The Sneaky “Hedge-Play” I Use To Win In Any Market (Thanks Facebook)

I’ve been an investor in Facebook since its IPO…

And during the COVID-19 pandemic, I scooped up a chunk of new shares when it got down to around $139.⬇

After that, the stock has recovered quite nicely…📈

Peaking at $241 one point…👌

But then one day, the market took a beating…

And the Facebook stock was back down to $230. 👇

Now here’s what’s really interesting…

The lower Facebook’s shares go in the following months, the more money I will probably make… 

And this is the reason why: 

While Facebook is probably the best advertising platform on earth…

They are also challenging to work with if you’re in the field of Direct Response. 

Facebook loathes aggressive advertising…

And they strongly prefer big consumer brands who are willing to spend billions of dollars a year on vague advertisements that have zero calls to action.

Why?

It’s a less invasive experience for their user base…

Compared to a jarring ad that grabs the prospect's attention, gets them to click, and takes them off Facebook’s platform.

And yet, while this is what Facebook would prefer…

Their dirty secret is that they need direct response advertisers. 

And it’s always been this way.

Specifically, here’s what happens…

Whenever Facebook gets caught up in some bad press, or something negative happens, that affects their stock price…

They “coincidentally” loosen up their advertising policy dramatically…

Which makes it WAY easier for direct response advertisers like my friends and I to buy traffic on their platform.

(Combined, the people I know directly spend well over $1BN a year on Facebook Ads).

This has been going on for at least 6 years by the way…

And the pattern is always the same:

  1.  Facebook Stock Price is going down…
  2. Analysts and Wall Street say “We don’t think Facebook will be able to hit their targets this quarter!”…
  3. Facebook Ad Policy becomes looser…
  4. My friends and I pour a ton of money into advertising (and make a ton of money)
  5. Facebook magically surprises Wall Street with better than expected earnings and profits…
  6. Their stock price goes back up…
  7. Facebook Ad Policy gets tighter and we don’t get to make as much money on advertising (until the next time something bad happens).  

Pretty interesting, right?

And the coolest part is that this reality gives me a no-lose situation to make money. 

Remember:

I own a bunch of Facebook stock – so when the share price goes up, I make money…

And because I own a bunch of Direct Response offers that CRUSH with Facebook ads…

When share prices go down, I make a bunch of money. 

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In other words, I’m set-up to thrive in either situation…

And I think that part of the key to being ultra-successful financially…

Is having systems in place to hedge your bets…

Along with finding ways to create upside no matter what the markets are doing. 

So yeah, just wanted to share.

 

– SPG

P.S. This post originally came from an email I sent to my private list. If you want to see more stuff like this from me, you can apply to join my list using this link

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