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Why Smart Speculation Will Beat “Buy and Hold” This Year

Video - Rachel Gearhart and Marc Lichtenfeld

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From Delaware – I’m writing to you from my holiday getaway place. It’s close to the beaches and Indian River Inlet Bridge on Delaware’s coast.

Thankfully, the weather is supposed to be spectacular here this weekend… unlike this past week!

Indian River Bridge

Indian River Inlet Bridge, Delaware. Kyle Kaminski Photography. You can see more of his photos here.

Nature put on quite the pre-holiday show for us on Thursday night. I smiled watching the sky boom, crackle and flash, knowing that I would soon write to you about exhilarating lightning strikes of a different sort altogether.

Today’s Market Wake-Up Call is all about market “lightning strikes” – and why Chief Income Strategist and biotech expert Marc Lichtenfeld is changing his decades-long focus from buy-and-hold investing to shorter-term trading.

Marc calls these shorter-term profit opportunities Lightning Strikes. Appropriately, he’s the founder of our premium research service Lightning Trend Trader.

For more than six years, Marc has used his Lightning Strikes to give Members the opportunity to make incredible gains, like 2,381% on AbbVie (NYSE: ABBV) in 10 months and 398% on Idexx Laboratories (Nasdaq: IDXX) in four months, among many other double- and triple-digit winners. While those examples were partial trades where Marc took money off the table early, the gains are real – and they demonstrate how powerful this approach can be. The average return on recommendations Marc has made in this service since its inception is 23.4%.

Listen in on his Market Wake-Up Call discussion with host and Associate Franchise Publisher Rachel Gearhart. Rachel digs in to find out why a long-term dividend stock investor like Marc would suddenly move from buy-and-hold investing to short-term trading this year – and why he thinks you should too.

“We’re in a really unique time in the market right now,” Marc says in today’s video. “The market’s been white-hot, and it’s really providing just amazing trading opportunities.”

Marc adds that he sees particularly profitable opportunities in trading the biotech sector.

Recently, you may have seen me host Club presentations in which we focused more on short-term trading than on investing. And that may have left you wondering… have we abandoned our long-term Pillars of Wealth asset allocation approach?

Of course we haven’t. Your overall investing strategy should always begin with firming up your foundational portfolio. That means holding an asset-allocated mix of stocks, bonds, real estate, and gold and precious metals that is appropriate to your risk tolerance and your timeline for retirement.

And thank goodness we have that allocation this year! I’m still somewhat surprised – as you may be – when I look at the chart below…

Chart - GOLD VERSUS THE S&P 500 over last 20 years

And as Marc pointed out in a recent Wealthy Retirement article, real estate investment trusts (REITs), while they have lagged behind the S&P 500 this year due to the pandemic and fears of delinquencies in rental income, are a great value right now. And their income yields are strong, averaging 3.97% annually. Also, REITs have outperformed the S&P 500 in 15 of the past 25 years. So, like gold, real estate and REITs are an important allocation in our Club model.

So what about your stock portfolio? Top Club experts are turning more and more to shorter-term trading to make outsized gains in this whipsawing market. Look at the S&P’s performance this year in the chart below. Are you comfortable with 100% buy-and-hold investing for the long run if we continue having this type of volatility and a market that is essentially flat for the year?

Chart - Up and Down, But Flat Overall

Of course, while you can trade on volatility for big gains, shorter-term trading does come with its own risks and a bigger time commitment.

But rest assured that our approach at The Oxford Club is to teach you what I call “smart speculation” strategies. There’s a smarter, easier way to trade, where you don’t bet the farm and you implement certain protections that limit your losses while delivering huge upside. And our Club analysts can do most of the heavy lifting for you when it comes to research and the time needed to find the best opportunities.

First, you’ll want to determine exactly how much of your stock portfolio funds should be allocated to trading for short-term profits. Then, you’ll learn our editors’ lower-risk approaches to trading stocks and options that can give you huge (double- and triple-digit) return potential in just weeks or months, just as Marc has done for his subscribers with his Lightning Strike approach.

Marc is an excellent teacher of how to get a big payday using smart research from his Lightning Trend Trader VIP Trading Service.

For more information on Marc’s premium research, click here.

Enjoy your Sunday,

Julia