Senior Managing Editor of The Freeport Society
A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years. These nations have progressed through this sequence: From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From liberty to abundance; From abundance to selfishness; From selfishness to apathy; From apathy to dependence; From dependence back into bondage.
― Alexander Fraser Tytler
Justice Litle, the Chief Research Officer at TradeSmith, shared this quote with us recently. It stuck.
In fact, my husband and I got to talking about it a couple of days ago. So many – too many – young adults today want socialism. However, like Charles and Justice said in yesterday’s Freeport Navigator, it’s hard to blame them. They’ve been dealt a horrible hand.
And considering both Charles and I are demographic geeks, this chart from Statista is disturbing!
As you can see, Baby Boomers hold around 55% of total U.S. wealth. Gen X holds less than half, at around 25%. Millennials hold less than 10%.
It’s no wonder we’re edging ever close to dependence, as Tytler says in the quote above.
Our presidential hopefuls – mostly President Joe Biden – are even encouraging it. He’s promised to erase even MORE student loan debt. With the current state of financial affairs across the various generations, that might turn out to be a good move for reelection.
We’ll see.
Regardless of who wins the White House, there are strategies you can follow and investments you can make to survive and even thrive during this Age of Chaos. That’s what we’re here to help you do.
One strategy in particular is critical as we slide ever closer to the November election. Charles and Freeport Society friend Louis Navellier discuss the details in this special broadcast. Watch it now.
Then, review what we covered this week in The Freeport Navigator…
How to Protect Your Wealth From Election Year Chaos
What happens when the safe haven itself appears to be at risk because those in charge of protecting it – namely the Federal Reserve – are the ones generating the chaos? Find the answer here.
The Two Red Hot Coals in Wall Street’s Side
As always, Wall Street will obsess over inflation data but we need inflation to fall before the Federal Reserve will cut key interest rates. Read on to discover Wall Street’s two biggest worries.
That Didn’t Quite Go as Planned
Inflation came in hotter than expected, killing Wall Street’s expectations of a May 1 interest rate cut. The Fed funds futures market is now pricing in a 94% probability that rates remain unchanged. So now what? Find out here.
Well, THAT’S Not What You Wanted to Hear
Remember those three rate cuts that the Federal Reserve all but promised this year… the ones that Wall Street enthusiastically priced in? You might want to curb your enthusiasm. Here’s why.
Biden’s Edge: A Demographic “Ghost Ship”
Young people today no longer believe in capitalism. They’re angry, and the solutions they’re going to demand at the ballot box are only going to make the problems worse… Read the full story here.
Looking Ahead
All eyes stay glued to the Federal Reserve next week.
After Minneapolis Fed President Neel Kashkari recently said that rate hikes are still a possibility this year, everyone’s going to be parsing every word any Fed President says. Eleven Fed Presidents are scheduled to speak next week, so it’s certainly going to be interesting.
Investors are also paying close attention to earnings reports as they flood the market. Some of next week’s reports will give a clearer picture of how the American consumer is faring, coming from major banks like Bank of America Corp. (BAC), Morgan Stanley (MS), and American Express Co. (AXP)… and big consumer brands like Johnson & Johnson (JNJ) and Netflix Inc. (NFLX).
Accordingly, Charles and the team will keep you apprised of how to invest smartly in this volatile environment. Stay tuned.
To life, liberty, and the pursuit of wealth.