Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | Banyan Nation, The 1970s are back.
If you lived through the ‘70s, you might have fond memories of pet rocks, disco balls and rock operas.
But it wasn’t a particularly fun time to be building a financial future. We had rampant inflation and tepid economic growth. It was the worst possible combination: stagflation!
Sound familiar?
Inflation isn’t easing nearly fast enough … and it really can’t, because some of the issues are structural.
We’re in the early stages of deglobalization, which means a reversal of the great disinflation from China’s entry into the world economy.
Of course, when all you have is a hammer, everything looks like a nail.
The Fed has one way to hammer the nail of inflation … dampen economic activity by raising rates. That won’t fix the whole problem, though. That’s something the free market will have to figure out over time. Until then, higher rates are the new normal.
The Fed’s activity has helped to push up the shorter-term end of the yield curve. And this yield curve inversion is now the most extreme we’ve seen in 40 years.  (Click here to view larger image.) Inverted yield curves have a perfect batting average in predicting recessions. Hey, this time could be different. Mighty Casey could strike out.
But history suggests we have some kind of recession coming.
Recessions aren’t death, of course. They’re nasty to live through and tend to come with a lot of market volatility. But they also have a way of creating opportunities for the investors flush with cash and ready to buy low.
And on that note, let’s see what the rest of the team was up to this week… | | | Bold, new clean energy policies have put America on course with a disaster that “will make the 1970’s Oil Crisis feel like a walk in the park.” Data shows why… See more. | | | - How Deglobalization Is Changing U.S. Manufacturing
The U.S. is “firing China” as a trading partner. It started as a matter of national defense … but it’s turned into a matter of economics. China is toast. But America is on the verge of a major manufacturing revolution. But the best way to profit from this trend isn’t where you think…
- Ethereum and Web3 Will Revolutionize the Internet
A digital revolution is upon us. Where our digital identity belongs to us, tech overlords no longer control our data and centralized middlemen are replaced with autonomous networks. And there’s no bigger way to take advantage of this revolution than via Ethereum.
- China Says: “Thank You, President Biden!”
75% of the world’s batteries, 83% of offshore windmill blades and 96% of the wafers used in solar panels are made in China. You think that might make a green energy revolution in America just a tad problematic? But that’s OK … a massive crisis has a way of creating an even more massive opportunity.
- The Major Flaw in the Efficient Market Hypothesis
Academia has taught for decades that the financial markets are “efficient,” meaning all information is already priced in and there is no value to doing research. Just buy the S&P 500 and be done! There’s just one problem. It’s not true. There are proven “anomalies” that crush the market… and here they are!
- 27X Bigger Than Green Energy
The U.S. government is going “all-in” in green energy, and with the shear size of the dollar amounts being thrown at it, there is no question fortunes will be made. But the screaming value today isn’t in green energy. We have the potential to earn vastly superior return by focusing on this sector instead.
Be sure to tune in The Banyan Edge Podcast on Monday.
Adam O’Dell and I will check in on his Next Big Short — which he managed to time just about perfectly — and talk about the larger issues facing overvalued tech companies right now.
You’ll learn it’s not just the big household name stocks that have a lot further to fall. In fact, Adam’s research recently uncovered ANOTHER big short idea you can’t afford to miss.
Until then,
Charles Sizemore
Chief Editor, The Banyan Edge P.S. Are you enjoying The Banyan Edge? We’d love to get your take on our research, and we love answering questions.
So, if you have any questions, insights, or just want to leave us a note, please send an email to banyanedge@banyanhill.com. | | | First, Biden killed the Keystone Pipeline. Then, he froze drilling permits. Now, he has vowed to finish off coal. Biden’s blind obsession with clean energy has set America up for a disaster that will make the 1970s Oil Crisis feel like a walk in the park. Click here to see why. | | | (c) 2023 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice
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