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In a Soaring Market, Downside Protection Is Cheap (and Very Smart)

It sure seems like these markets can keep going up and up forever; the Dow blew right past 22,000 yesterday – its sixth consecutive record day, no less. And this comes on top of July shaking out to be the second-best month on the Street all year.

Beyond the usual crowd of permabears, you'd be hard-pressed to find too many voices calling for a correction or crash. Some of them have been calling for a crash since Election Day – Ronald Reagan's Election Day!

Still, there's a certain quiet apprehension out there among economists, big fund managers, and analysts, according to a recent CNBC Fed survey.

Now, stocks very well could go higher, 10% or maybe even more once tech gets its mojo back. But there are two very good reasons to prepare for a dip of some kind.

No. 1 is simple: It's your money, and it always makes good sense to protect it. "Prepare for a rainy day."

No. 2 is probably the most compelling reason: When markets are heading higher the way they have been, "insurance" is "on sale."

Remember, nothing goes up forever, even if it may "want" to, so let me show you the best way to do that right now...


Income Investors Will Look Very Smart with These Gains

Call it the "Summer of Pain." All the major indexes are down for the year, flirting with textbook "correction territory."

Utility stocks, as tracked by the Utilities SPDR ETF, have been among the hardest hit. The XLU ETF is now off an eye-watering 20% from its February 2015 highs.

The trouble is, the utility sector is a massive favorite among income investors, thanks to its stability and generous yields. XLU, for instance, pays close to 4%.

And the simple play I'm about to show you will make sure you get paid all year while taking the bite out of some of the downside risk...