Finding Some "Economic Goodwill"

The key to making money in stocks for the long term… April 29, 2021 UNSUBSCRIBE | ARCHIVES Finding Some “Economic Goodwill” Have you seen America's first ever TechX Talk yet? Watch it and you’ll discover where the man The Economist called “America’s Foremost Technology Prophet” thinks the next tech fortunes will be made. You have until tomorrow at midnight, you can watch his presentation along from home.   Dear Money & Crisis Reader, Yesterday I outlined a horrifying truth… The majority of stocks have NOT actually made money over the last 20 years. How is this possible? Remember, the U.S. stock market is priced in U.S. Dollars ($USD). And over the last 20 years, the $USD has lost nearly 40% of its purchasing power. So, when we adjust for this by pricing stocks in gold (an asset that cannot be devalued by the Fed), we see that stocks are in fact DOWN some 50% from their 1999 peak. Now bear in mind, I’m not saying stocks are a complete waste of time. I’m simply saying that if you are piling your money into an index fund, most of your gains are coming from the new money you put in… not stock appreciation. So How Do You Generate Real Wealth from Stocks? The same way Warren Buffett did: by focusing on stocks that are growing rapidly to the point of outpacing inflation by a wide margin. Leading forecaster warns: This will be a living nightmare for many Americans One of America’s top financial experts just released a terrifying new prediction that every American needs to see. Your retirement plans… the price of your home… how and when you travel… even your personal security – if this forecaster is correct, it could all be devastated. And he’s not the only one to sound the alarm. Bill Dudley, the former New York Fed chief, a senior fellow at the Manhattan Institute, Goldman Sachs strategists… and a chief investment strategist at Blackrock… and Jeremy Grantham, one of the greatest hedge fund managers in the world. They’re all warning about – and preparing for – exactly the same thing. Get the full story here before it’s too late. Consider Coca-Cola (KO). Buffett began loading up on Coke in 1988. At that time, he noted, among other things, that the company is able to raise the cost of its product to beat inflation without losing consumers (a term he calls “economic goodwill”). Take a look at how KO, priced in gold, has performed relative to the broader stock market priced in gold and you’ll see the effect of this “economic goodwill in action. Even with KO falling when priced in gold since 1999, it’s still outperforming the broader market by a wide margin. Let’s take a look at another, more rapid-growth company that Buffett recently bought: Apple (AAPL). After famously avoiding tech stocks for most of his career, Buffett began loading up on AAPL in 2016. The chart below shows what he is looking at: You get the general idea. The idea is to find high quality companies that are rapidly growing with products that have what Buffett calls “economic goodwill” (the ability to raise their prices to account for inflation). Best Regards, Graham Summers Editor, Money & Crisis P.S. Finding stocks with this kind of “economic goodwill” in order to beat inflation’s impact on the market can be a challenge. But… one asset class we know is impervious to the ravages of inflation is precious metals. Gold is always good to own during inflationary times, but today SILVER is probably even better because it tends to outperform gold in bull markets. If you’re interested in adding some silver to your portfolio, check out Hard Assets Alliance. They’re a great platform for buying, selling, and storing all your bullion. (We liked them so much, we bought a small stake in the company!) And there’s no cost to set up an account. You can get all the details about them here… Trump's Final Gift To America There’s a little-known way Trump could – one day – have his revenge. It involves a Federal Ruling he oversaw in the final year of his Presidency that could change America forever… unleash an estimated $15.1 trillion in new wealth… and create countless ways for everyday Americans to benefit. What is this little understood decision? And how will it impact you? All the important facts are here. To end your Money & Crisis e-mail subscription and associated external offers sent from Money & Crisis, feel free to click here. If you are having trouble receiving your Money & Crisis subscription, you can ensure its arrival in your mailbox by whitelisting Money & Crisis. Money & Crisis is committed to protecting and respecting your privacy. Please read our Privacy Statement. For any further comments or concerns please email us at MoneyAndCrisis@threefounderspublishing.com. 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