The Watchdog on Wallstreet Weekly Recap for 2/20/23
The Secret to Investing: Don’t buy Stocks, buy GREAT companies
I get it, people. Many investors are having a difficult time. Especially those who haven’t had decades under their belt dealing with sell offs in corrections and embracing the suck, to put it simply. You wake up one day thinking, “Hey, geez, inflation is under control, and the Fed might be doing this, and markets might be up again,” and they aren’t. And you’ve got this kind of chop. This up and down, backward, and forth. If you are in that camp, I would encourage you to start thinking differently. You want to be a great company buyer, not a stock buyer. And if you accumulate high quality, great companies during times like these, you’ll be well ahead of the game. So, for lack of a better phrase, you’re going to have to kind of embrace the suck that’s going on, and then you’ll get that success later.
Train derailments and Flying Objects? WE NEED ANSWERS!
I am truthful with everyone. I wear my heart on my sleeve, especially when it comes to our country and what’s going on in it. I’m sorry, people; it’s embarrassing at this point. What are our adversaries thinking right now as they see us shooting $400,000 missiles at science projects flying across the sky? When you try to get a straight answer from these people about what’s going on, what was shot down, you get nothing. You should also look at the tragedies that continue to occur as a result of the damn trains. This is 19th century technology, and we’ve had one train derailment after another. People, I don’t believe in coincidences. I don’t.
Defaulting on our debt is unconstitutional!
Our priority, job number one here at the Watchdog on Wall Street podcasts, radio shows, and “money minutes, ” is to dispel lies and myths spread by the media, big companies, big banks, and, of course, politicians. So here’s another big lie: if we don’t raise the debt ceiling, we’ll default on our debt. No, we aren’t. No. You see, we have this document called the US constitution, and the 14th amendment to the constitution, Section 4, says guess what? There is no way to default. It’s a violation of the law. However, we will not have any money. Yes, we will. We collect about $500 billion in taxes each month. Debt service is approximately 55 billion per month. We’ve got more than enough to cover it, people. It’s all one big fat fugazi.
Invest in High Quality Companies
There is a lot of economics. There are numerous economic cross-currents. It’s also extremely difficult to make sense of what’s going on. Talking about how we might be heading for a soft landing, and whether the economy is too strong, and whether that means the Fed will have to keep raising rates. Then you look at some of the numbers related to real estate or auto loans. You exclaim, “Oh my God, we’re definitely about to enter a recession.”
Let me make a market prediction for you, people. Yes, do I think that a 15 to 20% correction is a possibility. Absolutely! Do I believe we will see churn in the future? Absolutely. What does that information imply? Based on it, are you going to make trades and move in and out of your portfolio? NO. What you’re going to do is own high-quality companies. Nobody, including myself, knows what will happen next.
How to Build a High-Profile Portfolio
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1.4 TRILLION in interest payments by 2033
I’ve been talking about the nation’s fiscal situation for a very long time. and I remember over 20 years ago, compared to what we’re doing now, it was almost like a Jerry Springer show where parents would go out and get credit cards in their children’s names and rack up all this debt, leaving the children with all of these issues down the road. That’s exactly what we’re doing right now. Just look at the Congressional Budget Office (CBO), and you will notice that the CBO is not very conservative in their estimates. They typically fall short of 1.4 trillion in annual interest payments by 2033 – that’s 1.4 trillion. What this does to people is essentially deprive them of choices, choices that we should have as a nation, not to mention stealing from the future.
Enjoy your life by keeping things simple!
For my faith and for many people all over the world. Today, Ash Wednesday, marks the start of Lent, when you’re supposed to kind of like strip things away and try again to become a better person. And one of the messages I try to convey to people who want to better themselves, whether it’s getting in shape or improving their finances, is to follow Bob Wiley’s advice and take baby steps. Don’t take on more than you can chew. If you’re out of shape and want to get in shape, begin by walking every day. If your finances are a mess, start paying off that credit card. That is the most important one. You’ll get better over time. keep it simple.
What will the Fed do about Food Inflation?!?!
So the Fed minutes were released. Is there any surprise there? No. They were all pretty much in agreement that the quarter base is fine and that we are committed to lowering inflation, even if it means keeping it higher for longer. And, once again, there is a lack of perspective here. Rates can continue to rise at these levels and markets can outperform. For crying out loud, consider the late 1990s. In any case, it’s neither here nor there. I’ll ask it again: what in God’s name is the Fed going to do about food inflation? Are you going to starve people? You have to deal with demand. I mean, people must still eat. I understand that we have an obesity problem in this country, and perhaps we should cut back. That is a supply problem. Like many other aspects of inflation, it has nothing to do with demand but rather with supply.
The Simpsons Predict our current Political travesty
What can The Simpsons’ Homer Simpson teach us about our current debate over Social Security and Medicare? Back in the late 1990s, there was a great episode of The Simpsons called “Trash of the Titans” in which Homer decides to run for garbage commissioner. He promises the sun, the moon, and the stars, along with anything and everything else, that amphibious garbage trucks will change your children’s diapers, and when push comes to shove, what happens is that he bankrupts the garbage department and again accidentally destroys the town of Springfield. In any case, both political parties are unwilling to take the initiative when it comes to Social Security and the realities of the situation. That is an issue. Again, if you do not want to lead, do not run for office, but do not pretend there is no problem.
Dollar cost average!
Why am I buying today? It’s a dollar cost average day for me today. Do I care what the markets are doing today for many of our clients? No. Why? because it is a game that I do not play. It does not make sense. We attempt to convey that you should invest in high-quality companies, whose dividends you should allow to compound over time. You don’t have to ride the ridiculous hamster wheel that everyone else wants to ride. I saw a story today about people trading in and out of various funds over the last few months, switching from tech to dividends. Let me tell you something, don’t do that. you’re not going to be successful. Follow the practices of successful investors throughout history.
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Retirees lost 23% of the 401k’s in 2022
According to Fidelity, retirees’ 401K and IRA retirement accounts have lost 23% in 2022. Now, for some retirees, if they did not plan appropriately or if their portfolios were not properly managed, this can be daunting. And this can have disastrous consequences. It’s terrifying. When you’re in retirement, you don’t want to have to look at your portfolio at the end of each month and ask, “What do I need to sell to pay the bills?” When you retire, it is critical to have proper asset allocation. You must have a certain proportion of your assets in cash and cash equivalents, as market sell-offs are inevitable.
You can learn how to protect yourself from the detrimental effects of a bear market while still achieving favorable returns by obtaining a copy of our report titled “Growth Without Risk,” – available for free!