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It’s BEARly Spring - April Foundational Profits Issue

Hey guys, Nick Hodge here, editor of Foundational Profits. I wanted to tell you a little bit about the April issue. 

Can you believe it? It's bearly spring, pun intended.

A lot of bearish indicators are still out there as it relates to the economy and the consumer. This issue gets into that.

We talk about upcoming Q1 GDP numbers, which you'll get at the end of April. 

We talk about how the consumer is doing in terms of how much they're putting on their credit cards and how much interest they're paying on that. 

And we talk about earnings season, which is already off to a pretty bad start that's not going to end well.

The bulls out there think that the bottom is in and that we're in a new bull market.

That's simply not the case. 

If you look at the ISM manufacturing data, if you look at the ISM services data, those numbers are still going in the wrong direction and indicate that an economic contraction is at hand. 

If you look at the yield curve, it's still inverted, both the 10-year and the two-year, and, more importantly, the 10-year and the three-month are still inverted. And that says that there's a recession ahead. You can likely feel it and see it out there.

We had some symptoms of that in a banking crisis in March. I dive into that. I talk about how it's different from 2008, how it's related more to liquidity, and the banks actually having their money in safe Treasury bills that are now underwater as yields have gone up versus having their deposits in mortgage-backed securities, which were risky and started going bad. 

So, this is not about bad investments or defaults. This isn't a credit thing. This is a liquidity thing.

I talk about the implications of that. 

And one of the implications is that it's good for gold because there's near-record amounts of money coming out of smaller regional banks. And while some of that is going into larger banks, some of it is also going into gold and Bitcoin. We've seen gold knock on the door of record-high prices, and we've seen Bitcoin up 50% in the past month or so.

And speaking of gold, we have a new gold recommendation in this issue. We've been long of a large gold miner and are up on that. We've been long of a gold royalty company since last October when gold started going up and long-term bond yields started going down. And we're up significantly on that. But this issue has a new recommendation in the precious metals mining space that also has pretty good exposure to silver.

We also have a fixed-income recommendation in this April issue.

So two new recommendations for the April issue. And then I go through the entire portfolio with callouts and updates as I do every month. 

There are a couple of things in the portfolio worth buying: one in the consumer staple space and one in the rare earth space.

There is plenty to get to in the April issue of Foundational Profits.

We do hope you'll join us as we continue to beat the market as we've done for several years running. And this year's shaping up to be no different. 

That’s why I urge you to check out Foundational Profits by filling out the form here, and look forward to welcoming you as a new member.