Stansberry Research

How This Year Can Be a 'Period to Make Money'

Corey McLaughlinStansberry Digest

Greg Diamond's outlook for 2023... What Greg and an old pig farmer have in common... How this year can be a 'period to make money'... The latest read on inflation... Consider a 'soft landing'... Inflation is insidious...


More than 30,000 people signed up to watch it...

I (Corey McLaughlin) am talking about Greg Diamond's brand-new video. Our Ten Stock Trader editor – who called "the top" in stocks this time last year – went live this morning with his outlook for 2023...

Greg shared how he plans to trade in what he expects to be another volatile year ahead... when he expects a rare market event to occur that could send some stocks soaring and others crashing.

This is something that has occurred just three times in the past 25 years. And as Greg told viewers this morning, it's something that could double your money on multiple trades if you understand what's coming.

If you were among those who tuned in live, I might sound like the teacher complaining about attendance to the students who turned up on time... But if you didn't catch Greg's free event, well, get to class! You can watch it right here at your convenience.

Without spoiling all the details...

I do want to share one highlight that made me chuckle at first, reminisce, and then think real hard...

Check out this chart...

Greg shared this chart that was first created by an Ohio pig farmer back in the late 1800s. This man was doing well, but he lost everything in an 1873 market panic and a hog cholera epidemic. The experience left him struggling to make sense of how it happened.

Eventually, he settled on the above framework to make sense of the world. As Greg said today...

In doing so, he stumbled onto a secret of the markets that would go on to make him rich... and also make the handful of people who studied his work in the years afterward multimillionaires... through bull and bear markets.

In short, he discovered the power of cycles... and how these cycles affect prices.

Ten years after the Civil War, this farmer ended up putting together a timeline that predicts the stock market all the way out to 2059... and when there would be periods to make money and times that panics might occur...

Long after he died, this farmer keeps getting it right...

Look back at his diagram... 1965 was the year of a big market peak before it plummeted 73%. 1999 was what Greg calls a "cash panic" when people paid any price for dot-com stocks. And we know what the years following 2019 have felt like.

This might sound like hocus-pocus or too mysterious to be real financial advice. But as Greg has shown lately – and throughout his career on Wall Street, too, where he used to trade for a $65 billion pension fund – it's not.

As you'll hear in Greg's talk, he is a believer in market cycles. His study of them is what led him to call a top in the market at the end of 2021 and start of 2022, and it's what is informing his views once again at the start of 2023.

In short, this year could be the start of a "period to make money." However, Greg warns that more pain could be ahead before the greatest opportunities present themselves. It's not as simple as finding the right points on this chart. There's a strategy involved...

Again, click here to watch Greg's new video right now for all the details. Just for tuning in, you'll get a free trade recommendation. (When he shared a free recommendation last year, it went up 60% in just one week.)

And even if you don't do anything else but watch, you will hear much more detail about a unique view on the markets, investing, and trading from one of our most popular editors. It's well worth your time.

Moving on, the latest read on inflation is out...

This morning, the U.S. Bureau of Labor Statistics published its consumer price index ("CPI") data for December. As expected, it showed inflation continuing to cool...

Headline CPI – which measures a basket of goods and services paid for by consumers – was up 6.5% from a year ago, but that continues a downward trend since a peak of more than 9% in June.

More telling is that in the final month of the year, headline CPI fell 0.1 points from November. That's the largest month-over-month decline since April 2020, led by a steep drop in gas prices.

As we said earlier this week, the markets expected a report like this. With expectations already baked in, the major U.S. indexes didn't move all that much today after the numbers were released this morning.

For more details on the data and what it might mean for the markets, be sure to check out Stansberry NewsWire analyst Kevin Sanford's take today. He says this latest inflation read "could force the Fed's hand." As he said...

This marked the sixth consecutive month where the annual CPI number has remained below its June peak. It's also the lowest YOY reading since October 2021.

Take a look...

This should give the Federal Reserve room to slow the pace of interest-rate hikes going forward. Even more, if the [month-over-month] inflation changes continue to cool, the central bank could hit the pause button on rate hikes sooner than expected...

At this point, slowing inflation is the consensus thought.

The big question is what a possible recession looks like ahead as a potential consequences of the Fed's inflation-fighting policy. As our colleague Mike DiBiase wrote last week, we're in the eye of a financial hurricane right now. There are many reasons to think as much.

But now, I'm going to consider something that might ruffle a few feathers...

Maybe the Fed really is going to pull off that mythical "soft landing" it has been talking about...

Maybe you're thinking "Fed lover!" and are about to stop reading. First off, longtime Digest subscribers know the idea is absurd. Secondly, hear me out...

Even if you don't think a 'soft landing' is possible, it's worth thinking about...

Of course, the mere phrase "soft landing" is open for interpretation and could mean different things to different people. The most common definition would be headline inflation returning to "normal" levels without a painful recession or surging unemployment.

We haven't seen major job losses yet outside of the tech industry. National data recently showed companies are still looking to hire for roughly 10.5 million positions. There are 1.7 available jobs for every unemployed person, and the economy has record-low unemployment overall (3.5%). And amid this rosy picture, inflation numbers have been coming down since the summer.

Remember, the Fed trying to find that elusive balance between "price stability" and "maximum employment." So maybe the Fed's fast and furious rate-hike policies of 2022 will actually "work"...? And even though Jerome Powell and the rest of the Fed helped get us into this mess in the first place... they'll go down as heroes?  

Also, maybe as important, the folks in Washington could jump at the slightest opportunity to claim all is going great with inflation. It doesn't matter what the details show... People would believe the spin.

However, here's a second-level thought from all of this...

Even if inflation comes down throughout the year... and job losses don't pile up, but the glut of vacancies dwindles... the job market is still going to be "tight" and skewed in workers' favor.

That means wage and salary inflation could likely be a thing for a while. That isn't the worst for everyday Americans who can stand out to employers. But rising labor costs wouldn't be a trend that encourages business growth.

The natural response to this would be for prices – for goods and services bought by everyday Americans and other businesses – to grow higher than usual, so companies can keep pace with increased labor costs. And on it goes.

So soft landing or deep recession, inflation still stinks – and is insidious.

Combining Health and Wealth in 2023

In the newest episode of Making Money With Matt McCall, Stansberry Research senior analyst Matt McCall dives into the health care sector. He talks about how and why investing in such companies can increase your wealth this year...

Click here to listen to this episode right now. And to catch all of the podcasts and videos from the Stansberry Research team, be sure to visit our Stansberry Investor platform anytime.

New 52-week highs (as of 1/11/23): CTS (CTS), iShares MSCI Mexico Fund (EWW), Hologic (HOLX), MasTec (MTZ), SLB (SLB), and Trane Technologies (TT).

In today's mailbag, feedback on a comment in yesterday's mail about "taps" relative to the Federal Reserve and veterans... Do you have a comment or question? As always, e-mail us at [email protected].

"Corey, I'm a veteran and whether I died in combat or of natural causes as I probably will, I would love to be celebrated with a Dixieland Taps!

"This country needs to: 1) Get its head out; 2) Lighten up; 3) Give up on politics and get practical about people and their needs. Happy New Year." – Paid-up subscriber Jackson O.

Corey McLaughlin comment: Thank you for your service, Jackson, and I think that's a great "wish list" for the U.S.

All the best,

Corey McLaughlin
Baltimore, Maryland
January 12, 2023