JJC:    Some stocks you want to own for their upside... Other stocks you want to own for their hefty dividend yields... for cash flow... but there is a third kind of stock that far too many investors ignore entirely...  let's call it... insurance.

I'm the only guy who has ever tried to make insurance interesting, and I am going to do it right now...

.  .  .  .  .

Every portfolio needs some insurance.  That's a stock that is likely to go up, when everything else goes wrong...

Now listen... You don't buy these stocks because you think they'll make you a lot of money right away... you buy then just in case you're wrong about the market... That way, at least you've got a little hedge... something you own should be going higher when everything else goes wrong...

Now think about it like this... You wouldn't think about owning a home without insurance.  You can't legally drive a car without it... so why should investing be any different?

This is one of the new rules in my new book, Stay Mad For Life, and it's really important.

If you buy a stock to fill a need in your portfolio, don't sell it because that stock isn't making you money at that moment.  That's not why you bought the stock...

Would you stop paying your premiums just because it hasn't paid off lately?...

The insights in my new book can help you... These can help you in any situation... in any time where money is involved...   

.  .  .  .  .

Right now, I think it's a good idea to own a gold stock as a hedge against inflation... as your insurance against inflation...  for, say, when the Fed cuts too much, and people freak out next week...

I'm not really worried about inflation personally.  In fact, I think, in an environment where foreclosures are soaring, despite what the President...  I approve of the President's plan, but I didn't have anything that I haven't said a million times about it already...  I approve of the President's plan, but I think, when housing prices are plummeting, the real worry is deflation...

But I'd be a bigger idiot than my critics have accused me of being, if I thought it was a good idea to go out and invest without some inflation insurance... 

.  .  .  .  .

The market rallied today, because the President is putting the pressure on the Federal Reserve, in his own way, to have rate cuts that are bigger...

I see rate cuts on the horizon, and that's why the market went up so big today...  and it wouldn't be crazy to expect that some people in this market will say those rate cuts will spur inflation... so we want to own some gold.

.  .  .  .  .

We want to own some gold.  Here's the problem... and here's where the book comes in...

The gold stocks?  They haven't been performing all that well lately.  And, if I'm right about the current economic situation, they're probably not going to give you that much upside for a while... if they do at all...

That's why the rule is so important...

You need something in your portfolio that takes your fallibility - or my fallibility - into account.

If there is one takeaway here, other than buying my book, it's insurance...

You might understand that, right now, it's probably crystal clear...  The two gold stocks I would buy