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Tips for fighting coronavirus-driven market chaos, profitable options trades, and the 'next Berkshire Hathaway'

Dear Readers,

trading floor trader mask screen

It's been a rough week in the market as spreading coronavirus fears have sent stocks tumbling and economists scrambling to lower their global growth forecasts . The chaos has even upended the most enduring drivers of stock returns, which have underpinned the almost 12-year bull market.

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We dug into this seismic shift in behavior under the market's surface. And more importantly we pinpointed three ways for investors to position themselves to take advantage, with a little help from BlackRock.

Those recommendations should nicely supplement five protective hedges laid out by Deutsche Bank in the event of a full-fledged coronavirus sell-off like the one we seem to be enduring now. We also spoke to a hedge fund CEO who shared four tips for avoiding big losses .

But not everyone is so optimistic. For the class of permabears that have been eagerly awaiting a sharp market downturn, the coronavirus situation marks a viable trigger for further losses.

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Raoul Pal the former Goldman Sachs hedge-fund manager who founded Real Vision fits into this camp, and he says the virus could be what finally pricks a stock market he thinks has become a bubble.

These types of mixed market signals are likely to persist as the coronavirus fallout widens, so stay tuned to our coverage for the latest twists and turns and what you can do to keep your portfolio safe.

Going beyond that, here's a rundown of some other recent coverage:

'It's hard not to get rich': How a 27-year-old entrepreneur is 'house hacking' his way to financial independence through a creative real-estate-investment strategy

Craig Curelop turned an extremely precarious financial situation into a thriving business through a real-estate-investing strategy called "house hacking." He was able to generate cash and live for free by purchasing a home with a small down payment, living in the dwelling, and renting out the other rooms.

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READ MORE HERE >>

A simple trading strategy has historically made investors an average of 21% in just 6 days. Here's how Goldman Sachs says you can replicate it.

A trading strategy of buying call options shortly before analyst-day events then selling them shortly after has averaged a 21% return over the past 18 years, according to derivatives strategists at Goldman Sachs.

READ MORE HERE >>

Matthew Dent grew his fund's assets by 27% in just one year. He breaks down which company is the 'next Berkshire Hathaway' and shares 4 other top stock picks.

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Dent's Premier Growth Investor Fund brought in powerful returns and posted an enormous year of growth in 2019, far outstripping the market and 99% of competing funds. He detailed his methodology for nailing down successful growth investments.

READ MORE HERE >>

Other good stories from the investing realm:

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See Also:

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