The Calls for a 'Jubilee' Are Growing Louder

The calls for a 'jubilee' are growing louder... Elizabeth Warren promises to wipe out trillions in student loans... Doc Eifrig's big prediction comes true... Up 43% in four months so far...

Regular Digest readers know a frightening trend has taken hold in America...

For the first time in decades, more and more Americans are embracing the empty promises of socialism. And suddenly, a new crop of politicians is rushing to deliver them. As we noted most recently in the February 27 Digest...

There is no better "face" of this movement than freshman congresswoman Alexandria Ocasio-Cortez.

The 29-year-old former Bernie Sanders activist trounced 10-term Democratic incumbent Joe Crowley to win New York's 14th district last year. She did so on a radical platform that included just about every socialist scheme imaginable, including free health care and college for all... subsidized housing for all... and a guaranteed federal job for every American.

More recently, she went even further...

She has now proposed a "Green New Deal," which aims to reduce America's carbon emissions to net-zero through "getting rid of farting cows and airplanes," among other measures.

The scheme also initially promised "economic security" – aka free money – for all Americans who are "unable or unwilling to work," but this particular bullet point was later removed from her website after a public backlash.

But again, 'AOC' (as she has become known) is not alone...

Lately, it seems like hardly a week goes by without yet another politician announcing their own "free money" socialist plans.

This week, it was Elizabeth Warren's turn.

As you may know, the Massachusetts senator is one of the early favorites to win the Democratic presidential nomination. And on Monday, she rolled out a massive socialist proposal of her own. As Bloomberg reported...

Democratic presidential candidate Elizabeth Warren proposed eliminating student-loan debt for an estimated 42 million Americans with a wealth tax, seeking to show young voters she would ease one of their biggest economic burdens.

The plan would eliminate as much as $50,000 in student debt for anyone with household income of less than $100,000, and partially cancel debt for those who make as much as $250,000...

Warren's campaign estimates that her debt cancellation and free-college policies would cost $1.25 trillion over a decade, and called for financing it with a portion of the $2.75 trillion in revenues from her proposed annual tax on wealth of more than $50 million.

If this sounds familiar, it should...

It's exactly the kind of policy Porter forewarned 19 months ago. As he wrote in the September 22, 2017 Digest...

The jubilee is a Jewish economic tradition. It is part of the Old Testament. You'll find it described in the Book of Leviticus, Chapter 25. The idea was simple. At the end of 49 years, all debts would be wiped out and collateral property returned. It was a way of completely "resetting" the financial order, of making sure the wealthy didn't become too dominant... of making sure their economy didn't collapse... of making sure there was never a violent revolution.

The jubilee has started. You haven't seen it yet. But it's there. Mark Zuckerberg (founder of Facebook) recently toured all 50 states. His message: we should forgive all student loans and offer a guaranteed income to every American. Likewise, both the Hillary Clinton and Bernie Sanders campaign pledged to forgive student loans and make college "free."

This week's news is just the latest evidence that Porter was exactly right...

A jubilee is coming to America. You'd better be ready for it.

As we've mentioned before, he has prepared a book detailing exactly what is driving this trend... why it's sure to end in disaster... and most important, how you can best protect yourself from the inevitable fallout.

If you haven't read it yet, click here to get your copy for just $5 now.

We wrote it... Did you buy it?

Last summer, our colleague Dr. David "Doc" Eifrig made a bold prediction to his Income Intelligence subscribers. As he wrote in an August 28 subscribers-only special report...

We suspect [private-equity firm] Blackstone (BX) will soon wind down its master limited partnership and convert to a common corporation.

This could boost the wealth of partnership holders by 100%...

Conversion to a corporation could mean major gains for the investors in Blackstone, moving them from the very rich to the mega-rich...

Just how much can shares jump?

The higher taxes will lower earnings a bit... by something like 15%. But the valuation of shares will rise from 10x earnings to 15x, 18x, maybe 20x or higher.

So here's our bottom line outlook:

We suspect that when Blackstone announces a conversion, shares will pop... Over the next year, as the conversion happens, new investor money will drive shares at least 50% higher, but possibly as much as 80% to 100% higher.

Last Thursday, Blackstone did just that...

Just as Doc predicted, the firm announced that it would soon convert from a master limited partnership (MLP) to a corporate structure, making it easier for mutual funds and index trackers to buy the stock.

The stock popped as much as 10% on the news. But Doc believes this is just the start...

'We could easily double or triple our money on this investment'...

That's what Doc told his Income Intelligence subscribers in that August special report.

As he explained at the time, lots of companies structure themselves as MLPs for the tax advantages.

In short, an MLP has a "pass-through" structure, meaning that all profits and losses are passed through to the partners. There's no tax on the company level, so there's no double taxation on dividends.

It's a good deal for the company and investors looking for income. But it can also limit the stock's appeal. As Doc explained back in August...

Investors find MLPs to be a hassle. You have to fill out some special tax forms, and they can be trouble in tax-sheltered accounts like IRAs and 401(k)s. More important, many institutions and indexes won't include MLPs. That keeps untold billions from being invested in Blackstone, just as a matter of classification.

However, the story quickly changed with the new tax bill in 2017. More from Doc's August special report...

With the 2017 tax bill from Trump and the Republicans, the corporate tax rate dropped from 35% to 21%. That changes the math on the MLP decision. Avoiding taxes doesn't save you so much when tax rates are so much lower. That's why we think Blackstone will convert to a common corporation. It would rather pay more in taxes to attract more investor money.

In other words, Doc said the MLP structure no longer made sense for Blackstone. He thought it was only a matter of time before it would convert to a corporation.

As we now know, he was exactly right.

Now that the conversion is underway, Doc believes billions of dollars will begin to flow into Blackstone shares. In fact, he expects subscribers could see gains of more than 100% as big institutional money begins to flow in.

This was something special for Doc...

As longtime readers know, he's conservative by nature. Predicting a triple-digit return in less than a year isn't something you'll hear from him often. But he believed it was as close to a "sure thing" as you're likely to find in the investment markets.

To be fair, this recommendation has been a volatile one. You see, some of Doc's subscribers actually stopped out of Blackstone during the broad-market sell-off last fall.

But Doc remained incredibly bullish...

So he did something he rarely does. He recommended subscribers get back into the stock in late December. As he explained in the December issue of Income Intelligence...

We didn't stop out because of a shaky earnings report or a negative business development. We stopped out because the broader market fell...

If Blackstone announces a conversion to a C corp, we expect to see a surge of 40%-50% in the share price in the following months...

Today, Blackstone is down nearly 10% from where we sold... That's a steal, in our opinion...

Now, we realize that readers may not care for this process. Selling in October and then buying back in December is a hassle, even when we're buying back at a better, lower price.

That's fair. And we try to keep our buy and sell recommendations clean, simple, and rational so that you enjoy our research. But our priority to you as a subscriber is to recommend the best investments possible at the best price possible. Today, that describes Blackstone...

In hindsight, it appears Doc wasn't bullish enough...

Income Intelligence subscribers who took his advice in December are already up 43% in just four months. And again, once Blackstone's conversion takes effect on July 1, shares could absolutely soar as a wave of institutional money begins to move in.

Kudos to Doc on another great call. If you're not already reading Doc's Income Intelligence, what are you waiting for? Click here to learn more about a subscription.

New 52-week highs (as of 4/22/19): Hershey (HSY), Microsoft (MSFT), Match Group (MTCH), NVR (NVR), Rollins (ROL), and ProShares Ultra Technology Fund (ROM).

The feedback on Stansberry Research's first feature-length film, New Money, continues to roll in. As always, send your comments and questions to feedback@stansberryresearch.com.

"[Your film New Money is a] great way to inform your subscribers about the investment opportunities in China. I had no idea that China would have become more capitalistic and use the newest technology more than the USA in such a short time. I feel much better about my investments in Chinese companies. Thank You for all your hard work." – Paid-up subscriber Jesse S.

"Dear Steve, I was happy to pay a small fee to help fund your new movie on China. Having lived and travelled on business in China for six weeks a year from 2001 through 2014, I can attest to the changes. Your movie does justice to the most amazing transformation of a society in history. America does not want to know this story because of the 'why' behind these historical moves. Yes Mr. Rogers, China is more capitalist than most of America. But we are not communist. We have become fascists.

"I respect that you have dropped all labels in your narrative because your target audience has been brainwashed to tune out all discussion once a politically charged label gets used. I was able to build a company in America before the restrictive laws were enacted. I was a front row witness to the land without lawyers lifting 600 million out of poverty while the 'land of the free' moved its middle class lower. This was not cause and effect between countries but cause and effect between policies. The statistic where America now beats China hands down is lawyers per capita. China will definitely lead the world in drug development because of this.

"The Federalists designed a country where the government prints the money, signs the treaties and protects its borders. They then let laissez-faire capitalism thrive under this protective blanket. Today the 2% of the Chinese population who call themselves communist are really acting as Federalists who participate in crony capitalism. Being a much smaller percentage than our crony capitalists the Chinese people don't mind, because as your movie so clearly showed they all have a chance to participate in the fruits of capitalism.

"As an American businessman I was shown heartfelt admiration by ALL the people I encountered. Much more so than in America. In fact I wish Americans could experience the pure hospitality that the Chinese show their visitors. It was really life changing for me... Keep up your good work in spreading the truth and avoiding the political. Who knows? Maybe Cuba will follow this model and become a mini-China in our lifetime." – Paid-up subscriber Mark R.

Regards,

Justin Brill and Corey McLaughlin
Baltimore, Maryland
April 23, 2019