Last year at this time, I posted a well proven technique for making money from what is called the "carry trade". I showed you a method whereby you can do what the big banks do and returns are nearly 100% guaranteed. You can refresh you memory here.
That was Carry Trade for the Common Man and now it is time for Hedging for the Common Man...
Fanfare please...[click]
It is simple: When gas prices are rising buy XOM or DBO. When food prices are rising buy food companies that can pass on price increases to consumers. After a nice run up, cash out. Here is the math:
BASE PRICES + (PRICE INCREASE - YOUR TRADING PROFITS) >= ZERO you win.
I have decided to buy my first iMAC computer. With the recent two day collapse of the market, I was finally able to buy a few shares of Apple Computer at a reasonable price. Apple is an unstoppable stock right now relative to the total market, so when AAPL resumes its run, I will cash out and have myself a free computer.
This is why people who spend their life watching American Idol, the Kardshians, Glee, etc. are getting poorer. But they are happy in their ignorance so I am happy for them-- after all life is short so might as well turn on the TV.
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