Dear Investors,

It is a terrible thing that is happening in New York right now and along the East Coast of the U.S. I have sent my best wishes to anyone I know over there. If anyone reading this is on the East Coast right now I wish you well. I hope that the hurricane will pass you by safely. Most people I have chatted with seem to have found shelter in the local pub. The Irish way.


While this may be devastating to many homes and businesses it also represents the best trading opportunity we can get.

September 11, the Gulf Oil Spill and the numerous hurricanes that have come and go during my trading career have been the most profitable time for me and investors who follow me.

It is always my suggestion to trade wisely and donate a % of your profits to the people in the effected area. That in my opinion is a great way to help the people who are affected by a natural disaster.

I have committed to giving 20% of all subscription fees and profits to subscribers and private clients on this database who experience financial loss as a direct result of this hurricane, please contact me and let me know who you are.

For subscribers and private clients not affected if you wish to donate a % of your profits from this event. I will connect you to the relevant parties. No charities the funds will go direct to the people involved.

How to Profit from a Hurricane

In order to explain this we will have to look at the term "Black Swan Theory" which was popularized by Nassim Nicholas Taleb in his book "The Black Swan".

The "Black Swan Theory" says that there are "Black Swan events" that have a major impact on the course of history.

It is assumed that all swans are white, so a black swan (which does in fact exist) is seen as being impossible and unexpected.

This is the same theory behind a "black swan event" - an event that is nearly impossible to predict. An event that is unpredictable and unexpected in even the most detailed and carefully calculated of probability models.

According to Taleb, "Black Swan events" have three characteristics:

1. It is a surprise.
2. It has a major impact.
3. People contend that they expected the event to take place (in hindsight).

Examples of "Black Swan events" would be 9/11, the gulf oil spill, hurricanes, the collapse of Russia or the invention of the Internet.

So we are in the midst of a black swan event. How should we invest. Well, the markets switched to "RISK ON" mid to late last week as fund managers seemed to think we had made it through an October without a significant correction. Earnings were not very positive Google & Apple disappointed.

I currently have no long positions in the portfolio. All our current positions are spreads which are the best way to manage exposure during this type of event. Our $100,000 portfolio has $50,000 invested in the markets with only $5,000 at risk. Meaning if all markets including Gold went to 0 tomorrow the maximum we could lose would by $5,000.

Initially word came out that NYSE would close Monday and algorithmic trading desks outside NY would keep the markets going. Subsequently it was decided that U.S. markets would close. Once markets open we will be shorting the companies that are highly exposed and bargain hunting for top companies that get oversold.

The next 2 months will be the most profitable time of the year for subscribers and private clients so I am offering a 6 month subscription to my video trade alerts for the first 10 subscribers for $479.
 
20% of which will go to the affected people in NY and the East Coast of America.

New Subscribers who availed of the 3 month subscription offer a few weeks ago already took profits on a two week oil bear spread I sent out. This trade expired at maximum profit for a gain of $2000 or 2% portfolio return.

I have 3 new trades for you when the market opens on Tuesday or Wednesday. If you can follow instructions by email and video you will be able to trade and learn.

This offer is only for the first 10 subscribers and expires on market open on Wednesday.

Happy Trading,
Retire Me Rob

No Obligation Trial of my Video Trade Alerts - Last 4 spots available

Dear Investors,

This is your last chance to grab one of the 4 remaining slots for my Video Trade Alert Service at a $150 discount. 3 months of video trade alerts for only US$97, (EUR75, SGD$119) with no obligation to continue the service. This  offer closes at 9PM Singapore time tonight just 30 minutes after market opens. 

10 minutes is all it takes to place any of these trades when you follow my instructional videos. That means 30 mins to 1 hour a week is the maximum time you will need to follow and execute these wining trades. Plus you will be learning how hedge funds manage money. You will learn about simple and complex options, hedging, risk management, portfolio allocation and much much more. 

The 2 trades you will be able to enter tonight are perfectly hedged. Bernake's QE3 instead of adding steroids to the market has left investors cautious, so a sideways move for the next few weeks is the highest probability. 

Trade 1: The first video trade alert guarantees a maximum profit if Gold goes up, sideways or down up to 5% which is below a strong support level for Gold.  

Trade 2: The second video trade alert guarantees a maximum profit if the stock market goes up small, sideways or down short term. This position hedges the Gold position and ensures maximum security of your capital while gaining maximum profit on the traditional October correction or sideways market. If the market does miraculously go straight up our Gold position will go up with it and hedge our portfolio risk. 

This is how all the best hedge funds manage money and you can learn how to trade like them for a tiny fee of $97.

Happy Hedging,

Robert McManus 

Dear Investors,

We are now entering the fun part of the year the Gold season. The recent breakout in Gold brought on by QE3 and hyper driven by the mass strikes of workers in Africa's Gold mines has lead me to add to my Gold position in my client accounts. This evening we will be placing a complex options spread which if Gold goes up, sideways or down up to 5% will expire at maximum profit. This is how the top hedge funds manage money and I have decided to make a video of this trade to walk you through it.

The normal cost of my trade alert service which is up 26.39% this year is US$997 per annum.

To encourage you to try out my new video trade alert service I am offering a 90 day trial to you for $97.

All trades are low - medium risk. Comprising of option spreads, call/put options, ETF's & Stocks. If you are unfamiliar with these types of trades then the video walkthroughs will be very educational for you.

If you are not comfortable with options every trade will come with an alternative Stock, ETF or inverse ETF suggestion.

All trades will be risk adjusted for a $100,000 account. If you are running a $50,000 account or a $10,000 account then you just need to buy half or 1/10th of the contracts I buy. All will be explained in the videos.

Applying The Right Amount Of Leverage at The Right Time

Dear Investors,

Leverage can create great wealth for the Intelligent Investor. However, it works both ways and I have seen many inexperienced investors get wiped out using too much leverage at the wrong time. The volatility we are seeing in the markets over the last 2 years is creating higher returns for investors, the downside of higher returns is higher drawdowns and over leveraged accounts get cleaned out. Brokers don't even lay off high leverage accounts.

My client accounts rarely have more than 50% of the account funds at risk in the market at any time. Leverage is achieved using options with unlimited upside profit potential and the sum at risk is the sum invested. Hedging is used to insure against black swans.

For example back in May this year we were short the market in all but one position. I had an Apple Long Call option with an October 2012 expiry as a hedge. The market sold in May for the third year in a row and clients were rewarded with a 30%+ portfolio return for the month of May. Short positions were closed a few weeks into May to lock in the profits and the Apple call was allowed to run. Apple turned out to be the greatest stock of 2012 so far and gave a 100% return.

We got back into Gold at the start of seasonal strength towards the end of the summer and the crossing of the 200 Day Moving Average a very bullish sign.

The announcement by the Fed of QE3 guarantees Golds run to $3500. Hold onto your Gold buy more if you can but use the right leverage at the right time. October is like May we generally get a stock market correction. However, it would be highly unusual for a big correction so close to an election.

Happy Investing.

Gold Season upon us again

Dear Investors,

Gold season is in full swing again. Gold has rocketed from it's low and the 50 day moving average has been broken. We were short US markets, the Euro for the last few months up until May. June the markets turned and we are long again. It's an election year and the markets will likely rally until October at least. Subscribers will capitalize on specific stock recommendations.

For a free tip buy Gold as it will likely rally alongside the stock market for the next few months. Bullion Vault is where I buy my Gold. There's no additional costs with storage etc. Easy to set up an account and quick turn around times.

http://www.bullionvault.com/#ROBMCMANUS

Best Regards,
Robert McManus

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