Happy 2022! I (Chris Lowe) hope you got a chance to unplug and take a break from the markets over the holidays. I spent time with family and friends in Dublin, Ireland, where I’m from. And I made the most of my time away from the computer screen. But now, I’m back on my mission to bring you the best ideas about how to move the needle on your wealth from Teeka Tiwari, Jeff Brown, Dave Forest, and the rest of the Legacy Research team. Later this week, I’ll introduce you to our newest hire – Nomi Prins. She was a managing director at Goldman Sachs… a senior managing director at Bear Stearns in London… and a strategist at Lehman Brothers. But she quit Wall Street in disgust over unethical practices there. And she’s come on board to shed light on the ways financial systems are manipulated to serve the interests of an elite few at the expense of everyone else. But to kick off the new year, I want to take a 30,000-foot view of the economy and the markets. At Legacy, we believe that if you get the big picture right… everything else will follow. But with so much going on, it’s easy to get distracted from what really matters. So I’ve summed it up for you in six key charts. | Recommended Link | | Potential 10X Gains Off "Alien Technology" Dave Forest's Readers are Seeing Incredible Gains Right now, up to... 252%... 825%... 1,019%... How? By taking advantage of an ultra-rare tech component that is soaring in price right now. A mysterious compound that's so bizarre, systems engineers have dubbed it "alien technology." Even though most Americans have never heard of it... Tech giants like Apple, Facebook, Microsoft and Tesla can't survive without it. And right now, 95% of the global supply of this compound is about to vanish off the market... Opening the door for potential 10X... and even 50X gains - for those who act now. |
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Chart #1 – The Consumer Price Index… I’ve written to you about this a lot. But inflation is probably the biggest threat to your wealth right now. It’s measured by the Consumer Price Index (CPI). In short, the higher the CPI goes, the less each dollar you earn or have saved buys you. As you can see, right now, the annual inflation rate is running at 6.8%. You’d have to go back to 1982, when President Reagan was in the White House, to find as steep a rise in the cost of living. If inflation keeps climbing, it’ll be even more important than it was last year to get out of cash and into inflation-beating assets. Chart #2 – The price-to-sales ratio for the S&P 500… The S&P 500 returned 26.9% last year. And over the last three years, it’s up more than 100%. That’s its highest three-year return since 1997–1999. That’s great news if you’ve been invested in stocks. But it’s left valuations at record highs. There are many ways to look at this. But the hardest to fudge with creative accounting is the price-to-sales (P/S) ratio. It tells you how many dollars investors are paying for each dollar of a company’s sales. Take a look at the P/S ratio of the S&P 500 – our regular stand-in for the U.S. stock market. Investors are paying, on average, $3.26 for each dollar of sales the 500 companies listed on the index earned over the past year. That’s up from $2.76 at the start of 2021. And it’s more than double what folks were paying before the 2008 crash. This doesn’t mean another crash is around the corner. But it does mean this market is richly valued. Bargains are hard to find. Chart #3 – The commodities-to-stock-market ratio… As regular readers will know, commodities are “hard assets.” They’re hard to produce more of relative to their existing supplies. This makes them safe havens from devaluing fiat currencies in times of inflation. And right now, commodities are an interesting value play. Six crypto-currencies to buy NOW! The next chart looks at the S&P GSCI – which tracks the commodities market – relative to the S&P 500. When the line on the chart is falling, commodities are getting cheaper relative to stocks. A rising line means commodities are getting more expensive relative to stocks. As you can see, commodities have never been as cheap as they are right now relative to stocks. If you’re looking for cheap inflation hedges in 2022, the commodities market is a great place to shop. Chart #4 – The U.S. crude oil price… Like it or not, today’s economy can’t function without oil. On a global basis, we burn 97 million barrels of the stuff a day. And last year, the benchmark for U.S. prices – West Texas Intermediate (WTI) crude oil – rose 56%. With the transition from fossil fuels to clean energy sources such as solar and wind, that’s counterintuitive. But as our commodities expert, Dave Forest, has been showing his readers, this transition is bullish for oil prices over the short to medium term. Dave… Last month, traders placed bets on $300 crude oil. That’s never happened before… not even when oil spiked to $140 a barrel in 2008. They’re keying off government policy. President Biden has made several moves to limit or even ban oil drilling across the U.S. And activists have successfully forced oil majors such as Chevron (CVX) and Shell (RDS.A) to curb production. That’s negative for anyone trying to drill new fields. But big investors see it as a positive for companies with existing production. The lack of drilling could trigger a supply shortage. That could send oil prices soaring. Chart #5 – Active bitcoin wallet addresses… As Teeka Tiwari readers know, adoption is one of the main drivers of bitcoin (BTC) prices. Teeka first recommended the cryptocurrency to his readers in April 2016, when it was trading for just $428. It’s up 12,231% since then. And since the start, Teeka has been hammering on why crypto adoption is so important. That’s why the next chart will be key this year. It shows the number of active bitcoin wallet addresses. Source: Raoul Pal The number of active wallets peaked early last year. But if Teeka is right, we’ll see adoption – and prices – power higher from here. As he wrote about here, he says bitcoin is on track to hit $500,000 as it goes mainstream. | Recommended Link | | Harvard Medical School Professor Joins Teeka Teeka Tiwari says he’s found his biggest discovery since cryptocurrency in 2016. He believes this discovery could bring you over 100 years of stock market gains in a matter of months – the same way his crypto discovery gave his readers a chance at gains like 15,000%… 48,000%… and 151,000%… But Teeka’s not the only one who’s excited about this. The man in the image above with Teeka is Dr. Sanjiv Chopra. He’s a Harvard Medical School Professor. And he believes so strongly in Teeka’s latest discovery, he was willing to go on camera and tell the entire world about it. To see what Dr. Chopra has to say – and learn how Teeka’s big discovery could transform your financial life… |
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Chart #6 – The Nasdaq 100… We’re also bullish on bleeding-edge tech stocks here at Legacy. That’s why we have Silicon Valley insider and early-stage tech investor Jeff Brown on the team. It’s also why our last chart today is of the returns of the tech-heavy Nasdaq 100 Index. It ended 2008 down by 42%. But since then, it’s had a 13-year streak of positive returns, with a 27% gain in 2021. If Jeff is right, the best is yet to come. As he’s been showing his readers, the rollout of 5G wireless – along with leaps in artificial intelligence (AI)… self-driving cars… gene editing… and quantum computing – means that streak is set to continue. And he says even bigger returns are on offer in what he calls “Day One” investments. These are private tech companies regular folks can invest in through something called crowdfunding deals. You can read more on these from Jeff here. In the mailbag: “The benefits of following Teeka keep coming”… Teeka’s Palm Beach Confidential was the first major financial advisory focused solely on crypto. There, he first recommended bitcoin in April 2016. Since then, it’s up 12,231% – enough to turn a $1,000 grubstake into $123,310. Teeka’s top-performing open recommendation is another blue-chip crypto, ether (ETH). Since he added it to the model portfolio in April 2016, it’s up more than 40,808%. That’s enough to turn every $1,000 grubstake into $409,080. No wonder our mailbag is always full of thank-you messages from his subscribers… Teeka's knowledge and advice are the very best! I can only afford very small investments. Yet the growth has been jaw-dropping. I’ll continue to put my trust in Teeka. “Thank you” seems like it’s not enough. – Donald M. Wow, the benefits of following Teeka just keep coming. I’m stoked, dude! Thank you very much. – Tim B. No suggestions on how to improve. Keep doing what you’ve been doing. I’ve been a subscriber for a year and a half. I’m extremely pleased with your service. – David S. Teeka, I took action in October 2020 by subscribing to your information. I followed your advice and invested about $11,000. I have now taken out all but $2,000 of my investment. Even after the recent correction, the $42,000 remaining is all profit, to be sold and taxed at a time of my choice. This has been life-changing! My wife now has her own portfolio and my daughters are about to start. I can't thank you enough. – Garvin B. Thanks, Teeka, for your generosity. You are an amazing person. I started with you in 2019 and you have made me so much money. I am getting ready to turn 76 and I love following your lead. Again, thank you for including all of us. – Ralph Y. Have Teeka’s crypto picks helped you move the needle on your wealth? Share your story with us at [email protected]. Until tomorrow… Chris Lowe
January 3, 2022
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