My Portfolio Revealed!

Hey There Traders,

 

Changes in the market narrative come at you fast.

 

Last week, it was all about Treasury bond yields surging and gold trading down …

 

Now, higher inflation and money flowing into inflation hedges are the thing.

 

It’s market whiplash at its best …

 

I stuck it out last week. It wasn’t easy, but I focused on money flow …

 

I mean, you have to trust it.

 

Stimulus is relentless and will be for the foreseeable future …

 

The Power Income Reflation Indicator tracks three key areas of stimulus (M1 Money Supply, Quantitative Easing and Government Spending) …

 

And all cylinders continue to fire: 

 

 

Supercycle


All this reflation is driving a commodity supercycle:

 

    • Monetary policy (QE) has grown bank reserves that end up being used to purchase stocks and bonds
    • This has created a foundation built on inflation not seen since the 1960s.
    • Investors are just realizing this fact and are light on inflation hedges …
    • The chart below shows commodities prices are historically low compared to the broader market, which is helping to drive a stock selloff.

 

    • This will fuel a rally in commodities to hedge against inflation …

 

The perfect storm of increasing demand and limiting supply is upon us.

 

There is a combination of global stimulus, capital scarcity in many commodity sectors, and 50 years of underperformance compared to financial assets that make commodities a great asset class to invest in…

 

This doesn’t mean inflation will be here to stay tomorrow … necessarily.

 

But it does mean any short-term rise in inflation could turn into something significant and long lasting …

 

Remember, the nature of inflation is that it arrives abruptly and with little warning …

 

And in this case, we actually do have signs that it’s approaching.

 

The Power Income Portfolio (PiP):

 

So I’m going to give you a rare glimpse of my full Power Income Portfolio (PiP).

 

Take the opportunity to check it out and get a better sense of how we’re building income for life as the pieces fall into place for inflation.

 

It’s a mix of call spreads, outright longs and covered calls …

 

And you’ll see silver and gold miners, energy mid-streamers and an electric utility I bought just yesterday …

 

A New Addition

 

As of Monday, the Power Income Portfolio has a new addition that’s included in the chart above …

 

Consolidated Edison (Ticker: ED): ConEd operates multiple subsidiaries in the Eastern US. The crown jewel is the Consolidated Edison company of New York, which is a regulated utility providing electricity and gas service in New York City and Westchester …

 

ConEd carries an A-rated credit from S&P, and as of 2020 still has liquidity over $1B in terms of cash/equivalents, and a $2.25B credit facility.

 

They come with a 14% discount according to the Power Income Valuation Model (PiVM). Take a look …

 

ConEd also comes with 46 YEARS of Dividend Growth…

 

That is an incredible number. Check it out …

 

 

ConEd is such a stable, regulated entity you can take advantage of a covered call strategy, meaning selling a call option just above the market to capture down side protection and upside gain, as well… 

 

I purchased 100 shares of ED at $67.40 and sold a 68-call expiring in 2-weeks at $.84…

 

If the stock is called, it’s a two-week return of $144 on $2,000 of capital … 7.2% or 187% annualized.

 

Bring it Home

 

A Power Income Portfolio will provide generational wealth — while also giving you some bullets for speculating on high fliers.

 

For once, you can have it both ways.

 

Live and Trade With Passion My Friends ….

 

Griff

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