I know, your broker is telling you not to worry, but had you purchased put options on any one of U.S. home builder stocks Pulegroup (PHM), D.R. Horton (DHI), Lennar Corp. (LEN), Toll Bros (TOL) or KB Homes (KBH), back in the summer, your trades would have experienced three figure percentage gains (yes, options give you this kind of leverage). This is not the high flying darling sector of tech stocks but was one which has experienced particularly high volatility with guidance from the U.S Federal Reserve of rising interest rates. We all knew that higher rates were coming down the pipe. This trade was not on the radar of your banker overseeing your portfolio.
When you head over and review that charts on these stocks, perhaps you’ll be thinking twice regarding the counsel from your banker and those lowly performing mutual funds in your portfolio.
The securities industry does not think that you have the sophistication required for trading in options. They may be right but with education and a desire to achieve a higher rate of net worth growth, you can acquire that education and discover those unique trades specific to any economic condition. You are responsible for your net worth growth. What are you doing about it other than showing up for work?