OTW #55: Learn options w/o risking money, Rate cuts signal problems, and more.
Important financial stories to check out over the weekend
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1. Learn and trade stock options without risking any money.
One of my goals this year is to create a series of free videos to help people learn how to trade options—without risking ANY money!
That’s right.
Learn for free. Trade for free.
I’ll show you how to use “paper money” to learn and practice options.
Don’t be fooled, however. While the money may be “fake,” the experience is not.
You’ll use live, actual pricing data to research, enter, manage, and close your trades. You’ll also be able to track your account balance to see how profitable your decisions were.
In this first video, I’ll walk you through a bullish trade (i.e., you expect a stock to rise) using a sample trade alert that premium members receive. You’re not limited to my trades, however. You can make any trades you want…and as many as you want.
I use Schwab’s thinkorswim platform, but any broker that offers paper trading will work just as well.
Learn via the longest free trial I’ve ever offered.
To help you get as much practice as possible, I’m offering the longest free trial that I’ve ever given!
Sign up before the end of this month, and you can get access to a premium membership—completely free—for 30 days. You’ll also get full access to our long-term Blend Portfolio.
And since you can cancel at any time, there is truly no risk.
Just click here to sign up. And then get trading!
2. Rate cuts signal problems.
Investors are betting that once we get the first rate cut, more will soon follow. History seems to be on their side.
An analysis by Visual Capitalist showed that when the Fed pivots, deep cuts often come quickly.
Antagonist’s take
Investors are asking the wrong question, however.
Instead of “When will the Fed cut rates?”, they should ask, “What would cause the Fed to cut?”
Visual Capitalist provided these insights (emphasis added):
Rate cuts typically begin once the Federal Reserve has confirmation that the economy has slowed down and inflationary pressures have subsided. Nearly every interest rate cutting cycle has seen the economy enter a recession right before or after rate cuts have started.
While the recessions occur around the time rates are cut, they’re usually a delayed effect from the tighter financial conditions caused by rate hikes, with cuts bringing looser and more accommodative financial conditions for the economy down the line.
Research from
, editor of supports this. Gayed showed that a Fed pivot is usually followed by a drop in the S&P 500. (Read more about this here.)In other words, there’s a good chance that rate cuts will mean that we’re in a slow economy (or even a recession) and that stocks are about to fall.
3. Where are the world’s uranium reserves?
Last week, I explained why I think we’re still in the early phases of a massive uranium bull market.
This visual shows which countries have the most uranium reserves. They will all be key players as demand continues to far outpace supply.
Antagonist’s take
To read why I’m so bullish on uranium—even after the incredible profits we’ve already made from our current holdings—check out our latest monthly deep dive:
Last thing...
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Thank you for reading, and have a great weekend!
Jason Milton
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