What's Working in This Market Meltdown?
Well, that sure escalated quickly.
Last Wednesday the stock market went from cautiously optimistic to a dumpster fire.
And the fire has continued to burn.
So, what do we do?
When our student goes through a tough losing streak, what's our response?
Find a new student or see you on the court tomorrow at 9 am?
When we have a bad fight with a loved one, what's our next step?
Find a new partner or a long hug (after the silent treatment)?
When the stock market craters, what's our plan?
Find a new flavor-of-the-month system and sell all the income stocks still paying out great money?
Or just keep doing what we're doing?
Every single study--both old and recent--says the same thing.
The reason people fail is that they take something that has worked for a long time and stop doing it.
In these studies, everyone would've gotten rich...if only they hadn't quit.
So, if we're in a system that's designed using timeless principles and has worked through all sorts of different market conditions, the play is to do nothing.
And if we've been too scared to do anything and are currently out of the market, then the play is to pick something you believe in and get started now (while the time is right).
Is there anything to believe in now?
Let's check it out.
Last week, I did a live presentation at the Festival of Traders. The replay of that video is HERE.
Here's the quick summary. The video covers the PPP (Performance Page Portfolio) and that includes 3 systems on the E-Mini S&P (ES) and 1 system on Gold. Theoretically, Gold helps when the market crashes.
And here's the Report for that portfolio since 2016:
And here are the Annual Returns of the Futures Overnight System on the NQ. It takes trades on the NQ Futures contract and holds them overnight. The most recent video on this system is HERE.
It's been hypothetically profitable for several years and the chaos of 2025 has been no different.
What about high-yield ETFs?
Well, we don't buy those to beat the market. We only buy those for income. So, if an ETF has gone to zero or cut its dividend permanently, then that would be a loser and a loss.
Here's the list of high-yield ETFs that have gone to zero or stopped paying dividends:
[There aren't any.]
Okay, but are there any that are beating the market even though it's an irrelevant conversation?
Yes. Here are a couple of examples of high-yield doing better than the market once dividends are added in:
There are more of these and DIP and Elite members get access to those.
What are the takeaways?
One, it's a great time to buy income stocks. You get way more income per share at these fire sale prices.
Two, the systems that have worked over the long-term should still be working.
Three, this is exactly the time not to do anything emotional.
Talk to you soon.
Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
