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The Most Important Financial News You're Not Hearing

By Brian Hunt and Ben Morris, editors, DailyWealth Trader
Monday, July 27, 2015

You're not seeing it on CNBC...
And you're not reading it in the Wall Street Journal.
The financial media are full of headlines stoking fears about the economy.
But despite what the pessimists would have you believe, the American consumer is alive and well.
In today's issue, we explain how we can confidently state this... and how you can conservatively make money from the situation...
In DailyWealth Trader (DWT), we've been bullish on stocks since our May 2012 launch. Whenever fear starts to dominate the headlines, we take a step back and look at the big picture. And for years, the big picture has been bullish... as evidenced by strong, upward momentum in stocks and slow, steady improvement in the economy.
Economic output is up. Unemployment is down. The housing market is up. Consumer sentiment is at a multiyear high...
And big businesses that sell to the American consumer are benefiting.
A healthy American consumer buys – and spends a little extra on – "the basics"... things like shampoo, soft drinks, cigarettes, sneakers, and toothpaste. So as the economy improves... and as consumers spend... these companies profit. And share prices rise.
A great way to gauge the action in these stocks is the iShares U.S. Consumer Goods Fund (IYK). Its major holdings include Procter & Gamble, Coca-Cola, PepsiCo, Philip Morris International, Nike, and Colgate-Palmolive. The fund has climbed 50% over the past three years.
Since launching DWT, we've profited on this big uptrend by using our safe options-trading strategy, "trading for income," on the top consumer businesses. (If you're not familiar with the idea of selling options – puts and covered calls – you can learn more about how these strategies work here and here.) We've suggested 60 trades in the sector... and we have a 98.3% win rate on these trades...
We've traded beverage giants Coca-Cola and PepsiCo, fast-food icon McDonald's, retailers Wal-Mart and Target, and consumer-goods behemoth Procter & Gamble.
In all, the trades generated average returns of 3.7% in three weeks, for 15.4% annualized returns. Over the course of three years, 15.4% annual returns will grow your account more than 53%.
In other words, by trading for income on the best consumer-goods companies trading at the best values, DailyWealth Traders could have achieved returns better than a buy-and-hold strategy. And the strategy involves taking less risk...
You see, when we trade for income, we collect cash as soon as we place a trade. So we don't need shares to rise to make money. We can profit even if shares trade sideways (as they've done for the past few months)... or even if they fall a bit.
So if you're looking to cash in on the strong American consumer, we recommend trading for income. You can build your own option trades on McDonald's or Procter & Gamble today...
The healthy American consumer isn't a theme you're hearing about in the news. But the trend is up... And it's likely to continue. Trading for income is our favorite strategy to profit. Get started today.
Brian Hunt and Ben Morris

Further Reading:

Brian and Ben also recommend the insurance sector today. Recently, they showed how the industry still has more upside ahead. Insurance is one of the world's best businesses... and insurance stocks are at historically cheap levels today. They say as long as the trend is up, ride it for more profits. Get the details here.
"Lots of investors have an important question on their minds right now," Brian and Ben write. "Should I be worried about a crash?" They say the answer is YES... if that's what it takes for you to put a catastrophe-prevention plan in place. Get all the details here.

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Market Notes
Big engine maker Cummins sinks to a new 52-week low.
Giant alcohol firm Constellation Brands is one of the best-performing stocks of the last five years... up nearly 600%.
World benchmark Brent crude oil drops 16% over the last two months.
Insurance-sector fund IAK continues its long-term uptrend... up 80%-plus in three years.
From The Crux
Market Watch
Symbol Price
S&P 500 2080.45 -1.0% +4.7%
Oil (USO) 15.97 -1.1% -57.8%
Gold (GLD) 105.44 +1.1% -15.2%
Silver (SLV) 14.07 +0.5% -28.1%
U.S. Dollar 97.28 +0.1% +20.3%
Euro 1.10 +0.2% -18.3%
Volatility (^VIX) 14.38 +13.8% +21.5%
Gold Stocks (^HUI) 115.26 +4.0% -51.1%
10-Year Yield 2.27 -0.3% -9.6%

World ETFs
Symbol Price
India (IFN) 27.55 -1.2% +14.5%
Israel (ISL) 18.53 -1.0% +6.7%
China (FXI) 41.64 -1.6% +5.6%
USA (SPY) 207.84 -1.1% +6.7%
Japan (EWJ) 12.75 -0.9% +6.6%
Taiwan (EWT) 14.68 -1.9% -8.4%
Singapore (EWS) 12.47 -0.3% -8.8%
S. Africa (EZA) 61.70 -3.0% -11.4%
S. Korea (EWY) 50.48 -2.0% -21.6%
Canada (EWC) 24.97 -0.6% -22.0%
Russia (TRF) 10.45 -0.9% -24.2%
Lat.America (ILF) 26.76 -2.2% -33.6%

Sector ETFs
Symbol Price
Biotech (PBE) 59.09 -3.6% +36.7%
Health Care (IYH) 159.34 -2.6% +23.5%
Software (PSJ) 44.55 +0.8% +22.0%
Consumer Svcs (IYC) 148.08 -0.3% +19.4%
Retail (PMR) 39.57 -0.2% +17.8%
Big Tech (QQQ) 111.03 -1.0% +15.6%
Semis (PSI) 25.06 -1.9% +13.8%
Financials (IYF) 92.52 -0.6% +11.5%
Insurance (IAK) 52.72 +0.2% +11.9%
Defense (PPA) 34.85 -1.4% +8.8%
Construction (PKB) 23.83 -1.4% +8.7%
Media (PBS) 27.10 -0.8% +6.2%
Real Estate (IYR) 74.00 +0.1% +4.9%
Utilities (XLU) 42.31 +0.1% +2.4%
Industrials (IYJ) 102.87 -1.2% +1.1%
Transportation (IYT) 144.57 -0.7% -3.6%
Telecom (IYZ) 27.99 -1.9% -5.9%
Water (PHO) 23.47 -0.9% -8.8%
Basic Mat (IYM) 73.83 -2.3% -14.4%
Alt. Energy (PBW) 4.84 -1.4% -23.6%