Editor's note: You can't limit yourself... Most investors understand the basics of how stocks work. But if you're limiting yourself to just dividend-paying stocks, you're missing out on big gains... That's why Retirement Millionaire editor Dr. David "Doc" Eifrig stresses the importance of income investing. In today's Masters Series, originally from the April 24, 2024 issue of the free Health & Wealth Bulletin daily e-letter, Doc details how income investing can provide a huge boost for your portfolio... Funds Don't Always Do It Better By Dr. David Eifrig, editor, Retirement Millionaire During my time trading for Goldman Sachs, I stumbled upon a strategy that would forever change my life. This strategy has allowed me to collect hundreds and thousands of dollars each and every month. And it has helped me make my mark after I joined Stansberry Research nearly two decades ago. But the masses didn't seem to pay it much attention... until recently. Now, investors have more than 50 different ways to invest in this strategy. They've increased investments 20-fold over the past few years. But we're still doing things a bit differently... And you might want to think twice before rushing your money into a "set it and forget it" fund. Let's get into the details... Recommended Links: | RSVP Required: Doc's 'New Year Money Challenge' This new year, Dr. David "Doc" Eifrig is looking to teach at least 500 people how to make hundreds or even thousands of dollars in extra cash income from the stock market. This is his No. 1 favorite strategy – and he has used it to achieve a 95% win rate over the past 15 years, racking up streaks of 211, 108, and 135 winning trades in a row. It could be your best bet for navigating ANY market in 2025... But you'll need to act fast to be among the first 500 to join Doc's "challenge." Click here for the full details. | |
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The No. 1 Crypto for 2025 Over the past 15 years, bitcoin has outperformed stocks, bonds, and every other asset you could've bought. Many predict 2025 will be an even bigger year – hitting $200,000 or higher. But there's a better way to profit from this new crypto rally. Most people don't know about it... And yet, it has returned more than 1,000% in four months. This could be the No. 1 way to invest in crypto in 2025. | |
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| The chart below looks at the biggest net inflows for active equity exchange-traded funds ("ETFs"). Folks have been piling into BlackRock's iShares U.S. Equity Factor Rotation Active Fund (DYNF) the most, by far. (We won't get into all the details today, but factor investing is a form of quantitative investing, which has been all the rage recently.) What may surprise you are the second and third ETFs on this list. Take a look... The JPMorgan Nasdaq Equity Premium Income Fund (JEPQ) and the JPMorgan Equity Premium Income Fund (JEPI) are both covered-call funds. They buy stock and sell options to help generate income. Both funds boast yields much higher than a traditional Nasdaq or S&P 500 fund. More than a decade ago, it was hard to convince even my family and closest friends to sell options. They have a bad reputation. But today, billions of dollars are pouring into these option-selling ETFs. And it's not just JPMorgan's option-selling funds... According to a Financial Times article, ETFs dedicated to selling covered calls surged from just $3 billion in total assets in 2020 to nearly $60 billion in December 2023. Think about that... In just three years, investors put nearly 20 times as much money into ETFs dedicated to one of my favorite strategies... selling covered calls. There are now 60-plus covered-call ETFs to choose from – nearly triple the selection that folks had three years ago. If you've been following me for long, you'll know that I launched my own option-selling service, Retirement Trader, in 2010. It was a hard sell at the time, even with my background in derivatives. But I was adamant that option selling was the ultimate tool for safe income. Now, the rest of the investing world has caught on. But even though all this money is flowing into option-selling funds, I don't think they can compete with what we do in Retirement Trader... Consider the Invesco S&P 500 BuyWrite Fund (PBP), which has been around longer than most covered-call funds. I wrote about PBP in 2013. Specifically, I said... In particular, it tends to underperform the S&P 500 during rising stock markets. But it makes up for that by consistently outperforming the market during falling periods. Without getting too into the weeds, that's expected for most covered-call trading. If stocks are soaring, a covered-call strategy will lag because your upside is capped in each trade... But because option sellers collect premium – and the premium payment gets larger when stocks fall – you can lose less in down markets. Basically, the covered-call ETF strategy is to take the market's return and smooth its volatility. With that in mind, PBP has lived up to that description recently... In 2022, the S&P 500 fell nearly 20%. PBP was only down 11.7% for the year. In 2023, stocks surged nearly 25%. PBP was also up, but only by 11.4%. For PBP and most covered-call traders, these results are fine. They're expected. But in Retirement Trader, we're not doing the same thing as these covered-call funds... And we're certainly not satisfied just keeping up with PBP or any of the growing number of funds. After all, even if PBP fell by barely half the amount of the S&P 500 in 2022, it still faced a double-digit decline. Unlike most of these funds, we don't just sell options on the S&P 500 or Nasdaq indexes. We handpick each option trade based on market conditions. And we have averaged double-digit annualized returns since our inception in 2010 on closed trades. As always, our philosophy is that investing is best done for yourself... because nobody cares more about your money than you. We've certainly proven that our conservative trading-for-income strategy can work in nearly any environment. And it does much better than any covered-call ETF you will find in the market. So don't content yourself with the status quo. Once you learn how to sell options on your own, you'll unlock an income secret that's much easier than you might think... Here's to our health, wealth, and a great retirement, Dr. David Eifrig Editor's note: With win streaks of 135, 108, and 211 trades in a row, Doc is looking to help as many investors as possible learn how to collect extra cash... That's why he recently hosted an online presentation to reveal how his No. 1 favorite strategy – which has delivered a 95% win rate – helps him consistently generate thousands of dollars in income. Learn more here... |