I’m 51 years old.
I’ve seen the end of the gold standard… The threat of nuclear war… The fall of the Berlin Wall… And the Soviet Union break up into more than a dozen smaller countries.
Experts predicted that these global events would end the world as we know it.
They were scary moments to live through. And at the time, the fear they created crushed equity markets.
But we got through them. And the world re-righted itself in short order.
Friends, I’m not trying to dismiss the current geopolitical crisis.
When you turn on the news and see sky-high inflation and brutal images coming from Europe, it seems like the world is going to hell in a handbasket.
But at the risk of sounding Pollyannish, the first thing you need to do when we’re in a geopolitical crisis like we’re in now is take a step back and look around.
The U.S. isn’t a war zone. Our grocery stores won’t run out of food. And our gas pumps won’t run dry.
So take a deep breath. You’ll realize what’s happening in geopolitics doesn’t affect you directly.
Gas and groceries prices will continue to rise until we find a resolution to the conflict in Ukraine. But in terms of your daily life… no foreign invader is driving tanks outside your door.
So what you need to do now is focus on the things you can control.
How can you save more money? What investments should you hold in your portfolio?
Those decisions will keep your wealth growing even through these difficult times. The right choices will keep a roof over your head… pay for doctor visits… and give your kids the life you wish you had.
With that in mind, here’s my advice on keeping things in perspective and ensuring a secure financial future during crises.
Two Questions Every Investor Should be Asking Right Now
The U.S. and its allies will eventually reach a resolution with Russia over Ukraine. The markets will calm down. Supply chains will normalize. And prices will fall.
I don’t have a crystal ball. So I don’t know when that will be.
Until then, we’ll continue to see volatility in the equity and crypto markets. We may even see extreme volatility like what we saw in 2020. If that happens, don’t panic and don’t try to time it.
Instead, I want you to ask yourself this question:
Will the current crisis result in a permanent or temporary erosion of stock market value?
Unless you’re heavily invested in Russian stocks, my belief is the erosion of capital caused by this crisis will be temporary.
That means I think any drop we see in the market will turn around and recover. Just like we saw in 2020, when the S&P 500 dropped as much as 32% in about a month… And then rallied back as much as 52% from the lows about 4 months later.
Outside of Russian stocks, I believe we’ll see a massive rally in equities and crypto when this crisis is over.
Just like I told you to do nothing when stocks collapsed in 2020, I’m counseling the same today.
And yes, we will likely see more volatility. But neither you nor I are smart enough to sell now and perfectly time a reentry into the markets.
[If you think you are that smart, click here and send me your verifiable 10-year actual track record of market timing (no backtests, please), and I will make you a six-figure job offer.]
2020 proved that those who stayed the course made far more money than those that sold and never got back in.
All of my research suggests this correction will be temporary. That means we will spend less than one year in this down-to-sideways phase.
The second question you want to ask yourself is:
How do I make this volatility work for me?
The answer is simpler than you might think… But it will take courage.
Right now, quality blue-chip stocks are selling off due to fears of a general economic slowdown caused by inflation.
There is no question corporations will see their earnings dinged by inflation costs they can’t pass on to their customers… But earnings won’t crater.
And yet some amazing blue chips are trading as if their earnings are about to get cut in half.
These companies pay yields over 4%. They have records of ever-increasing dividends. They sell products people want or need. And they have been selling these products for decades.
These businesses will continue to churn out rivers of cash no matter what happens. They’ll continue to pay out that cash in the form of ever-increasing dividends. And for the first time since 2020, their valuations are becoming compelling.
Over my 30-plus years in finance, I’ve learned it’s human nature to over-extrapolate from positive events… and negative events.
In other words, when times are really good, people price assets like times will be good forever. And when times are really bad, they price assets like times will be bad forever.
So right now – when sentiment is bad – everyone believes it will remain bad for years. It won’t. It’s just another opportunity to buy excellent assets at cheap prices.
“Excellent” means assets with a record of profitability… growth… and raising dividends. Not companies that just went public two years ago.
When uncertainty is high and markets are volatile, always focus on quality. Because those companies go down the least and are the first to go back up when the market recovers.
When you can buy excellent assets on sale, making money in the public stock market is easier than you think.
But if you dump high-quality stocks because you’re afraid of World War III… you’re the one waging war against your own wealth.
The Biggest Opportunity I’m Seeing Outside of the Stock Market Right Now
There are times in history when political egos clash, governments collapse, and financial markets crumble with them. But these crashes are always temporary.
Above I’ve outlined how to use that instability to grow your wealth from publicly traded stocks… but what about private investing?
During a public market downturn (like we’re experiencing right now), you can find some amazing diamonds in the rough in the private markets.
I’ve personally made millions of dollars by selectively buying into private companies before they went public. I often found these deals during periods of extreme market volatility…
Just like I’ve found one now.
One of America’s largest investment banks is backing this company. It’s a firm behind some of the most profitable private deals of the past 150 years… including returns of 47x, 100x, and 159x.
Even better, the deal is squarely in the sweet spot of what will be a multibillion-dollar trend: American Energy Independence.
The Russia/Ukraine war has been a wake-up call to America. We must end our reliance on foreign oil imports.
The company I’ve found aims to do just that… And it’s so intriguing that a Wall Street powerhouse recently wrote a check to become its largest shareholder.
I’ve found a way for you to get access to the same deal – on the same terms – as one of America’s largest and most lucrative financial titans.
That’s why on Wednesday, March 23, at 8 p.m., I’m holding my first-ever U.S. Energy Independence Summit.
During this special briefing, I’ll tell you what this company is doing… the technology it’s using to create low-cost energy… and the Wall Street powerhouse backing it.
Best of all, you will learn how you can get shares for just $1.25. Accredited investor status is not needed. But as with all private deals, shares are strictly limited.
Friends, I know things look scary right now. Horrible things are happening in Europe. And prices on life’s most basic necessities are going higher.
But you do have a choice.
You can panic and sell-off assets that will more than likely rebound later this year, just like in 2020… Or you can keep a level head and put your money to work for you.
That’s the opportunity in front of us today… and one I’ll be sharing with you next Wednesday, March 23, at 8 p.m.
Let the Game Come to You!
Editor, Palm Beach Daily