When I used to work on the floor, I once heard one broker say to another, “the only people dumber than you are your clients.”
That’s what’s really going on behind the scenes. The big money on Wall Street wants you to think you’re clueless without their help. But these guys’ clients weren’t dumb. They were just being kept in the dark.
While these brokers were telling their clients to “diversify” and put their money into safe exchange-traded funds (ETFs) like the SPDR S&P 500 ETF (SPY), they were dropping the firm’s cash – the money that their clients were paying – into a secret money pool…
Prop trading a gold mine that has outperformed the SPY by 35% since 2003.
But they didn’t tell their clients about this cash cow. Instead, they told them to diversify between large cap and tech, splitting their hard-earned money between the SPY, which tracks the S&P, and the Invesco QQQ Trust (QQQ), which tracks the Nasdaq.
Not only do these ETFs’ returns pale in comparison to the gains brokers were seeing from their own secret stash, but they also aren’t diverse. In fact, they’re driven by the exact same six companies: Apple Inc. (Nasdaq:AAPL), Microsoft Corp. (Nasdaq:MSFT), Amazon.com Inc. (Nasdaq:AMZN), Alphabet Inc. Class C (Nasdaq:GOOG), Alphabet Inc. Class A (Nasdaq:GOOGL), Tesla Inc. (Nasdaq:TSLA), and Facebook Inc. (Nasdaq:FB).
These are some of the most familiar names on the market, and they make up over 24% of the SPY and 44.3% of the QQQ. So when these guys told their clients that they had them diversified between tech and large cap, the truth is that they owned both, and they were not diversified at all.
When FAANG took a fall, they watched all of their hard-earned cash go down the drain.
Investing with the methods that Wall Street recommends will get you nowhere. You’ll never be truly diversified. You’ll never retire comfortably. You’ll never get rich.
Instead, you need to invest with the methods that Wall Street is using themselves, behind the scenes. And I’m done keeping secrets. The money pool I’m going to tell you about today has been used exclusively by the super-rich since it started trading on the market almost two decades ago.
But not anymore. It’s time for you to take your share and dive in. This secret money pool is called the Invesco S&P 500 Equal Weight ETF (RSP).
The RSP holds the stocks in the S&P 500 index. Sounds like the SPY, right? But it’s not. Unlike the S&P, every quarter, the RSP rebalances. Through much of 2020, the ETF trailed the SPY. But in December, RSP was selling the Technology Select Sector SPDR Fund (XLK) at new highs and buying the Energy Select Sector SPDR Fund (XLE) – setting its place as an asset that’s going to clean up in 2021.
It’s cheaper than the SPY, and it’s outperformed it by more than 30% this year:
Think about it – as tech was topping out, RSP was buying energy and selling tech. And now, in 2021, we’re watching names like AAPL and FB become safe havens while names like Exxon Mobil Corp. (NYSE:XOM) and Chevron Corp. (NYSE:CVX) have incredible gains up 34% and 21% year-to-date, respectively.
That’s true diversification – taking the best of both sectors. And the RSP is one of the moneymakers that I wasn’t allowed to reveal to clients, especially not clients with smaller accounts.
But now, with retail trades making up at least 30% of the market, the little guy has proven his power. And brokers on Wall Street are scared… as they should be.
See, together, as individual investors, we can shoot this thing to the sky. It’s already outperforming the S&P – but that’s nothing compared to what we could do with it.
So far in 2021, we’ve seen more than 14.7 billion trades per day. And for the first time, trades made by me and you are making up a huge chunk of that number – a big enough chunk to move the market, to move the RSP, on our own.
The RSP is one of the keys to true financial power, and that’s exactly why I’m putting it in your hands. But it’s not the only key – not even close.
This secret money pool is just one example of what Wall Street’s been keeping from you. And it’s only the beginning of the tricks and tools that I’m going to share with you the moment you join the Profit Takeover.
We’re just getting started.
Until next time,
April 19 2021