Go big or go home. Any investor thinking otherwise is playing a losing game at this moment in time.
We very well may be at the beginning of a bear market – a long bear market.
But with the stock we're bringing you today, you can easily double your money in the next year. It's one of the rare opportunities on the market right now…
Negative interest rates over the last decade have resulted in a massive distortion of asset prices that can make the market very difficult to navigate right now.
Going forward, investors will absorb all the risk while the possibility of returns dwindles.
Think the market has bottomed? Think again.
Admirably, the U.S. Federal Reserve is attempting to let the air out of the balloon, but these things rarely go smoothly.
As a result, volatility takes over, and with that volatility comes opportunity – opportunity to double your money or even better.
Forget about single-digit returns with long-only strategies. Those serve a purpose in every portfolio, but today we're looking for an opportunity to very quickly double your money.
And there is opportunity everywhere as stocks gyrate up and down in the near term.
Take the retail space, for example.
Since early November, stocks in the group have gone down, and in some cases, the selling has been beyond bear market territory.
Some retail stocks are down more than 20% in a short period of time – and a time that is traditionally very good to the retail sector.
The bear market doesn't care about Santa Claus, but there is a silver lining for those willing to trade the anomalies that come in this kind of a market.
The SPDR Retail ETF (XRT) is down more than 5%.
Clearly some retail names are holding up better than others.
Wall Street cares about profits and profits only, especially in a bear market.
You can forget about revenue growth. It's not happening as the central banks around the globe take the air out of the asset bubble.
Can you make money in this environment or not?
If the answer is no, get ready for a 50% haircut in valuation (or more).
You definitely don't want to own a stock like that.
But if you want to own a stock that can double your money, there are retail names that can deliver the goods with a combination of earnings and revenue growth.
The trick in this market is picking your spot, and right now is one of those times.
In the middle of December, the Federal Reserve will be changing the game with a decidedly more dovish statement and accompanying rate hike.
The "December pause" will be just what the doctor ordered.
The consumer is benefiting greatly from lower oil prices and a super-strong jobs market.
More money in pockets means more spending for the holidays.
As always, the market has been looking way past the holiday season.
Now with the December pause that will surely come from the Federal Reserve, investors can once again focus on the positives in the economy.
Earnings and revenue growth will become attractive to investors looking to put risk back into their portfolios.
In the retail space, one name in particular will shine.
In fact, we think you can double your money before the end of January with just this one stock…
Double Your Money With one Play in January
TJX Co. Inc. (NYSE: TJX), owner of TJ Maxx, sits in the sweet spot of retail.
Consumers love the low price value proposition at its stores like TJX and Marshalls.
No matter how the economy is performing, consumers love a good deal, and that's what TJX is all about.
In the last 30 days, the stock has fallen by 15%, opening the door to a snap-back rally.
This is our opportunity.
We might not be able to double our money owning the stock outright, and frankly, I'm not sure anyone should own the stock for the long term.
Things may change rather quickly.
What was an opportunity may evaporate quickly and turn into a disaster.
That's what happens in bear markets.
So for those wanting to go big, I say buy a TJX call option.
There is a 75% probability or higher of a Fed-inspired Santa Claus rally for the remainder of the year.
The December expiration $47.50 calls trade for $0.40 a contract at the moment.
In order to double our money, we would need TJX to trade for $48.30, or just under 3.5%, from current levels.
Doubling your money in options is all about timing.
With a high probability of a big rally in TJX before the end of the year, now's a great time to go big with TJX call options.