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Tens of millions of prudent investors, including retirees and lower income savers, have taken a huge hit in income
this past decade due to the drastic lowering of interest rates. (Higher rates would have increased the desired
"Stimulus" buying from them)! Thanks to the Federal Reserve’s actions, necessary or not, these short term
CD, money market rates are negative, after Inflation and Taxes - forcing people into riskier investments that are not suitable.
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Zero Intolerance strategy of Deep-In-The-Money covered calls provides a lower risk investment plan than just
being in the stock market via an Index or mutual fund, but with higher rewards. Based on quality dividend-paying
stocks, with additional money coming from the calls (replacing hoped for appreciation) should be 10 times current CD
rates or more. More importantly, it provides a "safety net" for 99% of market behavior.
This strategy's time frame is between the old Buy-&-Hold of the 20th C. and day trading against black box experts -
neither of which is very successful. With a minimum of investment knowledge and effort/time each week, it is quite
simple once learned.
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In the 200 years of U.S. stocks’ history since the Buttonwood Tree Agreement, two things stand out: The consistent 18-19
year cycles alternating between Bull markets, such as the exceptionally strong one of 1982-2000 ( also 1949-1966), and
flat to down markets in between. We are presumably halfway-through one of the latter stages, much like Japan was, in what
Technician Martin Pring calls the "Lost Decade". Severe crashes, of which we have seen two in the past decade, occur
only 1% of the time, but do the most severe damage to wealth - these are the only real drawbacks to this or any other
strategy, and should be hedged against with small costs.
Brent's booklet fully explaining the Zero Intolerance strategy can be purchased through
Amazon
and the charts
are available at www.publicharts.com/ZeroIntolerance/.
You can also contact Brent at BrentLeonard59@gmail.com.
Brent's Advisory Service:
There will be a trial and error period in selecting the optimal buy/write. Brent Leonard is offering an advice service,
based on his 25 years as an option broker and money manager, until clients are ready to "solo". The fee is $49 each
quarter with no obligation to continue on. This includes as many buy/writes as needed, laddered monthly to spread out
risk and dividend income, as well as periodic monitoring for possible hedging.
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Looking for market direction? One of the best ways is through Contrary Opinion.
Check out Brent's weekly Market Sentiment Blog.
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