You Will Need More Income, and Soon: Inflation is Coming

Bear Market, Income Investing, Markets

The global coronavirus pandemic disrupted the global “just in time” manufacturing strategy at a level that is just now starting to become clear. Manufacturers now have to live with unforeseen parts shortages, such as the computer chip shortage that have caused companies like Ford Motor Company (F) to cut back severely on its production plans.

Computer chips are just the chip of the iceberg when it comes to the problems companies will soon face in producing or acquiring goods to sell. Do not be surprised later in the year if you see prices skyrocketing or you even find that what you want to buy simply is not available.

I received a fascinating email last week from one of my subscribers, John, a very successful importer of retail goods. As background, understand that the U.S. imports approximately $200 billion worth of goods from China every month. On an annual basis, that comes to $2.4 trillion of imports, just from China. Assuming those represent wholesale values, sales of goods from China likely top $5 trillion per year in the U.S. That number, $5 trillion, equals about 20% of the entire U.S. GDP.

John operates as the middleman between Chinese manufacturing companies and U.S. retailers. I greatly appreciate it when he sends me updates on what’s going on in his world. Here is the email text I received last week:

“Subject: ocean freight

a year ago paid $2800-3300 for a 40′ box from Asia -USA

it’s now $15,500

contracts are worthless

it’s going to impact every aspect of retail & component supply chain

especially big ticket

I feel like I’m an Economic Paul Revere: ‘The Price Hikes are Coming’

couple that with shortages

my new slogan :

‘in 6 months ..those with the most inventory win’”

From the “where to invest” perspective, this outlook raises many questions without a lot of answers. Remember that both manufacturers and retailers are locked into the same just-in-time supply system, which, if what John says is accurate, may have run out of time.

While the Federal Reserve and financial news “experts” seem optimistic about inflation, I believe we could experience much higher prices for things we buy every day. The best cure to offset higher costs is more income. If your investment portfolio isn’t throwing off an 8% average yield, look at my Dividend Hunter service. Year in and year out, the Dividend Hunter recommendations have paid on average an 8% yield.

ACTION REQUIRED: 35% Silver Dividend Monthly Payer Going Ex-Div Soon

This stock is increasingly becoming a Dividend Hunter favorite. And it's no wonder considering it pays a 35% dividend yield, it pays monthly dividends, and it trades for less than $10 a share - a powerful combination for investors looking for stable, affordable yield.

It's going ex-div in June, so there's still time to claim the next payout.

It's part of my Dividend Hunter high-yield portfolio that can pay most, if not all of your bills in retirement.

See below on how to get started with the 36-month plan that can pay your bills for life and get the name and ticker of my 35% Silver Dividend stock. Click here for details.

 

[FREE DOWNLOAD] 10 Simple Rules for Trading Options Like a Pro

[FREE DOWNLOAD] 10 Simple Rules for Trading Options Like a Pro

Follow these 10 simple rules from 20-year professional options trading veteran, Jay Soloff and start earning a reliable extra income from options.

 

NO prior experience needed to master these 10 simple options trading rules. 

 

Enter your email below and receive access to this FREE guide...

You have Successfully Subscribed!