Today, I want to walk you through a little thought exercise to help you become a better market investor.
We’re going to face some “uncomfortable truths.”
Because that is often where the most profitable trades sit.
For example, if you discovered the truth about their plans to lock down the economy in 2020, you could’ve positioned yourself nicely to the short side…
Or if you stumbled on the fact that we don’t have any refinery capacity available in the market, maybe you get long energy stocks at amazing prices…
Or perhaps while the Fed kept talking about “transitory” inflation, you realized they would’ve needed to do a hard U-turn because commodity prices were skyrocketing.
These are massive thematic trades most hedge funds would kill for.
And yet, most people choose not to think about these possibilities. It’s not fun to be a realist… but doing so can pay off.
With that in mind, let’s talk about 3 uncomfortable truths from a recent news event.
Here’s the headline:
But are you ready for the uncomfortable truth?
If you’re driving in Napa Valley on a Saturday, there’s likely a 60% chance that you’re already a little toasted.
Most people will read that and get angry – that mentioning this ugly truth means I’m OK with it.
No. Of course I’m not OK with it. You can get someone killed… AND he’s got enough cash to afford a driver.
Yet that doesn’t deny the truth that plenty in America’s crown jewel of wine are likely driving around under the influence on a Saturday night.
Why don’t we try out another uncomfortable truth?
The United States has a parallel legal system that will apply justice depending on your specific demographic.
That’s why Paul ain’t going to see a day in jail.
And it’s the same mechanic that allows left-wing paramilitaries to burn down cities in 2020…
While conservative protestors who entered the Capitol on January 6th (some with assistance, allegedly, from Capitol Police) are still rotting in jail without being convicted of a violent crime.
Do I think it’s right?
Nope, but it’s still a very real thing.
How about we try one more time?
Company insiders can easily “work the system” to profit on non-public information.
See where we are going with this?
Of course it shouldn’t be happening. If you can’t profit on a level playing field, then you shouldn’t be in the market.
But the stock market has never been a level playing field. You could try and trade assuming it is…
And you’ll get your ass handed to you.
I think it’s better to be more of a stock market “realist” and understand that by noticing *where* and *how* the playing field is uneven, you can get a massive edge.
That’s the power of insider trading, and we’ve just recently uncovered a massive long position put on by a key Pelosi ally.