Example: barber

MY TOP 3 STOCKS FOR THE RETURN OF INFLATION

MY TOP 3 STOCKS FOR. THE RETURN OF INFLATION . By Teeka Tiwari MY TOP 3 STOCKS FOR THE RETURN OF INFLATION . By Teeka Tiwari Ask most people why they need to invest, and they'll probably say something generic like to make more money.. But if you dig deeper, you'll quickly realize most of us need to invest for one primary reason to keep up with continuous INFLATION . After all, if our purchasing power stayed the same, simply saving some money on a regular basis might be enough. Instead, the value of that money is the Great Depression years, our money has been constantly eroding because the government has steadily declining in value for more than 100. years now. to print more and more dollars to keep up with its spending. And in some decades, it has done so at an alarming rate. The chart to the upper-right shows you exactly how much buying power the dollar has lost Just look back at that period between 1973-1983.

January 2002 and July 2008, tensions in the Middle East, soaring demand from China, and a falling U.S. dollar caused oil prices to skyrocket. Crude oil rose from $18 per barrel in 2002 to over $145 per barrel in 2008 – that’s a 700% gain. During that same time, shares of oil companies, such as Southwestern Energy, far outpaced the

Tags:

  2008

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Other abuse

Transcription of MY TOP 3 STOCKS FOR THE RETURN OF INFLATION

1 MY TOP 3 STOCKS FOR. THE RETURN OF INFLATION . By Teeka Tiwari MY TOP 3 STOCKS FOR THE RETURN OF INFLATION . By Teeka Tiwari Ask most people why they need to invest, and they'll probably say something generic like to make more money.. But if you dig deeper, you'll quickly realize most of us need to invest for one primary reason to keep up with continuous INFLATION . After all, if our purchasing power stayed the same, simply saving some money on a regular basis might be enough. Instead, the value of that money is the Great Depression years, our money has been constantly eroding because the government has steadily declining in value for more than 100. years now. to print more and more dollars to keep up with its spending. And in some decades, it has done so at an alarming rate. The chart to the upper-right shows you exactly how much buying power the dollar has lost Just look back at that period between 1973-1983.

2 Ever since the Federal Reserve was started back in The dollar lost more than 69% of its value in 1913. the span of 10 short years. As you can see, the devaluation has been And there are many reasons to believe we are dramatic. entering another such inflationary period right now . Every $100 back in 1913 is now worth just $ The Wealth Transfer Act If that timeframe is a bit too long, consider that the same $100 from 1913 was worth just $ The COVID-19 pandemic forced the government by 1953 $ by 1973 and $ in 1993. to kick its money-printing into overdrive. Since the start of the pandemic in March 2020, the And to put this into more concrete terms back government has spent an estimated $6 trillion to in 1933, one dollar could buy 10 bottles of kickstart the economy. beer. Today, it barely covers the cost of a single McDonald's coffee. But that could be just the beginning. Essentially, despite a few rare exceptions like Congress is working on a bill that proposes 1.

3 Spending $ trillion on initiatives such as education, health care, and housing. I call this bill the Wealth Transfer Act because I believe that if it passes, it will lead to the greatest transfer of wealth this century. The Federal Reserve will have to accelerate its money-printing even further which will send INFLATION soaring making the rich richer and leaving middle-class Americans behind. That's not all. On August 11, the Senate passed a separate bipartisan infrastructure bill. The bill includes $550 billion in new are telling us? spending that's set to flood multiple industries and sectors of the market. Roads, bridges, public Perhaps. transit, electric vehicles, broadband access, and the power grid are all set to receive upgrades But it could also be the start of a more sustained from this legislation and influx of capital. trend. If both bills pass as is, that adds up to $ trillion Don't just take our word for it.

4 Consider the chart in additional spending. And that's on top of the above . $ trillion already budgeted for this year. The dark blue line shows CPI from 2003 through By the time you read this, these bills might have the present. The light blue line shows the increase already become law. in mentions of INFLATION during earnings calls of S&P 500 companies over the same period. Meanwhile, we're already seeing signs of INFLATION increasing today. As you can see, INFLATION has been spiking sharply while executives at public companies As I mentioned a moment ago, our most common have started talking about INFLATION at an even measure the Consumer Price Index (CPI) is more alarming rate 1,000% more than they already showing annual INFLATION of were just one year ago. When the gauge first hit that level in June, it was the highest monthly jump since August 2008 . If the CEOs of the country's biggest companies are And excluding food and energy, so-called core worried about INFLATION , shouldn't you be, too?

5 INFLATION had increased at the highest rate since 1991. The bottom line is, when it comes to INFLATION , it's far better to get prepared and end up being wrong And on August 11, we got another reading of the than it is to get caught behind the curve. CPI showing annual INFLATION running at for the second month in a row. And the good news is, there are ways to protect yourself from INFLATION and even profit like the Cold this still be a transitory blip, as many government officials and monetary policymakers rich do. 2. It all has to do with one sector that's historically been a huge outperformer during past bouts of INFLATION . One of the Top Methods to Beat INFLATION And Earn Enormous Profits A recent study by Vanguard found that for every 1% rise in INFLATION , commodities rise anywhere from 7% to 9%. In contrast, Treasury- INFLATION protected securities (TIPS) which are expressly designed to combat Over that same period of time, this Texas E&P.

6 INFLATION rise by just the same amount as saw its shares rise by 3,146%. INFLATION . Same goes for XTO Energy. Prior to being bought Even the broad stock market fails to provide an by Exxon Mobil in 2010, it saw its share price adequate RETURN in periods of rising INFLATION . rise 1,111% over the same period crude oil had its 700% gain. SummerHaven, an asset management firm, sifted through 50 years' worth of data on different asset Various metals also saw their prices rise during classes in varying environments. Its goal was that period of time. From 2002 to 2008 , iron ore to find the assets best suited to offer outsized prices shot up from $ a ton to $ a ton. returns over different inflationary environments. That's a rise of 572%. It found that during periods of rising INFLATION , Over that same time, Chilean Iron Miner CAP. the prices of commodity futures rose over 5x saw its shares rise by 2,083%.

7 And South African more than those of STOCKS . miner Assore saw its shares jump by 1,424%. And when commodity prices rise, the companies This is why we now recommend increasing your with revenue tied to those prices tend to do even exposure to commodities-related companies. better. Specifically, firms that directly benefit from rising prices for things that the world simply Take the beginning of this millennium. Between can't live without. January 2002 and July 2008 , tensions in the Middle East, soaring demand from China, and a Below, we'll provide three STOCKS tied to falling dollar caused oil prices to skyrocket. commodities that should directly benefit from Crude oil rose from $18 per barrel in 2002 to over this inflationary period we're entering. $145 per barrel in 2008 that's a 700% gain. They each operate in different industries for added During that same time, shares of oil companies, diversification.

8 Combined, they give you exposure such as Southwestern Energy, far outpaced the to rising prices for food, metals, and energy. rise of crude oil. 3. Beyond that, each stock pays healthy dividends As the country's largest producer of both chicken ongoing income that you can use to offset rising and beef, and a major producer of pork, Tyson is living expenses or reinvest into some of our in a great position to reap the benefits of rising favorite asymmetric investments. food prices. And we've selected these three particular The Tyson name itself is a tremendous brand, but companies because they are all fundamentally the company also owns popular brands such as undervalued. In other words, they have the Jimmy Dean, Hillshire Farm, Ball Park, Wright, potential to rise substantially even if INFLATION IBP, Aidells, and State Fair. cools off from current levels. While Tyson is mostly associated with poultry, the majority of its revenues actually comes from IMPORTANT NOTE: Immediately after beef ( ).

9 Chicken is a relatively close second our buy recommendations, we often see an ( ), with pork ( ) and other products initial price spike. We understand this can (11%) making up the rest. be frustrating. But don't worry. Most of the time, the recommendation falls back below Tyson's products are marketed and sold to our buy-up-to price. Be patient, use a limit national and regional grocery stores, grocery order, and let the price come to you. wholesalers, meat distributors, and industrial food processing companies. Its prepared food products include processed and pre-cooked INFLATION Beater No. 1: meats, as well as frozen foods. Tyson Foods (TSN). Almost half of sales comes from retailers, and Soaring food prices impact every single person a full 20% of sales comes from Walmart alone. in the world. And for most, that impact is an Restaurant purchases account for roughly 28% of extremely negative one.

10 Revenue. And, overall, the bulk of sales 86% . comes from within the In fact, short of running your own commercial farm, there is no direct way to benefit from rising The company's strong brands, diversified food prices. customer base, and domestic focus all make it a great way to play rising food prices. And prices were rising for many individual food categories in the latest CPI release, including In addition, the vast majority of its animals are meat, poultry, fish, and eggs. raised under contracts with third-party feedlots, while contracts with wholesalers are largely cost- For example, beef prices have risen dramatically based. So, as we see corn, soybean meal, and over the past year. The USDA Boxed Beef Choice other input costs rise in price, Tyson is able to Cut index, which tracks prices of choice and select pass those through to its customers. beef, is up 61% since the start of the year.


Related search queries