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There's no way to eliminate risk 100% when it comes to investing.
I can't do it. You can't do it. And if anyone tries to tell you otherwise, take your money and run.
There's just no such thing.
Yet, unbeknownst to most investors, there is a way to make any investment risk "free" under the right circumstances, using one of my favorite Total Wealth Tactics: the "Free Trade."
Not only does this remove risk from your portfolio, but it means you can potentially build profits faster, more consistently, and more securely than you might think.
Doing so is a critically important concept given current market conditions.
We'll always have market corrections… but corrections, I might add, that you don't have to fear if you understand what we're going to talk about today.
This is your moment of truth…
You can read today's column and bin it, or you can rethink what you know about what it takes to achieve the kind of life-altering profits that make the financial future of your dreams possible.
The way I see things, no investor ever has to suffer the ravages of a market correction – let alone a bear market – if they're prepared.
The concept is nothing new.
The allure of risking nothing and gaining everything has been around for centuries…
…the Tulip Bulb Crisis of 1634–1637…
…the South Sea Bubble of 1711…
…the Florida Real Estate Crash of 1926…
…Bernie Madoff's Ponzi scheme…
So, why is it that you hear the term "risk free" in widespread use today?
Because Wall Street only associates risk with loss.
That's why you're led to believe that U.S. Treasuries and other government paper are "risk free" investment choices, even though you and I both know there are risks inherent in every investment.
It's a game of semantics.
It's also a game, incidentally, that Wall Street's big traders desperately want you to play because it forces you to implicitly buy off on the most profitable strategy of all (for them) – diversification.
No doubt you've heard that term before – just probably not like I'm about to explain it to you.
"Diversification" Is a Marketing Tactic, Not an Investment Strategy
Diversification is the idea that if you spread your risk around in different asset classes and investments – like stocks, bonds, cash, real estate, and the like – you'll be better off. The thinking is that not everything can possibly go down at once.
Like risk, diversification is a concept that's been around for a while.
You Must Act Now: America is headed for an economic disaster bigger than anything since the Great Depression. If you lost out when the markets crashed in 2008, then you are going to want to see this special presentation…
In fact, the theory was first noted in the book of Ecclesiastes, written around 935 B.C.
It's also mentioned in the Talmud. Even Shakespeare picked up on it in "The Merchant of Venice" hundreds of years ago.
The problem is that it doesn't work.
At least not like legions of Wall Streeters keen to separate you from your money would like you to believe.
Ask anybody who got their portfolio halved twice in the last 15 years – first during the dot.bomb implosion from 2000–2003, and then during the ongoing financial crisis that kicked off in 2008 with a vengeance.
"Everything" went down at once… both times. And people who were "letting their winners run" got taken to the cleaners.
Don't take my word for it, though.
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.