Editor's note: Only invest when the odds are in your favor...

It might sound like a no-brainer, but this strategy can be difficult to put into practice. After all, few people intentionally make bets that they expect to lose. But True Wealth Systems editor Steve Sjuggerud says there are steps you can take to "change the rules" of the investing game – and drastically improve your chances of coming out on top...

According to Steve, by studying what the market has done in the past, you can better predict what it will do next. And that can clue you in to big opportunities before the rest of the world starts paying attention...

In today's Masters Series, adapted from the July issue of True Wealth Systems, Steve dispels a common misconception about the biblical tale of David and Goliath... reveals an investing setup that nobody expects... and explains what the consensus can tell you about future market moves...

Use This 'Secret Weapon' to Gain an Edge in the Markets

By Steve Sjuggerud, editor, True Wealth Systems

Most people know the biblical "underdog" story of David and Goliath...

A small man named David takes on a giant... with nothing but a few stones and a slingshot. Yet somehow, against all odds, he manages to pull off a miracle and beat Goliath.

But what if I told you David was the clear favorite from the start?

Sure, Goliath was bigger and stronger. He had fancy armor and a massive sword. He was the undefeated champion of the Philistines – their greatest warrior.

When you compare their physical strength on paper, heck... David certainly looks like the underdog. But the traditional understanding of this story leaves out a major detail. And it's one that changes the fight entirely...

This is the theme that journalist and bestselling author Malcolm Gladwell writes about in his book, David and Goliath: Underdogs, Misfits, and the Art of Battling Giants.

The tale focuses on David's win against the Philistines' undefeated champ. But as Gladwell points out, it's also a story of Goliath's weaknesses.

He explains that Goliath likely had a condition called acromegaly. It happens when a person produces too much growth hormone and grows abnormally tall. But it can also lead to terrible eyesight, including double-vision and nearsightedness.

Gladwell even points out that the story itself suggests this...

"Come to me, that I may give your flesh to the birds of the heavens and the beasts of the field," he shouts out, and in that request there is a hint of his vulnerability. I need you to come to me because I cannot locate you otherwise.

Goliath wants David to fight his way... up close and personal. That's where the giant has the unquestionable advantage.

This truth means David's slingshot is no longer an inferior weapon... it's the perfect tool. It allows him to fight outside of Goliath's reach. If he can remain a blur to the giant, he can easily take him out.

Suddenly, this isn't an underdog story at all. It's a tale of a man who changed the rules of the game. By playing his way, he stacked the odds in his favor... And he took out the Philistines' champion with just one stone because of it.

This idea – stacking the odds in your favor – is crucial for investors to understand. By studying history, you can learn what works and what doesn't. Then, you can make a simple decision to stick to what works... to only play when you're likely to win.

That's what we look for in my True Wealth Systems advisory each month. Our computers scan the globe, identifying opportunities with a high chance of making money for my subscribers.

Today, I'll share a setup our computers recently uncovered that could allow investors to do what David did to Goliath... stack the odds in their favor. It has to do with a trend that no one else realizes is coming.

Let me explain...

The economic response to COVID-19 can be summed up with a single word... stimulus.

The Federal Reserve has pumped $6 trillion into the U.S. economy since the pandemic began.

The Fed also kept interest rates extremely low to encourage businesses to borrow cheap debt to survive.

It was a push to help the U.S. economy get through the COVID-19 pandemic. Ultimately, it gave a lifeline to struggling businesses while also boosting the economy.

The stimulus plan was more than four times the amount the Fed put out in response to the 2008 financial crisis... making it the largest monetary stimulus in U.S. history.

All that money flowing into the system had another effect, though.

When trillions of new dollars are introduced to the economy, it causes each individual dollar to be worth less than it was before.

That's what you'd expect to see. And it's exactly what has happened to the U.S. dollar since COVID-19 hit the scene and the Fed began pumping money into the system.

Just look at the chart below. You can see that the U.S. dollar has plummeted over the past year...

Going further back, the U.S. Dollar Index peaked around 103 in March 2020. It sits around 92 today.

Currencies tend to move slowly... So that's a major decline. But while plenty of money is still floating around in the economy, a major shift has happened that could lead to something no one expects: a rally in the dollar.

Normally, more dollars in the system means less value. That's what we've experienced over the last year. But importantly, it has already happened.

Instead of realizing that, folks are now expecting that loss of value to continue indefinitely. And that consensus creates our opportunity.

You see, when everyone is making the same directional bet in the markets, that trend is likely to reverse. This is the piece of information that gives us an edge. And it's happening now in the U.S. dollar.

We can see this through the Commitment of Traders ("COT") report. Regular readers know this is a weekly update on what futures traders are doing with their money.

When these speculators are all betting in the same direction, the opposite move is likely. Today, futures traders are all betting the dollar collapse will continue. Take a look...

This chart is simple... The lower the number, the more bets were placed against the U.S. dollar. You can see that this indicator hit a decade-plus low earlier this year. And pessimism is still extreme today.

Importantly, if we look at similar times when futures traders were this bearish, we can see that the U.S. dollar started to rally...

For example, the COT report showed that bets on a falling dollar hit a multiyear high in March 2011. With record bets against the dollar, there was almost no one left to buy.

Then, less than a month later, the currency bottomed around 73. It went on to rally all the way to 84 by July 2012.

The speculators got this trade completely wrong. They were most bearish on the dollar at exactly the wrong time. And betting against them was the right call.

It happened again in early 2014. Futures bets were back at multiyear levels of bearishness. And the U.S. dollar went on an absolute tear...

It rallied from a value of 80 in March 2014 up to 100 by early 2015. This was a massive move in roughly one year.

Today, we could be on the cusp of another rally. I realize that this might sound outrageous. The general consensus would be to bet against the dollar when we have an oversupply of dollars flooding the markets. But given that everyone is thinking this way, a rally is likely.

That means that you want to position your portfolio for a dollar rally today. There are plenty of ways to do it... But whatever you choose, just make sure you're prepared. A dollar rally is coming.

Good investing,

Steve Sjuggerud

Editor's note: In his True Wealth Systems advisory, Steve uses his $2 million investing system to predict the exact date to buy into opportunities... allowing some subscribers to achieve gains as high as 995%. It has to do with an unconventional strategy that can predict big swings in everything from assets like gold to entire sectors...

Steve recently put together a presentation detailing how his system works – and why it could help you make hundreds-of-percent gains in the next year, no matter what the overall market does. He says this is the "secret sauce" to some of the biggest winners he has recommended. Listen to Steve's message right here.