Good Article from Fortune (money.cnn)
I saw this article on money.cnn and thought it was worth sharing. Basically it highlights the same thing that many of us have read for years - the roaring 80s and 90s won’t be seen again. I take from this yet another reason to follow the naked put selling trading model.
If the markets stay at a 8-9% annual clip, selling naked puts is the way to go. Once you get closer to the previous average in the high teens it seems more productive to buy calls. Either way, investing with options is the best way a mature investor should work the markets.
Comment by Raviv
Why you do not provide a lnk to the article or at least its nama so we can search for it?
Comment by Alex Fotopoulos
I did link to it. Click on the “money.cnn” underlined above. Here’s the long link if that doesn’t work:
http://money.cnn.com/2008/02/29/magazines/fortune/bull_market.fortune/index.htm?section=money_markets
Comment by hank
No kidding, I read that article myself and didn’t really realize, but it is honestly true. We’ve been riding a pretty amazing wave for 30+ years and most 30 somethings don’t know any different. It’s always been (relatively) good to be in the stock market. I was reading the same status here: http://www.usnews.com/articles/business/economy/2007/10/31/will-the-bull-market-keep-stampeding.html
Pretty strange to think about, but makes complete sense…