Reducing Risk, European Unrest and Walmart Turning $1 into $5K
Reducing Risk, European Unrest and Walmart Turning $1 into $5K
By:Ed McKinley
A weekly look inside Luckbox magazine
Five ways to reduce risk
Active investors should perform a daily ritual known as risk management. It’s especially important during these times of international strife, painfully stubborn inflation and increasingly unnatural natural disasters.
To help, Luckbox is presenting five strategies for anyone who’s feeling risk-averse: 1. Rebalance the portfolio, 2. Update stop-loss orders, 3. Re-evaluate take-profit orders, 4. Deploy covered calls or 5. Use protective options collars.
But that’s not the end of it. One might also choose to pare back individual holdings that have moved substantially in one direction or the other to reduce the risk of concentration. Another approach is to build a larger reserve of cash to use on a pullback. Meanwhile, hedging the portfolio—or a portion of it— locks in gains and protects against adverse movement.
Global credit spreads balloon in the run-up to French elections
As attention turns to the political fate of France’s President Emmanuel Macron, some active investors look to the VIX to gauge “fear” in the markets. But credit spreads can also provide insight into the level of risk.
Right now, enlarged credit spreads indicate the potential danger of a right-wing election victory in France that could cause shifts in fiscal management, immigration and trade.
By the way, we’re using the phrase “credit spread,” as it applies bonds. It’s a gauge of market risk that reflects the difference in yields between two sets of bonds, typically government vs. corporate. Don’t confuse it with the type of “credit spread” that’s an options trading strategy resulting in a net credit to the account, as opposed to a net debit.
Turning $1 into $5,000. It’s been done.
Offering products for every stage of a consumer’s life isn’t always exciting, yet Luckbox is studying five firms that have made a lot of money for shareholders by manufacturing and distributing some fairly mundane wares.
Two of them, Coca Cola (KO) and PepsiCo (PEP), have accomplished that by peddling sugar water to the world. Two others, Colgate-Palmolive (CL) and Proctor & Gamble (PG), became household names by cranking out cleaning and hygiene products. The fifth, Walmart (WMT), sells groceries and nearly anything else you can think of to the mass market.
Their growth is measured in tens of thousands of percentage points or, in the case of Walmart, over half a million percent—a figure so large you can hardly wrap your mind around it. A single dollar bill invested in Sam Walton’s brainchild in 1977 would have grown to about $5,000 by now.
Ed McKinley is editor-in-chief of Luckbox magazine.
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2025 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.