With Stimulus Done, the Reflation Trade Is Back

Hey There Income Hunters,

OK, the $1.9 trillion stimulus is good to go and we still have Yellen’s $700 billion to come.

There were also rumors that the Federal Open Market Committee (FOMC) will increase Treasury Purchases in the wake of the 10-year repo issues last week.

However, I think the most important event of the day was silver and gold finishing strong after a disappointing Consumer Price Index (CPI) number. 

CPI came in a lackluster +.1% for the month, which took the annual inflation rate to 1.3%. The market’s response told you it is now looking ahead to the inevitable inflation to come…

Even the Treasury Inflation Protected Securities (TIPS) closed up .5% yesterday.

So I added a stock to my portfolio that is a potential 3-bagger — I’m talking 200% winner — by the end of the year …

B2Gold Corp (Ticker:BTG) out of Vancouver has killed it all through Covid and as the gold price resumes it uptrend BTG’s stock price will soar …

Revenues, Free Cash Flow, Net Debt and Gold Production

The BTG board pays a quarterly dividend of $0.04 per share or a yield of 3.46% …

B2Gold has zero net debt … and recorded quarterly free cash flow of $647.36 million in 2020.

Quarterly revenues were $479.53 million in Q4 2020.

With the stimulus package getting ready to roll and the economy reopening, we’re going to see a double-barrel effect of accelerating growth and accelerating inflation.

This combination will be explosive and BTG is priced to offer massive returns.

Bring It Home

We will look back on this week as a game changer for the economy and inflation.

Get ready for a wild ride over the next 3-months…

When you have both growth and inflation on your side, you want to be aggressive early in the process so you can trade around your core position

Reflation trades, clean ernergy, consumer discretionary and industrials are the sectors to focus on.

We’ll take a look at a couple of industrials tomorrow.

Until then…

Live and Trade With Passion My Friends,


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