That’s storied speculator Doug Casey, one of the founders of Legacy Research.
What’s he talking about?
Not physical beauty… Studies show we find symmetric faces more beautiful than asymmetric ones.
Great architects, artists, and designers also prize symmetry in their work.
But when it comes to speculating in financial markets, great investors look for the opposite – asymmetry.
They look for setups where small stakes can deliver big wins.
I (Chris Lowe) am talking about gains of 1,000% and up… with stakes as small as $100.
As you’ll see today, one overlooked investment type fits the bill perfectly.
It’s already given Legacy readers the chance to make returns of 1,363%… 2,805%… and 4,942%.
And an event next month could lead to an even higher gain.
But before we get to that, some important perspective…
If you double that stake, you net just over $100,000.
That’s enough to move the needle on most folks’ wealth.
You could use it to pay off a big chunk of student debt… or a chunk of a typical mortgage.
It’s also enough to take the vacation of a lifetime.
Now, not every asymmetric speculation will pay off that much.
And as with other strategies, you’ll have some losers along the way.
But if you put $1,000 into 10 separate trades like this, the most you can lose on each is $1,000. Your total amount at risk is just $10,000.
And here’s the beauty of asymmetry: Even if just one of your trades pays out $50,000, that more than makes up for any losses among your other nine bets.
It was a trade using something called a stock warrant.
And it was in the model portfolio at our Strategic Trader advisory, which Dave Forest heads up.
Daily Cut regulars know Dave trained as a geologist and made his mark as a natural resource explorer, financier, and speculator.
He first used warrants as part of his investments in mining companies.
Now, he uses them to target returns of 1,000% and higher on some of the most powerful market megatrends we track in these pages.
Dave’s open warrant recommendations include ones related to precious metals, self-driving cars, and 5G.
Typically, a smaller company issues warrants to sweeten the pot for investors who buy its shares. So you can often scoop up warrants for pennies.
If the company’s share price rises above a certain agreed-upon level, known as the strike price, you can exchange your warrants for newly issued shares. You pay only the strike price for each share.
That’s what makes warrants such low-risk, high-reward bets. If the company’s shares hit the strike price, you get to own them for a tiny fraction of what you would have paid if you’d bought them directly.
More on this from Dave…
There’s risk in everything… even in holding dollars in your pocket. But with warrants, the dollar amount you’re speculating with is much less than when you buy shares outright. So you can control your risk.
To use a simple example… if shares in a company trade for $10, and its warrants trade for $1, the warrants let you control the same number of shares for a tenth of the cost. If you control 1,000 shares via warrants, the most you risk is $1,000. That’s instead of the $10,000 if you invested in regular shares directly.
And when warrants pay out, the gains can be massive. That’s why billionaire investors like Warren Buffett and Carl Icahn love them. They’re a speculator’s dream.
It was on warrants issued by mattress retailer Purple Innovation (PRPL).
At the time of the recommendation, in February 2019, regular PRPL shares were selling for $5.75.
But the company’s warrants, trading under the ticker PRPLW, were on offer for just 19 cents.
And by October 2020, when Purple Innovation’s shares had risen from $5.75 to more than $30 – a 432% gain – its warrants had shot from 19 cents to $9.57 – up 4,942%.
That’s a roughly 11.5x outperformance over the regular shares. And this quadruple-digit gain came in just under two years.
Fortunately, Dave is a seasoned speculator. And he’s teamed up with former investment banker John Pangere to help him sift through hundreds of tradable warrants to find the best possible setups.
That’s good news for you…
Because once you know these speculations exist… and the experts to follow… the rest is easy. Back to Dave…
Unless you’re a billionaire financier, you’ve probably never heard of warrants. They’re kind of a Wall Street secret. But they’re actually incredibly easy to trade.
You can buy and sell them through your regular online brokerage account. You don’t need any special accreditation. And you don’t need specialized expertise, like you do with options trading.
Warrants aren’t for the rent money. I always remind my subscribers to never bet more on them than you can afford to lose. But if you’re looking to make real changes to your financial situation, you can’t afford to ignore them. Warrants are high-impact trades. They give you the chance at exponentially larger gains than we see with regular stocks.
At Legacy Research, we’re all about leveling the playing field between you and Wall Street elites.
So it’s great to see a guy with Dave’s proven track record home in on this opportunity.
It involves an event next month related to Jeff Bezos and the company he founded, Amazon.com (AMZN).
Dave says he’s never seen an opportunity to make his readers as much money as he foresees from this one.
I talked to him all about it recently. I’ll pass along the Q&A of that conversation tomorrow.
I hope you stay tuned. Dave says folks who get in on this trade before mid-November stand to make 49 years’ worth of profits… in just one year.
It’s why he’s holding his first live event ever – for free – next Wednesday, October 20, at 8 p.m. ET.
It’s called the “Zero to Retirement Summit.” It’s a way for you to get the inside scoop on this asymmetric bet.
You’ll also receive a five-part training course on warrants just for signing up.
So make sure to secure your spot here.
October 13, 2021