Managing Risk With Warrants, Options & Leaps

Regardless of what the markets are currently doing, now, more than ever is the time to take action to protect your portfolio.

Over the last few weeks investors have been very very surprised at the performance of virtually all of the markets with the big initial shock coming from the 9% decline in the Shanghai markets overnight. Many analysts have had some great insight into what the problems are, the effects of them and how investors should approach the markets. Unfortunately, we have many different opinions from these analysts. While differing opinions are great to read it can and does create much doubt in the mind of the average investor. This is truly a time that you, the investor, must firmly believe in your investment philosophy or at a minimum attempt to protect yourself in the event you are wrong.

We at Precious Metals Warrants (preciousmetalswarrants.com)personally follow many of the top analysts and also read as much as possible on websites for information and conflicting opinions. While, yes, we have our own opinions much is based upon the collective views of some of the top analysts in the world. When our favorites are not on the same path we attempt to evaluate the risk of our investments and how to manage this risk with long term warrants, options or Leaps.

Recently Jim Rogers, which I like to refer to respectfully as Mr. Commodity, was quoted as, predicting “a real estate crash that would trigger defaults and spread contagion to emerging markets. You cannot believe how bad it’s going to get before it gets any better. It’s going to be a disaster for many who don’t have a clue about what happens when a real estate bubble pops….the crisis would spread to emerging markets which now faced a prolonged bear run. This is the end of the liquidity party. Some emerging markets will go down 80 percent, some will go down 50 percent, some will most probably collapse.

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