Hi friends.

Welcome to your June 2021 monthly newsletter.

I’ve had a great few weeks, with the highlight being a long-overdue QLD crew catchup in Brisbane (photos below).

I’m telling you, shared love, laughter and a like-minded community are so special right now!

What came out of that is several of our team are currently making record profits in residential renovations, and Airbnb is stronger than ever with domestic travel.

Today however, I wish to address two big news items:

INFLATION, and the CRYPTO CRASH.

Plus don’t miss the huge profit potential in our Gift of the Month below as well.

Inflation:

Official government stats over the twelve months to the March 2021 quarter, state the CPI (Consumer Price Index) rose 1.1%...

Seriously?! I’m not sure what planet these people are living on!

With housing costs making up the largest part of CPI, CoreLogic’s latest report reveal’s the annual growth rate of combined regional dwelling values (13%) was more than twice that of the capital cities (6.4%) in the 12 months to April 2021. Regional rent values increased almost three times as much as the capital city too.

In terms of building and construction costs, a home builder client of ours Mark from WA, yesterday informed me the prices of bricklaying have almost doubled in the past 12 months... adding around $8,000 in bricklaying labour alone to a new build. He also mentioned timber is up 20% in the last 3 months!

Another builder I spoke to in NSW, said some home extensions he quoted just a year ago, are now being re-quoted at double the original price.

A home improvement boom has seen demand for new pools sky-rocket along with the prices. Several pool builders I spoke to are booked solid till Christmas, when they would normally have only a 6-week work pipeline.

One family-owned pool builder on the Gold Coast said to expect prices of metal and cement to increase again from July this year, up 7 to 10%.

And a local earthworks company where I am, said despite being flat-out, their margins are being squeezed on already agreed contracts as their Machine Operator rates have jumped and will have to be passed on in new contracts.

[There’s also a shortage of good tradespeople across the country... companies are having trouble attracting new workers, and are having to pay more and more to keep their current workers to avoid them being poached elsewhere.]

This is what happens with cheap money and all-time low interest rates, plus government incentives pumping a market without considering the flow-on effects.

Case in point, the government’s $25k Homebuilder Grant for new builds and major renovations.

Did the government really subsidise your build by $25k, or did they just fuel a country-wide cost increase of $25k on every build project?

Certainly makes me wonder how they get their 1.1% figure.

In the US, year-over-year CPI rose 4.2%. That’s looking back 12 months. Looking ahead to the next 12 months however tells a much different story.

April’s monthly inflation rate came in at 0.8%, so that means the annualised rate is 9.6% – more than DOUBLE the look-back rate.

Is it time you started thinking about what assets retain or increase their value during rising inflation?

My research suggests Australian residential properties keep 2 to 3% above inflation over time (and all the better if you can buy at a discount or add value).

Something Russia and China know is that precious metals do well too...

While the West foolishly prints fiat currency, creating market bubbles... China is keeping 100% of its mined Gold... and Russia has quietly dumped all its US Treasuries and lifted the country’s financial reserves in Gold to 20%!!

Crypto Crash:

The second big news has been the massive crypto sell-off that occurred in the past week. Around US $1 trillion dollars was wiped off the total crypto market value with flagship coin Ethereum (ETH) falling up to 55% from its all-time highs, reached just 11 days prior!

Many attribute the sell-off to comments made by Tesla CEO, Elon Musk, about Bitcoin mining energy consumption and his company ceasing to accept Bitcoin as payment for cars... plus the Chinese government ‘banning’ Bitcoin again – for the umpteenth time!

As we always say, crypto sure is volatile and the market bounced back about 30% the next day or so. I’ve got a lot more to say about this in my Video of the Month below.

Gift of the Month:

Speaking of Elon, one way you could have profited in the past few months was by trading options, in particular PUT Options on Tesla (TLSA) – which is NOT a current trade recommendation.

In last month’s newsletter, I wrote about the US Stock market bubble at all-time highs, for no real reason other than unlimited financial stimulus. With a historic Price to Earnings Ratio (P/E Ratio) of about 15, current US stock market P/E Ratio was around 45 (second highest in history), with Tesla at a nose-bleeding P/E Ratio of... wait for it... 1,186!!

For a company that relies of government subsidies, pays no dividends, and makes massive losses from the sale of its cars, that’s not sustainable in my books...

And sure enough, Tesla fell from it’s $900 February highs to $550 last week, and a current P/E Ratio of 609.

I don’t think this was very hard to see this incredible trading opportunity personally. I know Michael Burry – famous for the movie ‘The Big Short’ – certainly did, as he had a massive $534 MILLION dollars worth of PUTS against Tesla!

Of course, you might not be in Michael’s league here financially, but you could have done the exact same trade with just a small amount of money, and made the same percentage outcome.

And with the US market still at all-time highs, many absurd P/E Ratio’s do still exist.

There’s a timely opportunity here for those of you that would like to discover how to safely trade options, whilst minimising your risk.

And unlike crypto’s, with options you can make more money faster when the markets go down, so don’t miss our Gift of the Month.

Get Educated Now!