what you’re reading? Send your thoughts to feedback@legacyresearch.com. IN CASE YOU MISSED IT…
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