In his latest video, Teeka Tiwari discusses the inflationary effects of the wealth transfer on society. The video is a teaser for a full-length book that will be released in 2019.
As costs continue to rise across the board—from food, gas, and clothes to rent and transportation—inflation seems to be one of the most frequently discussed problems in 2021.
At the same time, assets such as real estate, stocks, and high-end goods are increasing in value, making the richest people more wealthy.
So the issue is: what can ordinary people do to avoid and profit from inflation?
Teeka Tiwari, on the other hand, claims to know the solution.
Teeka discusses the problems surrounding inflation in a recent presentation, claiming that it may be the “biggest wealth shift of the century.” He also discusses how his “inflation-protection investing” suggestions may help you “be on the winning side” of it.
I’ll take you through his inflation theory and recommendations in this post. I’ll also let you know what he’s pitching (Palm Beach Letter) so you can determine if it’s worth it.
Teeka Tiwari’s Inflation Teaser is dismantled.
The presentation I’ll be presenting is titled “Which Side Will You Be On?” and can be seen on the Palm Beach Research Group website.
palmbeachgroup.com is the source for this information.
Teeka Tiwari’s work is familiar to me; he’s one of the most well-known “investment gurus” in the financial education sector, and I’ve written about some of his previous forecasts.
The most recent one, for example, was about Genesis Technology, which dealt with blockchain-related ventures. The one before that was about his 3rd Trillion Dollar Trade, which included hallucinogenic investments.
This is the first time I’ve seen him give a presentation with such a threatening tone, although he gives a lot of them to sell his different consulting services.
Anyway, he’s talking about a “terrifying new pattern” (inflation) this time:
A frightening new trend, dubbed “inevitable” by The Wall Street Journal, is pushing every American to make a critical choice right now… one that may determine their financial destiny for the next decade.
He also discusses a new measure in Congress that he claims has the potential to “set off the greatest market event of this decade.”
This measure is dubbed the “wealth transfer act” by him.
To be clear, it is not the name of a law or legislation. Teeka Tiwari uses the phrase to refer to a $3.5 trillion reconciliation measure and a second $1 trillion bipartisan infrastructure plan that are now being discussed in the United States.
It’s a $3.5 trillion reconciliation proposal that would finance all of the main programs in President Joe Biden’s initial infrastructure plan.
When combined with a second bipartisan plan, the total additional expenditure is projected to reach $4.5 trillion.
Teeka uses the phrase “wealth transfer act,” as far as I can tell, since he thinks that all of this expenditure contributes to increased inflation rates.
And, he claims, inflation is causing a wealth shift as the cost of living rises (worsening the poor’s situation) and asset values rise (making the wealthy even wealthier).
Here’s a sample of Teeka’s perspective on the issue from the presentation:
Most Americans don’t have enough money to cover unexpected expenses like vehicle repairs or medical costs.
Only 39% of Americans could cover a $1,000 unexpected expenditure.
Meanwhile, billionaires like as Jeff Bezos are accumulating so much wealth that they are unsure what to do with it.
Here’s how he explains why he believes it’s happening:
Why are the ultra-wealthy becoming more wealthier, while millions of Americans are left behind?
I can assure you that it is not because capitalism is ineffective…
It isn’t because we aren’t spending enough…
Or any other cause you’ve heard about in the news.
The reality is…
Inflation benefits the wealthy, but it has a negative impact on the average person.
When prices rise, who benefits?
All of the government spending and creation of money is driving up the value of things such as stocks, collectibles, and real estate.
And who is the owner of these assets?
In the presentation, he goes into more depth, but that’s the essence of it.
Teeka claims that inflation is rising as a result of factors like “money printing” and excessive government expenditure, which is widening the divide between the wealthy and the poor, similar to a presentation on inflation by Dr. Eifrig that I previously reported on this site.
He also points out that several successful investors are likewise concerned about these issues. Ray Dalio, Paul Tudor Jones, Michael Burry, and Steven Druckenmiller are just a few examples.
It’s important to remember that some of what Teeka says is part of the story he’s telling to promote his Palm Beach Letter service. Nonetheless, I believe he raises some valid arguments.
What is Teeka’s plan to combat inflation?
Teeka believes bitcoin is his “#1 inflation investment”:
I also advise you to purchase Bitcoin (ticker: BTC).
It’s my number one inflation-protected investment.
He also claims to have a “significant part” of his money in bitcoin, claiming that it is an excellent inflation hedge and may help you increase your wealth quicker than anything else.
I’ve invested a large part of my money in Bitcoin because it will not only protect you against inflation, but it will also help you increase your wealth quicker than anything else you’ve ever seen.
Many in the bitcoin community think it is an excellent inflation hedge, and one of the major reasons is that it has a limited quantity of 21 million coins. To put it another way, it can’t be printed.
Regardless of whether we’re in an inflationary or deflationary climate, I believe it’s a good idea to hold some bitcoin, which is why I do. But that’s just me. Nothing on this website should be construed as financial advice. It’s not the case.
If you want to understand more about bitcoin, this essay by Lyn Alden is one of the most knowledgeable and well-written on the topic. She goes into great detail about why it makes sense.
Apart from bitcoin, we’ll speak about some additional “inflation protection investments” Teeka recommends in the following section, as well as his service, Palm Beach Letter.
“Inflation-Protection Investments” by Teeka Tiwari
Apart from bitcoin, Teeka suggests a combination of equities, a crypto savings account known as a “1170 account,” and some other cryptocurrencies as “inflation-protection investments” (altcoins). We’ll take a deeper look at them in this section.
Stocks to Invest in If Inflation Returns
Teeka discusses how commodities soared during the 1970s inflation period and how they are a good method to guard against inflation in her presentation.
As a result, this law may increase demand for commodities such as iron ore, copper, and aluminum, which are utilized in conventional building projects…
Lithium, tin, and nickel are all important commodities for the energy shift.
However, rather than investing in commodities directly, I suggest investing in businesses that generate them…
He suggests three commodity-related businesses in particular, and explains his choices in a report titled “My Top 3 Stocks for When Inflation Returns,” which you can receive by signing up for the Palm Beach Letter.
Teeka basically argues that if you save cash, you’ll be plundered by inflation. While it may seem exaggerated, it is accurate. Because inflation reduces the currency’s buying power, your money becomes less valuable over time.
If your bank pays you interest on the money you keep in their account, and the interest rate is greater than inflation, that’s great. Otherwise, your money will lose buying value.
If you deposit $100,000 in the bank at the start of the year and the bank gives you 2% interest, you’ll wind up with $102,000 at the end of the year. These are good times.
However, if the annual inflation rate is 5%, the value of your money is down 3% (2% interest minus 5% inflation), which means you have (actually) $97K.
In other words, you may have $102K in your account at the end of the year, but that money is now worth $97K since the interest you received was less than inflation. Negative real interest rates are the name for this phenomena.
Anyway, let’s go back to Teeka’s suggestion. Although there is no such thing as a real “1170 account,” he refers to one that enables you to earn interest on your bitcoin.
Teeka explains it this way:
Peter Thiel, a billionaire and co-founder of Paypal, teamed up with Fidelity to finance and assist in the creation of a new kind of account I’m calling the “1170 account.”
It’s a unique account that pays up to 7.5 percent in interest… This is 125 times the average savings account in the United States…
However, it also pays you interest on something that, in my opinion, will be worth much more in the future.
The “1170 account,” as it turns out, refers to a letter issued by the Office of the Comptroller of the Currency (OCC).
BlockFi, I think, is the business he’s referring about. They pay significantly greater rates on assets like bitcoin than you can earn on cash in a traditional bank account at the time of writing.
Of course, you must evaluate the dangers involved, and everyone’s circumstances are unique, but that is the focus of Teeka’s advice. In his article, “The Bitcoin Boost: Using the 1170 Account to Boost Your Crypto Gains,” he explains how it works.
Finally, Teeka discusses investing in “little cryptos.” These are referred to as altcoins since they are cryptocurrencies that are not bitcoin.
This is my least favorite of his recommendations since, although it is possible to profit from cryptocurrency betting, it is also extremely simple to lose money. Many of these tokens, in my view, are frauds, therefore I try to avoid them.
Nonetheless, in a study titled “My Top 3 Tiny Cryptos for Blockchain Millionaires,” Teeka lists his top three altcoins.
How can you find out more about Teeka’s picks?
You must read the three special reports Teeka has put together to understand the complete facts behind all three of his recommendations:
- My Top 3 Stocks for the Return of Inflation
- The Bitcoin Boost: How to Supercharge Your Crypto Gains With the 1170 Account
- Blockchain Millionaire: My Top 3 Tiny Cryptos
The Palm Beach Letter, his advice service, is the only way to receive them.
What Is The Meaning Of The Palm Beach Letter?
Teeka Tiwari of Palm Beach Research Group runs The Palm Beach Letter, a financial advice service. Teeka’s newest investing analysis and recommendations, the model portfolio, and frequent updates are all available to subscribers.
Teeka is well-known for his bitcoin and cryptocurrency selections, although the service focuses on long-term “buy and hold” businesses and dividend-paying equities for the most part.
If you join via the presentation, it will cost you $49, and the business will give you a 60-day money-back guarantee.
Teeka Tiwari: Who Is She?
Teeka Tiwari is a former hedge fund manager with a lot of experience in the financial publishing industry.
His endorsement of bitcoin in 2016, around the time he took over the Palm Beach Letter service, was one of his major claims to fame. However, based on what I’ve seen, has a good track record of suggesting companies in a variety of industries throughout the years.
He also manages Palm Beach Research Group’s higher-priced services, such as Palm Beach Confidential, Palm Beach Venture, and Palm Beach Special Opportunities, in addition to being the editor of Palm Beach Letter. And he’s often engaged in the marketing of his services, such as the one we’ve just described.
Teeka’s “wealth transfer” talk is all about increasing inflation and how it affects ordinary people. In other words, he believes it is widening the wealth divide.
He proposes a portfolio that includes bitcoin, altcoins, commodities stocks, and a “1170 account” that pays interest on your crypto holdings (which I think is a BlockFi savings account).
In general, I believe Teeka makes some excellent arguments regarding inflation, and I am a bitcoin supporter. I also think that some of his stock selections may be excellent, based on his track record.
In any case, The Palm Beach Letter is a genuine advice service, so it may be beneficial depending on your objectives and tastes. Especially considering the price of $49.
The only thing I’d add is that, although Teeka seems to have a solid track record, there’s no assurance that his suggestions will generate profits in the future. So I wouldn’t go in without first knowing the dangers or expecting to become wealthy fast.