Chris’ note: Inflation fears are rising… So this week in the Cut, we’re sharing some our experts’ best inflation-beating advice.
On Monday, we shared a Q&A with Nick Giambruno on why bitcoin is one of his favorite safe-haven assets. Today, tech expert Jeff Brown describes his own favorite inflation hedge right now. It’s something he says will deliver market-beating returns… and could even be the next Amazon.
It pays to listen to Jeff. He’s given his subscribers the chance to lock in gains of 270% in 23 months… 349% in 28 months… and 510% in 41 months.
So you don’t want to miss the free Emergency Meeting he’s holding tonight at 8 p.m. He’ll share the full story on 2021’s best inflation hedge. You can sign up for free here.
Now, over to Jeff.
Last spring, most of the global economy hit the pause button…
COVID-19 forced entire sectors, including retail and hospitality, to lay off workers en masse…
Global supply chain shortages depleted supply of semiconductors and other important tech components we use every day. Cruise liners and planes sat dormant across the world.
It’s hard to believe it’s been over a year since these shutdowns began.
In response, the U.S. government embarked on a stimulus program of epic proportions. From what we’re seeing, the country will likely print $10 trillion in less than three years.
This rampant spending has one word on readers’ minds: inflation.
Here’s a note I received from a reader recently…
Jeff, I’m a Brownstone Unlimited member. I wish I had come on board sooner because your services have proven to be worth every penny.
My question, though, is more fundamental. Given current monetary policy, if inflation starts to rise, in general, how will it affect our Brownstone portfolio?
– Ken J.
I deeply share Ken’s concerns.
The reality is that the U.S. is going to find itself in big trouble. The real question is when and what to do about it… which I’ll cover in today’s dispatch.
Legacy readers and I aren’t the only ones thinking of inflation.
In a recent interview, billionaire investor Bill Ackman said this on the topic:
I think it’s not temporary… Look at every commodity price, right? Copper, lumber, energy even before the Colonial Pipeline issue. Look at housing prices, look at bitcoin, right? Everything is inflating.
Even Warren Buffett chimed in during the recent Berkshire Hathaway (BRK.A) shareholder meeting:
We are seeing very substantial inflation…
It’s very interesting. We are raising prices. People are raising prices to us and it’s being accepted.
The data backs up these inflation fears.
The Department of Labor reported that the Consumer Price Index climbed 4.2% from April 2020 to April 2021.
This index tracks the average change in prices over time for consumer goods and services.
A 4.2% rise may not seem like a lot on the surface. But it’s the biggest jump in any 12-month period since 2008. And it represents price increases across all aspects of our daily lives.
Perhaps you’ve noticed that food costs seem to be rising. The cost of new homes is soaring along with the price of lumber.
So if we’re at the beginning of an inflationary wave, what should we do next?
Traditional wisdom is simple: Just buy gold. Gold has long been viewed as the ultimate inflation hedge.
I believed that once too.
The Obama administration printed $10 trillion over eight years. The sum was nearly impossible to imagine. It was more than every single presidential administration in history… combined.
At the time, I was heavily invested in gold: gold miners, gold indices, and even several successful short-term gold trades.
I also bought physical precious metals. I remember carrying a monster box of 500 ounces of silver bullion through airport security in Japan.
The Japanese officials were very confused. What was I doing with all these coins? I told them I was a collector… and they let me go on my way.
But what happened to gold during this time? Did it go to $10,000 an ounce?
Not even close. It didn’t even break $2,000 an ounce.
Around that time, I sold all my gold holdings. I held on to my silver monster boxes. But I don’t own a single ounce of gold today.
It’s an entirely personal decision if an investor wants to own gold. But I won’t be recommending it in the pages of my research advisories.
Instead, we’ll beat inflation another way.
The key is for us to invest in sectors and companies that are growing far faster than the rate of inflation. That way, we can significantly outperform the markets and generate substantial real returns.
But that begs an obvious question: Where do we look?
Right now, I’m most interested in one type of investment vehicle to deliver market-beating returns in the years ahead.
It’s an investment some people may find controversial…
In fact, thanks to some recent action from the federal government, these investment vehicles have some investors nervous.
But perhaps you’ve heard Buffett’s expression, “Be greedy when others are fearful.” That’s the opportunity we have today with this group of investments.
That’s why I’ve put together a special Emergency Meeting.
Tonight at 8 p.m. ET, I’ll tell you all about how this little-known investment vehicle I’ve found is paving the way for more profits in the tech sector this year. You can sign up right here. It’s completely free.
But you must act fast. Space is limited, and the window to join in on this special event is rapidly closing.
The chance to learn about this trend and capitalize on it won’t last long. Only early investors will be able to reap the largest rewards from the companies I’ve discovered.
I look forward to seeing you tonight.
Regards,
Jeff Brown
Editor, Brownstone Unlimited