Jim Pearce

Last week, I closed out a trade for a gain of more than 100 percent that I opened three weeks earlier. I wish I could honestly claim that it was due to some special genius I have for investing, but that would be a lie.

Editor’s Note: Jim’s article below explores how to profit from the war-driven volatility in energy stocks through options. For readers who prefer a lower-risk approach to the same energy disruption, Robert Rapier’s essential-service portfolios in Utility Forecaster carry less than half the market’s volatility while delivering consistent income through the crisis. See his current Best Buys list.

Editor’s Note: Jim writes today about using elevated options premiums to profit from Iran-driven market volatility — and he’s not the only one. This Monday, April 27 at 3:00 PM ET, Robert Rapier is hosting a free live briefing on his own options-income strategy: 30 trades closed in 2025, 35.5% average annualized return, and only one realized loss in four years. No encore scheduled. Reserve your free seat →

We are now in a two-tier stock market, with the dividing line being household disposable income.

A few days ago, my colleague Nathan Slaughter explained why investors should “ Heed the Buffett Indicator.” In sum, the downside risk of owning equities increases when the total value of the domestic stock market far exceeds the value of our economic output.

Editor’s note: If you weren’t on Jim’s Halftime Report last Wednesday, the replay is available through June 3. He walked through every comeback pick he called for 2026 — by name, with the actual returns — then named three new stocks for the second half. One Growth pick was given away free on the call. Watch the replay →

I'll explain my system for identifying "comeback stocks" and give you three examples of companies who appear to be on the verge of taking off.

This type of trade gives me more control over how much money I am putting at risk while using a security that could be more volatile than the entire sector.

Editor’s Note: Jim’s analysis today makes a specific case for protecting your portfolio from a second-half correction. For where he’s positioning the growth side of the Personal Finance portfolio in 2026 — and the disciplined framework behind 51 years of navigating moments like this one — see his AI Margin Rotation briefing. Read it here →

I am not a user of Kalshi, a “predictions market” website that allows users to bet on future outcomes of a wide variety of events. I’m not a gambler and I don’t pay enough attention to what is happening outside of the financial markets to feel confident risking my money on anything else.