Chief Investment Strategist, The Freeport Society
As I write, the market is melting down again…
Why?
Well…
We have a slew of new tariffs – from a 25% tariff on Canadian and Mexican products covered under the United States-Mexico-Canada Agreement, to a 25% tariff on countries buying oil and gas from Venezuela, and a 25% tariff on imported cars and car parts – scheduled to take effect on Wednesday, April 2. What President Trump is calling “Liberation Day.”
The Fed’s preferred inflation gauge – Personal Consumption Expenditures or PCE – came in hotter than expected this morning. The core PCE Price Index rose by 0.4% from January, which was more than economists expected. And it shows that inflationary pressures remain elevated.
And there are an increasing number of signs that the American consumer is tapped out. In particular, credit card balances are past the $1.21 trillion market while the percentage of credit card 90 days or more in arrears is above 11% and climbing. The personal savings rate has dropped to 4.6%. And retail sales are still in decline, especially at restaurants and department stores.
Under those numbers, it’s understandably chaotic. But… is it all part of a plan?
Is President Trump playing a long game to reorder the world’s financial system?
And if so, what does it mean for our portfolios?
To unpack all of this, I sat down with Dan Denning, Director of Research at Bonner Private Research.
I’ve been reading Dan’s work for over 20 years. He’s dedicated his life’s work to providing insightful, independent, and actionable financial analysis. And I’ve personally made a pretty penny on his recommendations.
So, what’s the story?
Is there a method to the madness regarding the tariffs?
Hit “play” below to watch today’s video…
As Dan and I discuss, the tariffs are part of a larger plan to lower the value of the dollar and to make American exports more competitive in global markets.
Dubbed the “Mar-o-Lago Accord,” the plan is a more aggressive version of Ronald Reagan’s Plaza Accord in 1985.
Will it work?
We may not know for months or even years. It’s a high-risk plan, and a lot can go wrong.
But the takeaway is clear.
If our government is telling us they want to lower the value of the dollar, we should take them seriously.
That means protecting your savings with anti-dollar hedges like gold and even Bitcoin.
We hold both, among other stocks in our flagship Freeport Investor advisory. And, despite even today’s market plunge, they’re showing open gains of 52% and 100% respectively.
It also means understanding what this new monetary regime might mean for the stocks in your 401k.
Dan and I discuss this in today’s video. Watch it now.
To life, liberty and the pursuit of wealth,
Charles Sizemore
Chief Investment Analyst, The Freeport Society