Weekly Newsletter 1

While I will still upload new articles, workouts, and videos; I want to diversify the site even more. The weekly newsletter will cover a wide range of topics – from fitness to finance to longevity. I’d like to think that most of the subscribers here are people open to learning new things and exploring the unknown.

The format will likely be erratic and less cohesive than my typical articles. I just want a place to share my current thoughts and ideas with others looking to grow. My hope is that these short blogs will inspire critical thinking and potential action.

Let’s get started…

The topic this week – INFLATION.

This fucking buzzword is everywhere right now and for good reason. In September, the monthly inflation rate was 5.4%, which is quite a bit higher than we usually are (1-3%), but nowhere near some of our previous highs (13.5% in the 80’s).

We can debate about why, from unprecedented monetary fiscal policies to the supply chain issues (demand > supply), but it’s a bit more complex. Velocity of money is the most important metric (rate at which money is exchanged in an economy), not always the current money supply. The fed continues to say it’s transitory and they are likely correct.

Given what we know about inflation and the pathetic returns your average savings/checking’s account gives you, the WORST thing you can do right now is leave money sitting there in either of those accounts. If your checking account nets you .01% interest, but inflation is 5%, you’re literally losing money by keeping it there.

The last few months I’ve been asked an identical question by tons of people I work with, “what if inflation causes the stock market to crash.” I fucking LOVE this question. Though I’m slightly sick of answering it at this point, I always respond the same way.

Me – “What happens to the price of things when inflation goes up?”

Them – “They go up?”

Me – “EXACTLY. The price of ASSETS go UP during inflationary periods. Your house is worth more. Your car is worth more. YOUR STOCK HOLDINGS ARE WORTH MORE. Your favorite business will charge more and therefore, their profits will be higher.” (look at all the recent record earnings companies had Amazon, Apple, etc.)

Them – “Oh.”

See, what most people don’t understand is that 10% of people own the majority of stocks. Inflation doesn’t hurt those with money, it actually helps them create even more wealth. Partly because they’re smart and know how to take advantage during these times. Not to mention, debt is CHEAP right now, so intelligent people will use to leverage to make even more.

Money will flow OUT of bonds during this time because of simple math. It’s dumb to buy bonds during inflationary periods because the yield is always low and the underlying money devaluation will LOSE overall value for the term of the bond. You want to look for YIELD, so stocks will beat bonds in returns during inflationary periods.

Yield (free cash flow and dividend) > 10yr bond yield.

I’m rambling, but the point here is – to “beat” inflation, you need to invest!

In further articles I’ll touch on individual positions and cool companies I’m tracking, but if you’re a total novice who has no interest in watching their portfolio but want to invest, just buy SPY every week/month of your life and you’ll retire with more money than you could imagine.