Sponsored Content - In short order, the word “pain” has become the favorite word in the vocabulary of Federal Reserve officials, says Chris Temple, editor and publisher, National Investor Publishing, replacing the ridiculed and discredited “transitory” the central bank used for so long to deny the now-entrenched inflation it was creating.
To wring out that inflation and bring it back down to the Fed's claimed 2% target, we're now told that the Fed must “...bring some pain to households and businesses” as Chairman Jerome Powell said a week ago yesterday out at the Fed's summer-ending picnic in Wyoming.
Skeptics remain who question whether the Fed has the backbone in the end to follow through. Yet the unanimity of a message now that has the Fed all but guaranteeing a recession will be the way inflation is brought back to heel should be getting your attention.
The Fed is not the only entity capable of and promising pain to your economic well-being and your portfolio. Sure, it risks a much sharper and unintended market debacle and economic downturn as it plays what I've called its game of Monetary Jenga.
But forces and geopolitics beyond the Fed's control are very capable of upending things too and causing all of us bigger headaches. We were reminded of that on Sept. 2.
As I recounted on Metals, Money and Markets Weekly, a healthy rally for stocks Friday was obliterated when the news hit that Russia has now completely shut down its Nord Stream 1 pipeline for “maintenance.” This will further deepen Europe's recession and adds to the risks to our own markets and economy from this proxy war with Russia; not one sought by Europe (though it deserves what it gets from willingly having put itself in the middle) but one long sought and finally realized by America's/NATO’s war-hungry rulers.
The utter failure thus far of the Biden Administration to do anything but add to 1. the wreckage in Europe and 2. Americans’ own gasoline and (brace yourselves for this winter!) home-heating bills (I reminded folks of those consequences already being realized, too, on Friday evening's podcast) with its proxy war against Russia may now be doubled down on as well.
News also out late last Friday has the US approving $1.1 billion in arms to Taiwan. It seems that one proxy war is not enough for these people.
But—and far from the first time in history; this is a regular tactic—wars and external enemies will help divert attention away from the disastrous leadership at BOTH the Eccles Building and the White House.
What to Do?
In my presentations on The New FAANGs and related subjects for well over a year now, I have talked about such things as the above as I explain how and why we live in unprecedented times. None of us alive today—and that includes your financial professional, if you use one—has had to navigate the mix of factors that face us.
The post-WW2, US-centric world order is unraveling. The move away from that world has accelerated dramatically in just the last two years, as I have been explaining. And moving the world back toward a war footing—even “soft wars” as some put it in trying to minimize the seriousness—has accelerated these existing trends away from US-centric globalization/hegemony exponentially.
At the least—as we have already found out where the proxy war with Russia is concerned—“The West” was unprepared to deal with the vulnerability to energy from Russia and its allies being reduced or cut off. Things will get worse still if Biden and his handlers have their way with China.
Throw in the imbecilic Federal Reserve, and things are going to get a LOT more fraught with peril, yet at the same time, a lot more interesting and potentially profitable for the wise.
Already in 2022, The National Investor has distinguished itself yet again by being a port in the storm for investors. While most everyone else is DOWN by double-digits for the year, our overall portfolio is UP for the year. That has come by understanding both the character of the unfolding bear market and how it's being exacerbated by war/geopolitics...and by identifying those sectors and individual stories that can buck the trend.
Going forward I'll continue to guide our members in doing the following:
- Picking our spots in directional trades during the most compelling turns for the broad market, up or down. As I alluded to earlier, we just added about 3% to our overall returns in closing out two simple trades from August.
- Riding those sectors that will benefit from the new world we've entered. Between uranium stocks and natural gas trades alone, we've added over 10% to our overall portfolio returns for the year.
And as I also discussed on Friday evening's podcast, if their very different behavior as the week ended was any indication, gold and even silver may finally be ready to shine after a long period of looking more like a dog’s regurgitated breakfast to investors.
- Finally—and this is ALWAYS the most fun for yours truly—I will continue to bring our members compelling individual stories of companies I see as worthy.
Sometimes such a recommendation will be based on broader macro issues, including the new, evolving global currency and commodity wars.
My newest “story stock” recommendation that keys on Europe's energy crisis, for instance, is ALREADY UP BY NEARLY 150% since I recommended it less than two months ago.
My newest story stock, period, was just last week: an exciting biotech whose share price has so far moved 27% HIGHER since my recommendation mid-week.
I fully expect both of these in the end to return several times our investment.
Don’t Miss Out!
All this and LOTS MORE on tap for the balance of 2022 and beyond are among the reasons why you need The National Investor more than ever!
And as always, if you have any questions or comments, I'd love to hear from you! Just drop me a line at chris@nationalinvestor.com.
You can extend or enter your new membership right here.