Hi Do, Here are Todd’s latest fun picks to take your financial skills to the next level... It's getting tough out there... - Treasury bonds are in their worst drawdown in over 100 years of history.
- Stocks have crossed the (arbitrary) 20% decline level that pundits use to define bear markets.
- Correlations of all assets are rising to the downside so that cash is the only safe hiding place...
- ... but that same cash delivers a negative real return after inflation.
- Economic indicators are pointing toward a recession on the horizon...
- ...yet the Fed continues to accelerate interest rate increases in the face of all this adversity.
I've been warning you for months that epochal change has begun, and now it's undeniable.
Just so we're clear, epochal change is about much more than just the bear market we're seeing right now.
This bear market is just the current price manifestation of the underlying structural fundamentals changing over the past several years.
You may see it in your portfolio results right now, but there is much more going on at a much deeper level that makes this situation "epochal" (meaning we've entered a new epoch).
What worked before (buy the dip, buy and hold, 60/40 bond diversification, and so on) won't work like in the past. You need a new rule book that matches the new reality.
You're seeing that now, and I've been warning you for months. Heck, I first told my Expectancy Wealth Planning community two years ago that it was coming, so they had plenty of time to prepare for this change. Now it's your turn...
In the past several months of this newsletter, I've been showing you: - What epochal change means.
- How epochal change brings both huge risk and huge opportunity. It's not all negative.
- How inflation changes (almost) everything.
- How governments around the world (including the U.S.) are working in unison to unwind dollar hegemony
- How the U.S. is reversing 5 decades of globalism and deflationary offshoring to bring essential manufacturing back onshore... despite the inflationary implications
- How financial repression is the most likely outcome, and how to manage your portfolio and wealth plans for that future
- The contra-cyclical nature of stocks, bonds, gold, and commodities.... and how to apply those math facts in your portfolio strategy
- And so much more....
This isn't just your run-of-the-mill bear market, and this isn't your ordinary sound-bite financial analysis. This is much bigger and more fundamental. It's epochal change that will last 10-15 years.
The bear market you're experiencing right now is just the first round of slow realization by the masses.
We're just getting started, and there's so much more to come...
I'm 61 years young and have experienced 3 epochal changes over my 40 year career, including when I first started in 1983 at the beginning of the current epoch and today's change to a new epoch. They are relatively rare extending over a period of decades, but when you look back over the next 10-15 years of change with 20/20 hindsight, what seemed impossible and unlikely in real-time will look obvious in the rear-view mirror. (LOL!)
I've been through this before... trust me.
What matters now is your ability to position your portfolio now, and pro-actively evolve your finances over the next 10 years to profit from these changes.
I hope today's resources help you! According to Tudor Jones, “If there was a strategy that I would want to employ right now, if someone put a gun to my head, I’d say simple trend-following strategies. They are not too popular today. They will probably do very well in the next 5-10 years.” Yep, Paul has that exactly right! I prepared my Expectancy Wealth Planning community a full two years ago showing them a smart, simple way to apply these risk management strategies in their portfolio using this specific resource. They're radically outperforming the averages and conventional passive asset allocations - all on auto-pilot - during this very difficult year. It's still early and there's still plenty of time for you to take action using the same resource they've been benefiting from. I've been encouraging (nagging? begging?) you to use this trend-following solution as the no-brainer, best-in-class, investment strategy to automatically harvest positive expected returns and manage risk through all the epochal change ahead. While many have taken action and are already benefiting, most of you have not (sad face). Why?!? This article explains what is holding you back. I hope it helps you look in the mirror and possibly break through what's blocking you. This epochal change process will last many years. We're just getting started, and I"m handing you the solution on a silver platter. Don't wait until after the horse has left the barn to figure this out. I may not always agree with Lyn's conclusions, but she's super-smart, well researched, and balanced in her analysis. Her latest article analyzing inflation and recession comes as close as any to explaining my views on the current inflation. Quoting her conclusion here, "In each business cycle, the Fed is able to tighten monetary policy less than the previous cycle. Eventually, a stagflationary scenario, such as we are in now, is likely what will disrupt their approach. If the Fed is forced to stop tightening for any number of financial or economic reasons, while official inflation rates are still well-above their target due to supply-side shortages, then we’ll have effectively entered a new policy regime." Of course, here euphemism of "new policy regime" is one piece of the puzzle I'm calling "epochal change." Read her full analysis to understand how she reaches the conclusion I've been advocating for quite some time now. Onward and upward! Todd Tresidder
Two Solutions For Epochal Change: -
This investment software solution shows you how to sleep peacefully and secure your financial future in good times and bad. I use the same to manage my own money, and my clients are loving the results they're getting. -
My flagship Expectancy Wealth Planning master course shows you how to maximize the expected growth of your wealth in every market condition regardless of epochal change. Join this smart community of active wealth builders to secure your financial future.
|