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This Is When Fortunes Are Made

How To Make Money in Good Times and Bad

By Brian Hicks
Thursday, September 25th, 2008

"This is when fortunes are made."

That's what a friend and colleague told me yesterday as we talked about the current state of the domestic and global markets.

Whenever this guy speaks on the markets, I listen closely. Just shy of 40 years old, he's built a fortune most men in their 50s and 60s only dream of.

And he's a wildly successful investor for 3 reasons: 1) He never overpays for an asset, 2) he's patient and 3) he knows how to manage risk.

Yesterday I asked him to run down a list of investments he currently owns. Without hesitation, he rattled off:

  • gold bars,
  • gold dust,
  • Krugerrands,
  • US treasuries,
  • Canadian treasuries,
  • a select group of junior mining stocks and
  • a handful of MLPs (Master Limited Partnerships that) that kick off fairly large yields.

He also told me he was very close to getting very active in oil and gas income trusts... and in real estate.

Oil and gas I understood, but real estate? He explained... "I'm thinking about making ‘stink bids' on property to see if anybody bites."

What's he consider a "stink bid?"

"An offer 50% below market price."

Even though he had exposure to the stock markets, he reinforced to me that "you have to protect the cash, because it's cash that will let you pick up insane bargains while everybody is selling."

On this point he was emphatic... "This is when fortunes are made."

Indeed.

How to Make Your Fortune

Nobody knows when the bottom will occur. But I have to think we're getting somewhat close.

Think about it...

  • Congress is holding hearings on the credit crisis

  • President Bush spoke last night to the nation on the bailout

  • Warren Buffett made a $5 billion investment in Goldman Sachs

  • There's blood in the streets... Lehman Brothers is gone... banks are failing...Fannie, Freddie, AIG, Bear Stearns and Merrill Lynch would all be dead if it weren't for government intervention

  • The Wall Street crisis is all the media is talking about

Moreover, last week we witnessed a panic run on banks as consumers and companies alike put in an estimated $500 billion worth of sell orders from money market accounts.

The week before? $7.1 billion was withdrawn from money market accounts.

But regardless of when the bottom occurs, that shouldn't stop you from making money. Because it hasn't stopped us.

And that's our goal - to make money in good times and bad.

And that's exactly what we've been doing.

Take options trader Ian Cooper, for instance. He initiated an option call trade on ExxonMobil last week... a week when the US market was described as "Armageddon." We're already up 22% on the XOM calls.

And in Ian's Options Trading Pit service, the gains have been nothing short of extraordinary. Take a look...

CompanySymbolExchange Buy DateSell DateBoughtSold Gain/Loss
Coca Cola Enterprises November 20 put - From Options BlogCCEWD.xoption2008-05-282008-07-21 $1.05$3.80 261.90%
CurrencyShares British Pound Sterling December 2008 177 put — exited halfFFKXU.xoption2008-09-032008-09-11 $4.70$5.90 25.53%
CurrencyShares British Pound Sterling December 2008 177 put — exited halfFFKXU.xoption2008-09-032008-09-12 $4.70$3.70 -21.28%
Expedia Inc. October 22.50 put - From Options BlogUEDVX.xoption2008-05-282008-07-21 $1.80$5.10 183.33%
Fannie Mae December 2008 9 put - From Options BlogNJWXH.xoption2008-07-142008-08-21 $3.80$5.55 46.05%
Freddie Mac January 2009 6 put - From Options BlogFREMQ.xoption2008-07-142008-08-21 $2.50$3.60 44.00%
JA Solar September 15 call - From Options BlogQJPIC.xoption2008-08-112008-08-21 $1.60$3.40 112.50%
Lehman Brothers January 2009 10 put - reiterated buy — exited halfNJSMB.xoption2008-09-092008-09-11 $4.20$6.25 48.81%
Lehman Brothers January 2009 10 put - reiterated buy — exited halfNJSMB.xoption2008-09-092008-09-15 $4.20$9.85 134.52%
Lehman Brothers January 2009 10 put — exited halfNJSMB.xoption2008-09-092008-09-15 $3.20$9.85 207.81%
Lehman Brothers January 2009 10 put — exited halfNJSMB.xoption2008-09-092008-09-11 $3.20$6.25 95.31%
Lehman Brothers October 20 put - From Options BlogLYHVE.xoption2008-06-022008-07-21 $3.00$8.65 188.33%
Masco Corporation October 20 put - From Options BlogMASVD.xoption2008-06-022008-07-21 $3.00$4.80 60.00%
Merrill Lynch January 2009 17.50 putMOJMW.xoption2008-09-112008-09-15 $3.10$2.80 -9.68%
Morgan Stanley January 2009 25 put - exited halfMSME.xoption2008-09-152008-09-18 $6.20$7.00 12.90%
Morgan Stanley January 2009 25 put - exited halfMSME.xoption2008-09-162008-09-17 $6.20$10.60 70.97%
Murphy Oil October 2008 70 putMURVN.xoption2008-09-032008-09-09 $3.30$5.35 62.12%
UBS AG September 2008 22.50 put - From Options BlogUJWUX.xoption2008-06-102008-07-21 $1.30$1.85 42.31%
UBS January 2009 15 putUBSMC.xoption2008-09-152008-09-19 $3.15$1.00 -68.25%

That's about an 80% average return on each trade. And the average hold period of each trade in Ian's Options Trading Pit is roughly 14 days.

But you don't need to trade options to make money... even in this market.

Right now, I'm personally building a position in a very unique investment vehicle. It's an investment that allows you to take an ownership position in 63 wind turbines.

Green guru Jeff Siegel and I researched this investment inside and out. And after we were finished kicking the tires, we realized we were looking at possibly one of the best renewable energy investments for decades to come.

You see, for just a small investment of about $5.90, you'll get access to the monthly cash flow these 63 wind turbines kick off. That's right, every month... you'll get a check from the electricity that this wind farm produces and sells.

I've been receiving checks from these wind turbines since June. Believe me, it helps in this crazy market.

Not only do I get piece of mind that these checks show up consistently every month... but this is an investment that's almost guaranteed to go up as our economy converts over to a renewable energy complex.

In the coming weeks Jeff and I will show you how you can receive monthly cash flow from these wind turbines. It's very simple. And... you don't need to be an accredited investor, which makes this investment very attractive.

I know the current market turmoil can be nerve-wracking, but this is when fortunes are made.

Remember, we were ahead of the curve on Peak Oil, renewable energy, precious metals... and we even warned you that many banks were going to fail during this housing and credit crisis.

We'll continue to help you every step of the way through this financial crisis... and we'll show you exactly where the sweet spots are to build your fortune.

Best regards,

Brian Hicks






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