It’s Starting To Feel & Look Like 2000 And 2007


Manage episode 160116430 series 1063725
על ידי Joshua Belanger התגלה על ידי Player FM והקהילה שלנו - זכויות היוצרים שמורות למפרסם, לא ל-Player FM, והשמע מוזרם ישירות מהשרתים שלכם. הירשמו כדי לעקוב אחר עדכונים ב-Player FM, או הדביקו את כתובת העדכונים באפליקציות פודקאסט אחרות.
Slumps suck! That's how things are for me right now. There's just not much opportunity with how I approach trading options right now. And the few opportunities that have popped up haven't worked in my favor. The financial markets are a great equalizer. Just like in sports, players go on streaks. However, at the end of the season, their averages normalize because they end up going through slumps as well during a season. No one can have a consistent hot hand in the financial markets. It's about being consistent which means doing the same thing even when things aren't working for you in the short-term. While looking for opportunities today, I saw this interesting fact today. According to The Wall Street Journal, the S&P 500's price-to-earnings (P/E) ratio is now over 25. That means investors are willing to pay $25 for every $1 in current earnings today. That's 56% higher than the historical average P/E of 16. The S&P 500 has only had a higher P/E ratio two other times in history… Can you guess when that was? 2000 and 2007. No one knows when this turns, but it will. If I had profits from long underlyings, I would be closing them down right now. What I am doing is building a core position with shorting the S&P 500 and selling puts against it. Once volatility does come back into the market, I will be looking at trading options on the SPX. If you believe the market is ready for a meltdown and want to start learning how to use options to survive and thrive, I have a very simple approach that will help you. I changed the name from SPX Method to Weekly Options Trading Income System I haven't made it available for sale for over a year, but I've had several requests to make it accessible again so here you go. To your wealth, freedom and options! Joshua Belanger

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