Saturday, August 18, 2012

Two Stocks To Own For 100% Gain

The stock market doesn't know whether to go up or down right now.  The news is not bad enough for a big downturn and not exciting enough for a real bull rally.  Under these conditions, though, you can still make money on two stocks if you are patient.

The first stock to buy is NUGT, the triple gold miners ETF, whenever it is selling for less than $9 per share.  It will typically be at that low point whenever the stock market in general has pulled back.  Then, be certain to sell the stock whenever it reaches $13 per share for almost a 50% gain.  NUGT will most likely reach $13 during several bull rallies over a year's time.  If you just catch two of these cycles, you will make around 100% for your money.

A second stock that has predictable annual cycles is TLT, the 20 year treasury bond ETF.  People and institutions will run to treasury bonds whenever they have no faith in the stock market.  You could buy TLT for $110 per share when the stock market is at a winter high in March.  Then, just calmly wait for a May selloff that will eventually run the price of TLT up to around $130.  Sell TLT at that point for an 18% gain.

So, owning these two stocks at various times during the year will most likely net you more than 100% for your money if you are patient.  You don't really have to be in the stock market all of the time to make money.  Just be sure you are in the right stocks at the right time.  Then, sit on you hands the rest of the year to make sure you don't lose the money you have gained.
 

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