Archive Category: Green Zone Fortunes Updates

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I shared my thoughts and analysis on the “typical” bear market last week. There is no “typical” bear market for two reasons: The range of outcomes during historical bear markets has been so wide. Each bear market has its own unique causes, triggers and effects. The cause of the 2008 financial crisis bear market was excess speculation in the U.S. property market — namely, house “flipping” and super sketchy mortgage lending, which then got packaged into even sketchier mortgage-backed securities.

I was in Home Depot’s outdoor garden section with my son on Father’s Day when I heard a man several aisles down yelling: “I’m telling you the market’s going to crash!” I wasn’t sure which market he meant, but we are all aware of the skyrocketing cost of real estate as well as the weakness of stocks. In this week’s video, I take a moment to ponder the man’s doomsday prediction.

I don’t have to tell you that inflation is out of control. I feel awful for all the good, hardworking Americans who are watching their budgets get tighter and tighter … just to pay for basic living expenses. Folks on fixed incomes are getting squeezed hard, and there’s not a thing they can do about it. Investors have it a little better. Inflation still hits my wallet every time I go to the store. But as an investor, I also have the opportunity to buy investments that go up in value as inflation takes hold. And on that point, history is clear: Real assets win in inflationary environments.

Green Zone Fortunes co-editor Charles Sizemore here, filling in for Adam O’Dell in this week’s update. I, of course, need to address the elephant in the room: The market is down nine out of the past 10 weeks, and we have no sign that it’s letting up anytime soon. However, Adam and I have high conviction that we can find terrific opportunities in this environment. (On that note, keep an eye out for the June issue of Green Zone Fortunes later this week!) We’ve gotten excellent questions in the inbox in recent days, so I tackle five of them in today’s update.