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Invest in a global portfolio of shares with 100% downside protection in USD

by , 12 May 2020
Invest in a global portfolio of shares with 100% downside protection in USD
Investing in the stock market today with 100% downside protection sounds too good to be true.

That's because for every positive headline you read there are 4 negative ones signaling a strong pull back in the weeks and months ahead.

And the recovery, post coronavirus lockdown is expected to be slow.

But investors in the latest “risk-free” structured product need not worry what happens. They are guaranteed to receive at the very least a 100% of their capital back in USD if the stock market is negative at maturity.

This structured product gives you access to a basket of some of the biggest companies throughout America and Europe, companies like Microsoft, Alphabet, Philip Morris, L'Oreal and Verizon to name a few.

The selection criteria are the companies' environmental impact scores. This type of investing is focused on companies that are reducing their environmental impact as the world embraces the philosophy of Reduce, Recycle, Reuse.

There's at least 10% upside but no cap on the upside growth potential. It has a duration of three years and 10 months. Closing date is 10 July and the minimum investment is US$10,000. If you are interested in the above structured product, please email me at trader@protrade.co.za or call 0873516669.
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Here are my Top Seven Penny Stock Plays that Could Double, even Triple in the next 12 Months!
 
Just take a look at the table below. 
 
These are my seven favourite penny stock companies to buy right now.
 
They are either mispriced, seriously undervalued or best positioned to profit from the ongoing crisis…

 
If you’d like to get the names and full analysis on these companies, then I urge you to sign up to receive my latest issue of Red Hot Penny Shares. You can try it risk-free for 90 days.
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Sell off in global markets on the horizon
 
The US Federal Reserve Bank has propped up markets by boosting investor sentiment as it buys up financial assets on the market. Today it will start buying corporate bond ETFs in America to help boost prices of corporate debt and provide a lot of liquidity.
 
Investor sentiment has caused this latest relief rally as positivity around relaxation of lock downs around the world start to emerge.
 
But this has happened at the exact time that company earnings are forecast to contract in the next 12 months. And over the long run, share prices track earnings.
 
Look at the chart below showing a 20-year history on the S&P 500 to illustrate the long-term relationship.

 
Since the start of the ‘dead cat bounce’ we have seen a major divergence in the relationship. While the massive amount of financial stimulus might be able to cause this relationship to weaken in the short to medium term, investors won’t be prepared to overpay for future earnings.
 
The S&P 500’s forward PE ratio was 20.4 on Friday, this was the first time since 10 April 2002 that the ratio was above 20. Long- term averages are 16.7 for five years, 15.1 for years and 14.6 for 15 years.

 
Investors with short term investment horizons should be selling into strength as global markets rise. At the very least you should be placing a few protective stop losses as volatility has decreased and prices are less erratic.
 
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Important: If your portfolio has plummeted thanks to the Covid-19 crisis, you should look at how to give your portfolio, the “Hedge Fund Advantage”.
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Lock in gains on DRD by placing a protective stop
 
Last week we said you should be taking profit on DRD and traders could short sell to profit from the pull back. The price has started to pull back and is already 5.5% lower.
 
Adjust your stop loss to R18.00 to reduce your risk and as it falls trail the stop loss lower to lock in gains and ride the pull back to R13.25 (initial target) and lower (R10.25 final target to be evaluated as it falls).
 
See you next week.
 
Gavin McCarter,
Contributing Editor, Money Morning


Invest in a global portfolio of shares with 100% downside protection in USD
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