Today I want to share with you a classic investment strategy that's perfect to use when market volatility is high.
I've even given it a brand-new nickname to reflect our focus on the "New West" of Silicon Valley tech stocks.
I call it the "Cowboy Split."
And I'm going to show you that when employed properly, the Cowboy Split will protect you from volatile markets.
But that's not all.
If your stocks go down, on the recovery, you make more money…
An Investment Strategy Perfect for Today's Market
Back on June 27, I told you I believe we are still in the early stages of a generational bull market. That's one that could run for up to two decades.
The U.S. economy continues to gain momentum.
Cars and light trucks are selling at an annual run rate of 16.3 million units. We've had the best five-month stretch of job gains in several years. And we just learned gross domestic product (GDP) expanded at a 4.0% annual rate in the second quarter.
Tech is again leading the way with high corporate profits, strong cash flow, and great operating margins.
However, in that report, I also said that we would see setbacks along the way. No bull market advances without occasional corrections and sell-offs.
Indeed, the markets recently become more news-driven than usual.
U.S. Federal Reserve Chairwoman Janet Yellen's remarks about "stretched" small-cap, biotech, and social media stocks spooked the market for a couple of days. And investors are also concerned about Argentina's second bond default in 13 years, Israel's offensive in Gaza, and Russia's connection to the downing of a Malaysia Airlines passenger jet in Ukraine.
On top of all that, I've spotted a depressing trend this second-quarter earnings season – companies with the slightest hint of trouble see their stocks quickly sell off.
But I'm not worried. This is a great time to take a defensive approach to investing in tech stocks.
Today I'm going to show you an easy-to-use investment strategy that will help you maximize your gains on some of the great tech stocks that could be offered at a discount soon amid volatility and a panicky, over-reactive market.
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.