As noted in yesterday’s essay, Bernanke and pals’ claims that the US is in a recovery due to the fact the stock market has rallied are totally bogus. Bernanke is measuring his success in US Dollars, which incidentally happens to be a ruler that he can continually shrink with his policies
Much as someone might claim they’ve grown in height because they use a shorter ruler to measure themselves every day, Bernanke claims that the stock market is up because it’s priced in the US Dollar (which is losing value almost every day).
It’s completely absurd, and yet it’s the basis for each and every one of Bernanke’s claims that the US is in a recovery. Nevermind, that employment is falling like a brick or that food stamp usage is at an all time high, the S&P 500 is up since March 2009, so things must be improving right?
Many supposed gurus claim that investing in stocks is a great way to hedge against inflation. The data doesn’t support this claim… at all. During the ‘70s stocks traded in a large range for 10 years. Unless you timed the bottoms and peaks perfectly, most “buy and hold” folks didn’t make anything in these years.
And once again, this is priced in nominal terms. When you price stocks’ performance in Gold for the 70s it’s positively abysmal.
Just like today.
So instead of bemoaning Bernanke and his policies, why don’t we all do something about it? I didn’t vote for this guy. None of us did. And yet we’re all paying the price (literally) for his policies.
How do we vote against him? Simple. Buy Gold and DON’T buy stocks. Don’t fall for the “stock wealth effect” BS and instead invest in something the Fed CAN’T devalue.
Because in the end, doing this means buying an asset that is INCREASING your purchasing power (Gold) and avoiding one that is DECREASING in purchasing power (stocks).
And of course, it has the side benefit of not providing Bernanke and his policies with ANY vote of confidence… or support.
On that note, I’ve put together an ENTIRE portfolio comprised of extraordinary inflation hedges: investments that will outperform even Gold and Silver as inflation erupts in the financial system.
After all, everyone knows that Gold and Silver are the most obvious inflation hedges out there. And to be blunt, anyone who invests in these two assets will likely do very well in the coming months as inflation erupts in the US.
However, to make truly ENORMOUS gains from inflation you need to find the investments that are off the radar… investments that the rest of the investment world hasn’t discovered yet.
I’m talking about investments that own assets of TREMENDOUS value that are currently priced at absurdly low valuations: the sorts of assets that larger companies will pay obscene premiums to acquire.
I’m not speaking in metaphors here either. Earlier this week, one of our inflation hedges was bought out, allowing us to lock in a 41% gain… in under two months.
I just detailed three of the best investments I know that fit these criteria in my Special Report the Inflationary Storm Pt 2 at the end of February. One of them just got bought out this week (the 41% gain I mentioned before). Another is up 24%.
Like I said, EXTRAORDINARY inflation hedges.
And I’m only making 250 copies of the Inflationary Storm Pt 2 available to the public. As I write this, there are 40 copies of this report left. These won’t last much longer either.
So if you want to get your hands on a copy, you better move quickly, because these last 40 will be gone within the next few days.
To reserve a copy…
Good Investing!
Graham Summers
PS. If you’re getting worried about the future of the stock market and are looking for a single report rather than an annual subscription, I highly suggest you download my FREE Special Report devoted to helping investors prepare for the Second Round of the Financial Crisis…
I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).
Again, this is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com and click on FREE REPORTS.
PPS. We ALSO publish a FREE Special Report on Inflation detailing three investments that have all already SOARED as a result of the Fed’s monetary policy.
You can access this Report at the link above.
