|
Dear Investor, Sometimes the cure is worse than the disease. Not that I want to belittle the
suffering investors have endured in recent years – resulting from the
subprime mortgage crisis, the credit crunch, the collapse of major
financial institutions, and the stock market crash of 2008. Nor do I
think Congress and the Federal Reserve are wrong to wage historic
stimulus campaigns and ramp up liquidity to unheard of levels. We
likely need today's $1 trillion government deficit and the recent
doubling of the monetary base to pull our economy out of recession. We
may even need a 2nd stimulus package. Heck, we may even need the Fed to
start dropping hordes of gold coins from helicopters. But, as an investor, you need to be prepared for the consequences of these large-scale acts. More specifically, you need to start paying more attention to those few investments that will benefit from the side-effects of the economic cure. And believe me, when the cure takes this much effort, the side-effects will be equally huge. Put simply, one cannot ramp up the money supply to astronomical levels without lowering the value of cash. Little wonder that the papers today are full of reports about the Middle East nations, China, Russia, and others looking for new ways to diversify out of the U.S. dollar. They can see where the dollar is headed, and they want to lessen the blow to themselves. And as the world moves away from using the dollar as the primary reserve currency, the dollar will only weaken further. As the dollar starts to lose value, Americans will find it takes more and more dollars to buy most products. Inflation will likely hit levels even higher than we saw in the 1970s. Even worse, this dollar-driven inflation will begin at the same time that global inflationary pressures receive a big boost from another, inescapable trend.
You see, in recent years, the GDP
of the world's developing economies have grown to be equal those of the
developed nations (in terms of purchasing power parity). And that
strong growth continues despite our current recession. What's more,
economic growth in the developing world really means industrialization
– building new infrastructure and factories. And now, they’re churning
out products for their own consumption at an
ever faster rate. Naturally, industrialization demands
increasing amounts of raw materials and energy. And yet, while most of
the world's population pushing to develop, the world appears to be
reaching a permanent peak in the production of oil and many other
commodities. We only have a short time before the developing
supply/demand squeeze drives global prices higher at an unprecedented
rate. Of course, a shortage of oil
contributed greatly to the problems in the 1970s. If you lived through
those years of double-digit inflation, you'll know that they were a
stifling environment for investors. Inflation cut deeply into the net
returns from most assets. It eroded bond yields. It raised corporate
expenses, which lowered profits and the net return from stocks. Even
the cash in your wallet steadily lost purchasing power as higher energy
prices drove up the cost of living. In fact, only a few assets gained value during the 1970s. Fortunately, these few performed incredibly well. Some of the best performing asset groups made returns of roughly 30% a year for the entire decade – and the investors who bet heavily on them made fortunes while the average retired person saw his standard of living decline.
Inflation eventually declined in
the early 1980s, thanks to tighter monetary policy and higher oil
production. But it won't be that simple this time around. First, the Federal Reserve today
cannot risk fighting inflation by tightening monetary policy. The Fed
tried keeping the money supply in check in 2008, in response to the
spike in commodity prices, and the result was the current recession. No
one wants to see an even deeper recession, so the monetary policy will
remain loose for some time. In the 1970s, oil supplies were
tight thanks to OPEC embargoes. Plenty of oil remained in the ground,
just waiting for someone to turn on the tap. But today, no large
untapped oil reserves sit idly waiting – at least none that can be
developed as long as oil prices remain under $100 a barrel. We're
pumping all the cheap oil we can, and soon it won't be enough. We're
already buying gasoline for nearly $3 a gallon. In a few years, it may
cost $6 – and it will only go up from then on. When $6 gasoline arrives, you'll want to be much richer than you are today – so you can pay for the lifestyle of your dreams, despite a higher cost of living. And you can get richer, despite the challenges. It's simply a matter of investing in companies and assets today that are leveraged to inflation. Investments whose value will shoot up even faster than the inflation rate.
Just consider how much money you
could make from owning...
Or, if you prefer to
profit directly from the metal itself, I can show you how to do so
easily, cheaply, and securely.
(Here’s your Free Inflation Survival Guide)
(Goes to order form below) But you have many others ways to
profit from the coming inflation wave. Most commodities will benefit
from a weakening dollar and increased demand. That's why you should
consider investments such as...
And these are just a couple of
opportunities for making returns as inflation rises. I've put together
a Special Investor Report concerning some of the strongest investments
I believe you could make today – investments that will put you in line
to fight the higher inflation. The report is called the Inflation
Survival Guide: How to Defend Yourself From Investors' Greatest Enemy.
And you can have your personal copy FREE. No cost, no hassle… And there's something else I'd like you to have...
I've recently created a FREE service
to help investors stay on top of events taking place in the market and
the economy, and to provide on-going guidance as to where today's
biggest trends are taking us. Created by myself and my team of highly
trained analysts, Leeb's Market Forecast
will give you information and insights not available anywhere else. You'll learn about ...
All this information is updated
regularly, and you can get it on our dedicated website, accessible from
anywhere in the world. Or, for even more convenience, sign up to get
our latest missives delivered straight to your email! Just enter your
email address in the box below. There's no cost, no hassle,
and you can cancel anytime. How's that for a great deal?! And there's more... You'll also get access to FREE video investment broadcasts covering daily events and developments that can affect your investment gains. We post one of these short, highly informative presentations every business day on our website, so you can stay fully aware of money-making opportunities as they arise. Why is all this free of
charge? Simply because I know the widespread hardship that
can result from an inflation boom. I saw it firsthand in the 1970s. And
I want to help as many people as I can escape from its devastating
effects. So please, accept this gift from me, and I promise I will do
all I can to guide you in the direction of greater financial security. Once again, to get your FREE copy of
the Inflation Survival Guide,
FREE access to our daily broadcasts, and Market
Update's FREE email digest of what's
happening in the just enter your name and email address in the space
below… Or, if you simply want to read this week's copy of Leeb's Market Forecast, just by filling out the form below. Either way, I look forward to helping you prepare for the most challenging period investors have ever faced.
|