Nick Hodge,
Publisher
Aug. 26, 2021
Let’s talk about the media.
And its inflation narrative.
And the polarization that they drive.
I've of course been talking about inflation for well over a year now. Have been adamant that it wasn't transitory. Have explained how it's manifested itself in various asset and commodity classes from copper to coffee to housing and onward.
As we head into the fall, we're really starting to see that, in fact, inflation wasn't transitory at all. Just as I have telling you.
Housing prices continue to inflate. And after a brief pause, when the media was talking about falling copper and falling oil prices, both those commodities have resumed their bullish ascensions.
Indeed, whether you look at commodity indexes, housing prices, or the consumer price index one thing is clear: Inflation remains real and present, and has been for longer than anyone say is a “transitory” period.
So the transitory inflation narrative you’ve been hearing in the media was just absolutely false and wrong. I'm not going to get into the reasons why they need you to believe that inflation is transitory, but what I do want to talk about is how you navigate that for yourself.
I don't spend a lot of time looking at mainstream media, whether it's financial media or news media in general. I find that if I can look at the actual event that they're discussing, or the data that they're discussing, that I can make informed decisions on my own.
I don't need to be told what to think about things by the media.
But a lot of people do. And that's the pitfall of the common man: they can't step outside those narrative boxes and figure out what's going on for themselves.
And so, the articles I'm seeing this week are about continued rising housing prices, and how food inflation and shortages are still with us. There's restaurant chains that can get chicken and food prices — as I've been telling you for a year — continue to inflate
I’m seeing people everywhere worried about putting food on the table or being able to afford housing.
I don't worry about any of that stuff because I've been owning the inflation in my account for over a year.
If you followed along with me, like my premium readers have, your account is at or near all time highs.
Eureka: Our account itself has inflated!
So now as people start to worry about food costs and supply chains again — similar to the onset of the virus — my family and I continue to sit pretty. We met our rancher just last weekend to pick up another half cow and heritage hog.
I don’t worry about inflated food prices or scarcity. I have harnessed that inflation such that I can provide abundance for my family even at higher costs.
Some will say that’s hoity-toity or braggadocious. I call it executing wisely in the capitalist system so that you have enough capital to procure the things you need, even if there is a shortage or things are inflating.
That's called winning the game.
That’s called doing what you need to do to stay ahead of whatever’s going on out there.
And that brings me to the second point of this missive...
I'm not sure how long this inflation is going to last. I'm not sure which sector of the market is going to outperform next. But I watch the data every single day. And I watch the market every day. So I can adapt and prosper no matter what happens in the market.
I realize that many of you aren't students of the market, can't sit there every day, you have real lives and real jobs.
But that's what people like me are for. And I guess what I'm telling you is that these narratives that you see in Bloomberg or CNBC... they’re not meant to help you invest or to allocate your capital or to tell you what to buy.
They’re just like any other media outlet: they’re there to keep your attention to sell advertisements. They’re not giving you any expertise. They’re just serving up head -urning, navel-gazing what-happened-yesterday type stuff.
I tune all of that out and look directly at the market. It will tell you what it’s doing if you know how to listen.
So, I'm going to kick a dead horse... but there are multiple ways to do that.
In the earlier part of this year, energy was outperforming. Oil went to $70.
I had members of Foundational Profits owning things like the Energy Select SPDR (NYSE: XLE), and then rotating into the Oil and Gas E&P SPDR (NYSE: XOP).
And then a couple of weeks or up to a month ago, I noticed that a rotation was on and other sectors were starting to perform better. So we got into real estate via the Real Estate SPDR (NYSE: XLRE), and via specific REITs that we can own to capitalize on this home and rent inflation.
We bought a REIT that owns trailer parks. You have to pay more to live in a trailer park now. I can own the REIT that owns the trailer park.
I don't feel bad about that. I don't apologize about that.
That's me operating in the system in which I find myself.
You can do that with anything.
Also screaming higher are critical and clean energy metals, the things we need for this $3.5 trillion infrastructure package, for example.
To build out a nationwide grid that supports the electrification of automobiles, takes a lot of copper, takes a lot of nickel, takes a lot of lithium.
Without mincing words, I've funded those in a venture capitalist fashion for the better part of a half decade.
And many of those private metal investments I've made 300% or more on. Some of them are upwards of 800%, 1,000% or more.
In many cases, private members, accredited investors who finance those deals alongside me have made out just as well.
I just put out a video about this.
About a silver mine tour I went on. And I was explaining how you can buy precious metals at multiple levels. You can buy a fund that holds the metal, whether that's a physical trust or a paper backed fund. You can buy large miners. You can buy small mines. And you can finance explorers and things separately.
I do all of those things and have been doing those things for five years.
So when I see these articles come out now like, "Oh my gosh, where are we going to find this copper? Where are we going to get the lithium for this?"... I'm thinking to myself, "Well, yeah, this has sort of been a problem for a long time."
And as these metal prices inflate to encourage that new supply to come online, I'm like Wayne Gretzky here just driving the pucks into the goal as they come my way.
A couple of weeks ago we sold 434% in a company called Critical Elements Lithium that’s getting a permit to become one of the newest lithium mines in Canada.
And there's several other companies like that we have done quite well on as those metals prices continue to inflate.
So, again, I see these narratives about inflation and what's coming next. And I continue to tell you that if you look to someone like me who's got their eye on the ball all the time... I can parse this out for you as far as how to invest in things with real dollars...
With actual asset allocations across the entire spectrum of the market from blue chip NYSE listed companies and funds all the way to writing big private checks venture capital-style into pre IPO and private deals.
Here is a link again to that latest video so you can see how I do that research and learn a bit more about how I invest.
Call it like you see it,
Nick Hodge
Editor, Daily Profit Cycle
Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Foundational Profits, Family Office Advantage, and Hodge Family Office . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
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