Stagflation Is Here to Stay, Here’s How to Protect Your Portfolio
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Oh, we had a big time, big time. JPMorgan’s chief strategist Marco Kalanick on the news today, sounding a lot like me and what we’ve been saying for a while. Listen, this idea that we are in some sort of Goldilocks economy ain’t buying it. People ain’t buying it. And Kalanick used today the word.
stagflation, something that we have brought up here in the past on the program. Stagflation and the death of Goldilocks. Again, people within the Biden administration, many left of center economists, they look at certain numbers, and they you know, they cheer and they jump up and down like everything is awesome. Everything is fantastic. I just thought about there was some
one college basketball team yesterday and good for them. They lost their first 27 games or 28 games and they finally won yesterday and kids were all excited jumping up and down. That’s what it almost seems like when we get GDP numbers or jobs numbers. And again, we’ve been scratching our head because we take a look at the internals in these things. And the fact that a lot of GDP is supported by deficit spending, which to me is not real.
We’ve compared it to like steroids. Steroids, it’s like given injecting the economy with steroids. It’s not real, it’s not organic. Taking a look at the inflation numbers. We are constantly being told by the powers that be what? Geez, everything’s looking great. Inflation has come way down. It’s a big win for the Federal Reserve. Goldilocks, Goldilocks, Goldilocks. BS.
You and I and anybody that has a couple of brain cells that they can rub together know that that’s most certainly absolutely absurd. Absurd. It’s even difficult for, you know, the left wing writers. I’m not talking the editorial guys at the New York Times and some of these left of center publications. It’s even difficult for them to come out and write, talk about how everything is, how wonderful everything is. Yeah, they’ll quote.
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various different people, but you can kind of almost, I’m kind of trained in regards to reading the news. You can kind of read through in the fact that they’re not really believing what they’re pitching at this point in time, because you see it, you feel it, no matter where it is, you’re paying more and the prices are not coming down. And Kalanick’s word that, hey, listen, the Fed might have to tighten again. I don’t know if that’s the case. I find that.
highly improbable in 2024. Things would have to get really, really bad. We’d have to have some really hot prints if that was the case. And even then, I find it difficult. You’d have the Democrats jumping up and down throwing a tantrum if that was the case. So no, I don’t see that happening in an election year by any stretch. Again, a lot of similarities to where we’re at today.
to other points in time where we’re seeing a slowing in the economy, a weakening in economy and persistent inflation. Durable goods out today, not very good. We continue to see layoffs, very, very difficult job market for kids that are coming out of college at this point in time. So again, the whole idea that everything is awesome is patently absurd. With that being said, is that really changing
what we’re doing or how we’re positioning our clients. No, never, never does. Doesn’t matter. Women’s stagflation. You’re not going to change portfolios or no. No, again, what stage you’re in, you know, all of our portfolios are set based upon people’s risk tolerance and whatnot, knowing that these boogeymen exist out there. So we go into every single situation knowing that bad stuff can happen.
But if you’re accumulating, you’re accumulating. What are you going to accumulate? High quality companies. It’s just that simple. Stagflation, Goldilocks, it doesn’t matter. You want to be successful. You want to be a great company owner. You’re at a different position when it comes to your life scenario. You’re drawing down from your portfolio. Well, then guess what? That portfolio needs to be arranged differently. And I’m here to tell you, listen.
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a stagnating economy. I’m not going to move things around based upon that. Why? Because it’s set already. Watchdog on wallstreet .com.
