Dear Reader,
Today I want to talk about the dumbest investment you can make…
It’s the one thing that I know is going down in value…
Cash.
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Keeping your money in cash guarantees you lose.
Even if the Fed hits its target of 2% or 3% inflation…
The value of every dollar would go down 2% or 3% a year…
To 98 or 96 cents.
But inflation has made the value of a dollar in the last couple years go down by 7.5% to 10% a year…
So the value of a dollar in 2020 went down to 90 cents, then to 80 cents, and so on.
Which is why groceries are so expensive.
And the one thing I am certain of, is that the value of money is going to keep getting destroyed.
Keeping your money in cash or in a bank account that doesn’t earn any real interest is just one of the dumbest investments you can make.
I’m talking about ANY excess cash.
Because again, banks aren’t paying the kind of interest they used to pay when the Fed raised rates.
It’s pretty much like holding cash in your mattress, which again, will go down in value every single year.
And another big warning sign is that gold prices keep hitting record highs. New highs almost every day.
Gold just hit another new high last week.
And that’s telling us the destruction of money will continue.
I mean, the price of gold has risen 10% just since Trump was elected.
Ten percent! And 3.5% since he was inaugurated – just days ago.
The reason this is happening is because the money supply is near an all-time record.
The M2 money supply is now at $21.5 trillion.
And that puts it just $190 billion below its all-time high.
Inflation happens when you have too much money chasing too few goods.
If five people want to buy a new car that costs $30,000, and the next year ten people want the same car, the dealer starts to raise the price.
So the car might be $32,000… $35,000… $37,000.
We’ve seen inflation skyrocket because of all the fiscal printing.
As we’ve talked about here before, the Biden administration backloaded a lot of fiscal stimulus for the last year in office to try to sway the election, which obviously didn’t work.
Americans weren’t buying the products democrats were selling last year, but it looks like Trump is going to do the same.
I listen to a lot of people in Congress and legislators talking about the kinds of bills they’re going to pass.
Every bit of information I see tells me we’re looking at another fiscal blowout.
Which is alarming because HALF of all this money we are borrowing, is going just to paying interest on the debt we already have.
I bring this up because a friend of mine said, mistakenly, “well, Buffett keeps his money in cash.”
That’s actually not true.
He keeps it in short-term treasuries, which is a cash equivalent, sure, but it’s not the non-interest-bearing cash too many Americans have sitting in traditional savings accounts.
The best treasuries, where I keep my money and where I recommend keeping money, I’ve included in my book, Midnight in America.
You will want a copy, because everything I talk about in there is really coming together…
Gold prices keep hitting new highs…
Savvy investors are selling stocks at record levels…
The only people still buying stocks with rampant enthusiasm are retail investors, who, frankly, don’t understand the crossroads we’re at…
Who are caught up in the euphoria of a rising market fueled by AI, Trump’s election and all that.
We are not going to make that mistake.
This is the mistake of the young and the uneducated.
We’re more cautious than that.
Because we understand that historically, the last time stocks were this expensive was right before the dot-com crash.
So, yes, we’ve recommended selling a lot of stocks.
And yes, we recommend keeping powder dry so that when the crash happens you can take that money and invest it in the stocks that will rise most when the market turns again…
But we do NOT recommend keeping that dry powder in cash.
Cash is a losing game – you’ve been losing 10%, 7%, whatever it is, year after year post-Covid on every dollar you’ve saved.
Gold is telling us the destruction of our money will continue for the foreseeable future.
So take the four steps I lay out in Midnight in America.
- Sell your most speculative stocks and funds.
- Invest is one or more of the funds I recommend for your “cash” holdings in my book.
- Prepare a shopping list of favorite stocks to buy when the market crashes.
- Get ready to pounce.
I take you step-by-step through exactly what I see coming, what all the catalysts are, and everything you need to do to prepare your family for a financial storm.
Plus, I’ll tell you exactly what to do as soon as the market turns up again, so that you could take $10,000 into a low market and turn it into $100,000…
You could take that $100,000 into the next crash and turn it into $1 million, and so on.
It’s all laid out for you in plain English right in my Midnight in America book.
Go here to get your copy and start preparing today.
“The Buck Stops Here,”