Why Isn’t the Market a Lot Lower?
Real News:
- Supply chains are disrupted.
- Inflation is at a 40-plus year high and that is understated
- World War III is being recognized to be in year two
- The Federal Reserve is Raising Interest Rates Aggressively
- Global Debt is not Repayable.
- “Food Shortages Coming” is being repeatedly announced by the President of the United States.
I repeat, Why isn’t the Market a lot lower? The simple answer is I don’t know.
Simple things you can do:
- Don’t carry loans (margin) in you brokerage accounts where falling prices can cause liquidation of your holdings.
- Own “companies” that are growing revenue and cash flow faster than both the official and unofficial Inflation rate. Our favorite industry is Blockchain & Crypto. We also like FinTech Payment companies.
- Have exposure to investments that participate in commodities. Our favorites are Nat Gas & metals – both precious and industrial.
- Park some funds in three to seven years US Treasuries. This will provide you with liquidity and access to funds when you want them. An ETF is IEI
- Recognize that we are in War Time investment mode not in Peacetime investment mode. Cyber security, Artificial Intelligence & Aerospace are expensive but areas to consider.
- Recognize that War Time Investment mode is not going to end anytime soon.
- Raising interest rates will not stop inflation. It will only make things worse by crushing the economy. This inflation is caused by supply constraints of different reasons. Namely, US restrictions on developing fossil fuels & minerals and the Battle in Ukraine.
Videos linked to ‘Global Debt” and “World War III” bullet points above are highly recommended.
Strangely enough, I am optimistic about the future and ability to make outsized returns in the market. Volatility does not intimidate me as long as you/we don’t need to sell. Survival within your personal situation and the companies you are invested in are top priority. After that use volatility to your advantage.
Wishing you and yours a great weekend!
Written by Tom Linzmeier, editor, LivingOffTheMarket.com – April 22, 2022.
Tom is available for consultations by emailing Money @ LivingOfftheMarket.com to set a phone meeting.
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