Some Boats Go Out and Catch Fish

Most just float with the tide

The stock market is a collectivist fiction, same as the economy.

The stock market is an average of numbers statisticians put together.

Equity prices are near records, mostly from years of currency debasement raising the price of everything (in fiat terms), including shares. Add a Fed balance sheet standing ready to catch any real panic, and a market that trades more on a central banker’s rumored mood than on any company’s output, and you get a casino where everyone is betting the next buyer comes along to take their hot potato before it rots.

Stocks are priced less on what they actually produce and more on what investors think someone else will pay for them. Berkshire Hathaway is one of the last big holdouts that cares about value.

Yes, a rising tide floats all boats, and the tide under this market has been currency inflation. But some boats are just floating—passive, empty hulls, going up because the water went up and for no other reason. Other boats are out fishing: bringing in a real catch from a good stretch of water, regardless of what the tide does next, yet benefiting from the rising tide too.

Go fishing

We want the boats that go out to catch fish.

At Crisis Investing, we start with the good stretch of water when the tide is coming in: sectors set up to gain the most as currency inflation runs its course: energy, raw materials, gold and silver miners. Within those sectors, we invest in individual companies producing more than they consume and handing the difference back to owners as profit. And we also speculate in companies that are striving to get to the point where they will produce more than they consume, and that have a reasonable shot at getting there. Not many qualify. But some do.

We track those boats that fish, that are positioned ahead of the crises a declining currency keeps producing, and that serve their investors. We show paid subscribers exactly which companies we hold and why. Become a premium subscriber to see the list.

Sincerely,

John Hunt, MD
Editor, Doug Casey’s Crisis Investing