Inflation. Geopolitical uncertainty. Wars & rumours of wars.
Economies streched to their breaking point from government spending, increasing interest rates, inflation and major supply chain issues.
All of this could be the backdrop for one of the biggest economic collapses ever seen.
And yet, it could be the backdrop for the biggest investment opportunity of our lifetime.
Because fortunes aren't made in bull markets - that's just where they are revealed.
Fortunes are made in the dirt, grime and chaos of recession - when most people are too scared or unprepared - to take a risk.
Nathan Rothschild once said to
"Buy when there's blood in the streets"
...and Warren Buffet's greatest piece of advice is to,
"Be fearful when others are greedy, and greedy when others are fearful."
And we believe these opportunities are right around the corner...
...making NOW the time when you need to prepare for them.
The last big opportunity was back in the Great Recession from 2008-2009 when markets sold off before skyrocketing to even higher highs.
But we feel that with the current economic backdrop the cycle is about to repeat
...only on a much larger scale.
...which could give you the chance to make even greater returns than back then.
So in preparation for what's coming, we are taking a two pronged approach.
The first prong involves holding a core of great businesses that are trading at a discount compared to their fair or intrinsic values.
We feel that this will give us a buffer in case the market drops, and yet still allows us to enjoy the natural compounding effects of being invested if the market does move higher and other investing opportunites take a little longer to show up.
These are companies that we feel are expertly run, and should be particularly resilient in the face of tough times.
The second prong to our approach is to find production and development companies who are positioned to capitalize on the commodity and hard asset boom that is currently underway.
And while these companies are significantly more risky, they also offer the chance to make outsized gains well beyond just buying an ETF in any particular segment of the market.
We've seen this before when a sector increases over 1800%, but individual stocks within the sector make gains of over 20,000%! (More on this later.)
But before we go any further let's drill down a bit more into each of the approaches we're taking,
while pointing out a few pitfalls we recommend avoiding.
Prong #1: Resilient Stocks
In this approach, our goal is to find great businesses that are trading at a discount to their fair values.
Because when markets contract, how a business is run and how profitable it is
actually matters.
And this is where value investing really shines.
Let's get into some of the specifics.
We recommend finding a core group of resilient stocks a set and forget backstop, where you buy equal amounts them up to a maximum of 20% of your equity portfolio.
This would leave the remaining 80% to be divided between cash & other stock or trading positions as you see fit.
By doing this, you'll be invested in companies are rock solid and should hold and increase their value even in a down market.
At the very least, they will likely suffer less in the face of an economic meltdown than other companies who aren't as well run.
And as they currently trade lower than their fair value, this provides a buffer in case there is a drawdown in the stock market.
We are taking this approach because the markets are coming out of a period of extremely cheap and easy money which has over-inflated the values and prices of nearly every asset class on the face of the planet.
And now that inflation has arrived on the scene and governments are increasing interest rates to combat it, this could be the very pin that pops the bubble ...sending markets tumbling and asset values correcting.
Make no mistake: the bull market is over and we're now entering a period of bearish and sideways markets.
And we feel this could be the case for years to come.
Just how severe this could be, nobody knows.
But if history is any indication, higher highs are often followed by lower lows.
Your Survival Guide For What's To Come
Because of that, we've put together a few steps that we feel would be prudent to take in order to prepare yourself for what's to come:
- Have cash available: Between 20-50% of your portfolio should be in cash. This prepares you for the opportunity when you can pick up stocks for a fraction of their current value.
- Stay Invested: Don't take all your money out of the market and go in cash. If you do, and we're wrong about the severity of this bear market, you'll miss out on the compounding that is available from the growth of good businesses. (Which is why we are hand-selecting a basket of stocks we feel should thrive - even in hard times.)
You need to hold at least some good businesses during this period as great businesses will continue growing and increasing in value. Stocks of great companies can still rise even in a bear market, and market leaders often expand their market share to become even more dominant in days to come.
These are companies with good cash flow, don't hold a lot of debt relative to their assets and cash, often pay dividends, and have great profit margins.
- Don't Buy More High-Flying Growth Stocks: Increasing interest rates and a tightening economy can be really tough on stocks in the tech sector - the very ones that were at the top of the charts as the economy and stock market kept making higher highs.
This isn't to say you should avoid them completely, but that you should cut your losing positions rather than hoping for a dramatic turn around.
Because without some sort of growth catalyst (like cheap money from low interest rates, a breakthrough in technology that garners a lot of attention or completely revolutionizes an industry) it's unlikely that the stock will turn around.
- Hold Physical Gold and Silver: Gold tends to be the steady gainer of the two, while silver is more volatile.
Now that we've got our bases covered, let's look into the second prong of our approach.
Prong #2: Natural Resources & Precious Metals
According to our research, we feel we are entering a season where hard asset values will continue to spike due to:
* increases in demand from technology (like the surging demand for the materials needed to produce electric vehicles) and,
* the inherent short supply of these natural resources.
A perfect example of how quickly hard assets can increase in value is when Nickel spiked 250% in just one day back in March 2022.
We feel that this is just the beginning and that over the next few years, we are going to see even more breakouts just like this.
Especially if there is a significant downturn in the markets, as investors will likely jump into precious metals to keep their money safe...
...setting the stage for even greater returns in the precious metals and natural resource sectors.
To take advantage of this, our focus is on finding stocks of production and development companies that are poised to take advantage of these rare conditions.
Like we alluded to earlier you could just buy an ETF and let the sector increase in value, and that might not be a bad idea in itself.
But when you enter a commodity bull market, many of the companies that actually produce or develop the natural resource see returns on their share price that dwarf those of the sector.
And that is where the real opportunity lies.
An example would be when uranium went up over 1800% in 2007.
That on its own is incredible.
But a uranium mining company called Paladin Energy skyrocketed up over 20,000%!
And these are the kind of companies we are looking for - companies that have huge upside potential.
To that end, we've investigated a number of companies that we feel are positioned to take advantage of the upcoming bull market in hard assets and precious metals. (You can see one in the the example report link at the top of the page.)
Ultimately, By combing both prongs of our approach, we feel that we are positioned to survive and thrive both now and in the days to come.
We feel that finding and holding a basket of undervalued stocks to hedge against a market downturn, while discovering companies set to profit from the natural resources & precious metals bull market that is about to take place is the perfect recipe going forward.
Make no mistake - even in tough times there are still incredible opportunities to be had.
IF you know where to find them.
Here's What We Will Do Going Forward
Continue to tap our network of insiders, do the countless hours of research and leverage the collective strengths and experience of our international team of experts in order to find companies that offer us a solid foundation and the potential for incredible gains.
And then every month we'll publish 1-2 updates (updates to our core positions, or new companies that we feel show an exciting amount of potential).
These reports typically consist of:
- 1) Our investing thesis and outlook
- 2) An overview of what major analysts & major investing firms think about the stock,
- 3) New research based on exclusive reports & data previously only available to insiders paying over $30,000 per year for access
But just for the record: this isn't a trading service, but rather a research service.
So while we publish price estimates for each stock, the views and outlook for these companies have a longer time frame that is often between 2-5 years out.
And even though we can't offer you specific investment advice (as we are not registered investment advisors), what we CAN offer you are opportunties that others haven't been willing to do the legwork to find,
along with the insights, data and information needed to make an informed decision as to whether these unique companies are worthy of your investment consideration.
No hype. No rug pulls. Just countless hours of research distilled down into easy to read reports, served to you on a silver platter.
If you'd like to join us on and position yourself for the next big trends that we feel will shape the market for years to come, you can sign up for a yearly membership below.
Competing services charge as much as $2,000 per year
...for EACH portfolio of stocks they recommend
And as we are including 2 separate portfolios in order to cover our 2-pronged approach, this would typically come with a $4,000 pricetag.
But given the uncertainty of the times we live in, and the ever-increasing costs ...we don't want this potentially life-changing information to be out of reach for the average investor.
Even if we sold a new report each month for only $149 each (which would be an incredible deal on its own), that would put the yearly cost around $1788 per year.
But we aren't going to charge $1788 per year.
In fact, we are going to offer access to BOTH of our portolios for just...