This is a historical day – gold surged to over $1,360, on track to meet my 2018 target of $1,510.
The USD tumbled hard and is now below key support levels. We might see a bounce back soon, but the overall trend looks bad for savers.
In fact, at the World Economic Forum in Davos, a village I visited a month ago, Ray Dalio, who has been dead-on with regards to stocks and gold during this cycle, had pointed out that he is extremely confident that the worst bonds bear market in human history is beginning.
He also noted that inflation is not a problem today, but he fears that the Federal Reserve will mismanage (screw-up) the tightening period, causing inflation to accelerate and stock to crash down.
His No.1 message to investors was to avoid large cash positions like the plague.
The U.S. is entering a truly unique part of the business cycle, largely caused by Baby Boomer retirement. There is a person celebrating his 65th birthday every 10 seconds in America and this is causing a shortage of workers.
Currently, Portfolio Wealth Global estimates that 8 million positions are open to meet growth over the next 2 years.
Tax cuts and the resurgence of the heartland states, such as Oklahoma, Texas, Michigan, and Wyoming will create wage increases and hiring – the rally in stocks just received another jolt, in other words.
As you know, my portfolio is made up of 60% cash flowing assets, such as Dividend Aristocrats, rental real estate, and private loans, and I am planning to accumulate more residential real estate this year.
With regards to stocks, as it stands, the only 2 companies I’m buying for the long-term are Kimberly-Clark (Up to $119) and Enterprise Products Partners (Up to $31).
Kimberly-Clark is the manufacturer of Huggies diapers, among other iconic brands, and it is trading for the best valuation I’ve seen since I began tracking it in 2014. This is a long-term position, which I intend to own for life.
Enterprise Products Partners is an Oil MLP, which yields 5.85% and is undervalued, especially with rising oil prices.
I hold 25% of my portfolio in cash right now, and the remaining 15% equally divided between cannabis, blockchain, and resource stocks.
Following today’s action, I’m going to recalibrate the cash allocation to 10% and double my exposure to cannabis, blockchain, and resource stocks.
Gold is absolutely firing on all cylinders, but the industrial metals are actually experiencing supply shortages. This is the time to get positioned with specific junior miners.
This Sunday, at 11AM CST, I plan to publish a full overview of a company that could double from today’s prices and still be considered cheap compared to its direct peer stock.
Bitcoin is not going to be the top-performer in 2018, but a number of the top 30 altcoins are forging important partnerships with major Fortune 100 companies – expect a new cryptocurrency pick in early February as well, after our No.1 pick from December gained over 120% in one month!
Gold is officially in a bull market, USD is officially in a bear market, bonds are ending a 36-year bull market, and you get to see this front and center.