From financial markets and politics to business and social issues, Dan Ferris and our Stansberry Analysts offer candid discussion on today’s most important headlines. Each week you’ll hear exclusive interviews with guest investment experts, authors, and top thinkers such as Jim Rogers, Kevin O’Leary, Glenn Beck, PJ O’Rourke, and Jim Grant.
The Stansberry Investor Hour is produced by Stansberry Research, LLC.
'Nothing Is Written'... Survive in Advance
Today's Stansberry Investor Hour guest is the man behind a theory that Dan says "scares the crap out of me when I think of foreign markets"...
We're thrilled to have Brent Johnson, the creator of the famous "dollar milkshake theory," on this week's episode.
A seasoned Wall Street veteran with decades of experience in finance and money management, Brent is currently the CEO of Puerto Rico-based Santiago Capital, a wealth management firm focusing on macroeconomic trends.
Brent says most folks who have read or heard about his dollar milkshake theory think it's just about the U.S. dollar going higher. But he says there's more to this narrative... He explains how the Federal Reserve's switch to quantitative tightening is like a straw sucking up liquidity from markets worldwide – strengthening the dollar. And it's a story that he says is playing out right now, with a soaring greenback and other currencies in a tailspin...
After the global financial crisis, governments and monetary authorities around the world were forced to provide incredible amounts of liquidity... They created this big pool of liquidity, and they kept doubling down on it and doubling down on it...
The world mixed this big milkshake of liquidity and capital that needs to go somewhere. But as we get further into this, it's going to cause a global sovereign debt crisis because the debts have just gotten too big. A lot of that capital is going to flow into the U.S. dollar – or U.S. dollar assets – and deprive that liquidity to the rest of the world.
As the dollar gets stronger, that attracts more capital and it also puts more pressure on the rest of the world – which makes the U.S. even look more attractive on a relative basis and perpetuates more capital flows. The U.S. dollar is going to "drink the world's milkshake."
With another clever analogy, Brent also explains just how much power the buck lends to America. There's a "rigged" poker game playing out where the U.S. has the upper hand – and it has the "biggest stack at the table" with its currency. If any of the other countries "wins a big hand and tries to leave," Uncle Sam's "guards" at the door – or the dollar's privilege as the world's reserve currency – are ready to rob them of their profits. However, he says that the greenback could eventually plummet and end up in the same trouble that other currencies are undergoing... ultimately leaving gold as the "last man standing" at the table.
Brent also shares which of his favorite movies served as the inspiration for his theory. And his takeaway for surviving this challenging economic environment should resonate with longtime Investor Hour listeners... It's all about preparing for even the most unthinkable outcomes and building a well-diversified portfolio – or, as Dan always says, "Prepare, don't predict." And this time, Brent's cinematic muse is Lawrence of Arabia...
Be prepared. Nothing is certain. "Nothing is written." Any of these ideas that you have that you think are absolutely foolproof, I would throw them in the trash can. Just open your eyes. Be ready for anything.
A 'Not-So-Secret Weapon' in Finance
It has been just over two years since his last Stansberry Investor Hour appearance...
So today, we're honored to have Professor Joel Litman, Altimetry's chief investment strategist and founder, back on the show.
Joel's resume boasts top honors and achievements in finance and education. He's the president and CEO of Valens Research, chair of the Uniform Adjusted Financial Reporting Standards (or "Uniform Accounting") Advisory Council, a member of the Association of Certified Fraud Examiners, a certified public accountant, and a board member of a leading brokerage firm in Asia.
He's also a professor at Hult International Business School's top-ranked international MBA program and has taught at business schools worldwide – like Harvard Business School, the London Business School, and Shanghai Advanced Institute of Finance.
Joel's uncanny intuition is well-known in the world of finance... He called the 2008 crash and even accurately timed 2020's market bottom. And he starts today's episode by sharing one of his tools for success...
Understanding corporate credit and national country credit is the canary in the coal mine of any major equity bear market in history...
You always see corporate credit crises at the beginning of any massive long-term bear market.
Each month, Joel and his team apply Uniform Accounting to fix thousands of errors in companies' financial statements. This proprietary analysis gives investors the real story behind a company... and a clearer picture of its true profitability.
Joel's talent and passion for teaching shine as he breaks down the complicated topic of earnings reports' accounting standards. Plus, he and Dan discuss the current state of U.S. corporate credit, searching for the "perfect stock," the future of the dollar, and more.
How To Gain an Analytical and Behavioral Edge in Investing
For this week's Investor Hour, we're proud to bring you Jim Osman, founder and chief vision officer of consulting group The Edge.
A 30-year veteran of the markets and portfolio management, Jim founded The Edge in 2005. Currently headquartered in New York City and his native country of England, the firm provides actionable (and market-beating) research to institutional and individual investors. In addition to overseeing The Edge, Jim regularly contributes to the hedge funds and private-equity division at Forbes. He has also written for other big names in financial publications like Barron's, the Wall Street Journal, and Bloomberg.
At The Edge, he helps his clients uncover profitable investing opportunities by helping them hone both an analytical and a behavioral edge in investing...
On the analytical side, he focuses on special situations, which he defines as "unusual or atypical" events that drive stock prices. These catalysts can be external or internal. Spinoffs, in particular, are a great source of value plays, and Jim shares how he invests in them on the show.
On the behavioral side, Jim highlights that emotional investing and fear of missing out can be costly. But he says that by understanding your risk, there's a way to manage your emotions...
[It's] not even [about] 'curb the emotion,' because we all are emotional creatures. It's whether you can recognize it... You can recognize your emotion and handle that. Then your actual thesis will play out.
In today's interview, Jim takes a deep dive into managing risk analytically and behaviorally... and why he considers it the ultimate solution to investment success.
This week, we're excited to welcome back a familiar voice to Investor Hour: Austin Root, the chief investment officer of Stansberry Asset Management ("SAM").
It has been more than two years since Austin's last conversation with Dan. During that time, Austin left behind a storied career at Stansberry Research – as the director of research, director of corporate development, and the editor and portfolio manager of Portfolio Solutions – to join SAM, where he develops and manages investment strategies across all portfolios.
This year, investors have had to contend with a turbulent market. But Austin has done a stellar job of helping SAM clients navigate – and even outperform – these choppy markets. He shares some of his unusual strategies in today's interview but says his job isn't just about maintaining a great stock-picking record. Rather, it's about drilling down these "mission critical" basics that every investor should incorporate into their portfolio...
Performing well is not just about identifying great stocks. More important than picking the stocks themselves is asset allocation, risk management, position sizing. These are all mission-critical aspects to investment success.
Also in this week's interview, Austin recounts what it was like to work with some of the investment world's biggest celebrities – like Steve Cohen, Julian Robertson, and George Soros. Plus, he shares the top four qualities that he looks for in investments, his favorite book on value versus growth investing, and more.
Navigating Today's Economic Battlefield
This week's guest, Jeff Muhlenkamp – the lead portfolio manager of financial planner Muhlenkamp & Company – got a unique start in investing...
Jeff's background is impressive – 20 years of service in the U.S. Army, a Bachelor of Science in electrical engineering, a master's degree in organizational leadership, and a Chartered Financial Analyst designation. As a result, he brings the perfect blend of discipline, analytical prowess, and leadership to portfolio management.
Jeff's foray into investing shows just how resourceful he is... Back in 1988, when his father ran Muhlenkamp & Company, Jeff made his first investment there. He came up with the money by applying for a military car loan... then shrewdly using only a small portion to buy the cheapest car he could find and dedicating the remainder to launch a new career in investing.
Today, Jeff prefers a measured, bottom-up approach when screening for opportunities. (One of his metrics happens to be in Dan's list of "Five Essential Financial Clues.") But he knows a well-rounded investor can't discount top-down considerations as well, like the No. 1 macroeconomic factor for U.S. investors to understand right now and the importance of market-cycle dynamics.
And for his answer to Dan's "Final Question," Jeff leaves listeners with stunningly practical advice...
Don't risk money you can't afford to lose... At an individual level, where your decision-making starts is: How much do you make? How much do you spend? Are you saving money? And for what purpose?
Those sorts of strategic decisions in your life are going to be much more important than the kind of decisions you'll hear analysts and financial planners talk about.
'Don't Try Too Hard'
We're excited to bring on a brand-new Stansberry Investor Hour guest this week – a name that Stansberry Research readers will undoubtedly recognize: Brett Eversole...
After working with Stansberry Research heavyweight Dr. Steve Sjuggerud for more than a decade, Brett is now the lead analyst for Steve's suite of publications. In True Wealth, Brett and his team help their readers uncover safe, alternative investments that are overlooked by Wall Street. In True Wealth Systems, they use advanced, proprietary software to amplify investor returns in every corner of the market.
And in True Wealth Real Estate, they scour the market for deals that combine the power of investing directly in private real estate with the ease of profiting from housing stocks. That's where Brett and Dan start this week's interview...
A slew of new data released just last week confirms that the housing sector is in a worsening tailspin. But as a contrarian, Brett says the masses have mistakenly "over extrapolated" this cooldown and that we're not, despite popular belief, in a 2000s-style bubble that's headed for a bust.
Housing is like water – it's at the bottom of Maslow's hierarchy of needs... Nobody panic-sells their house.
He explains why today's reality is far different from what most folks fear and that with the right data and analysis, you can even uncover ways to profit in the housing sector today.
As for the driving force behind this slowdown, inflation is another topic that Brett and Dan tackle. They discuss its history (like the "guns and butter" era Dan lived through), their outlook on interest rates, and the Federal Reserve "pivot" narrative.
Finally, you'll hear about a shared musical hobby between the two and how it intersects with finance. And Brett leaves listeners with advice on how to work smarter – and not harder – with tips on developing effective work habits.
I enjoyed your podcast with Austin but I have a question I’d like you to address. Soros may be a great investor but is a scourge on humanity, is there never a time this comes under consideration? He is responsible for the deaths of countless people by funding DA’s that let killers loose and is a very committed Marxist Oligarch! Please comment. Farmer Dan
A wise guy who brings in even smarter guys
To inform and educate on investing
The most recent episode (and others) lack any real data or facts and often stray from investing towards libertarian, conservative viewpoints and often bigotry.