VRA Weekly Update: 2021. A Year of Opportunity and the Return of Inflation.

Good Thursday morning and a big, bright and beautiful hello to 2021. At this time last year the potential for a great 2020 seemed (very) high probability. Huge stock market gains and a second term for Trump, seemed all but baked in the cake. Turned out our planners had other plans…2020 became the year of coronavirus insanity.

Here at the VRA we have two primary goals for 2021.

1) Crushing Mr. Market

2) Staying locked in for the entire year, with 100% of our attention on our VRA Community.

With thanks to Ryan Detrick at LPL, we find this data compelling. Since 1950, when the S&P 500 is up by a combined 10% + in November and December (we just had 14% gains), the following year is undefeated in its bullishness, with average gains of 18%. In addition, when this occurs (+10% in November and December) the month of January is also undefeated in its bullishness, with an average gain of 3%. Hyper-bullish data.

We expect 2021 to be a remarkable year, with major global changes afoot. This year end performance review for 2020 gives us an idea of what to expect. When you hear “experts” tell you that inflation has all but disappeared, maybe send this send to them.

When inflation first returns, as the graph above makes abundantly clear, here are a few important points to remember…points that we’ll be focused on throughout the year;

1) The return of inflation is (highly) bullish for stocks, as pricing power drives corporate earnings.

2) Value stocks outperform growth stocks (see VRA Portfolio)

3) High dividend stocks tend to underperform (utilities, REITS, etc)

One of my favorite (new) macro thinkers is Lyn Alden. Recommended follow with some of the most high level podcasts around. She is (like us) bullish on precious metals/miners, stocks and bitcoin. She expects the period we’re entering to resemble the 40’s and 70’s (rising rates and inflation, but with tremendous upside potential for locked in investors). The chart below is fascinating.

But this is where out attention is hyper-focused in 2021. Precious metals and miners. Gold is soaring as we start ’21, with silver up even bigger. Copper also up big.

The chart of gold is the most interesting of my (now 36 year) career.

We are well positioned in miners, plus physical gold and silver. If you’re looking for the 2021 version of Tesla and Bitcoin, VRA Miners should give us that potential. VRA 10 Baggers plus.

Heads up: My interview with WAR was pushed back to tonight at 7:30 EST. Wayne had politics on his mind after leading a massive, 10,000 + multi mile long MAGA car parade on the Vegas strip yesterday. Look up “leader” in the dictionary and you’ll see a picture of Wayne. Hope you can join us tonight on USARadio.com.

It’s time to move on….

Our days of writing with a focus on DC political goings-on are coming to an end. It’s time. We won’t ignore whats happening in DC, but it’ll take a back seat to investing, our finances and to crushing Mr Market.

However…

Yesterdays “dangerous, mass MAGA riots” were clearly anything but that. What frauds we’re surrounded by in our MSM and yes, in so many spineless Republican circles. So quick to throw America-loving Patriots under the bus, apparently fully recovered from their years-long amnesia, when true terrorists Antifa and BLM burned cities to the ground, pilfered everything not bolted down and assaulted our men and women in blue without fear of consequence.

Yesterday was a classic false flag PSYOP. Tensions were already high…we’d only had a US election stolen…so throw in some well-trained agitators, open the gates for all to enter and the fuse was lit. Gaining access to the capital turns out to be MUCH easier than anyone knew. And the “riot” videos I saw looked like grown men practicing their break dance fighting. Please…

Until an unarmed woman, an Air Force vet of 4 tours and a threat to no one, was shot and killed by capital police…then it became real. If you’ve seen the latest vid (it’s on my Twitter feed), this poor woman was straight up taken out. But she’s MAGA, so no problemo.

Bottom line: The election is over. Biden, soon to be Harris, our new president…but in name only. There’s not an honest person in America that believes this election wasn’t rigged. At the DNA level, it’s my view that Dems didn’t beat Trump. This was an intelligence operation, through and through. Like coronavirus insanity, the totality of what we’re witnessing from our planners is being executed flawlessly. Authoritarian controls were always going to ramp up. Biden was always going to win. The future of America has been written and directed into existence. It’s the same movie that’s been playing out all over the globe for some time (you should see the emails we get from our friends in the UK. It’s much worse).

But I’m an optimist. I want to believe that our planners know what the hell they’re doing. Honestly, when you have a country where 60% cannot read past a 5th grade level and 90% have little to no savings, how much longer could this American experiment go on, without some radical changes…

Our focus now is entirely (mostly) on wealth creation. 9/11/01 changed me as a person. I see angles now that frankly I wish I didn’t see sometimes. But today, I see a world with $15 trillion in fresh liquidity and a bull market melt up that has me genuinely excited about the future, financially speaking. The bull market we’ve entered may be the last big one of my lifetime. Tyler and I fully intend to stay locked in for its entirety…before what will likely be a global hyper-inflationary crash. But that’s later. For now, we have the wind at our backs with a 1998–1999 dot-com like melt-up directly ahead.

Here’s to a great 2021.

Until next time, thanks again for reading…

Kip

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