Hey, Here’s something you probably didn’t know—before I broke into Wall Street, I was training to be a professional wrestler. Yeah, like WWE, Hulkamania wrestling. (And if you think that’s wild, I’ll save the full story for another day.) But here’s why I bring it up: legendary trader Paul Tudor Jones recently admitted in an interview that he loves wrestling. And for someone on Wall Street to say that? Pretty wild. But he made the perfect comparison between wrestling’s world of illusion and today’s economy. Jones referenced the term kayfabe, which in wrestling is the unspoken agreement between the performers and the audience. Fans know it’s scripted, but they still go along with it to keep the show going. Back in the day, wrestlers went to extreme lengths to protect that illusion. They wouldn’t even tell their family it was fake. Bad guys and good guys were never seen together—ever. And honestly, Wall Street isn’t much different. The Fed, your registered investment advisor (RIA), the talking heads—they’re all keeping up the illusion because they only get paid if your money stays invested. But here’s the thing: when the illusion breaks, you’re the one left holding the bag. Something Doesn’t Add Up…Since September 17th, interest rates have surged 18%, bringing them back to July levels. The 30-year Treasury index is rebounding, yet the Fed continues predicting higher unemployment and lower inflation.
But here’s where it gets strange: the market’s betting on the opposite. It’s pricing in rebounding inflation and lower unemployment—something the Fed isn’t admitting. This is the kayfabe at play. I’m not predicting a market collapse, but something is clearly off. You’ve got the S&P 500 up 22%, more than double its average annual return of 9% over the last 50 years. Meanwhile, 13-week Treasury bills are paying 4.5%—with zero risk. If I were managing professional money, I’d be concerned. Wall Street’s Cleanest Shirt in the Laundry BasketSure, the U.S. is still where the world’s capital comes to grow and be protected. It’s the cleanest shirt in the laundry basket. But trusting this illusion blindly is a dangerous game. Instead of massive equity exposure, strategic options trades allow you to capture upside while managing risk. That’s exactly what I do for members of Belanger’s Options Insider. For example, last week we capitalized on a Nvidia trade using a special setup. While most traders were just watching the stock rise, we used a strategy that’s delivered a 694% return over the past year with a 74% win rate—far outpacing Nvidia’s 211% stock performance during that time. Tomorrow, I’ll be publishing another special situation trade on Target (TGT). The last time this triggered, it returned 99% in just 3 days. With today’s market backdrop, this setup could once again deliver strong returns. Don’t Fall for the KayfabeIf you’re still trusting the Fed’s narrative, you’re falling for the kayfabe. The illusion might look real, but smart traders know better. They see past the show and position themselves for reality. If you want to stop sitting on the sidelines and start taking control, now’s the time to act. Right now, I’m offering all premium members on Substack access to my trade alerts, reports, and special situation setups through Belanger’s Options Insider. And soon, we’ll be transitioning to a new platform at JoshBelanger.com to offer an even better experience. But here’s the deal—the monthly option is going away soon. If you’re on the fence, now’s the time to jump in before this option disappears. Tomorrow’s Target trade could be your first chance to see how we take advantage of these opportunities with strategic, risk-defined options trades. So, if you haven’t upgraded yet, don’t miss out… » Click here to make sure you get tomorrow’s Target trade. Trade smart, Josh Belanger Founder, Belanger Trading You’re currently a free subscriber. Upgrade for the full experience and receive exclusive special reports like "How to Get Rich in The Stock Market" and "Congress' Secret Stock Playbook: The Top 5 Power Picks Revealed”.
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Rabu, 23 Oktober 2024
Are You Falling for Wall Street’s "Kayfabe"?
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