Courtesy: Zerohedge

In May 2017, Wealth Research Group first wrote about the concept of Topping-Off, and outlined that stocks would experience a major correction in 2 to 3 quarters, investors would buy the dip, but the lows would be tested once more.

That is precisely what’s occurring right now.

There aren’t many buying opportunities left, but the market isn’t expensive, either. To me, as a contrarian, it means that the last and final leg of this bull market is ahead of us – not in our rear-view mirror.

One of the best ways to get an early indication of where inflation is headed is to track closely the comments made by CEOs of consumer staples businesses.

I’ve dissected and analyzed statements provided by 4 of the largest businesses in the world, from daycare to food items, and they have all taken a beating, due to rising labor costs and commodity inflation.

They are feeling the pressure now and will begin to pass on those costs to the retail price.

This is a tell-tale sign of what’s coming.

The Federal Reserve will keep raising interest rates because otherwise, inflation levels might spike, but higher rates will, at some point, make CEOs think twice about using debt to buy back shares.

Don’t forget, for even a second, that share repurchases, via low-interest rate loans, have been a critical factor in making this bull market what it is.

Courtesy: Zerohedge

As Wealth Research Group wrote on Sunday, America is changing.

Optimism is a crucial component of a nation or a society.

For the first time since the University of Michigan began polling, younger Americans are baffled by the prospects of living a good life in the land of opportunity more than their parents are.

Optimism is so essential to life as a community that its lack writes itself out of everything it touches.

Lack of tolerance pursues, then fault finding, and the last stage is a full-blown separation between classes and generations, if optimism is lost.

I have spoken with many young Americans in Costa Rica, where I’m spending time currently—college graduates, who are living at home in order to save money, postponing marriage and putting-off having kids into their late 30’s.

The future of growth and consumption is obviously in Asia, not America – no one is arguing that, but this doesn’t mean that you, as an investor, need to invest in foreign equities.

On the flip side, if the U.S. keeps pursuing protectionist policies, thus boosting its internal manufacturing hub, at the expense of imports, then U.S.-centered companies will thrive as well.

Therefore, Wealth Research Group is now creating two large watch lists of Wealth Stocks, which are the businesses that every portfolio should be loaded with, since these companies thrive in all economic conditions. One list would comprise of U.S. stocks with large international presence and the other list will include stocks that mainly transact domestically.