Most people think inflation is about rising prices...

Hey friend,

Remember in 2017 when Elon Musk launched the Tesla Roadster?

You know, the one that does 0-60 in less than 2 seconds. The one that actually never launched commercially.

It was sold for £185,000. And there were people who paid for the founders edition IN FULL at the time who still have not received it 8 years later.

185k into a car that will depreciate 30-50% in the first 5 years.

Imagine those same people who paid in full for that car invested that same money in Tesla stock. Any idea how much that would be worth today?

It’s shocking.

Whilst Tesla cars depreciate like the rest, the stock would be worth £3.7m today.

Painful I know.

We have to take the investing game seriously.

But there’s a much bigger game at play here.

Most people think inflation is about rising prices.

That is what they want you to believe.

It is not the full story.

In the 1950s, they changed the definition of inflation to confuse you.

Real inflation is caused by an increase in the money supply compared to the size of the economy.

Since 2020, the global money supply has increased by over 31 percent.

The Federal Reserve's balance sheet has grown by 67 percent. US M2 money supply has risen by 40 percent.

Now look at what happened to prices during the same period.

When they increase the money supply by 40 to 67 percent, prices follow almost exactly in lockstep.

Even the S&P 500 moves in perfect correlation with global liquidity. When you adjust the S&P 500 for the increase in money supply since 2000, it is actually down 20 percent. Meaning those 20% gains you’re seeing are not ‘real’ when adjusted for inflation.

It gets worse.

The Congressional Budget Office's own projections show this money expansion accelerating. Their reports predict more aggressive deficit spending and debt accumulation through 2035.

That is why you’re earning more money or getting ‘wealthier’ but you’re not feeling richer.

What to do?

The first thing you should do is take control of your investments.

Actually learn about cycles and what’s happening around you, use the free resources from my newsletter welcome email. If you can’t find them just reply and I’ll help you out.

There are only two assets that have consistently beaten monetary expansion:

1. Bitcoin, with an average annual return of over 180%.

2. NASDAQ technology stocks, with an average annual return of 17.4 percent.

Learn the game - it’s not changing anytime soon

It’s not about 5-10% here and there. It just will not cut it.

Get your positions in order so you can take advantage or the next 5-10 years of tech and AI fuelled growth.

Study liquidity and associated asset growth.

Take control of your investments.

And then you win.

Until next time,

Brendan. Xx