The great thing about this system is that it works no matter what the market is doing.
When there are excellent companies trading at no-brainer, deal-of-the-century valuations (as there are right at this moment), we invest.
And when there aren't, we use other strategies we've perfected over the years to put our savings to good use and generate a steady 18%+ return on our capital.
For example, we buy "high yield dividend income stocks" that pay out superior dividends to stockholders (many times in excess of 8%)...
And we employ one of my favorite strategies - takeover arbitrage.
Paired with these deep value opportunities we're seeing right now, I consider takeover arbitrage to be the holy grail of investing.
See, there are 3 variables that control rate of return...
1. the price you buy at,
2. the price you sell at, and
3. the amount of time between those two events.
With most investments, the only variable you can control is #1, the price you buy at.
And frankly, that's why it makes so much sense to buy these deep value investments right now, when the stock has been absolutely beaten down to a price that defies logic, because the price you buy at is the only variable you can control.
However, with takeover arbitrage, you have control over all 3 variables...
Here's a brief example of how it works:
Company A announces it's going to buy Company B for $1/share.
Company B's stock price immediately jumps to $0.98/share.
We buy Company B at $0.98/share knowing we'll be able to sell it in a month for $1.
You might think: "A 2-3% gain isn't anything to write home about..."
But the fact is, these "little 2-3% gains" average into an annualized rate of return of over 24%...
24% sure beats holding your money in the bank earning .01% interest, right?
And the best part about takeover arbitrage is that you're not tying up your portfolio...you buy, you hold for 4-6 weeks, you sell, you pocket a nice return, and you have your cash free for the next big opportunity.
Between deep value socks, high yielding dividend income stocks, and takeover arbitrage...we've developed an investment system that consistently generates healthy profits year in, year out.