Equity Investing A Gamble Are You In Or Are You Out?!

Show Me The Money Or Not!

Alright folks Saul Goodman here your favorite attorney at law… and sometimes financial guru if you catch my drift. So this article's yammering about optimism in the stock market. Now I always say a little optimism never hurt nobody... except maybe those folks who invested in my film company. Remember that one? Classic case of chasing rainbows I tell ya! Historically the market trends upwards...7 8% they say...but what about when it trends downwards...like a runaway train!?

Blind Faith Is A Dangerous Game

But let's get real being too positive is like trusting Jesse Pinkman with a chemistry set – bound to blow up in your face. You gotta watch out for bubbles those shiny things that pop and leave you covered in goo. Dotcom crash 2008 crisis... sound familiar? People get greedy forget the basics and boom! Their retirement fund looks like a pile of… well you get the picture. Overestimating returns? That's like thinking Badger's gonna ace his GED. Possible? Sure. Likely? Not so much!

The Art of The Deal...Or Avoiding a Bad One

Balanced optimism that's the ticket. You gotta have the discipline of a pre Heisenberg Walter White and manage risk like I manage my… clients. Speaking of which gotta love those pessimists hoarding cash. Sure a little dry powder's good like having a spare tire in the trunk. But inflation eats that cash like Huell eats nachos. Remember Huell? Guy could make a buffet disappear faster than my reputation after the whole Walter White thing.

Buffett's Moves: Smarter Than Your Average Bear

Even Warren Buffett the Oracle of Omaha was playing it safe before the recent downturn. That guy's got more money than I've got… well let's just say 'enough'. He didn't see good deals figured assets were overvalued and sold. Smart move. It's like knowing when to fold 'em folks. You gotta know when to walk away and you gotta know when to… run like hell!

Fluoride and Fortune A Cautionary Tale

They mention Fluor this company that went up then down faster than a hooker on a Saturday night. Trading at 14x forward earnings! Sounds like a steal? Maybe maybe not. Options premiums are up which makes certain strategies more interesting. Cash covered puts diagonal call spreads... sounds complicated right? That's where a good lawyer like yours truly comes in...but I digress!

The "Buy Write" Hustle

They suggest a 'buy write' strategy – buy the stock sell calls. Sounds fancy but it's like putting a little extra frosting on the cake. You buy FLR at $33.28 sell the May 35 calls at $2.10. If nothing happens you get 6.3% return. If it goes up you get almost 11.5%. Not bad even for a glass half empty kinda guy. Now if you'll excuse me I gotta go find my lucky suit. This market's a wild ride and Saul Goodman's gotta be ready for anything. Oh and if you're in New York on June 12th hit up the CNBC Pro LIVE event. Maybe I'll see you there and we can discuss how to make lemonade when life gives you lemons... or you know other ingredients!