What Porter said on Wednesday night scared me.
If you missed it, Porter hosted a live webinar where he discussed his latest strategy to make big gains over the next several years.
Porter is one of the brightest and most interesting people I've met. He's a brilliant analyst. He has an understanding of markets, history, and finance that I've rarely seen.
Last night, he warned listeners of a coming credit bubble that could end major corporations... send share prices to zero... and cause massive losses for investors.
It's easy to see that corporate debt in the U.S. has soared over the last few years...
So Porter got his team of analysts together to look for the companies in the middle of their own credit bubbles.
These companies are bleeding cash, and they carry huge debts that they have little chance of repaying. Porter and his team call these companies the "Dirty Thirty."
I'm not talking about little no-name companies. These are companies with an average market capitalization of more than $6 billion. And many of them are names I guarantee you're familiar with... You may be using their products or services right now.
Porter's no stranger to predicting the collapse of major companies.
Over the past decade, he's predicted the bankruptcies of:
- Detroit automaker General Motors
- Mortgage giants Fannie Mae and Freddie Mac
- Shopping-mall operator General Growth Properties
Click here to learn more.
Now, let's get into this week's Q&A...
A: Great tip! One my assistants uses sun sleeves for cycling. She says they're comfortable even in Maryland's hot, humid summers. For anyone looking for sun sleeves, you can find them on Amazon or at outdoor-sport retailers like REI.
Q: In today's excellent article on teas, you seem to have omitted a mention of decaffeinated teas. I drink a cup of decaf green tea every night before bed, brewed along with a "sleepytime" tea, (also decaf). Do these decaffeinated teas have the same benefits as the regular teas? – B.A.
A: As we wrote in our article about coffee, caffeine is an antioxidant and provides many of the drink's benefits. That's because among other things, caffeine reduces inflammation.
While the decaffeination process causes some chemical changes, we've seen evidence that the main antioxidants in tea (catechins) still remain active in decaf teas. In fact, a paper from the International Journal of Chemical, Environmental and Biological Sciencesmeasured antioxidant activity and catechin levels in various types of black and green teas, both regular and decaf. They saw that although some decaf teas had slightly reduced catechin levels, it varied by brand. More important, all the teas – regardless of caffeine content – demonstrated high antioxidant levels.
No matter your choice of tea, enjoy it for the many health-boosting benefits found in the catechins and other antioxidants. Most of our readers said they enjoy green tea with honey – we think that's a great choice for boosting your health today.
Q: I got married this summer and my wife is now pregnant with our first child. I am wondering what you might suggest for dietary supplementation during pregnancy. We know proper diet and exercise are crucial to the health of both mom and baby but thought you might have some specifics on one or both. – G.
A: Give your wife whatever your wife wants – and I recommend you feed it to her.
Other than that, I highly recommend massage. It boosts the immune system. It's almost as good as a workout in terms of releasing endorphins.
Even if you start with just a hand or foot massage, it's simple and easy to do... I can't emphasize how valuable it is. And it will definitely be appreciated.
Doc's note: Today, I'm also sharing a question Porter responded to in his Stansberry Digest. It's a question many of you likely have on your mind...
Q: Porter, excellent analysis as usual re: your Austrian School-based underpinnings for your Big Trade. However, there's one very disturbing non-free market element to this trade concept that concerns me, and which I think could completely undermine any chance at these trades being profitable, or at least increase risk. And that is: What about intervention by government in the form of bailouts, whether direct or indirect? Wouldn't this blow up the trades? I appreciate your thoughts on this. – Paid-up subscriber John G.
Porter comment: This is, so far, the most common question we've received. And that strikes me as pretty odd. I think people falsely believe that government bailouts help shareholders. They don't. Bailouts save creditors, not shareholders. The government acts to bail out creditors because government-insured banks eventually end up being on the hook for these losses. The government thinks it's smarter to put out a forest fire than to rebuild the whole state. But that shouldn't reassure anyone who owns stocks.
This question has its roots in a poor general understanding of corporate structure. The equity holders are on the bottom. That's who suffers losses first. It's only after the equity holders are wiped out that losses begin to affect debt-security owners. And that's when the government steps in... to protect itself.
Think about Bear Stearns, the investment bank that failed during the subprime crisis in 2008. The equity holders lost 90% or more. At Lehman Brothers, the equity holders lost 100%. At Fannie and Freddie, they lost 99%. At GM, shareholders lost 100%. I could go on.
I don't believe any argument based in fact or logic would lead an investor to avoid hedging his portfolio or taking other protective measures because of the idea that the government will save him. It's a completely false belief. Even the many companies that were saved by the government's indirect efforts to reflate the banks saw the share prices of leveraged financial institutions fall by 90% or more before any of those benefits made an impact.
Or, let me put it this way... If, over the next 18-36 months, the government begins to bail out corporate creditors, that will be the "bell ringing" to let us know our strategy worked. Because for that to happen, equity investors will have been wiped out first.
To learn more about which companies I think are most in danger, click here.
Is your portfolio protected against major corporations failing? Let us know at [email protected].
- Did you miss Porter's webinar? You can watch a replay right here.
- Buyer beware... not all green tea is equal.
- What caffeine does to your brain.
- Something different: The reasons behind road names... They aren't random.
Dr. David Eifrig and the Retirement Millionaire Daily Research Team
November 18, 2016