Porter and Steve Are Now in Agreement

Sjug's big announcement... Porter and Steve are now in agreement... Your last chance to watch this week's 'Melt Up' briefing... Is this the end of 'easy money'?... In the mailbag: Porter and Steve's advice for a young subscriber...

Last night, Steve Sjuggerud shared the big news on his 'Melt Up' thesis...

In short, Steve said new data suggest the Melt Up has accelerated dramatically... and we're much closer to the end of the rally than he originally believed.

Steve said this means it's no longer a "buy anything" market. We'll see big winners and big losers as the final stage of the bull market plays out.

Some stocks are already starting to move lower, while others could soar 400%-500% higher from here. And Steve shared the name of one specific investment that could lead the market higher.

It also means that he and Porter are now in agreement for the first time...

While there's still time to make huge gains during the "Melt Up," they now agree that it's time to start preparing for the "Melt Down" that will follow.

But as Porter explained, this doesn't have to mean simply protecting your portfolio from losses... He also showed attendees how to set themselves up to earn a fortune as the bubble bursts.

In other words, both Steve and Porter believe you can make a lot of money on the way up... and potentially even more money on the way back down. And they put together a unique research package – with one of the biggest discounts we've ever offered – to show you exactly how to do it.

If you couldn't join us, don't worry...

We've heard from several folks who weren't able to attend. So we've prepared a full replay of last night's event.

For the next few days, you can still hear all the details for yourself...

You can still get Steve's favorite "Melt Up" recommendation, absolutely free... And you can still take advantage of one of the most incredible offers we've ever made.

Click here to view it now. (If you're short on time, you can also read a brief text summary of Steve's presentation right here.)

Is this the end of 'easy money'?...

Of course, even in a "Melt Up," the market doesn't go straight up.

As a chart of the last Melt Up in tech stocks proves, there will be plenty of pullbacks along the way. And we could be starting one now.

Both stocks and bonds have been moving lower following a round of unexpectedly "hawkish" commentary from central bankers this week. As Bloomberg reported on Tuesday...

Just a week after signaling near-zero interest rates were appropriate, Bank of England Governor Mark Carney suggested on Wednesday that the time is nearing for an increase. His U.S. counterpart, Janet Yellen, said her policy tightening is on track and Canada's Stephen Poloz reiterated he may be considering a rate hike.

The challenge of following though after a decade of easy money was highlighted by European Central Bank President Mario Draghi's attempt to thread the needle. Financial markets whipsawed as Eurosystem officials walked back comments Draghi made Tuesday that investors had interpreted as signaling an imminent change in monetary policy.

"The market is very sensitive to the idea that a number of central banks are appropriately and belatedly reassessing the need for emergency policy accommodation," said Alan Ruskin, co-head of foreign exchange research at Deutsche Bank AG.

Said another way, folks are beginning to worry that the days of "easy money" are coming to an end.

We remain skeptical...

Sure, global inflation and economic growth appeared to be moving higher last fall and into this year. But those trends have recently stalled...

Just this morning, Eurostat – the European Union's statistical agency – reported consumer price inflation fell to 1.3% in June. This is the weakest reading of 2017, and far below the European Central Bank's official target of 2% hit in February.

Likewise, here in the U.S., the Federal Reserve's preferred measure of inflation – the core Personal Consumption Expenditures or "PCE" – is falling again. This morning, the U.S. Department of Commerce reported core PCE fell to 1.4% last month. It's also down from a February peak of 1.8%, and well below the Fed's 2% target.

Of course, we aren't dismissing the risk of inflation...

History is clear: When central banks start inflating securities like they are today, they eventually trigger massive inflation and a rush out of paper money and into gold and other hard assets.

This could still happen at any time (which is why we continue to recommend owning plenty of precious metals). But it hasn't happened yet...

Why? As Porter has explained, massive productivity gains from technology and surplus labor in developing economies have helped to keep a lid on consumer prices. And this trend could continue.

In that case, we could first see another deflationary crisis as the global credit bubble pops... and the "Melt Up" turns into the "Melt Down." In this scenario, we have no doubt that central bankers will respond as they always have: by slashing interest rates and ramping up stimulus.

Only this time, they have far less "ammunition" in reserve...

Short-term rates remain at 0% or below in Europe and Japan, and their central banks continue to buy billions of dollars' worth of stocks and bonds every month. Even here in the U.S. – where the Federal Reserve has officially started "tightening" – interest rates remain historically low. And the Fed still holds $4.5 trillion of bonds on its balance sheet.

That means that in this crisis, rate cuts and quantitative easing won't "work" like they did last time.

Central banks will have to choose between letting the crisis play out, or – our bet – resort to even more aggressive stimulus programs. And this could be what finally triggers massive inflation and the rush into hard assets.

New 52-week highs (as of 6/29/17): Lindsay (LNN) and Wabtec (WAB).

In today's mailbag, more kudos for P.J. O'Rourke... some early feedback on last night's "Melt Up" briefing... and Porter and Steve respond to a young subscriber. What's on your mind? Let us know at feedback@stansberryresearch.com.

"Wow, in a nutshell... [P.J.'s comment to paid-up subscriber H.P. Rumph] has gotta be the most astute political observation I have read in a long time. P.J. whacked every single mole. Precious..." – Paid-up subscriber William Crowl

"I've been a big fan of P.J. O'Rourke, his writing, and humor for many years and was really happy when he showed up in my Stansberry Research subscription. I have always maintained that you can tell a lot about a person by looking at his friends and that quality attracts quality (both good and bad). Thanks for the good. I'm already subscribed to American Consequences and looking forward to the next issue. P.S. Can you email out a link to subscribers that they can forward to friends about American Consequences? I should probably know how to do that, but don't have any teenagers handy." – Paid-up subscriber Bob S.

Brill comment: You bet, Bob... Simply direct them to americanconsequences.com, where they can learn all about P.J.'s new magazine and sign up for free.

"Thanks! Know you're swamped with emails, so just saying that the webinar tonight, Thursday, was a chance of a lifetime itself. Wow! May you all be very blessed." – Paid-up subscriber C.R.

Unfortunately I was on call on June 29th in the evening and got called out to a jobsite so I missed the webinar. Will there be a replay of Steve's Melt Up webinar in the near future so I can watch it when I get a chance on my next couple days off?" – Paid-up Stansberry Flex member Kenneth S.

Brill comment: Don't worry, Kenneth. For the next few days, you can watch a full replay of the event – and take advantage of one of the best offers we've ever made in our 18-year history – right here.

"Hi Porter and Steve, I loved your guy's presentation on the Melt-Up and agree with you 100%. I love the idea of positioning yourself to profit no matter which way the boat rocks. I've also allocated a decent amount of my portfolio to mirror Steve's recommendations in True Wealth.

"However, my issue is that as much as I'd like to purchase your service, especially with the offer presented, I simply don't have a large enough investment base where it makes sense. I've only been out of school and working for two years and love to save it and invest it, but the sheer number value of the of the offer is slightly high right now.

"I understand the pricing of your services completely; my question is what would you say to someone in a similar type of position as me who cannot afford those services? Would participating in True Wealth and Stansberry's Investment Advisory allow me to create a similar type of portfolio, or are they not focused on this area enough? Which of your more affordable products would you guys recommend? Thanks." – Paid-up subscriber Tim Miller

Porter comment: My advice for anyone looking to become an active investor is to save at least $50,000 in cash before ever buying any equity investment. This advice is contrary to my business (selling investment research), but it is exactly the advice I will give to my young sons, so it's the advice I have for you.

You simply can't know the value of capital until you've earned it. And until you have learned that lesson, you have no chance of acquiring the discipline required to manage equity investments. Likewise, until you have spent several years earning capital, you don't have enough real-life experience to make good investment choices.

Use the time required to build capital learning. Read the investment classics, like The Intelligent Investor and The Richest Man in Babylon. Read a good low-cost newsletter, like mine or Sjug's. Trade a paper portfolio and see if you can reliably make good profits of at least 10% annually. And learn about bonds and real estate, which often provide far better and safer returns than stocks.

And most important, work on building your network of contacts who can provide you with mentoring, firsthand information, and critical expertise about the investments you plan to make in the future.

Nobody ever lost money because they knew too much about what they were investing in.

Steve comment: I agree... As a young guy, the best investment right now is in yourself, learning how to invest "right."

You can get that from us practically for free, from DailyWealth, the Stansberry Digest, and our lower-priced publications like True Wealth and Stansberry's Investment Advisory. Don't let the lower price fool you – the investing education hiding in the back issues of those publications is incredible.

Build your knowledge first, and the dollars will come – not by luck, but because you now know what you're doing. Then we hope you will join us in our higher-priced publications. At that point, you'll be confident in your knowledge to really maximize the value you get out of them.

Regards,

Justin Brill
Baltimore, Maryland
June 30, 2017