We’re in the midst of a historic “money flood.”
Between multitrillion-dollar government spending bills and trillions more in money printing from central banks, the stock market continues to climb.
But it’s not a broad-based ascent. Dollars are rotating into certain sectors … and leaving other sectors and stocks that you might still be invested in right now.
That doesn’t mean you should sell your stocks and try to blindly follow money flows. There are still plenty of bad investments that are going up, and you could get burned in the process.
But there’s a good “indicator” you can follow to see whether a stock goes up.
Income expert and ‘Safe Money’ strategist Mike Larson, editor of Safe Money Report will tell you all about it today.
He just returned from the New Orleans Investment Conference, where he spoke about the importance of finding stocks with the power-packed combination of dividend growth and sustainability.
In other words, if a stock’s dividend is going up … that gives you a pretty good indication that the stock is set up to follow suit.
According to Mike, it’s especially important to grow your portfolio when inflation is hovering above 5% — as it currently is — and interest rates “remain pegged to the floor” — which they currently are:
If you look at what the Federal Reserve and foreign central banks are saying, they don’t want to start raising interest rates until later next year — possibly into 2023 — so I don’t think we shift into a ‘tight money’ environment until a year and a half, two years, two and a half years down the road.
What that means is you don’t want to be in the very low-yield, very low-income, very low-dividend type stocks that aren’t giving you the income you need to beat inflation.
In this special four-minute video segment, Mike describes how to take advantage of today’s unique market forces while minimizing risk to your portfolio. He lists a number of high-performing stocks that can help cushion your nest egg and also dishes on two undervalued assets … in a market full of OVERvalued ones.
Mike explains:
You have a fiscal government that’s spending money like mad, so you have monetary support for the market, and there’s a lot of things propelling asset values.
Regardless of your politics, the reality is we’ve borrowed and spent an enormous amount of money under the Biden administration and under the previous Trump administration, and all that money is continuing to work its way into the economy.
It’s an environment where you want to be in the right stocks and the right sectors. You don’t want to be aggressively leaning against this market, because I don’t think we’re at a point where the environment will flip from ‘loose’ money to tight money — and that’s when you have to start getting much more defensive.
He further emphasizes his “Smart Money” strategies:
It’s all about sustainable income, market-beating income, inflation-beating income. In this low — in some countries, negative — interest rate environment, an investor needs to boost the income that their portfolio spins off.
If your money is just sitting there in a 5% inflationary environment, you’re losing both money and purchasing power in a very real sense.
In this insightful video, Mike discusses:
• A company in a hot sector with “sales and profit up 10%, year over year.”
• His bullish outlook on two precious metals, and the company capitalizing on their prices.
• An investment reaping rewards with the real estate craze: “It’s done great for us!”
• How to utilize the Weiss Ratings scale to select stocks with the greatest potential for gains.
And more!
The information in this short segment couldn’t be timelier. I suggest you watch it now.
Happy investing!
Jessica Borg
Financial News Anchor
Weiss Ratings
