The Word of the Year: Stagflation

Hockey great Wayne Gretzky once said we want to “skate where the puck is going.”

And while the start of a new year is a time for optimism and turning over new leaves, it’s also important to consider what might next upset our apple cart. It allows us to see more clearly the potential disasters awaiting and, in turn, to prepare for them as best we can.

For 2016, I think the puck is leading us to an economic phenomenon that hasn’t hit since the 1970s: stagflation.

In this month’s issue, I examine why stagflation is likely to become increasingly a worry as we progress through the new year. If the historical analog is anything by which to judge the present, we could see the S&P 500 potentially down by 18% by the end of the year. With this economic scenario in mind, Chad and I have found the one kind of stock that will survive this period intact. As an added sweetener, if I am wrong about stagflation, this stock will still put us in a great position because of where the Federal Reserve is taking us.

Click here for the January issue of Sovereign Investor.

Until next time, stay Sovereign…


Jeff D. Opdyke
Editor, Sovereign Investor