How to Invest When the Market Is So Volatile

Episode #101 | May 9, 2019

Episode #101 | May 9, 2019

How to Invest When the Market Is So Volatile

In This Episode

It seems like a distant memory with May’s headwinds for markets, but technically the “Everything Rally” is back this year, with 90% of 70 financial classes showing gains through this spring.

Of course, the market action of this week, leading up to the S&P 500’s nearly 1% on Thursday morning, calls the entire rally into question.

Luckily, there’s a kind of insurance available for investors against this kind of market movement – and it actually gets cheaper when it’s needed most, like property insurance premiums falling right before a Category 5 hurricane hits.

In this episode, Dan explains how he used to double his money last week after a bet that May would be a horrible month for markets paid off.

He then gets to the concept of diversification, and why it’s so often misunderstood. You especially won’t want to miss his warning on how many investors, who own a wide array of securities, think they’re diversified when they’re actually horribly exposed.

Dan then gets to Uber’s IPO tomorrow. At an estimated $80 billion valuation on $11 billion in sales last year, Dan says “that ain’t cheap” – especially for a company losing $3-$4 billion a year.

While Dan loves the service, he doesn’t love the prospects for making money on this IPO – though he pinpoints one question that, if Uber gets right, could make it all worth it.

Dan then gets to this week’s podcast guest.

Eric Wade is an Editor and Analyst with Stansberry Pacific Research. He’s an internet entrepreneur and investor who began picking stocks and trading futures contracts in college, using his expertise to become a Certified Financial Manager at the largest American retail brokerage. He eventually sold the internet domain of his nickname – Wallstreet.com – for over $1 million.

In 2015-2016, Eric began mining cryptos in a big way, and as an investor, he’s made huge profits in the space, from 30x to 22x gains on various cryptos in a matter of weeks.

“This is an exciting interview for me,” Dan says, “because I know I’m gonna learn a lot!”