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Call me if you want to discuss this. (705-441-4566)

We sold covered calls on SPY first thing in the morning with an expiry date on the same day at the end of trading.

We got $197.50 US per contract. We have enough shares of SPY to live comfortably on that income without touching the principal.

We did this in less than five minutes after the market opened at 9:30 AM.

If you don’t know how to do this, I will happily show you at no charge. However, I would ask you to make a contribution to our chess tournament.

A yield curve inversion occurs when short-term interest rates exceed long-term rates, suggesting investors expect an economic slowdown. Such inversions have preceded recessions, making them a closely watched economic indicator.

The U.S. Treasury yield curve is normal today, with long-term rates higher than short-term rates. This indicates that investors have an optimistic outlook on the economy. However, the yield curve does change over time.

The market is overpriced. Without saying when, Goldman Sachs and Bank of America predict a 0% to 1% return on market investments for a decade or longer. A decade or longer!!

In declining markets, it is best to be in cash. Investors should maintain a 50/50 asset allocation. 60/40, 45/55, or a similar asset allocation also works well. Asset allocation accounts for the largest share of portfolio returns, with the market component represented by SPY.

Security selection and market timing do not contribute to returns.

Best wishes!

Call me if you want to discuss this. (705-441-4566), Also, look for our Sunday, January 11, post.

Regardless of what the S&P 500 (the US economy) does, it will recover and continue to rise.

Investors can make 16% annually, safely, selling puts calls on SPY. Only sell and never buy.

Here is how to do it.

Call me if you want to discuss this. (705-441-4566)

First, ignore market fluctuations. Regardless of what the S&P 500 (the US economy) does, it will recover and continue to rise (but not forever).

Investors can still make over $100 US (about $143 CAD) per contract selling covered calls on SPY or it’s equivalent predecessors. That works out to 16% annually, safely, and has done so for 200 years!

Here is how to do it.

Those of our members who sell puts and calls made $126.5 per board lot of SPY on the last day of 2024. That works out to 16% on investment annually, safely.

For details see “What to do when the market opens today,” published on 2024/12/30.

Best wishes for health, wealth and happiness for 2025 to you all.

Milan

Call me if you want to discuss this. (705-441-4566)

A survey of a statistically meaningful number of people showed that if they had to do it over again, most would have started saving earlier.

We have no control over market movements, taxation issues, the growth of the economy, regulatory changes, the behavior of other investors, and many other forces that influence our portfolios.  Given that fact, what is the best investment that we can make?

Increasing our savings is arguably it!

By saving and investing the right amount correctly, we can continue our working-year lifestyle into retirement.

• So, what is the right amount?
• Which is better, paying off debt or saving?
• Is paying down leases and business loans, thus building up the value of our business, the same as saving?
• How do we invest correctly?

Call me if you want to discuss this. (705-441-4566)

Regardless of what the S&P 500 (the US economy) does, it will recover and continue to rise.

Investors can make over $300 US per contract selling covered calls on SPY. That works out to 16% annually, safely, and has done so for 200 years!

Here is how to do it.

April 2000                                            April 2024

Gold is being heavily promoted. “Smart investors hold gold,” they say.

The 117-year real return from gold is just above half a percent annually. Unlike most stocks, gold holds its value. Today, a given weight of gold buys the same amount of barley, wheat, or any other staple as it did 5000 years ago.

The chart above shows gold (yellow line) versus SPY  (black line) over four years.

Here is what we should do.