Safest way to make 1% per month

Discussion in 'Trading' started by tonyf, Sep 1, 2021.

  1. tonyf

    tonyf

    I was challenged last evening in a pub (without face mask!) on what would be the "safest approach" to make 1% per month over the next 10 years. Not more, just 1%.

    That's about 9 to 10% net of inflation per year or about 1.5x very long term US equity index return.

    I was not able to answer on the spot but promised the dude to raise the question here.
     
    murray t turtle likes this.
  2. traider

    traider

    If it's safe to make 1%, it's safe to lever up 4 to 10x to make even more unless the strategy is super capacity constrained.
     
    longandshort likes this.
  3. tonyf

    tonyf

    note the use of the word "safest" and not "safe" - we are not chasing an 1-off arb. opportunity here.
     
  4. Buy an etf that goes for a long term goal like water supply or invest in a heavily diversed company such as amazon, unilever, P&C. That is as safe as it get's. Investing is about risk/reward, all the good RR-ratios are already sold out, leaving you with an inversed lottery - the better you diversify the less risk you own.
     
  5. cesfx

    cesfx

    If the SP500 is not enough, maybe a collar or a delta neutral strategy on a high dividend stock?
     
    vanzandt likes this.
  6. tonyf

    tonyf

    what do you have in mind?
     
  7. cesfx

    cesfx

    I don't really trade that far away with options, but last year I was looking at a tight 1yr collar close to ATM on XOM, slightly long delta as xom was at a correction. It showed on paper limited loss and a net % (dividend - cost).

    Also any ETF correlated to SP could do well, a very small leverage should average a 1% month avg based on historic performance.

    Just ideas as I don't trade this way.
     
  8. Tarzan

    Tarzan

    dont buy big gap ups. Dont buy the open, wait a few
    minutes. dont buy after hours. dont chase..
    Always have a game plan- what stocks are you buying and why.. What price area are you selling..
     
    cobco, yc47ib and tomorton like this.
  9. tonyf

    tonyf

    and how do you make 1%?
     
  10. There will be better ways, but stock in O or similar paying c.6% yield, with covered calls sold to raise c.1% per month, with some of the excess proceeds used to buy protective puts could get close.
     
    #10     Sep 1, 2021