Over the last two years the equities market has been full of valuations as sleazy and fraudulent as a drug dealer with a used car lot selling you ‘Bolex’ Watches in bulk.
Valuations for some companies were more than twenty times their earnings, and now the market is barbequing the FAT like Tuesday! Of course, those that were high on the hog are frustrated that valuations are dropping, because they might have to consider getting a day job for a year or so to make up the shortfall in their retirement payouts.
But the other 90% living paycheck to paycheck, with little room for savings, have been trying to dollar cost average into share valuations on blue-chip companies that were easily between $500-$1000. But now with recession, quantitative tightening, and rich people not being able to access that ‘easy money’ like pimps on Wall Street… the playing field is getting a bit more level!
So, yes, recession is here, and though it will be painful to get through day to day, it’s the opportunity no one should miss to start piling into blue-chip stocks.
This is NOT the occasion to buy leaps, this is not the occasion to try weird options strategies. This is the time to put cash into your trading account, try to get to 100 shares of your favorite companies, and then start selling covered calls against them. You’ll be generating a modest weekly return and can use that to buy more stocks.
If you’d like to learn more about trading stocks and options, join us at Trade Speakeasy.
