This Is the Trade to Make Today

DRIGGS, IDAHO – Here’s an easy way to think about the big trends of the next decade or two…

We’re now at an inflection point in the markets that’s the inverse of the great inflection point of the early 1980s.

Back then, there was only one trade you needed to make – sell your gold and silver and buy stocks and bonds with the proceeds.

Today, it’s the inverse. The trade we need to make is sell our stocks and bonds and buy gold and silver.

The reason is simple. In the early ’80s, they had inflation. They didn’t want it. So the feds worked hard to snuff it out.

Today, the feds say inflation is too low. They want more of it. So they’re working hard to summon it.

Treasury Secretary Janet Yellen says they must “go big” with stimulus.

Federal Reserve Chairman Jerome Powell says he’s going to let inflation “run hot” but keep interest rates at zero for the foreseeable future.

Listen to what the feds say and take them at their word when they say they’re going to summon inflation. Then, do the opposite of what worked in the 1980s.

Sometimes, things are just that simple. More below…

Homeschooling Dream

Greetings from Driggs, Idaho…

Three years ago, my family and I set off on the ultimate homeschool field trip.

We’ve seen the Taj Mahal, the Great Pyramids, the Great Wall of China, the Grand Canyon, Mount Rushmore, and hundreds of other educational sites…

Here in Idaho, we’re doing something Kate calls “unit studies.” We pick something we want to learn, and then we immerse ourselves in that thing for several months.

For example, we’re doing a unit study now with our skiing and snowboarding.

Krav Maga is another example of a unit study. We want to travel to Israel and learn self-defense for a few months.

We also want to go to Mexico and learn Spanish. We want to learn how to cook. And how to paint. And how to build a house. And how to play musical instruments. And maybe work with horses.

Studying in units like this will still allow us to see the world. But it’ll be in a way that’s deeper and more comfortable than the fast-moving travel style we’ve been using for the past three years.

I imagine we’ll do two or three of these unit studies a year.

Anyway, this is our homeschooling dream right now. Will things actually work out like this? We’ll see…

We leave Driggs in three weeks. Next stop: London.

Regretting the Distance

Why did I move so far away from my parents 20 years ago? Why have so many of my peers done the same? Why do many of you live so far away from your children?

Don’t we want to be in each other’s everyday lives? Or are other things in life – like work – more important?

Now Mum’s gone, I regret living so far away from my parents for all these years.

Kate and I would like our children to live nearby us when the time comes for them to leave home. But how do we make that happen?

We’re not sure, but it’s something we ask ourselves often.

Switching Things Up

We switched things up today on the mountain. Kate and Penny took snowboards out. And Dusty took skis.

Everyone had fun being beginners again. It was a mild day, and Targhee is the perfect place to learn, so why not?

Here are the kids with the guys who operate the chairlift at the Grand Targhee ski resort. We’ve gotten friendly with them over the months we’ve been here…

Protect Yourself Against a Fragile Economy

I watched this interview with the late industrial titan and corporate predator, Sir Jimmy Goldsmith, last night. He was on the Charlie Rose Show. It was filmed in 1994.

Goldsmith warned that outsourcing production to low-wage nations like China was putting the interests of Big Business and Wall Street above the interests of the people.

It would destabilize American society, he said.

I loved his quote about offshoring and globalization: “The poor people in rich countries end up subsidizing the rich people in poor countries.”

Twenty-five years later, real wages in the U.S. have stagnated for all but the top 10%… America’s industrial heartland has collapsed… and a massive bubble in debt, equity, and real estate has formed, leaving our economy fragile and prone to crashes.

The good news is, because of COVID-19 and a brewing Cold War with China, these trends have probably reached their apogee.

The bad news is, it’s going to be a painful adjustment for both sides.

My analysis points to inflation in the U.S… big losses for sovereign bond investors… and a rewiring of the world’s banking and payments system around something other than the dollar and paper currencies…

In other words, sell stocks and bonds, buy gold…

– Tom Dyson

P.S. If you don’t own any gold yet, your best bet is to buy some physical gold first. Once you’ve done that, you can start to build a portfolio of the best gold stocks. I put together a 27-page report that shows you how to do both – including the best ways to buy physical gold, and my 11 favorite gold stocks to buy today. To learn more, watch this.

Like what you’re reading? Send your thoughts to [email protected].

One reader sympathizes with Tom’s investing worries… while others appreciate Tom’s Postcards…

Reader comment: I enjoy reading your emails about you and your family in Idaho. As for investing in gold, every investor will have times when some doubt will creep in about buying and holding precious metals. I have gone through this myself.

One of the best ideas is to have patience and wait for the prices to go back up. Despite the lower spot prices, physical metals are more expensive than many realize.

Reader comment: I immensely enjoy your Postcards! Here’s a prediction: After everything goes down, Hollywood Studios will be knocking on your door for movie rights to make a heart-warming family film… or maybe even a thriller? My fingers are crossed that it remains the former!

Reader comment: I really enjoy your Postcards. Big fan of gold, and I can’t disagree with your views! We might have crossed paths in Clayton, Georgia… missed you by a few weeks. We actually got married last year on a mountaintop not far from where you stayed. You and your family have been an inspiration!

Tom’s note: As always, thanks for writing in! Your messages keep us going. Please keep your comments and questions coming to [email protected], and I’ll do my best to answer them in a future Friday mailbag edition.