Macro Growth & Income Alert
Macro Growth & Income Alert

When investors ask, “How can I limit my risk while leaving the upside wide open?”

We show them this...

Macro Growth & Income Alert

Macro Growth & Income Alert is our premium investment service that’s helping readers generate outsized returns using stocks and low-risk options strategies.

And by outsized returns, we mean:

21.47%—The return since our launch in 2016.*

And here’s how we’re doing it.

*Through October 2017

The Two-Pronged Approach to Generating Outsized Returns

1. A Market-Beating Machine

When it comes to investing these days, it’s you against the machines... and the machines always win.

But why try to beat them, when you can join them?

Once we identify an investible macro trend, we dig deep into the industries that take advantage of that trend in order to find the best vehicle to profit from it.

In order to find the best vehicle in the desired industry...

We use Mauldin Economics’ Equity Evaluation System (EES).

The EES is a cutting-edge stock-selection system that puts individual stocks through a stress test by measuring more than 100 qualitative and quantitative factors...

Since launch, this system has helped deliver a return of 21.47% to Macro Growth & Income Alert readers. That’s better than the S&P 500, which returned 19.58% over the same period.

Not bad when just 19% of active money managers outperformed the S&P 500 in 2016.

Would having a system that determines which stocks are most likely to bring gains to your portfolio and which ones could result in painful losses be valuable to you?

If you’re nodding yes, please know we think so too... that’s precisely why we spent over a year developing EES.

Before we even consider recommending a position, we thoroughly vet it using six EES categories:

  • Fundamentals—Measures the strength of the company’s financials

  • Valuation—Includes trailing and forward metrics

  • Economic Moat—Determines a business’s ability to maintain an advantage over its competitors

  • Five Forces—Analyzes the level of competition within an industry and the development of a company’s business strategy

  • Technical Analysis—Evaluates statistics generated by market activity to forecast the stock’s future performance

  • Sentiment Analysis—Shows how a stock will likely perform based on the actions of company insiders and stock analysts

When we find a company that excels in all six categories, we know we’re on to something special...

And here's a company that did just that... and then made our readers a tidy profit.

How We Uncover Winning Investments... And How You Can Too

In November 2016, the energy sector was still in the doldrums, so we went to work finding potential opportunities for our readers.

And we found something interesting...

Since 1996, natural gas has gone from 14% to 33% of total US electricity generation. We wanted to find a way to profit from this wave of adoption.

So, we looked at one of the hardest hit segments of the energy sector—pipeline master limited partnership companies... and stress-tested them in EES.

Here’s the result...

chart

As you can see, CONE Midstream Partners (CNNX) made the cut way ahead of its competitors...

EES identified the company’s superior financial position relative to its peers and also made clear how favorable its valuation was.

With a strong business model and solid fundamentals, you’d expect CNNX to trade at a steep premium to its peers... but EES revealed what a bargain it was.

Compared to its competitors, CNNX offered the best upside potential with the least amount of risk... and subsequently made readers a 14.92% gain in just five months.

That’s how we work... spotting opportunities in big macro trends and then using EES to find the stocks that most analysts miss.

Besides buying stocks for growth opportunities, there’s another way you can generate returns... and one which limits your downside risk while leaving plenty of upside potential.

2. A Conservative Options Strategy

For most investors, the grasp of financial markets is confined to stocks, bonds, real estate, and mutual funds...

Options trading is a foreign concept, deemed too complex to use effectively.

But to shun the use of options is to deprive yourself of the opportunity to achieve outsized gains, reduced risk, and earn income.

As you may already know, an option is just a simple contract that gives you the right to buy or sell shares of an underlying stock at a set price (strike price), by a set date (expiration date).

There are two types of options: call options and put options...

  • Call options go up in value when the stock price goes up.

  • Put options go up in value when the stock price goes down.

Now the thing about options is that you can buy them... and you can sell them.

Because of a number of factors that work against you, buying options can be risky.

That’s why in Macro Growth & Income Alert, we only sell options. It fits our objective perfectly, which is to make regular income to complement our long-term stock holdings.

I want to quickly walk you through a recent example where readers made a 17.82% gain on a stock with the help of conservative options strategies.

Covered Calls—The Gifts That Keep on Giving

In the April 2016 edition of Macro Growth & Income Alert, we detailed why US defense contractors looked like a good investment.

So, we vetted several of the industry’s biggest players using EES... and a clear winner emerged.

chart

Based on favorable macro trends and a solid EES score, Huntington Ingalls Industries (HII) looked like a stock we wanted to own.

But you’ve already seen the excellent job EES does at identifying solid companies, that’s not what we want to show you...

As gains in defense stocks usually build slowly, we wanted to invest in such a way that readers wouldn’t have to wait to take full advantage of HII’s positive outlook.

That’s why we recommended a put option strategy. If you’re unfamiliar with this simple strategy, here’s how it works:

First, we bought 100 shares of HII at the market... our entry price was $144 per share.

In the same window, we sold a call option, known as a covered call, on those shares.

Two things happened when we did this.

To start, we received $275 in option premium immediately. In the world of options, the buyer always pays the seller a premium—one of the reasons we prefer being the seller.

Secondly, when we sold the call option on HII shares with a strike price of $150, we knew it would lead to two possible outcomes, both of them to our benefit:

  1. Shares of HII close above $150 at expiration: If this happens, we would be forced to sell our shares at $150—a profit of $6 per share... plus, we would keep the $275 in options premium.

  2. Shares of HII close at or below $150 at expiration: Nothing happens. We get to keep our shares and the $275 in options premium.

As HII shares traded above the strike price on the expiration date, they were “called away,” meaning we were forced to sell them... for a 4.2% profit.

When the options premium and dividends we received were added, the gain came to 6.42% in just two months. That’s a 38.52% annual return.

Using covered calls, we structured the position to make it a “heads I win, tails I win” scenario. HII is a company we wanted to own, but we were also happy to take a 6.42% profit on the position.

And that was only the beginning...

HII’s share price dropped just 14 days later, which was a great opportunity for us to add this solid company back to our portfolio.

As before, we sold a call option and immediately pocketed $544 options premium this time.

And again, as the shares traded above our strike price of $180 on the expiration date, we had to sell our HII shares... for a 7.12% profit.

The options premium and dividend we earned brought our return to 11.4% in six months.

In total, our two consecutive trades with HII delivered Macro Growth & Income Alert readers a return of 17.82%.

As you can see, covered calls are an excellent way to generate income while holding a stock you already want to own.

Along with selling call options, you can sell put options... which can prove even more profitable for your portfolio.

Puts—Buying Your Favorite Stocks on Sale

After collecting profits on HII shares, we were interested in adding the company back to our portfolio in January 2017.

But HII had been on a hot streak since the US election, and we wanted to buy it on sale... so instead of buying the high-priced stock outright and selling call options, we sold put options...

This means, rather than having to sell our HII shares if they closed above the strike price, with put options, we would have to buy HII shares if they closed below the strike price—which would be a good thing since we could add HII back to our portfolio at a much lower price.

To start, we sold the put option and pocketed the options premium, $294 this time.

As HII’s share price didn’t drop below the strike price on the expiration date, we weren’t forced to buy shares...

So we decided to sell another put, and collect $245 with our second options premium.

This time, the shares did drop below our strike price, and we were forced to buy them.

But here’s the thing... we were a fan of HII and its business model and were happy to acquire the shares... at a much lower price—one we chose.

Even better, the options premium we earned lowered our entry price.

So Why Isn’t Everyone Doing It?

You may be asking “if selling options is that simple, why isn’t everyone doing it?”

The big mistake that most people make when selling options is that they do it on stocks they would never want to own.

In Macro Growth & Income Alert, we only sell options on stocks that we already own or on stocks we would love to own at a lower price... like we did with HII.

The strategy of Macro Growth & Income Alert is simple: use options to reduce downside risk, generate income, and own shares of a desired company at a better price.

Meet the Duo Behind Macro Growth & Income Alert

Machines and investment strategies are great, but we all know they don’t run themselves.

Developing a successful stock-selection filter and precise strategy takes intellect, ingenuity, and finesse... and that’s exactly the qualities Patrick Watson & Robert Ross, the editors of Macro Growth & Income Alert, possess.

Patrick Watson

Patrick Watson has over three decades of experience in the investment industry and is the senior economic analyst at Mauldin Economics.

Patrick is a master of macroeconomic foresight, as John Mauldin says, “I have never known anyone who can see around corners like this guy.”

Whether it’s profiting from the trend of rising military spending... taking advantage of the delayed energy revolution... or recognizing the precarious drop in US birthrates...

Patrick’s unique ability to connect the dots and see the big picture is sure to amaze you... it’s your starting point in every issue of Macro Growth & Income Alert.

Robert Ross

The other half of the duo is Robert Ross, the senior equity analyst at Mauldin Economics.

Robert joined our portfolio management team in 2011 and has trained under the tutelage of some of the best financial minds in the business.

The list includes hedge fund manager and co-founder of RealVision Grant Williams, Tony Sagami of Mauldin Solutions, and Jared Dillian of The Daily Dirtnap.

Utilizing his quantitative prowess, Robert created the Equity Evaluation System, no small feat.

Macro Growth & Income Alert blends Patrick’s trend-spotting macro perspective with Robert’s quantitative rigor to generate outsized returns for readers.

We don’t need to dress Macro Growth & Income Alert up with bells and whistles to look pretty... the proof is in the portfolio.

Get Macro Growth & Income Alert... And Learn How to Assemble a Market-Beating Portfolio Today

We'd like to invite you to give Macro Growth & Income Alert a risk-free try today. We’ve pegged this premium alert service at a retail price of $1,995—and it’s worth every penny.

Readers who’ve followed our options recommendations since launch 19 months ago have earned $5,500 in income alone... excluding capital gains on the stocks.

Bundle

As a subscriber, you’ll receive the monthly newsletter issue—published on the second Thursday of every month—as well as weekly email updates and alerts to inform you of new investment opportunities that require immediate action.

There’s no risk in trying it: You have a full 90 days to decide if Macro Growth & Income Alert is for you. If you’re less than 100% satisfied, for whatever reason, simply cancel within those 90 days for a full, prompt, and courteous refund—no questions asked.

Even if you miss the deadline or decide to cancel after the 90 days are up, we’ll still give you a prorated refund on the remainder of your subscription.

So you have literally nothing to lose by trying Macro Growth & Income Alert.

Your gain, on the other hand, could be significant.

As soon as you sign up, you’ll receive a welcome email with links that give you instant access to...

  • The current issue of Macro Growth & Income Alert, including the full portfolio and archives

  • Special Report #1: Selling Covered Calls and the Buy/Write: A Macro Growth & Income Alert Guide

  • Special Report #2: How to Buy and Sell in the World of Options Trading

Give Macro Growth & Income Alert a try today. Getting started is easy: Just fill out the order form below, and boost your portfolio with their perfect blend of macro and micro expertise.

To limited risk and wide-open upside.

Includes:

  • How to Buy and Sell in the World of Options Trading
  • Selling Covered Calls and The Buy/Write: A Macro Growth & Income Alert Guide

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