The Abundance Engineer May 2012 - The May Effect Happens Again Like Clockwork

Dear Subscribers,

Global markets went into freefall today. The US market is yet to open but pre market trading is looking like another typical May correction.

As I said last week timing is everything in the markets and the elections in Europe were the catalist this year. Happily we had all our shorts in place last week in anticipation of the high probablilty of a correction. May will likely be one of the best months of the year for our subscribers.

Our largest short position is up 20% and our Euro short position is performing excellently. If you got your trades in last week well done. If not. There are still some good value short positions to take advantage of in our portfolio.

The market works on volatility and this volatility gives rise to additional opportunities. I am adding some additional short term trades to take advantage of the volatility. The Euro hit it's January low today and I have a very low risk trade for our subscribers to take advantage of the Euro situation.

If you have a portfolio that you want to hedge or insure against downside risk you will find the best insurance with our trade alerts.

If you want to learn to make money in the market regardless of what direction it goes you will also learn how to do this subscribing to my trade alerts.

If you have a portfolio whether it be stock, property or currency exposure you are attempting to insure against. Contact me by email for more information on my private 1 on 1 consultancy service specific to your  portfolio.

Best Regards,
Robert McManus  

The Abundance Engineer May 2012 - Can This Man Keep The Market Afloat Until November. Yes We Can

Dear Investors,

The stock market has had an unprecedented run for the last 7 months. Normally we see a correction in May in the markets as I outlined in the last post. The chart below shows that June, July, August and September have been the worst performing months for the S&P 500 Index since 1988. 

Our shorts are in place in anticipation of the usual correction. However, this is a presidential election year in the U.S. and it seems that Obama wants to get in for another term. Looking back over the last 30 years election years have historically produced positive stock market returns. Since 1972, the stock market has rallied in 5 of the 8 election years, according to J.P. Morgan, with market gains of 12-26 percent. Only during recession years (2000 and 2008) did the S&P 500 provide negative returns. 

Therefore to hedge our bets I am adding a long stock position which I will likely hold until the election in November. It is common practice for portfolio managers to take a long position in the most fundamentally sound, undervalued companies with the greatest growth potential which is what I have added to our portfolio. Our short positions with a July expiry will hedge our long position and we will benefit greatly if there is a correction in May or June. If however we do not get a correction our long position will cover any losses on our short hedge. This is how the biggest hedge funds run their office. Low risk. High return. 

To get access to my specific stock recommendations outlined in my posts you can subscribe to my premium stock alerts below. The investment is EUR79.95 per month. 

Best Regards,
Robert McManus