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I spent all of Monday with my wife and kids riding out Tropical Storm Emily. If you live in Southwest Florida like I do, you probably did too – I hope your family and your property are safe.
Now, this storm was nothing compared to last year's historical Hurricane Hermine, which was the first one to make landfall in 11 years…
But there's one key lesson from both.
And with an even worse "storm" brewing right now – one that will affect all of us no matter where we live…
It's absolutely crucial that you take the next two minutes to read this.
Why You Need Protective Puts in Your Trading Arsenal
My family and I live in what we consider to be a type of paradise. The temperature is almost always nice, warm, and calm, and we have easy access to the water whenever we want to spend some time together on the boat.
But there are times when a tropical storm, or even hurricane, can hit us out of nowhere – like Tropical Storm Emily:
That's why we always need to be prepared. We need to to have our water reserves full, our food supply stocked, and our insurances polices in place.
And the same is true when it comes to the financial markets…
Think of the bull market we've been in over the past several months (really, since Election Day) as like the weather down here in Florida. It's wonderful, warm, and pleasant… but it can turn at the flip of a dime.
And as you know from Friday, some economists, fund managers, and even Wall Street are bracing for what has the potential to be a financial crisis.
Now, no one truly knows exactly when this could happen and when the markets will correct from these historic highs. After all, they've been saying this ever since President Trump won the election. On top of that, it's only deemed a "correction" when markets experience a 10% pullback in the opposite direction. But it's better to be prepared before it happens instead of watching, waiting, and hoping for the best when it does, which could cost you a lot of sleepless nights.
That's why I'm talking about this now…
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.