We Keep Counting Bills As You Watch Your Portfolio Drop 30%
Every American at birth is already $90k in debt
$30,000,000,000,000 ($30 Trillion) national debt. And hundreds of trillions in unfunded liabilities. The Fed is totally corrupt and out of control.
The national debt has surpassed $30 trillion for the first time, a milestone that economists say is another sign the country is on an unsustainable fiscal path.
Every American at birth is already $90k in debt.
And if that wasn’t enough, the conflict between Russia and Ukraine is escalating, and inflation is at 40-year highs.
More than any politician ever, Jay Powell has led us to ruin solely to enrich himself and his cronies.
The situation is critical.
This unprecedented indebtedness and having kept interest rates so low for so long can give us a false sense of well-being. This sense of well-being can be much more damaging if we maintain them over time and continue to raise the costs of filling the shopping cart, paying the light, or filling the car with gas.
With Bitcoin well below $40k (> -30% YTD) or the Nasdaq -15% YTD, it seems that gold and silver are among the few safe havens to at least not lose purchasing power.
Gold is a great safe haven in this type of situation. Anyone who says it is not, does not know about economics. The main problem for which it is being criticized is that its YoY increase has been 6%. This increase is not enough to stop inflation.
But if I cannot have money in equities, nor in fixed income, nor in gold, nor in REITs, nor in crypto, and, worst of all, nor in CASH. What can I do?
There are two options:
You spend it, and so you don’t have this problem. By spending it, you pay taxes and help pay the debt of the past, not the future.
You have an asymmetric portfolio.
What is an asymmetric portfolio? It is investing a very small part of your portfolio in options that benefit from a scenario where nothing works, where there is panic in the streets, and nowhere is a good place to shelter your money.
Another quality is that it is a predefined and automated system.
Have we already hit the ground?
The short-term market is totally irrational. And some FED leaders can promote calmness in the short term, this would cause the stock markets to relax, and we continue to live in a tent on the edge of the cliff.
The best indicator to measure the point of the crisis we are in has begun to pull back. This pullback fuels many investment theses on assets that are still terribly dangerous. But as we can see below, we are still a long way from the lows set in 2020 or the highs of 2018.
Some say we have predicted 20 of the last 3 recessions. However, last year we had returns well above the index (38.88%, 2021), and this year we have our portfolio in 0%, while the main indexes are:
S&P 500 -10.2%
Nasdaq 100 -16%
Asymmetric Portfolio -0.69%
All the people who criticize us are the ones who then subscribe to our newsletter. However, during all this time, we have not stopped receiving messages of encouragement and none of complaints because our subscribers see how their portfolio continues to grow while everything is falling.
We want to thank you for all these messages of support, and we continue on this path together.