Tear off your $6,298 from ‘Toilet Paper Mania’

It’s happened.

We’re currently seeing a repeat of the famous Tulip Mania… but this time the object of desire is even more unsuspecting.

Toilet Paper.

The shelves are empty, but your wallets won’t be after you hear what I’m about to reveal.

Here’s how your $6,298 is waiting for you…

Doesn’t it feel like we’re living in an episode of The Twilight Zone?

People are flooding the supermarkets in masks and gloves, but when you follow them in there, you realize it’s only one aisle they’re going for… the toilet paper aisle.

Now, before I go on, I want you to know I’m not downplaying our current situation by any means, but… toilet paper? Really?

I suppose this isn’t new, though.

We just haven’t seen a rush for something so random in centuries… but we have seen it, nonetheless.

And riches were made from it.

I’m talking about the Dutch Tulip Mania that happened in February 1637.

I won’t bore you with the details, but basically these tulips were in such high demand that by some estimates the price shot up more than 2,000%!

This caused a speculative bubble that became known as Tulip Mania.

Imagine if you bought a share of a stock for $100 and it shot up 2,000%…

That $100 would now be worth $2,100!

I’d say that’s a pretty healthy return.

And in the circumstances we’re currently facing, healthy returns are few and far between. But I think I’ve nailed one down here.

Now, with certain laws in place nowadays, we can’t completely copy the Tulip Mania blueprint, but we can take a page out of its book.

What I mean is that we can’t buy toilet paper and re-sell for a higher price–that would be price gouging–but we can make a profit in a more creative way.

In order to do this, I’ll quickly explain my thinking…

A famous Wall Street saying came to mind when I was thinking about the investing opportunities in our current situation:

The Bull climbs up the stairs, and the Bear falls out of the window.

What this is saying is that stocks going up is more of a gradual building process, but stocks going down happens quite rapidly.

So instead of trying to profit from the climb, let’s profit from the fall.

I’m not talking about the fall of the market, but more-so the fall back to reality we’re going to get once this Toilet Paper Mania starts to taper off.

As you can imagine, toilet paper suppliers were as shocked as we were to see the demand for their product once this pandemic took full swing.

They weren’t exactly prepared for it.

They’re slowly ramping up production and should be able to take steps toward fulfilling the current demand, which means we should see their share prices spike… until the world returns to normality and they’re sitting in a sticky situation of too much supply and not enough demand.

That’s where I see our opportunity.

Investors don’t like supply-surpluses, and they will surely start dumping their shares and investing in healthier positions.

I’m looking at Procter & Gamble (PG) specifically for this.

Procter & Gamble owns Charmin–one of the most popular toilet paper manufacturers.

I see trouble ahead for Procter & Gamble, but not until it’s seen some positive action by meeting the demand in the coming weeks.

When we start to get back to reality, I think Procter & Gamble will suffer. From my analysis, I can foresee their share price hitting roughly $119, before turning sharply negative.

That’s when I’ll be looking to short sell or buy put options (depending on how quick the downturn is looking).

(Short selling is simply betting a stock will go down. It’s as simple as placing a buy order in your brokerage account, and they will be able to help you execute that when the time is right.)

If Procter & Gamble falls as sharply as I’m expecting, I can see us taking a quick 26% gain–or cashing out $6,298 from an investment of $5k.

You can play this one with as little as 1 share, but I definitely recommend jumping in on this short sell when PG approaches that $119 mark, then jumping out when you’ve reached a 20-26% gain.

And that’s exactly how we’re going to tear off our $6,298 from this Toilet Paper Mania.

So, next time you’re in the grocery store walking down the toilet paper Aisle, put on your WSI TV lens and picture stacks of money sitting on those empty shelves.