Investment Strategies for Every Investor – John MacGregor, Anthony Eichler

Investment Strategies for Every Investor – John MacGregor, Anthony Eichler

hey everyone welcome back to another episode of full disclosure very very special show today we’re thrilled to have with us a towering figure in the stock market and our conversation will Center on mastering this financial landscape of 2024 and Beyond with a keen focus on Dynamic strategies today with specific stock ideas for you to consider in this current market and an interesting way to look at gold investing that does create cash flow you want to hear this and his recommendation may surprise you so whether or not your Investments are tied up in a 401k an IRA or you’re contemplating your first step into the market this episode is specifically meant to empower you with the essential insights for success and substantial substantial wealth accumulation folks here we go if you have concerns about your financial future let’s be honest the world shapes your wallet we are taking you behind the scenes to look at what’s really happening in the real world inform prepare and empower this is the full disclosure podcast with your host John [Music] McGregor before we get into it don’t forget to ring that Bell below and hit subscribe also we’d love to get your comments or feedback I love to hear what you guys are thinking and where you’re finding opportunities especially today in this market also you’ve heard me say this before my cash flow and wealth building system has been extremely popular where I teach you a very simple wealth building strategy using stocks and options to generate instant cash flow on every single trade and by the way this is not day trading and you’ve heard me say this before this is the absolute 100% truth it’s the exact same strategy my 93y old father well soon to be 94 very soon uses to this day to generate 15 to $220,000 per month as a hobby and he’s been doing it for the past 13 years consistently and of course I use this system myself very successfully and you can check out an overview a brief overview at go. joh mcgregor.net go. jmg gregor. net I think you’ll find that interesting all right so let’s get into it it is an absolute honor and privilege for me to introduce my good friend Anthony Iker to the show Anthony’s a 30-year veteran in the stock market who brings tremendous insight into the markets and how to identify winning stocks Anthony is my go-to guy for stock market analysis insight and stock ideas so with that Anthony great to have have you on the show I know you’re highly s sought after and your time is very sacred so really really appreciate the time I thought what we do start off Anthony why don’t you just tell us a little bit more about your background and your family is a huge Legacy in Wall Street maybe share some of that as well well thank you for having me uh John I I really enjoyed our last conversation uh a quarter ago A lot’s happened in the last quarter uh personally for me I’m a third generation uh Wall Street person uh both of my grandfathers uh started on Wall Street my father ran a firm um my father’s firm was started in 1932 because of glass eagle and because of the legislation to separate Investment Banking from Commercial Banking so uh we go back a long time I started on the floor of the New York Stock Exchange in 1988 where we worked on the retail and institutional part of the business uh on the asset management side of the business and currently I advise clients today uh I don’t think in my career I have seen a an inflection point like we we we where we are today and I think a lot of these things that I mentioned maybe on the last time I was on your on your show uh we’ll cover some of those and what’s transpired and where we’re going I I think the most important thing for investors to understand is you know where we’re going and what happens next and uh so I look forward to our conversation today now it’s a perfect setup for what I want to talk about so the overarching theme today that I said earlier is really how to make money in the stock market bottom line right now despite all this economic uncertainty that we’re seeing and where can people find Value today so Anthony I want to start macro sort of the big picture of what’s going on and I’ve got a lengthy list of so many things that are happening today really unprecedented I don’t think we’ve ever seen in a very very long time first for starters we have this Ukraine war going on with with Ukraine and Russia and I don’t think there’s an end in sight and that’s probably intentional we now have this Middle East chaos that’s going up in Flames there’s a lot of talk of China’s on the move and we’ll do so while Biden is in office before he leaves in the case he loses the election and by the way I still don’t think he’s going to be the Democrat candidate but that’s for another discussion China has come out and blatantly stated that they will reunify with Taiwan they didn’t say they want to they said they will and our own Admiral John Kirby who’s a spokesman for the White House you see him on TV all the time at the podium has said we do not support taiwan’s Independence unbelievable that was a correct quote and he said it many times and if that’s not a ticket for China to invade Taiwan nothing is you have the ability for people to buy homes at a four decade low as mortgage rates are now at 7% and home prices are through the roof and I’ve been saying this on the show for well over six maybe nine months that inflation is not coming down in fact the opposite despite what Jerome pal says who in my opinion is just plain politics to keep his boss Joe Biden in the Oval Office gas pric are now Rising again our debt is about to hit $35 trillion with a t it was 26 trillion when Biden took office three and a half years ago we’re adding a trillion dollar in debt every 100 days it’s mind-blowing and this list continues so please stay with me and with interest on that now exceeding our defense budget and at this pace of our debt which would be projected to hit $54 trillion in the next six or so years at 5% interest that’s $2.7 trillion just in interest expense alone to service that debt we only take in 4.7 4.8 trillion in Revenue it’s crazy we have an insane deficit spending we’re spending $2 trillion more than we bring in every single year and now the numbers came out a few days ago growth has slowed significantly coming in at 1.6% or GDP for the first quarter as opposed to expect the expectations of 2.4% that’s a huge shocker for everyone and now we’re entering this period of stagflation and stagflation is high inflation low growth and it is not a good place to be we have the invasion at the border there seems to be chaos everywhere and on top of that we have a president who doesn’t know what year it is so Anthony with that lengthy and Rosy setup help us all make sense of this and why don’t we start with your big picture analysis and then we can dive into the more granular and then get to the specific stocks that you like right now with that thank you that was a heck of a list um I think about all the things that uh and you use the word chaos there does seem to be chaos in the world uh the deficit spending is is is one part of that and I think that’s one of the most dangerous aspects of what’s going on I don’t think uh there’s been a time in my career in my lifetime that has been more dangerous uh uh as an investor as as a as a uh someone who looks at you know long-term economic growth an opportunity you know I think we’re at a real inflection point and and which direction we go will be decided you know over the next year or so but uh you’re absolutely correct the deficit spending is unsustainable this is the most predictable financial crisis we’ll ever see in our country’s history and so there are things that you need to do to protect yourself when I I you you mentioned the economy not all is bad right we’re still growing we’re growing very slowly I think the the number out of the last quarter fourth quarter was .6% was disappointing for sure especially with the amount of money we’re spending but you know we have to look at this world uh Yoki bear said it be best predictions are tough especially when they’re about the future and we have to look at this world today and say to ourselves among the chaos is opportunity right you don’t get great opportunity with a Rosie consensus and uh you get a you get opportunity when there’s you know Warren Buffett used to say this when there’s blood in the streets when people are really scared because remember John 70% of investment behavior is driven by fear sometimes it’s the fear of losing out and missing out and making money but most of the time that driver of be behavior is fear of losing money and um I think at this point um with the amount of money we’re spending uh with the risk to our economy couple things just came out in the last 24 hours one if you looked at something as simple as Starbucks uh earnings you see a significant drop in in and foot traffic and revenue sales are down 4% earnings are down more than that because for5 and a half dollars to buy a cup of coffee that the the consumer himself is being swallowed up by inflation um and if you look at uh other retailers like CVS that have announced earnings they they’ve been down the consumer has been pushed to a point where it is very difficult to on a day-to-day basis uh survive with your uh monthly income and so you you you can see that that that that the consumer is struggling and you couple that with 43% of small businesses in the United States uh couldn’t pay rent in April they’re laid on their rent small business is about 42% of our GDP and our GDP is around $27 trillion so small business makes up such an important part of what’s going on and and and I can add to that you can look at you know late payments or or or on on cars and credit cards and you can see that there’s a consumer that was flush with cash in maybe 20 2020 uh after all the covid and everybody staying home and the government handouts to where we are today and and the inflation is not going away because the deficit spending is not going away because there’s nobody that that in the political realm that’s even talking about uh curtailing spending and uh of course with the mandates with energy and everything else it’s going to be difficult but that doesn’t mean there aren’t things that you can do and there aren’t places to make a lot of I I think a lot of money maybe once in a generation opportunities in certain areas of the market that we need to uh we need to talk about perfect that’s exactly what this shows all about is finding opportunities in the midst of uncertainty so I’m glad you teed that up but I wanted to follow up with you on that is the consumer and how they’re doing more specifically and we talked about housing Starbucks we’re seeing traffic flow really go down quite a bit CVS as well delinquencies in debt um and massive amounts of debt especially at interest rates where they are it’s really squeezing the individual consumer so two-part question first have we seen this movie before I mean have we seen this in historically speaking I mean are we looking at the 1970s again and then secondly what about all these regulations that the Biden Administration is jamming down our throats more so than we’ve ever seen it’s like he’s on this last Blitz before he potentially leaves office all these EPA regulations and environmental regulations and and now we’re now we’re we’re looking at massive new taxes being proposed both on the corporate and on the personal side that’s what I talked about last week um so again two-part question have we seen this before and secondly what about all these regulations and tax proposals first question have we seen this before we have we saw this exact scenario play out in the 1970s um we had stagflation so we had slow growth and inflation um the FED tried and failed to raise interest rates then lower them they lowered them too soon inflation came back Energy prices shot up uh it was a very very difficult time to make money in fact if you look at 1964 the stock market was eight closed at 864 by 1981 it closed at 865 the market went up one point in 17 years and the reason for that was the inflation that had been you know sort of flung on the US economy and the and the fed’s only response to that was to raise interest rates and slow the economy down choke off the the spending inflation is too much money chasing too few goods and uh they never got a handle on that and and that formal inflation didn’t didn’t really break until 1982 so when Reagan gets elected in 1980 he proposes cutting uh taxes the top marginal rate from 70% if you can believe it to 50% which timately got cut to 28% in 1986 and then saw the deregulation of the economy which is the inverse of what we see today so we freed up oil and gas drilling we freed up regulations with Airlines and and in August of 82 the stock market looked back and went from you know the mid 800s to 2700 in uh about six years so we’ve seen this movie before we know what happens during the 70s we know what you should own we know why you own what you should own in those times to protect your Capital with higher rates uh deficit spending in and really a devaluation of your dollar of your money uh you know yeah you know Anthony that’s amazing we’ve seen this movie before the 1970s which was awful the market moved one point as you said in 17 years so we know what happens historically and yet we’re doubling down on exactly what they did to make it worse adding more regulations and we’re increasing taxes which is exactly the opposite of what we should be doing it’s just it’s mind balling that this is what these people these leaders that have so much power over our wallets are doing to to really just wreak havoc on our lives it’s really really sad it it is and but there are things you John this is the great thing there are things you can do to take advantage of this we can’t invest in the world we wish were existed we have to invest in the world that actually exists today and in in in the world that exists today what are we going to do where are we going to look for opportunities and value to not just protect my assets but but to to to grow them and and what things are going to do well you you look back at the 1970s and I go back and say well what didn’t work well we know that that back then we had something called the nifty50 they were the 50 largest corporations it was Eastman Kodak and Polaroid it was you know all these brand name companies that had been bid through the roof and what happens what also happened that worked in the 1970s it was it was oil and gas it was oil and gas drilling companies and it was commodity companies and real estate it was hard assets right so you you you you depreciate your dollar you depreciate the value of your currency you increase interest rates but but but things that are intrinsically in shorter Supply whether it’s gold and silver platinum and padium a love all four real estate things that are real hard assets those things in value increase quite a bit so if you were an investor in the 1970s you made money in oil and gas you made money in um uh gold and commodity stocks and the Commodities themselves and you made money in small cap want to touch on small cap because I think that’s a big important part of of of where the opportunity lies small cap today if you took the if you look at the market capitalization of our our our entire stock markets big small and and and and in the middle small cap today is 4% of the market capitalization Anthony kind of chime in can you just Define what small mid and large cap means sure sure so we we Define small capitalization companies less than two2 billion dollars at at at our firm we we look at companies that are 100 million maybe 200 million uh you know used to be smaller than that but our economy is so much bigger but smaller companies with smaller valuation sometimes they’re 30 million 50 million 100 million but the smaller names in in the index it’s called the Russell 2000 and that’s 2,000 of what they we consider the universe of small capitalization names and it is that universe that has never been cheaper so we have uh on the one hand at the top end of the stock market 34% of the assets the value of the S&P 500 34% of the value of the S&P 500 is just in 10 names it’s never been that concentrated in history we we got to about 30% a couple of times last time near in in 2000 for instance but we we we haven’t had this sort of massive over allocation to five or six or nine or in this case 10 names to maybe the exclusion of everything else in our business and that is as a direct result of passive investing people buy an S&P 500 fund it’s what we call capitalization weighted they give the fund $100 $34 goes into those top 10 names and the rest of the money goes into the other 490 and so the the the growth of passive investing index investing as it’s called has created this dislocation and created tremendous opportunity for people who are looking to uh you know looking for businesses and companies trading at discounts to fair value that’s really interesting I mean we’ve talked about this before the huge concentration what we call the Magnificent Seven right but now you’re saying it’s 10 names well it’s seven or 10 I I used now it’s easier last time we talked I just wanted you know and I mentioned This Magnificent Seven being having a market capitalization of 11.4 trillion doar and in the you know that would be bigger than the you know three or four of the largest economies in the world our economy at 27 trillion um but let’s look let’s look what happened Apple’s lost $400 billion in market cap uh Nvidia 300 billion um Tesla 300 billion metas lost 220 billion Amazon 190 billion and Google 70 billion so in the since our last conversation and we talked about this heavy concentration in these these big technology names um they’ve begun to sell off and and they’ve shown and meta did last week they’ve begun to show some vulnerability and that’s because everybody’s in them everybody owns them everybody owns them as much as they can and as I said earlier you pay a huge premium for Rosie consensus and the consensus is these stocks are the greatest companies and got you know and maybe history and as a result they’ve been uh bit up to prices that I believe are unsustainable yeah I agree with you totally can we just take a step back and explain to the audience what drives stock prices what makes stocks go up it’s a it’s a great question um and and the person who really did I think the definitive work on this was Dr Jeremy seagull at at Wharton School and um Dr seagull went back 200 years and he looked at the growth of the stock market and the growth of corporate earnings and the long-term average uh growth of the stock market was about close to 10% and you back out inflation at 7% and the growth of corporate earnings same thing done was exactly 7% so what drives earnings what drives stock markets over time is earnings and what makes your business valuable is how much money it earns and I I use the analogy a lot of times with restaurants you could have the greatest food in the world you could make the best steak the best pasta nobody comes in sits down and and and pays for your food you’re going out of business and ultimately what makes a a restaurant work is that you uh are able to sell great food and at a great profit and and and make money doing it which is a hard thing to do in that business in particular but in general what makes a business valuable when you and I and and and the public go out and buy a stock we we say we’re g to go buy I don’t know uh Apple computer let’s say we’re buying Apple computer and it has a$2 trillion valuation to it or three trillion you say to yourself my partners and I are valuing this business for this much money and it’s no different than if you got a partner and you were going to buy um a uh I don’t know a Dunkin Donut franchise right well you’d say well we’re GNA pay uh $5 million or a million dollars or half a million dollars for this business because it’s generating how much money and It ultimately gets down to profits all any business is worth between now and Judgment day is what it earns over time and so all the stock market is worth between today and the future it’s what’s going to earn over time the the last way you can think about this and the way I like to because it was something something that I learned from Warren Buffett at the Burkshire halfway meeting if you look at the US economy over the last 50 years in 1960 we were a 500 billion dollar company country in 1970 we did about a trillion dollars in GDP 3.6 trillion in 1980 6.4 trillion in 1990 about 10 trillion in 2000 today we’ll do roughly around 27 trillion dollar in gross domestic product corporate profits make up five to seven % of of GDP historically so 7% of50 billion 500 billion is $35 billion 7% of approximately $30 trillion is a little over2 trillion so corporate profits from 1960 have grown from 35 billion to almost $2 trillion dollar and the stock market has grown bumpy as it may over time to reflect that growth in corporate earnings and and and that’s essentially why stock markets go up over time so the short run it’s a popularity contest right it’s driven by emotion and feelings and but in the long run it’s a weighing business and it weighs earnings and so earnings Drive stock price over time beautiful I think everyone can tell right now why you’re so sought after and why you’re such a leader in the space I mean the information you have is is amazing I just learn so much from you every time we get into conversation whether it’s here or privately so thanks for that so everyone just so you understand and I like to say that earnings or profits are the mother’s milk of stock performance so when you’re looking for stocks you want to look for stocks that are or companies that are growing their earnings that’ll put you in a much higher probability of success than just winging it or getting a stock tip from someone you work with so on that note Anthony I want to ask before we get into the specific areas the sectors and the stocks that you like how do you identify stocks how do you find stocks that other people aren’t looking for you know I I I having done this my whole life and been involved with it I I really like to go and look for things then look at the world differently kind of back look at things invert I would say the word is invert so and I’m going to draw a metaphor for you because I love it if you and I went hiking and we got our fishing poles and we knew we had to hike up this hill and and Mountain’s not too big and we went to a fishing Hall and and we saw 25 fishermen out there with their lines in the in the in the lake and we said what you and I would say well obviously this is where the fish is right because there’s 25 people also out there fishing and we would assume well let’s let’s throw our lines in too we’ll catch fish because there’s safety and and and in camaraderie but if you and I took an extra minute and we looked on our map and we said you know what there’s another fishing hole a little higher elevation we can hike up a couple more miles and let’s just go check that out first and we hike up two miles and all of a sudden we get to this empty fishing hole we walk up to the water and we look in the shallow and it’s just teeming with fish right they’re everywhere and you and I would look at each other and go oh my gosh we F we found it right there’s nobody here there’s you and I it’s teaming with fish we get our polls out we start pulling out big big big trout we’re we’d be sitting there thinking oh my gosh you know by spending a little extra time looking at our map and making an analysis we took that extra step and we found tremendous value right and and and the next question you would beg yourself is do you call all your friends and say come up here you you fill up your baskets before you tell anyone right I think know selfishly if you’re working on Wall Street and you think you found something like you probably have seven or great ideas in your lifetime like really good ideas and if you think you found one of them you know typically you’re like I want to make sure that I I get this right and I get I own a big enough position that it can make a difference in my life so but I think I’m investing that way so if everybody’s buying technology stocks and everybody’s got to own AI I say to myself well that can’t be a good idea because it’s it’s fished over and every analyst is covering it and it I can’t add any value and so uh typically historically I like to find great merchandise at half price I want to buy a business I want to walk up to somebody and say hey here’s two quarters for your dollar bill and I want the guy to smile at me and say sure I’ll take that deal and I’ll go so a up right give me give me your dollar for my two quarters and I want to do that all day long and so what you find is that changes over time sometimes it’s in Commodities like it is today sometimes it’s in energy and energy today too sometimes it’s in technology stocks right after March of 2000 we blew up all these technology stocks and there was tremendous value there were stocks trading less than cash so it doesn’t you have to be somewhat of agnostic you can’t love Pharmaceuticals or love technology or love energy or love consumer Staples you have to let the market and and where opportunity is and then seek that opportunity and and and and kind of have your your your own you know proven track record in terms of hey what what are what are you know how do I value this business and and and what do I think fair value it for it is all last thing I want to say all rational investing is value investing it’s about doing sensible things at sensible prices right we are rational investors in in in our country that’s why we go to Costco we are we don’t go to a Car Lot without knowing that that car I want to buy that new Buick is not $55,000 more than the lot down the street we check that we don’t again I think we’ve talked about this John we don’t apply our Costco standards to uh investing in the stock market we and that’s and and that’s to our judment um and it and it and it hurts us but uh there’s you say where do I go find stuff I try to go where everybody else isn’t looking because that’s where I’m going to find the value and and I think I’m G to get the returns there’s just so much to unpack there I mean I I love the Home Depot uh um sorry the Costco analogy and that comparison we’ve used that a lot yeah but yeah most people won’t do that because a lot of it’s the fear of missing out they hear of this hot stock they see it at an alltime high and that’s when they want to get into it I also love your fishing hole example I think that’s just perfect it reminds me of surfing in Hawaii you know grew up there and we’d go out and we’d see a crowd of people in the surf we’re like no way we’re out of here we’re going somewhere else we’re going to go find our own spot um and by the way speaking of Jeremy seagull great book for everyone um to to pick up uh stocks for the long run and he’s updated it SE several times and both Anthony and I have had the pleasure of being able to travel with Jeremy seagull and uh that’s always an adventure we could tell so great guy great guy um so Anthony before we get into the specific sectors that you’re in and by the way I want people to realize one thing that that you I hope you picked up on is when you’re investing in the stock market you’re not just buying some stock you are actually buying a business you got to think about about it like that you are buying a business and that’s why I think it’s so important to view let me just back up again another thing I want people to pick up on is that when you’re investing in the stock market you’re not just buying some old stock or some hot stock tip you are actually participating in a business you are now a business owner it’s a complete different mindset than when most people have so with that Anthony um I I can you boil down your investment strategy to a couple of bullet points when identifying stocks are there you know three to five things that you’re looking at specifically and then I want to ask how does the average person do that you know so many of the the viewers and listeners are working they’re managing a family and all of that how does the average investor navigate the stock market as you do well that’s a good question so uh for me I I try to uh I try to reduce everything in life to three things and uh because I can remember three things and so I I reduced really investing into three important things you look for businesses with a good valuation and in our business that’s from a corporate finance perspective that means price to sales price the book and price to earnings so I want to have a business that is valued uh at a at a fair price right I want to I want to I never want to overpay for a house a stock uh or Hershey bar so look for traditional valuation we call it and then I look for something called downside protection margin of safety which I would argue margin of safety is the single most important concept to understand as an investor so again metaphor if you build a bridge a small bridge and you get three cars in the North Lane three cars in the south South Lane Bumper to Bumper that would fit on this bridge so six cars total you would not build that bridge to withstand the weight of six cars you’d build a bridge that would withstand the weight of 16 cars right you’d build in a margin of safety because you don’t know if you’re gon to have a truck sometime or anything else and so you want that bridge no matter what happens to withstand whatever could happen that’s called margin of safety as an investor you’re looking for margin of safety and you ask yourself if I’m wrong or everything goes WR what’s this business worth so there’s certain metrics you could look at like Book value assets minus liabilities that will give you your book value and tangible book that’s without cash and it’ll give you some sort of idea of am I overpaying is there a margin of safety in this business if I’m wrong what’s this business worth I if if if you we use this analogy so many times John but if we if we we say to and this is generically because I don’t want to buy it here but if we said oh I want to buy Coca-Cola right I think Stock’s going up we were thinking about margin of safety with a business like Coca-Cola and we would say to ourselves well if we’re wrong and and and the stock doesn’t go up what what’s my margin of safety and we’d look at Coca-Cola and recognize okay Coca-Cola is the number one recognized English word in the world we recognize in every 24 hours around the globe they sell 1.7 billion drinks it could be water Fanta Coca-Cola and so I would say to myself as an investor I could be wrong about this stock but this is maybe one of the most incredible businesses that exists and there’s a certain margin of safety in that business when I buy it the value of the name the value of the franchise the value of all the other businesses they have it’s a tremendous business and then the third thing I look for is a catalyst what is going to make this business change many times as a value investor and I said this early all rational investing is value investing it’s about doing sensible things at sensible prices so when we look look at businesses we don’t we get a good valuation we get a fair valuation because for whatever reason either the marketplace earnings something’s a little bit uh off right if you’re GNA get a great business at a great price it’s going to be because there may be a shortterm event um one of the things about uh markets and John mayard Kean said that you know uh markets can stay irrational longer than uh most people can stay alive so you know you can be in a situation where you buy a great business at a great price but it could be it may not move if there’s not a reason for it to move right it’s not a reason so I look for a catalyst you look for could be a new product could be new management could be a big stock buyback uh in some of the cases Commodities it could be a massive move in in Commodities and and a shortage of Commodities around the world uh and stocks like that so you look for that Catalyst that’s going to unlock value and and uh so those three things uh good valuation downside protection margin of safety and you look for a catalyst that’s going to unlock that value and and make things uh make things appreciate value excellent so is it fa is it fair to say kind of summing up those three key points buying good businesses that are well positioned at a good price yes as I you wanna you wna and I think the the last thing and I I stole this from Charlie Munger You’ you’d rather pay a fair price for a wonderful business than a wonderful price for a fair business so you really do want to find those great businesses at great prices that’s that’s the best thing you can try and do excellent no that’s great so let’s move on and get more specific shall we um and you talked about the small and the midcap stocks what about the hard assets Anthony well I think that’s the best question and I think globally we have to recognize that two things have been going on one the money printing that you mentioned uh the 11 trillion in debt we’ve created in the last four years it took us 220 years to create 11 trillion of debt and we’ve created an additional 11 trillion in just four years so we’ve we’ve been spending that’s uh unsustainable it’s damaging our our economy so that’s number one and and and and hard asset stocks are are are businesses you know we we you can buy gold bullion for instance and you can hold your gold bars Costco right now is selling gold right you walk in and you can buy uh gold at Costco and they’ll sell sell it to you and and you can pay today it’s $2,312 an ounce and you can pay 2312 and and buy gold to Costco but you also can buy gold mining stocks and and I think this is something that you’ve heard certain people say today well if I buy gold I I I don’t you know I I don’t get paid anything and and it’s true if you buy the gold bars you don’t get paid anything but if you buy Newmont mining which is in the S&P 500 um excuse me Anthony when you say you don’t get paid anything meaning there’s no cash flow from buying a bar a bar yeah excellent point I’m glad you clarified that right you don’t get a dividend when you buy a bar of gold you’re buying that bar of gold today because it’s a store of value it has historically been and you believe that over time that bar of Gold’s going to be worth more money there’s a scarcity Etc uh but you can buy businesses that bring the gold out of the ground and and and this is fascinating anecdotal but if you took all the gold in the world and you melted it right it fits in three Olympic siiz swimming pools that’s it so we think oh there’s Gold Everywhere well not really there’s not that much of it and it’s hard to get out of the ground and it’s hard to mine and it’s hard to do it’s expensive it’s Capital intensive so it is a it’s been a store of wealth throughout the world right now China is buying a ton of gold right and and I don’t know that they know anything but their Central Bank is buying a lot and why are people gravitating towards hard assets because they see oh my gosh I’m worried about my dollar bills that I have in my pocket and so like the 70s when people are uh somewhat sensitive to uh the sort of inflation that we’re under they they lean towards hard assets but how would I get paid in Gold well you could buy Newmont mining it’s in the S&P 500 uh it’s a gold mining stock and it has a dividend yield of 2.46% so you can own gold and you can own a Mining stock that pays you a dividend at the same time so that’s one way you can get paid in Gold I think we really have to think about these green mandates around the world John think about um what how much copper are we going to need so A combustible engine uses about 54 pounds of copper and an electric car uses 154 pounds of copper so you need three times as much copper to build a electric car than you do a traditional combustible engine well where’s that going to come from um we have seen time and again the the the regulatory environment which is Banning uh uh the exploration and drilling both here and Canada for natural assets for real assets last week it was an Amer Road uh that was a road in Canada that had been approved uh by the Trump Administration U there’s a massive gold copper and Cobalt mine available to you know pull the assets out of the ground um two months into the bind Administration they they stop the building of the road the approval process and then three years later they just decided no you can’t build a road so what are we doing we we’re we’re demand is increasing for solar mandates green mandates all these mandates that that drive electrification so it’s beginning to be more and more difficult to get Commodities out of the ground in safer parts of the world where you have political stability and then you have to move to other parts of the world that are less uh politically stable to get these Commodities out of the ground that are less reliable and uh and and more costly so we’re in an environment today where demand is going up and Supply is going down and the ability to get supply where we have it just like we do in energy uh a lot of this is being curtailed for political reasons not for practical reasons so um that’s number one that’s the number one story on Commodities we we we have a a a depreciation a devaluation of our currency and we have a demand for Commodities across the board including silver including uh Platinum including Palladium all of these Commodities that um are trading at uh the Commodities themselves have moved but the the the businesses the underlying miners that make this stuff and build this stuff are 30 and 40 year lows and so you’re the Commodities are going up the stocks have been going down and down and down for a millennium let let me give you one great stat this one fascinated me and I did this specifically for the show if you looked at gold miners throughout our history so in 1928 now go 1921 gold companies gold miners made up about 28% of of of the market in 193 32 it was about 20% in 1948 it was 30% in 1981 it was about 177% 19% right between 17 19% today it’s two now what’s happened between 1981 and today what’s happened to the value of a dollar in 1981 I think it’s five times was worth more than it is today so what’s changed well we’ve bought other things and technology and earnings and all these other things but the reality is is I’m not saying it’ll ever go back to 30% it may never go back to 20% but it’s going to be more than 2% that I can promise you so when you asked me this question and I keep going back to where do you go find Value well I want to buy great businesses I want to buy value that’s where the value is you look at kind of historical norms and where we are and and what we’re doing to our currency we look at demand for Commodities um you know and and I’m going to Pivot a little bit here uh think about energy we are Banning drilling everywhere we just put more barriers up domestically we’re producing 13 million barriers of oil in the United States today and that makes us the number one producer of energy in the world so in spite of all the regulation we’re still the number one producer of of of energy which is amazing people think Saudi Arabia whatever but that’s in spite of of of the environment we’re in what would that look like if we said hey let’s let’s let’s be the producer of the world let’s be the biggest producer of liquid natural gas in the world what would we look like and and and you know if you’re if you’re an optimist and I try to be a touch you would say well how would we handle 35 trillion in debt well we we we think about ways to export natural gas to the world and and make money and and and that’s what we will ultimately have to do whether they want to admit it today or not but getting back to your original point we are at an inflection that’s just too Common Sense Anthony no but we we are at this inflection point right now you have the opportunity to buy things that are at generational lows and you have a political and a regulatory environment that are going to see uh you know shortages for the foreseeable future you can’t just say hey I’m gonna start a copper mine it’s not that easy takes at least a decade well let’s start a coal mine let’s start a a silver mine what it’s it’s not easy at all but the demand for silver the demand for platinum the demand for platium the demand for gold and and as as a safe is there so what I’m advising clients is I think you should have 10% of your assets not you know if you have a stock market portfolio and you have uh you know stocks bonds 60 40 base you should have at least 10% of your money in in things like gold silver uh and you can do them in the stock market and those names that should be your protection and it should be no different than you having an insurance policy or an umbrella policy to protect your home your family your car and everything else we hope that we don’t have a a currency or a financial crisis but if we do you want to have some gold and gold in the ground and and and that’s that that’s kind of you know I think the Outlook right now no that’s good um we got to wrap up here Anthony we’re out of time but um I did want to get a couple more names from you stocks that you like yeah well I I I will a couple that I like right now a couple big ones I mentioned just if you want to play Gold this simple Safe Way Newmont mining um I love it here love it at this price uh got a good yield safe uh you can also buy Barrett gold GLD so new month’s NM gold is Barett gold is go g and then I like a small silver Miner Adriatic Metals uh they just came online this year um trades around $3 uh market caps around 800 they’ll do a couple hundred million in in Revenue um and and I have a couple itty bitty ones that I love but I’m I’m gonna I’ll hold off on those because I like to give you three remember I’ll give you three things I’ll give you three great ideas in that space um and also if you have people that are interested in talking to me I can certainly leave my my uh my email if if you have anybody on your show that wants to uh wants to reach out to me personally and some of the some of the firms that I work with and people I work with in the industry absolutely we’ll get all that information out as we wrap up but it’s just I had no idea that much copper is required um for this ESG movement to build a car as you said it’s it’s incredible and that mining is so environmentally friendly isn’t it Anthony it’s so ridiculous well if you own free Port macaran copper F keep it and just don’t look back but yeah you you you’re you’re we’re in a we’re in a we’re in a phase over the next 10 years where it’s going to be very difficult for Supply to meet demand and and how that inspires is is who knows you know we just don’t know but one there’s a few things we can know we can look at valuations today and on a risk reward basis where you want to be and that doesn’t mean there AR great businesses and and you own them um and you’ve own them for a long time and they’re up a lot I’m not I’m certainly not saying sell them but I I I am saying that you should you should be aware of of of this inflection point where I think we are and and really protect yourself yeah last joh don’t have long duration on bonds don’t own long bonds don’t keep your durations or your maturities in your bonds and your treasury short the average investor should could buy a two-year treasury or less and be safe uh own Common Stocks but just really really high quality Common Stocks not overpriced have some Commodities have some things like gold silver you know some of those commodity names and and they’re in stocks that are uh that are there to protect you if we do hit some bumpy uh bumpy roads and we hit some uh turbulence out there which we undoubtedly will I think this going to be very very difficult six months through the election and uh we’re going to see a lot if we continue to see the social unrest and Wars around the world I think it’s it’s going to be bumpy so uh we want to approach these things with a a tremendous amount of caution but uh still and still being opportunistic uh lastly John anybody who’s on your show wants to talk to me I’d love to talk obviously uh it’s it’s Anthony a an t h n y fiduciary architects.com that’s fi du u c i a r y a r CI cs.com fiduciary Architects send me an email I I love your Fe back on the show love to talk to you about uh the markets and so on and and that could be any help I’d love to do it awesome I was going to ask you to wrap up what your final thoughts were but I think you just hit it so thank you very much Anthony appreciate that and and and for those listening please take Anthony up on his offer I mean he loves to talk about this stuff and give you some guidance and help and show you how to make money in this markets based on the based on the tips or excuse me based on the businesses that he likes right now so with that and by the way I did do a show last week on Silver why I like silver over all Commodities right now mainly because of its scarcity as well as its price and its industrial uses so you want to check out that show because I think silver has got got a long way to go on the upside and that’s Adriatic medals by the way perfect thank you for thank you for sharing that so I hope you like the show hope you got something out of it if you did please leave a comment in the uh in the comment section below don’t forget to hit subscribe don’t forget my brief video on my cash flow wealth building strategy at go. joh mcgregor.net with that have a great week and we’ll see you next time take care and Aloha bye-bye thanks for listening and supporting full disclosure if you like this episode remember to like And subscribe and follow full disclosure to make a better financial plan for your future join our cash flow boot camp where John shows you a safe and smart way to turn your investments into a steady income stream in a fraction of your time learn to make money in any Market until next time this podcast is a presentation of Rich Dad media Network

In this episode of Full Disclosure hosted by John MacGregor, special guest Anthony Eichler, a 30-year stock market veteran, shares his insights into mastering the stock market landscape of 2024 and beyond. Eichler covers dynamic investment strategies, specific stock recommendations, and a unique perspective on gold investing for cash flow.

MacGregor and Eichler discuss current economic uncertainties, including the impact of global events and policies on financial markets, and outlines strategies for wealth accumulation and protection through investing in stocks, commodities like gold, silver, and copper, and minimizing risk. Eichler emphasizes the importance of investing in undervalued assets, seeking out opportunities amidst chaos, and adopting a cautious yet opportunistic approach to the current financial climate.

00:00 Introduction
02:08 Introducing Stock Market Veteran Anthony Eichler
04:08 Navigating Today’s Economic Uncertainty: A Deep Dive
11:39 Historical Parallels: Learning from the 1970s
14:06 Investing in a World of Opportunities: Strategies for Growth
18:52 Understanding Stock Market Dynamics: Earnings as the Key Driver
22:53 Finding Hidden Gems: Identifying Undervalued Stocks
24:13 Unlocking the Secrets of Value Investing
25:59 Rational Investing: A Guide to Sensible Market Strategies
28:37 Decoding Investment Strategies: Valuation, Safety, and Catalysts
33:45 Exploring the World of Hard Assets and Commodities
40:53 Navigating the Future: Investment Strategies and Market Predictions

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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.

The content presented here is based on the speaker’s personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.