The U.S. stock market has dropped over 20% in the past 1 year. Is it time to sell? Or is it time to buy?
How to create passive income from investing in this volatile market?
Before I reveal to you my answer, let’s go and take a short quiz from Warren Buffett 🧐🧐
Investing Quiz from Warren Buffett
Warren Buffett once asked this in his annual shareholder meeting: “If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? 🍔”
“Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices? 🚗”
What’s your answer?
The answer is pretty obvious, isn’t it?
You want the prices to be lower so you can save more as a consumer!
Now here comes the final exam.
“If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? “
Most people will hope for a higher stock price, but Warren Buffett just finds it strange.
“If you intend to be a long-term net buyer of stocks, shouldn’t we be happier when the stock prices are depressed?” he asked.
Because this is when the market is giving us good discounts to add more positions to our portfolio!
In fact, Warren Buffett said they gained enormously from the Low Prices in the 1970s and 1980s when the stock market crashed over 40% before rebounding over the next five years.
And since then, the market has gone up over 18,255%!
That means if you invested $10,000 in S&P 500 back then, you will now have $1,835,500 in your portfolio!
No wonder Warren Buffett can accumulate so much wealth all these years. It’s his willingness to be a Permanent Residence of certain great companies that made him tremendously wealthy 😃😃
So let’s come back to the first question I asked you at the beginning of the video:
The U.S. stock market has dropped over 20% in the past 1 year. Is it time to sell? Or is it time to buy?
For me, I will continue to buy in this bear market, so I can profit in the long run. And if you’re not sure what stocks to buy, the best choice is to buy the index which is S&500, which has historically given investors a 10% return per year. And if you know what options trading strategies really work, you can even generate additional passive income while buying the stocks, and I will show you how by logging into my moomoo brokerage platform.
Passive Income From Investing – Brokerage Tool
If you are wondering what brokerage platform to get started, you can consider moomoo. It’s an established brokerage that allows you to invest in diversified markets, including US, HK, CHINA, SG, and more. It’s also regulated by Monetary Authority of Singapore (MAS).
Right now if you open your account via my link below and fund $2700 SGD inside, you’ll even get a free share as a welcome gift as well as my latest private portfolio watchlist to help you get started on your investing journey. All you need to do is to open your account and fill in the google form to claim all the free gifts!
To collect passive income while wanting to buy S&P500, all you need to do is to sell PUT option. If you want to buy the stock at $405 a share, you can sell a put at that price, and get to collect $650 USD for a 14-day Put option. In return, you just need to set aside enough money to buy 100 shares of SPY, which is $40,500. And if you calculate your ROI, it’s more than 1.6% return in about 2 weeks!
Right now, moomoo even offers 3-month free in-depth options data to my followers and one free “options kit” which includes 1-month of free commission, option learning courses, and options paper trading for your options trades. So do register an account to get started.
Options is super powerful but I don’t have time to go through them in-depth here. If you want to learn more, do join us in our upcoming Next Level Options Masterclass, a 2-hour free web class where you can learn 3 options strategies to profit and protect in different market conditions!
In the meantime, you can also check out my other learning resources such as what are options call for more knowledge. Do follow my telegram channel to get more investment insights too!
I also made a video showing more step-by-step on how to use options to create passive income from investing. Enjoy!
