Here is a solid stimulus 2 update for everyone and an opportunity to make so decent money off of it. There are not many times in the history of the United States that you get a check for $1,200 just for being a citizen. But that looks like it is going to happen for a second time. But it is not just that we are going to get a free check that should excite you, it is what we can do with it that should absolutely thrill you!
According to The Hill, Steven Mnuchin has confirmed that the new Senate’s version, Cares 2 Act, will basically give everyone that got a check last time, a check this time. From what I have read around the news circuit is that the language is the same as the original Cares Act. Now I am a bit conflicted. The proposed Heroes Act gave a family of 5 a very usable $6,000. It gave college students $1,200 a piece and 17 year olds as well. This is something that hits home with me. I have both! So of course I am kind of pulling for Heroes Act payout. But I digress on that subject. Here is the basic thing to remember. We are getting money that will never be free, it will need to be paid back somehow and someday. But what should we do with it until then?
The first thing I would tell you to do is to take a good hard look at your finances. Hopefully you are in a boat that allows you to invest some of this new found money. Here is the simple question to ask before deciding what to do with your money. Do I owe any bills that have interest that is above 8%? If so, I would recommend you pay them off before putting your money in the stock market. Why do this? Paying off these bills will get you a guaranteed return of 8% less on your interest for that money. That’s a guaranteed savings of $96 a year on that $1,200. If it would have taken you a few years to pay it off, it adds up to much more in lifetime savings. There truth of the matter is that if you have high interest credit cards, then you should be taking care of them before investing any excess cash into the stock market. It is a much wiser decision. But if you are all set in that category, then here is your answer for what to invest in.
Take a look at UDOW ($69.19 as of the writing of this article) and TECL ($244.88 as of the writing of this article). These two stocks are triple leverage ETF’s. They are the way to “risk it for the biscuit” as they say in the investing world. You can take the $1,200 and put it on either stock and it will give you a whooping $3,600 in exposure. UDOW matches the DOW exactly, but just times three in gains or losses. TECL on the other hand, is triple leveraged tech ETF that gets you three times the daily gain or loss of handful of tech stocks. Keep in mind, that if the stocks go down 33%, you have now lost all your money. But if they go up just 33%, you basically just doubled your money to $2,400. Now if you think the market is going to correct again, then you can invest in SDOW. It is the opposite of UDOW. It a triple leverage bear ETF. In other words, when you invest in this stock, you are hoping the stock market drops. You will return three times the market’s loss.
At this point, we are at the mercy of the people down in D.C. to get this money to us. I am hopeful that they will get us a bit more, but we should be happy to get anything at all. I believe they will pass the bill and it will most likely look like the last one in terms of the stimulus check. The only thing I am hoping for is that they include college students and 17 year olds this time. I guess they thing that they must live for free. My guess is that by next Sunday, you will have a bill that has been agreed upon.
Moe you are the best thing since sliced bread. How do i join?