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Editor’s Note: Jessica recently interviewed Senior Analyst Tony Sagami, who predicted the parallels we’re seeing between high inflation in the U.S. and abroad. All eyes now are watching for a possible recession. On June 29, the latest GDP numbers will be released. Two consecutive negative growth GDP reports officially make it a recession. In the meantime, Tony names stocks where profit opportunities still abound. |
I haven’t traveled abroad in some time, and I look forward to my next great trip.
In the meantime, I can live vicariously through the journeys of Weiss Ratings Senior Analyst and lifelong globe-trotter, Tony Sagami.
Throughout the year, he’s on remote expeditions to soak up new cultures and new foods, seeing first-hand the shape of a country’s economy — its health or peril — and how ordinary citizens are affected.
In fact, Tony writes many editions of Disruptors & Dominators and Weiss Ultimate Portfolio, while visiting fascinating corners of the planet.
A few weeks ago, I spoke with Tony from his hotel room in Sri Lanka, which overlooks a lush tea plantation.
Tea production is one of the the main sources of foreign exchange for Sri Lanka, accounting for 2% of its gross domestic product (GDP).
In America, GDP growth is currently at 5.7%. Tony says that number indicates that a recession is not looming, as feared:
Look at GDP growth, retails sales, unemployment … whatever you zoom in on, the economy is still very healthy.
The U.S. is still a consumption-based economy. If Americans are spending money, we are not going to fall into a recession.
Remember, a recession is two consecutive quarters of negative GDP growth, and you can’t have negative GDP if Americans are spending money.
With unemployment below 4%, there’s just no recession in sight.
Still, just as Sri Lanka is contending with soaring inflation — officially, it’s at 17.5% — so is the U.S.
According to the U.S. Department of Labor, the Consumer Price Index (CPI) — which measures the change in prices paid for goods and services over the past 12 months — is at 8.6% inflation. That’s a 40-year high.
Food and gasoline are the largest contributors to the spike.
As editor of Disruptors & Dominators, Tony is guiding investors to stocks and exchange-traded funds (ETFs) that are tailored for inflationary growth.
In recent weeks, even amid volatility, Members have seen gains of 35.73% and 33.5%.
In today’s special four-minute video segment, Tony highlights profit-making opportunities in the materials sector, which tends to do well amid strong demand for industrial metals.
Tony says investors should not be concerned if they see a drop in asset prices since that’s part of a normal market pattern:
Corrections are very common. As a matter of fact, on average, we get four 5 -10% corrections a year.
On average, we also get one +10% correction a year.
Most people lose their minds when they see a correction like that.
I think one of the things the financial crisis from 2008 to 2009 taught a lot of investors is to sell first and ask questions later. That’s not the right way to invest.
Those corrections and pullbacks are painful and uncomfortable, but don’t let them dissuade you from your long-term goals!
In this insightful video, Tony discusses:
- A stock that is soaring due to “growing demand around the world.”
- A “unique” hard asset that “has a bright future.”
- A climbing ETF in his portfolio.
- The economic correlation he sees between the U.S. and Sri Lanka.
And more!
The information in this short segment couldn’t be timelier. Just go to the video box above to watch it now.
Happy investing!
Jessica Borg
Financial News Anchor
Weiss Ratings
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