Brad’s Note: Today, I have a special treat for you. I’m going to hand things off to Stephen Hester, my long-time analyst and former Wall Street pro.
Stephen has done it all and seen it all. He worked at the top tier of finance for many years before leaving to join Wide Moat Research. Now, we work together to help average investors find safe and reliable income, especially during volatile markets.
In today’s essay, Stephen will share his experiences, what you can learn from them, and tell you about an emergency summit I’m putting together that’s tailored for economic conditions like the kind we’re facing today.
By tapping into the tricks of Wall Street, you can set yourself up with enough income to survive – and thrive – in this market.
You can click here to join me on Wednesday, October 19, at 8 p.m. ET to learn all about it.
Everyone wants to see the world from an insider’s perspective. Private phone calls with Wall Street pros or cigar smoke and politician-filled rooms in D.C. come to mind.
I can’t help on the politician side of things… But I do know the world of Wall Street. And I know it well.
Throughout the Great Recession in 2007-2009, I worked at hedge funds. I then spent the next 10 years performing due diligence on behalf of large financial institutions. Think broker/dealers with over $100 billion in assets.
It was my job to pick the best of the best investments for them and avoid the rest. Meaning those that had the highest profit potential and carried the lowest risk.
That included successful investments in private equity, private credit, and many types of commercial real estate. I partnered with the likes of Brookfield Asset Management, Bain Capital Credit, Carlyle Group, and many others to accomplish this.
If that sounds easier said than done, you’re right. If you recall, there was still a lot of fear in the markets after the Great Recession.
But over the years, I got good at it. Really good.
I earned awards in risk management. I went weeks, and sometimes months without a single down day worth mentioning. My win rate in some areas of the market was well over 90%. Volatile and illiquid securities, like bank preferred stocks, were among my favorites. And some of the investments I selected made tens of thousands in monthly profit for these institutions.
Today, I’ll tell you what I learned from my years making money for some of the wealthiest groups in the world.
And how you can use those to boost your own portfolio – regardless of what’s going on in the broader markets or overall economy.
Wall Street Is Serious About Making Money
Wall Street traders are very serious about making money. That’s not so hard in up markets. But it’s in down markets that they really set themselves apart from Main Street investors.
In Q2 of 2020, the worst of the COVID-19 stock market crash, Forbes reported Goldman Sachs “posted a blowout second quarter on the back of its best trading results in years.” Trading revenue surged by 93%.
And Goldman wasn’t alone. JP Morgan’s trading revenue rose 79% in the same quarter. Citigroup jumped almost 70%. Meanwhile, everyone else was panicking.
Take a look at the chart below.
This is a three-year chart of the VIX index. It measures volatility and is widely used by all kinds of traders.
As you can see, the VIX shot above 80 in March 2020. That was its highest reading ever. Meaning investors had never been more fearful about the future of the stock market.
Yet this is exactly when all those Wall Street players were scoring the most points.
Think about that. If you think volatility over the past few months has been rough, it pales in comparison to what we experienced during the COVID-19 crash.
So how did these Wall Street firms manage it?
Using the Same Tricks as Wall Street
Well, just like there are tips, tricks, and secrets mechanics and carpenters know that regular do-it-yourself (DIY) people don’t… The same applies to profession traders at hedge funds compared to DIY investors.
And one of those big secrets is this:
Volatility creates opportunity. That is, if you have the right tools in your toolbox and know how to use them.
Fortunately, Brad’s team and I have been refining a trading strategy used by some of the most sophisticated traders. Since we started it in 2020, we’ve generated thousands of dollars in income. All with minimal risk and through up and down markets.
Just like Wall Street’s elite. But odds are you’ve never heard of them unless you’ve been a professional trader like I have.
By employing many of the same tactics these heavyweights have used for decades, we’ll use our unique experience to help you see opportunity when others panic.
We won’t just teach you why these strategies work. We’ll walk you through exactly how to execute them yourself. Our goal is for this to be one part of your investments that excels most when nothing else is working.
So tune into our upcoming broadcast tomorrow, Wednesday, October 19, at 8 p.m. ET to find out more.
And just for tuning in, Brad will share one of his favorite recession-proof plays he believes could double from here.
Happy investing,
Stephen Hester
Analyst, Intelligent Income Daily