A Powerful Wealth-Building Strategy for Times Like These
Amanda Heckman|July 21, 2023
“Something just seems… wrong.”
So says our newest contributor, and market whiz Anthony Summers.
As the markets continue heading skyward… it’s important to listen to your gut.
The S&P 500 is up 19%* this year… and the Nasdaq is up nearly 40%.
But as Anthony pointed out yesterday… there are red flags.
Gross domestic income – GDP’s oft-overlooked fraternal twin – is tracking negative growth. And S&P earnings growth is also moving backward.
But it’s not just the economy at large that’s faltering…
No… the unease hits closer to home as well.
While the talking heads crow about consumer confidence… our nation’s debt is soaring.
Americans hold nearly $1 trillion in credit card debt.
Sure, folks are spending, which boosts our consumer-driven economy… but they’re spending on credit. And with interest rates the highest they’ve been in decades… and student loan payments set to resume…
That’s one chicken that will come home to roost.
In fact… it’s already on its way.
From Bad to Worse
Credit card delinquencies are on the rise. At 2.4%, they’re fast approaching where they were at the height of the pandemic, before stimulus payments kicked in.
But when we drill down into specific age groups, it gets worse.
For those aged 18-29, credit card delinquencies came in at 8.3% in the first quarter, compared with 5.1% a year ago. And for those aged 30-39, the rate was 6.27%… higher than it was before COVID.
Personal bankruptcies are also on the rise. In the first half of 2023, total individual filings were up 17% year over year. And Chapter 13 filings were up 23% year over year.
Living above your means has consequences.
Too bad the government won’t take heed. It has already spent $1.39 trillion more than it has collected in fiscal 2023. (But that’s a rant for another time.)
Sure sounds like more folks should read Andy’s missive from Wednesday…
He told us how the average Amish family in his area lives on just $17,000 of income each year…
That’s around half the $30,000 poverty level for a family of four. And few Amish households stop with just two children… Most have four or more. By the norms of American society, these folks should be on every government assistance program out there. They could be getting free food… free insurance… free school… even free cellphones.
But try to buy a farm around here. You’ll almost certainly get pushed out by a fella in a straw hat holding a fat checkbook. Even more, they’re happy with what they’ve got.
It’s why he’s convinced they’ll take over the world someday… Their fiscally conservative outlook has created generations of folks rich in life and family.
But you don’t have to live like the Amish to enjoy that kind of freedom. We’ve long believed the secret to a richer, fuller life is to simply break your bowl in half.
In one of our most popular essays ever… we shared the most powerful wealth-building strategy we know. If you use it, your wealth will increase. In fact, follow it to the letter, and your wealth will double… guaranteed.
It could go a long way toward curing what ails us… and Washington.
Then we’d truly see what our economy is made of.
Learn how to break your bowl here.
* As Anthony explained to Manward Letter Premier subscribers yesterday… the S&P 500’s gain looks far less impressive when you weight all its stocks equally. By that method, it’s seen just a 9% gain this year. How’s that for a gut check?
Amanda Heckman
Amanda Heckman is the editorial director of Manward Press. With unrivaled meticulousness, she has spent the past dozen or so years – give or take a few sabbaticals – sharpening Andy’s already razorlike wit. A classically trained musician and a skilled writer in her own right, Amanda takes an artistic approach to the complex world of investing. Her skill has led her to work with numerous bestselling authors, award-winning financial gurus and – lucky for us – the fine folks at Manward Press.
