By Graham Summers, MBA

Do you know the Lundins?

Unbeknownst to most U.S. investors, a single family has been behind many of the largest natural resource discoveries and natural resource deals of the last 45 years.

Since 1976, they’ve discovered the largest natural gas field in the world, oil fields that have generated more than 300 million barrels of oil, and several of the world’s largest gold deposits. 

They all became billionaires in the process.

Today, this family controls 12 companies located in the U.S., France, Russia, China, and more. Every year they produce more than a billion dollars’ worth of oil, gold, uranium, nickel, and diamonds. Their name is the Lundins. And just like the Rockefeller or Carnegie empires, their fortunes began with a single self-made man: Swedish patriarch, Adolf Lundin.

If you’ve never heard of Adolf Lundin, it’s not surprising. The self-made Swedish billionaire invested primarily in natural resource companies outside of the U.S. Because of this, his name is rarely known outside of natural resource investing circles.

However, to anyone involved in natural resources investing, Adolf Lundin is something of a god. Between 1976 and 1999, Adolf Lundin made four of the largest natural resource discoveries in history. In 1976, he discovered the North Gas field offshore of Qatar: then the largest natural gas field in the world. 

This alone would cement the name Lundin in the pantheon of great resource discoverers. 

However, Adolf’s success was only beginning. In 1998, he discovered both the En Naga oil field (a 100-million-barrel discovery in Libya) and Block PM-3 (a 144-million-barrel discovery offshore of Malaysia). The following year, at age 67, he discovered the Thar Jath oil field: a 150-million barrel discovery in Sudan.

These discoveries made Adolf famous. But it was his ability as a dealmaker that made him rich. The natural resources industry is typically split between two groups: the financiers and the geologist/ explorers. 

Adolf Lundin was both.

He built up Lundin Oil and sold it in 2001 for $480 million. Musto Exploration, a gold company he owned shares in, was sold to Rio Aglom for $500 million. And another gold company, Argentina Gold, went to Homestake for $300 million. By the time he retired from exploring, Adolf was a billionaire. And he’d made many investors fortunes as well.

It sounds almost too simple, but anyone who bought shares in Lundin’s companies and held long-term would have made a fortune. Investing in natural resource companies, more than any other sector, is about putting your money with the right people.

On the one hand, you need expert geologists and wildcatters capable of discovering major finds. But you also need knowledgeable financiers who can put together the capital to start production or arrange a buy-out. Since Adolf Lundin was talented at both, his involvement in a company almost always resulted in large profits.

Adolf passed in September 2006. Today, the Lundin Group is run by two of his sons, Lukas and Ian. Both were brought into the family business at a very early age: by the time they were ten, it was decided that Lukas would manage the company’s minerals business segment while Ian would handle the oil segment.

I recently told subscribers of my Private Wealth Advisory newsletter about an “off the radar” Lundin project that 99% of investors don’t know about. It’s a small company that owns the rights to 5km of land in one of the richest environments for natural resources in the world. 

The company has released the initial results of its drilling program in January of 2022… and they are astounding… as Lukas Lundin puts it… the potential of this project is “unparalleled” to anything he’s seen in his 40+ year career.

That’s quite a statement from a man who has literally made BILLIONS of dollars investing in natural resources.

Private Wealth Advisory subscribers just began building a position in this company yesterday. Already they’re up. And I fully expect them to see triple digit returns from this company when it’s all said and done.

To find out what it is, all you NEED to do is take out a trial subscription to Private Wealth Advisory.

A SIX (6) MONTH subscription to Private Wealth Advisory includes:

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If you find it’s not what you’re looking for, just drop us a line and we’ll cancel your subscription. You won’t pay another cent!

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Best Regards,

By Graham Summers, MBA

Pop quiz… what is the single best performing stock market sector of 2022?

If you guessed tech or Bitcoin, you’re incorrect. It’s actually energy. And it’s not even close.

Energy stocks are destroying EVERYTHING, including cryptocurrencies. Forget bitcoin, have you thought about profiting from oil?

Even more incredible is the fact that this isn’t a NEW development: the energy sector was the top performing stock market sector of 2021 as well! So it’s crushing everything else for well over 15 months!

Despite this incredible performance, the energy sector remains one of the least popular areas of investment on the planet. It’s actually the cheapest sector in the S&P 500 on a Price to Earnings (P/E) basis. And it is also the smallest sector by weight in the entire market: a mere 2.3%.

So you’ve got an incredibly cheap sector that’s unloved by the institutional crowd and that is outperforming every other sector in the market.

Sounds like a recipe for life-changing wealth to me!

For more market insights, including which stocks to buy and sell to maximize your market returns, swing by www.gainspainscapital.com

Best Regards

By Graham Summers, MBA

The Fed released its meeting minutes from March yesterday.

The highlights are:

1)    The Fed will likely begin raising rates by 0.5%, instead of 0.25% sometime this year.

2)   The Fed will begin shrinking its balance sheet by $95 billion per month, sometime in the next three months.

Anyone who tells you this is NOT bearish is out of their mind. The Fed is announcing publicly that it needs to tighten financial conditions as rapidly as possible. This is akin to the Fed screaming, “we want stocks lower and soon.”

If you don’t believe me, perhaps you’ll listen to Bill Dudley.

Bill Dudley is the ex-President of the New York Fed: the branch of the Fed in charge of financial markets. He is also the ex-chief economist for Goldman Sachs. He is the ultimate insider’s insider, a man who not only knows how the Fed controls things, but who actually ran the programs through which the Fed did it.

Mr. Dudley published an article in Bloomberg earlier this week that was truly jaw-dropping. The title? 

If Stocks Don’t Fall, the Fed Needs to Force Them

In his piece, Mr. Dudley makes it clear that the Fed believes it can control the economy via the stock market, not the other way around. In his own words, he writes, “

“Equity prices [stocks] influence how wealthy [Americans] feel, and how willing they are to spend rather than save…”

In simple terms, the American consumer is 75% of GDP. When the stock market is up a lot, Americans feel wealthier and spend more. When the stock market collapses, they feel poorer and spend less.

Mr. Dudley then states that the Fed needs to COLLAPSE the markets to force Americans to spend less… which will end inflation. He writes…

“The Fed will have to shock markets to achieve the desired response.”

This is not the ramblings of some doom and gloom blogger… this is THE man who ran the Fed’s QE programs during from 2009-2018, when the Fed was literally attempting to save the financial system from the Great Financial Crisis.

And he is calling on the Fed to crash the markets. And don’t forget where stock prices are right now relative to the last two crashes.

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guide can show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

By Graham Summers, MBA

The single most important rule in investing is “don’t fight the Fed.”

The Fed is the single most powerful entity in the financial system. And as we discovered in 2020, there is almost no limit to its power: the Fed was able to stop the most aggressive market crash in history… and push stocks to new all-time highs, at a time when the real economy was shut-down.

Again, the Fed managed to force stocks to new all-time highs during an economic shut-down. You can focus on value investing, momentum investing, day-trading… but whatever you do, DO NOT fight the Fed.

And right now the Fed is SCREAMING that it is going to aggressively tighten monetary policy.

Over the last six weeks, multiple Fed officials, including Fed Chair Jerome Powell (the most powerful Fed insider in the world) have stated that the Fed is WAY behind the curve on inflation and needs to start raising rates by 0.5% multiple times this year.

If you don’t believe me, perhaps you’ll believe Lael Brainard.

Ms. Brainard is the Fed Vice-Chair, the Fed’s second in command. She is arguably the most liberal, pro-money printing Fed official currently in office. Rarely, if ever, has she publicly stated anything that is not in favor Fed monetary easing.

Yesterday Ms. Brainard gave a speech in which she stated the following:

·      High inflation places a “burden on working families.”

·      It is of “paramount importance” that the Fed stop inflation.

·      The Fed will start reducing its “balance sheet at a rapid pace” as early as May.

·      The Fed is prepared to take even “stronger action” if needed.

Again, this is the most pro-money printing Fed official currently in office stating publicly that the single most important focus for the Fed today is ending inflation.

This means aggressive rate hikes and shrinking the Fed’s balance sheet as quickly as possible.

So while foolish investors continue to buy every dip in the stock market… and are willing to gamble on companies that couldn’t make money even when the Fed was easing… smart investors are preparing for what’s coming.

Don’t fight the Fed. Especially when it wants to stop inflation by popping a bubble.

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guide can show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

By Graham Summers, MBA

The bond market is telling us that the Fed is in very serious trouble.

Bonds are quite complicated, so I’m going to do my best to keep things very simple here.

The Fed ended its Quantitative Easing (QE) program through which it prints new money and used it to buy assets from Wall Street in early March. Since that time, the Fed has also begun raising interest rates, implementing its first rate hike of 0.25% on March 17th.

Historically, when the Fed begins raising interest rates, it looks to the 2-Year U.S. Treasury for guidance: the Fed tracks the yield on this bond as a proxy for where rates need to go.

With that in mind, the yield on the 2-year Treasury, is exploding higher. In six months, it has moved approximately the same amount that it did from 2012-2018!!! This is a truly incredible move, and it tells us the Fed is WAYYYY behind the curve in terms of where interest rates need to go.

If you think that’s disturbing, consider the following…

This yield on the 2-year U.S. Treasury is HIGHER now than it was before the Fed raised rates a few weeks ago. This means the Fed is MORE behind the curve now than it was before it actually raised rates!

We know from the inflationary storm of the late 1970s/ early 1980s that once the Fed gets really behind the curve on inflation, small moves no longer work. The Fed will NEED to be EXTREMELY aggressive going forward to stop inflation.

How aggressive?

Bill King notes that the Taylor Rule suggests rates need to be over 9.5% to stop inflation. Yes, 9.5%. Rates are at currently at 0.5%!

If you think the Fed is going to back off on its monetary tightening, you’re mistaken. The Fed HAS to move and move aggressively if it wants to stop inflation from completely destroying the economy.

This will mean the Fed intentionally triggering a recession within six months. It has no other choice. It has to end inflation and the only way to do so is to crush demand via a recession.

The time to prepare for what’s coming is NOW, before it hits.

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guide can show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

All last week, I warned that the markets are setting up for a spectacular collapse.

I noted that inflation is at levels that have preceded recessions throughout the last 50 years.

I also noted that the yield curve had inverted. This might be the single most accurate predictor of recession. It has accurately predicted every recession since the early ‘70s, including the 2020 recession (something fewer than 1% of professional investors got right). And it’s now forecasting a recession in the near future.

Today, we are adding the economically sensitive Dow Transports index to the list of recession warnings. On Friday, this stock index collapsed almost 5%. The damage was led by highly economically sensitive trucking and rail companies: companies that usually signal a recession months before the rest of the market “catches on.” 

JB Hunt is one of the largest trucking companies in the nation. Trucking might be THE most economically sensitive industry in the market. What does this chart tell you is coming?

Put simply, multiple signals with extremely accurate historical track records are screaming “RECESSION!”

What are the odds they are ALL wrong this time?

The time to prepare for what’s coming is NOW, before it hits.

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guide can show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

Do you want to make a fortune from investing?

If you do, then you’ve got to do what others don’t. You have to take a different approach… and look for situations most are ignoring.

Like what’s happening in bonds today.

Investors are giddy over stocks rallying. After all the stock market is up 8% in just six sessions. Meanwhile, something is brewing in bond land for only the second time in 30 years.

The 10-Year U.S. Treasury is the single most important bond in the world. The yield on this bond represents the “risk free” rate of return against which all risk assets, including stocks, are priced.

And it just broke its downtrend for only the second time in 30 years.

The last time this yield spiked out of its downtrend was in 2018. At that time, the Fed was shrinking its balance sheet by $50 billion per month and raising rates every few months.

The end result?

The $8 trillion corporate bond market blew up, and stocks crashed 20% in a matter of weeks.

This time around, the Fed has only just stopped growing its balance sheet… and has raised rates only one time! Put another way, the yield on the 10-year U.S. Treasury is breaking out and the Fed has barely done anything!!

How long before something “breaks” again and stocks crash? How long before the investors who think like everyone else “stocks are great investments in this environment” get taken to the cleaners?

And how long before those who see things differently make literal fortunes? Just as they always do when the markets are in la la land?

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guide can show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

The entire world is waiting to see what the Fed will announce today.

Will the Fed raise rates? Will it not? Will it mention shrinking its balance sheet? Will it not?

At the end of the day, in the longer term, it doesn’t matter. Sure, whatever the Fed decides to do today will matter for a few days. But after that, things will be right back where they were to begin with.

You see, the current market cycle is markedly different from the last two.

The last two market cycles followed a clear pattern:

1. A bubble appears.
2. The Fed ignores the bubble for far too long.
3. The Fed finally acts to burst the bubble by tightening monetary policy.
4. The bubble bursts, the markets crash, and the Fed introduces extraordinary monetary policy.

This time around, we have the following situation:

1. Inflation is in the financial system.
2. The Fed has only just stopped easing monetary conditions.
3. The bubble is already bursting.

In this sense, the Fed is cornered.

If it DOESN’T aggressively tighten monetary policy, inflation will trigger a recession (consumer spending is 75% of the economy), which will trigger a stock market crash.

If the Fed DOES aggressively tighten monetary policy to kill inflation, the markets will experience a credit event as the trillions of dollars’ worth of debt that rely on ultralow interest rates blows up.

There are over $10 trillion in corporate bonds outstanding. And high yield corporate bonds have already retraced ALL of their post-Covid-19 gains.

Put another way, the Fed is screwed no matter what it does. If it moves to kill inflation it blows up the debt markets. And if it ignores inflation or acts too slowly to stop it, the economy collapses.

On some level the markets know this. Take a look at the below chart and you’ll see what I mean.

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guide can show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

By Graham Summers, MBA

The Russia distraction appears to be over. The markets are enjoying a relief bounce. Enjoy it while it lasts.

The bigger issue for investors today is the fact that the markets are experiencing the first coordinated monetary tightening by central banks in years.

In the U.S., the financial system needs to digest the following:

·      The Fed is ending QE in a few weeks.

·      The Fed will begin raising rates, likely in March.

·      Multiple Fed insiders are suggesting the Fed will be raising rates five or seven times this year.

Across the Atlantic, we have:

·      The Bank of England (BoE) is already raising rates

·      The European Central Bank (ECB) will be ending QE this year.

·      The ECB is no longer committed to NOT raising rates. 

The bond markets are fully aware of these developments. But stocks are in “la la land.”

The yield on the 2-Year U.S. treasury has exploded higher, more than DOUBLING in the last six weeks alone.

In Germany, the 2-Year Government Bond has also exploded higher. Two weeks ago it moved more in a single week than it has in SIX YEARS.

This is the global financial system telling us, point blank, that we are in a “risk off” environment.

Stocks might chop around for a few more days, but we are going to NEW LOWS.

You can ignore this forecast, but in a week or so, you will wish you hadn’t.

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guidecan show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards,

By Graham Summers, MBA

The #1 question from clients over the weekend was whether Russia would invade Ukraine.

My answer: it doesn’t matter as far as stocks are concerned.

This is not to say that a war isn’t significant. And I’m certainly not making light of human suffering or loss of life. What I am saying is that stocks are going to new lows regardless of what happens in Eastern Europe/ Russia.

Let me explain.

The #1 rule for investing since 1996 has been: don’t fight the Fed.

What I mean by this is that as the financial system has become more and more addicted to Fed interventions, your goal as an in investor should be to align your interests with whatever the Fed is trying to do.

If the Fed is trying to reflate the financial system by printing trillions of dollars, you generally want to be long stocks. This was certainly the case from March 2020 until November 2021, during which time the Fed was easing monetary conditions aggressively, printing over $4 trillion. Stocks went up in an almost straight line throughout this period. Anyone who attempted to fight the Fed by betting on a crash got taken to the cleaners.

So, what is the Fed doing now?

Since November 2021, the Fed has been reducing its money printing. Its last day of QE will be in early March (three weeks from today). And from that point onward, the Fed will be tightening monetary policy by raising interest rates.

Put simply, the Fed is tightening, which is generally BAD for risk assets like stocks. Investors already got a taste of what’s coming during the first leg down in late January.

So again, whether Russia invades Ukraine or not is relatively insignificant. The Fed, which is the single most powerful force in the markets, is tightening monetary policy right now, which means stocks are going to break down… or possibly even crash.

After all, the last three times the Fed did what it is doing now resulted in:

1) The Tech Crash (2000-2002) stocks lost 80%.

2) The Housing Crash (2007-2009) stocks lost 60%.

3) The late-2018 meltdown (October-December 2018) stocks lost 20%.

Let me be blunt here, if you’re not taking steps to prepare for what’s coming, NOW is the time to do so.

For those looking to prepare and profit from this mess, our Stock Market Crash Survival Guide can show you how.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

https://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards,