Earlier this week, I was in Boston for the annual Stansberry Conference & Alliance Meeting...
Our 2022 lineup included world-class speakers covering finance, precious metals, cryptos, tech, foreign markets, and more.
On Wednesday, we held special panels for our Alliance members where our Stansberry editors talked about their outlooks for the future and top investment ideas over the next year.
On Wednesday morning, I sat on a panel with fellow editors Dan Ferris, Eric Wade, and Matt McCall, plus our director of research Matt Weinschenk. We talked about some of the biggest stories right now in the investment world – like inflation, interest rates, housing, and energy costs – and explained whether we were bullish, bearish, or simply thought the whole thing was B.S.
If you've followed Stansberry for a while, you'll know it's rare that our editors all agree. And this panel was no different.
It's one reason why readers often ask how we can all have different opinions but still work together.
Whether it's the price of oil... the direction of the market... or what the latest Federal Reserve decision really means for your portfolio, I often find myself on the opposite side of some of the other editors and analysts here.
Our investment philosophies are different... But this benefits you, even if it does make it harder to figure out what to do with a specific investment. Our different approaches to investing are what help us provide a wide array of strategies to our subscribers.
As I've said before, right now is a critical time to not be complacent. If you want to set your portfolio up for success, you need to be prepared for a continued bear market, a major crash, or the start of a new bull market...
That's why I regularly share the ideas and strategies of other editors with Health & Wealth Bulletin readers... so you can be prepared for whatever is next.
One such editor is Dan Ferris, who sat on that panel with me. We don't always see eye to eye. (Dan is often more bearish than I am.) But Dan is an expert at finding some of the best values in the market – the stocks trading at ridiculously low prices compared with what their underlying businesses are actually worth.
That's why, if you haven't already, you should take the time to hear Dan's recent warning. Even if the worst of Dan's predictions doesn't happen, you'll sleep better at night knowing your money is safe.
Click here to watch before it goes offline.
Now, here are some of the things on your minds this week... Keep sending your comments, questions, and topic suggestions to [email protected]. We read every e-mail.
Q: How do dividends come into play when you calculate stop losses? – G.D.
A: When you're buying shares of a stock, it's important to factor dividends into your trailing stop loss.
That's because dividend payments change the point at which you would have to close your position. The income you've collected changes the total value of the stock you own.
Let me show you an example...
If you're buying a stock for $10 and set a 25% trailing stop, you would sell the stock when the price falls 25% lower than $10 (down to $7.50). If the price moves to $20, your new stop would be $15.
But let's say you received a $1 dividend payment. That dollar is now part of your wealth thanks to this stock, but it's not reflected in the share price. To compensate for that, you'd subtract that $1 dividend from the highest share price – $20 in this case. Then you use that number – $19 ($20 minus $1) – to set your stop loss. So your stop would move from $15 to $14.25 ($19 times 75%).
You wouldn't want to prematurely stop out of a stock that's paying you handsome dividends. This formula is how you'd determine when the share price has fallen so far that it overrides the dividend advantage.
Q: Do you have any recommendations for long-term-storage food? – V.M.
A: The best foods to buy for storage purposes are staples in your regular diet. Then, you can rotate them into your regular consumption patterns before their expiration dates approach.
Canned vegetables, beans, and soup work best for this. You can also store canned meats and fish, like chicken, tuna, and salmon. Canned food may "keep" for longer than one year... but its nutritional value breaks down faster than its palatability. As a result, you'll need to eat more just to feel "full," and your supply of extra food could last for a shorter time than you expected.
To keep them fresh, rotate canned foods into your normal consumption. At most, keep canned food for no longer than one year. Also, if you find cans in your stockpile bulging at the ends, the food inside has spoiled. Throw these cans out. Never eat the contents of a can that looks like it's about to burst, no matter how hungry you are. Remember this adage for old food, "When in doubt, throw it out."
Long-term, hermetically sealed (i.e., airtight) storable food products are another option. Several companies offer packaged foods designed to be stored for up to 20 years. The danger with these is that they may or may not live up to their promises. This would be unfortunate to discover in a crisis when you need the food the most. The rotation approach to food storage ensures you have reliable reserves.
If you want to buy this type of product as an emergency backup, I recommend you shop at Costco. I cannot personally vouch for how long these products can last (give me about 18 more years). But the company's track record of providing high-quality products at great prices makes me comfortable buying them. Do what I do... Buy some and try them occasionally over the next few years. That way, you'll know they're still edible and safe.
One bucket of 150 total servings of food – that will supposedly last 25 years – sells for only about $100. (You can find what Costco has to offer here.)
To maximize the longevity of your stored food, keep it...
- Cool: 40 degrees Fahrenheit is optimal. For every 18-degree decrease, you double your food's storage life.
- Dry: A dry closet is a better storage location than a cooler, but damp, basement.
- Dark: Use opaque containers, as ultraviolet light degrades nutritional value.
- Oxygen-free: Oxidation degrades nutritional value.
- Rotated: Follow the financial accountant's term "FIFO." It stands for "first in, first out." This makes stored food a simple extension of a regular consumption pattern.
In The Doctor's Protocol Field Manual, I detail even more essentials to help you prepare for a disaster. I also cover everything you need to survive any crisis, from what to do on a crashing jetliner to how to ship your assets offshore. Use it as your go-to guide in almost any type of crucial situation.
Click here to get a copy of The Doctor's Protocol Field Manual. And my existing subscribers to Retirement Millionaire can read a free digital copy right here.
What We're Reading...
- Did you miss it? Warnings from Boston.
- Something different: Your cat can recognize your voice.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
October 28, 2022