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Suffice it to say, this week's market rally has been a welcome respite from a month-long (though it feels longer) market free fall. But it's important to keep things in perspective.
While the market might continue its rally for a few more days, I wouldn't be surprised if it doesn't stick. We've entered a bear market environment, and any rallies we see from now on like we did this week will most likely be followed by severe drops. Especially as we get more news on growing infection numbers and a suffering economy.
And that's why I wanted to take a moment to talk to you folks about one of the perfect plays for a bear market. This will keep you ahead of the volatility still to come.
You see, bonds often get a bad rap.
A treasury bond is a government debt security that you can buy and sell just like a stock. But it offers lower yields, making it a much less attractive investment.
What many people don't know is that bonds are actually a vital source of revenue. They help to keep the lights on for governments, states, and corporations…
And they offer an ideal safe haven in bearish market conditions.
With all three major indexes down more than 20% from their recent highs, markets have officially entered bearish territory – making now the perfect time to get into bonds.
You don't have to worry about lower yields, either.
With bonds, you can come to the aid of your country, profit from rising prices, and dramatically increase your annual returns…
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.
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