There’s an old folktale about King Canute the Great of England. He believed he was so powerful that he could command the incoming tide to retreat.
One day, he ordered his subjects to carry his throne to the shore, where he thereupon commanded the tide not to rise.
It didn’t take long for him to get soaked… as the unstoppable reality of an incoming tide washed away his magical thinking.
So why am I telling you the tale of old King Canute?
Whether I like it or not, the America I knew as a younger man is changing.
You’d have to be blind not to notice. It feels like the inmates are running the asylum. As a nation, we accept such absolute nonsense as fact that it’s mind-boggling.
But accepting nonsense is the prerequisite mental state needed to accept socialism.
Friends make no mistake… Our country is marching towards socialism.
I’ve sounded this alarm about this before. And warned this tide is sweeping across our great country from sea to shining sea.
In this new America, the normal rules of money have been perverted by obscene money-printing and out-of-control inflation.
But my gut feeling tells me we’re seeing something even bigger than a change to our economy. It’s an assault on what makes America exceptional.
Friends, I write this missive to you from a dock in the Canary Islands, in a place called Lanzarote.
If you’ve been following me for the past week, you know I’m preparing to embark on the greatest journey of my life.
In a few hours (as I write this), I will board my red-hulled 50-foot Privilege 510 Signature Catamaran “Sisu” and sail across the Atlantic – from Europe to the Caribbean.
This voyage has got me thinking a lot about life… not only my own life – but that of our great nation. And it pains me to see where we’re headed.
But know this…
How you personally navigate this change in our national identity will have an enormous impact on whether you keep and grow your wealth.
The first step to navigating this madness is to realize that there’s nothing wrong with you. The world – at least we know it in the United States – has gone bonkers.
Fiscal realities… biological realities… the reality of human nature (rather than some idealized version of it)… they’re all being completely ignored.
Our job as Americans is to stand up to this assault on reality and not give in to it.
However, our job as investors is to find a way to both profit and protect our property in this new America.
What Canute Can Tell Us About Investing Today
Like Canute’s futile effort to turn back the tide, the shifting cultural tide currently washing over the collective American psyche is one we can’t push back.
That’s not defeatism. It’s a cold hard observation of where we are demographically and where those demographics are taking our country.
Millennials (born 1981–1996) and Gen Z (born 1997–2013) now make up 42% of the U.S. population, and 49% of the global population.
They’re here and they’re not going anywhere. To ignore this reality makes us just as proud and mule-headed as the Canute commanding the incoming tide to reverse itself.
I won’t waste a lot of time lamenting about the “good old days.” Because Lord knows, the Baby Boomer generation was just as critical of my cohort, Generation X.
They considered us a bunch of idle good-for-nothing slackers. And yet, it was Gen X that commercialized the internet at scale. And I don’t doubt these younger generations will achieve great things, too.
But the America they’re building will appear so alien to anyone over the age of 50 that it’ll be as if we’re living in a foreign country.
If you and I want to financially thrive in this new socialist regime springing up around us, we need to understand this “New America” so we can better protect ourselves against what’s coming.
(I’m not saying we have to like this new mindset… but to ignore it will imperil our financial future.)
One investment theme we must come to terms with is that government will keep getting bigger and bigger.
Investing in the New America
In this “New America,” the majority of people are happy to give up any and all vestiges of personal freedom just so long as the government “takes care of them” (meaning giving them free stuff).
Like it or not, government spending is a trend you ignore at the expense of your current and future wealth.
Government spending like you’ve never seen before is coming. Right now, U.S. government debt stands at $31 trillion. When I came to the U.S. in 1987, it was just $2.4 trillion.
And if that’s true, which I believe it is, then tax hikes like you’ve never seen before are coming.
Laws that restrict what you’re allowed to say are coming. Central bank digital currencies that threaten your financial sovereignty and privacy are coming.
So you must prepare yourself now.
One easy move to make is to get some of your wealth into bitcoin.
It doesn’t have to be a lot. Just 2–5% of your liquid net worth should be enough to financially insulate yourself from the blatant government money grabs and overreach that are surely waiting for you in the future.
Tapping into sectors where large swaths of government money are flowing is another concrete step you can take to better protect yourself.
My team and I just completed a special report that revealed two conservative dividend-paying names that look ready for 200%-plus gains off the back of trillions dollars’ worth of wanton government spending. (Palm Beach Letter subscribers can read it right here.)
At the end of the day, I’m a practical man. I’m not going to be the guy holding a sign at a rally. The money will be spent no matter what we think.
My job as an investor is to profit from the folly of others – not to lament it. Many people can’t do that. They get too caught up in feelings of outrage.
Friends, I’m not saying you shouldn’t be outraged. Afterall, what’s happening to our country is outrageous.
I’m suggesting you not let that outrage blind you to the opportunities this “New America” is bringing with it.
Our country is changing. We don’t have to personally change with it… but we absolutely have to pay attention to it. And adjust where and how we invest accordingly.
Let the Game Come To You!