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Tens of millions of prudent investors, including retirees and lower income savers, have taken a huge hit in income this past decade due to the drastic lowering of interest rates. (Higher rates would have increased the desired "Stimulus" buying from them)! Thanks to the Federal Reserve’s actions, necessary or not, these short term CD, money market rates are negative, after Inflation and Taxes - forcing people into riskier investments that are not suitable.
Zero Intolerance strategy of Deep-In-The-Money covered calls provides a lower risk investment plan than just being in the stock market via an Index or mutual fund, but with higher rewards. Based on quality dividend-paying stocks, with additional money coming from the calls (replacing hoped for appreciation) should be 10 times current CD rates or more. More importantly, it provides a "safety net" for 99% of market behavior.

This strategy's time frame is between the old Buy-&-Hold of the 20th C. and day trading against black box experts - neither of which is very successful. With a minimum of investment knowledge and effort/time each week, it is quite simple once learned.

The DITM covered call strategy can be followed on:, with tables of past trading results and current positions. With nearly 100 trades over the past 2 years, this defensive plan has only had a couple losses/drawdowns while averaging @10% annualized returns.

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Although the DITM covered call strategy covered in my book was quite successful over 4 years, the Fed-led escalator market reduced the volatility needed to attractively price the options - that may return in 2015. In addition, I write in my Zero (IN)Tolerance blog about another strategy that is even more rewarding as well as more hedged (with money brought in): Buying stocks with LEAP -long term options- and selling "Strangles" on them. (Straddles) Puts and calls with different out-of-the-money strike prices.
Brent Leonard In the 200 years of U.S. stocks’ history since the Buttonwood Tree Agreement, two things stand out: The consistent 18-19 year cycles alternating between Bull markets, such as the exceptionally strong one of 1982-2000 (also 1949-1966), and flat to down markets in between. We are presumably halfway-through one of the latter stages, much like Japan was, in what Technician Martin Pring calls the "Lost Decade". Severe crashes, of which we have seen two in the past decade, occur only 1% of the time, but do the most severe damage to wealth - these are the only real drawbacks to this or any other strategy, and should be hedged against with small costs.

Brent's booklet fully explaining the Zero Intolerance strategy can be purchased through Amazon and from several eReaders such as Apple, Sony, some Kindle, Nook, etc. The ISBN is 9781452475318. Charts are available at You can also contact Brent at or read his Zero In-tolerance blog.

Looking for market direction? One of the best ways is through Contrary Opinion. Check out Brent's weekly Market Sentiment Blog.

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