- February 4, 2025
- Posted by: Mark S
- Categories: Dividends, Trading Article
Look, these new income ETFs are incredible. Weekly payouts? 25%-50%-75% yields?
And unlike traditional investments that stop paying when markets tank, these special ETFs keep generating income even in bear markets.
That’s powerful stuff.
But here’s what most people miss…
While your income keeps flowing during market downturns (a huge advantage over traditional investments), why take the full hit to your capital if you don’t have to?
Think about 2022. The NASDAQ dropped over 30%. Sure, income investors using these special ETFs were still collecting their weekly checks – way better than watching both your capital AND income disappear with traditional investments.
But imagine this instead:
• Your income keeps flowing during choppy markets
• AND you protect most of your capital during major declines by exiting
• THEN you get back in at much better prices
• WHILE still maintaining those consistent weekly payouts during the sideways to up markets
You get the unique advantage of steady income these ETFs provide, PLUS the power to sidestep the worst of the market’s drops.
This is where my Power Ratio comes in…
The Power Ratio: Your Market Crystal Ball
Over the last 10 years, I’ve developed something special. Every single week, I scan 140+ ETFs – that’s over 500 weeks of data – and boil it down to one simple number that tells you exactly when to be in or out of the market.
I call it the Power Ratio.
When it’s above 50%? The bulls are in charge. Time to load up.
Below 50%? Warning signs are flashing. Time to play defense.
Real Results, Not Hindsight
Let’s take the QQQ as an example. Using this system:
• We stayed bullish during the entire tech boom
• Went bearish right before the 2022 crash
• Jumped back in for the recovery
• And we’re still riding the bull wave today
But here’s the best part – this isn’t about timing every little market move. It’s about avoiding the big, painful drawdowns that can devastate your portfolio.