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How to Outsmart Inflation + Discover Rising Stocks 🟢

How to Outsmart Inflation + Discover Rising Stocks 🟢

Plus AI Update of the Week

Cashflow Chronicles
July 21, 2023

🎉 Hello and welcome to our new Cashflow Chronicles issue!

A hearty hello to our new subscribers - you've joined a community that's all about building wealth and maximizing potential.

This week, we’re weighing up the 2023 stock market and some ideas on how you can use it as your financial shield.

In only 4 minutes, you will learn:

✔️ The wild ride of the 2023 stock market.

✔️ How the big stock players stack up.

✔️ The top stocks of 2023 that caught everyone's eye.

✔️ Three unknown stocks ready to take flight.

✔️ How the stock market can keep your money safe from rising costs.

Get ready, it's time to get started.

(Note: Stocks are fun but can be risky. We want to teach and inspire you, but don't take this as money advice.)

A Wild Ride

2023's Stock Market: A Fun House of Frights or a Chance to Win Big?

This year’s stock market is like a wild roller coaster. It's wild, spins around, and keeps your money plans on their toes.

While the S&P 500 (+15%) and Nasdaq Composite (+30%) are flying high, others like the MSCI World Index (-5%) had their wings cut.

Problems in Ukraine, fears of less money, and talks of a coming slow-down all add to the wild ride.

But don't forget, every cloud has a silver lining.

Even with a gloomy view... strong business profits keep climbing, and some economies are doing well.

What's the forecast like for the next five months? Some market pros see rough storms ahead, others see calm skies.

Airing on the side of caution, The New York Times thinks it’s been a good stretch but that this doesn’t paint the whole picture.

The only sure thing? The market's path depends on how the economy grows, how much costs rise, and the outcomes of world events.

To sail through the rest of the year, you need a sturdy money plan and a sharp eye for good chances.

Star Stocks and Rising Stars

The Big Winners of the 2023 Stock Market and the New Stars to Watch

So far, big tech companies like Tesla, Apple, and Microsoft are the big stars and have driven most of the index growth with their sharp rises.

Others on the A-list are Amazon, Alphabet, Meta Platforms, Nvidia, Berkshire Hathaway, Johnson & Johnson, and Goldman Sachs.

But remember, every portfolio needs some differentials to promote diversification and reduce risk. Here are our “lesser-known” picks to watch…

Shopify (SHOP), up 96% YTD is a place to shop online that's set to grow with more online buying.

Dollarama (DOL), up 11% YTD is a cheap store that's not as affected by a bad economy.

Brookfield Asset Management (BAM), up 19% YTD is a company that manages assets and gives you a way into the world economy.

With a chance to shine in the coming months, they are definitely worth a closer look.

Check out what investors.com predicts for the next six months.

What will you add to your pile?

Keep Your Money Safe from Rising Costs

Inflation: The Quiet Money Thief and Your Stock Market Shield

Inflation—the quiet money thief—stepped up in 2023, with the CPI at its highest in 40 years. Gas and food costs are up 14.9% and 8.3% in Canada and even higher in the US.

But every bad guy needs a good guy, and stocks are here to save the day.

Putting money in stocks can shield you from inflation's harmful effects.

But don't jump in without looking. Pick stocks that:

Offer essential goods and services - the first thing that people cut back on are luxuries
Can raise prices with ease
Have a strong past of growing dividends

The Motley Fool regularly gives tips in this area and lists two interesting stocks here to beat inflation.

Stocks in basic needs, utilities, and healthcare—known as defensive stocks—can act as money shields during tough economic times.

And precious metals, like gold and silver, are a way to fight inflation, so they can be an excellent way to keep your wealth safe if you're worried about rising prices.

Speaking of which…

Silver Gold Bull is a top online Canadian precious metals dealer. It's easy to buy and store gold, silver, platinum, and palladium.

With a wide range of products and great prices, Silver Gold Bull is the perfect place to start your precious metals investment journey.

Go check them out here (affiliate link)

That's it for this week's Cash Flow Chronicles!

Think of the stock market as more than a way to make money—it's also your shield against rising costs.

A varied pile with a mix of high-performing, possible game-changers, and defensive stocks can help weather any economic storm and keep your wealth safe from inflation.

Stay sharp, keep building strong cash flows, and we'll meet again next Friday at the usual time!

Cashflow Chronicles Team

AI Update of the Week

Do you sleep? Bots don't. They work day and night. They sift through mounds of stock data. Their goal? To find you the best trades. Bots use AI and machine learning to do this.

Bots can see patterns we can't. They look at so much data at once. And they do it in seconds. That's much faster than any human can.

Want to learn more about this and how to try it out? Check out this article: 10 "Best" AI Stock Trading Bots (July 2023).