It’s been a while since I’ve come across a Teeka Tiwari pitch… but low and behold, the Nasdaq rallied yesterday, and Tiwari has resurfaced with a new stock teaser.
This time, he’s pitching “Maverick Investments.”
What’s it all about?
In short, Tiwari states that investors could lose half their money in the next four years due to inflation and more or less claims that his “Maverick Investments” are the solution.
As for what his picks are, Tiwari teased multiple investments in this presentation, and I’m not sure what all of them are because the clues he shared were very limited.
But I think I know what one of them is.
So let’s discuss what he’s predicting and look at the clues he shared to see what company he’s tracking.
Breaking Down Teeka Tiwari’s Inflation Prediction
The main idea behind Teeka Tiwari’s latest prediction is that inflation is likely to stay higher for years, potentially even the next “decade or more,” which he claims is being caused by a so-called “sinister force.”
“… there is a sinister force at play that’s the real reason behind inflation…
“Which means inflation is not going to let up…
“This nightmare could easily last a decade or more… just like in the 1970s…”
What “sinister force” is he talking about?
According to Tiwari, inflation is largely being caused by the Fed and government embracing an ideology he refers to as “Free Lunch Theory,” or FLT.
There’s no such thing as FLT lol…. this is just a term Tiwari coined for modern monetary theory, which (generally speaking) revolves around the idea that the government can spend as much money as it wants without stoking inflation.
Long story short, Tiwari suggests that these types of (“easy money”) policies have led to inflation and claims that the “real problem” (and the “sinister force” he mentioned) behind all of this is an “abandonment of American ideals.”
“FLT could never take root in the America you or I grew up in…
“So the real problem here is the change in the psyche of our country.
“In fact, you could say it like this…
The real cause of inflation…
“The sinister force that’s driving inequality in our country…
“Is the bit-by-bit abandonment of American ideals…”
He then talked about how it all started in 1971 when Nixon took the U.S. dollar off the gold standard, which allowed the government to print more money, increase its spending, and expand its debt. Basically, he suggests that it all went wrong from 1971 onwards.
“It all started back in 1971…”
[…]
“So Nixon broke the US dollar off the gold standard…
“This allowed the government to print money without constraint…
“Allowing for even more government spending…”
[…]
“Government debt has grown so much since the early 70s that you can’t plot it on a chart without it looking crazy…”
From 1971, Tiwari argues that “real” wage growth (i.e., inflation-adjusted wage growth) has stagnated while the financial sector and financial assets have grown.
This is a (very) similar point to what Nomi Prins made in her “Great Distortion” presentation, basically that everything changed in 1971, which caused a divergence between financial assets and real wages.
There’s a lot of marketing fluff in these types of presentations, so I recommend taking what is said with a pinch of salt.
But there’s also some truth in what Tiwari is saying.
As I pointed out in the above writeup about Prins’ stock pick, there’s even a website dedicated to breaking down “WTF Happened in 1971,” which is pretty interesting.
Anyways, Teeka Tiwari summed up his thesis this way:
“When you print money and create inflation to increase government spending…
“Real wages go down…
“And financial assets go up…
“So the rich, who own a disproportionate amount of financial assets, watch their wealth soar…
“And the people who rely on their wages…
“Well, they’re left behind…
“Everything gets more expensive… from housing to food, to energy…
“At the same time, they don’t benefit from the run-up in financial assets…”
It’s hard to argue with that.
That is exactly what inflation does… makes life more expensive for the average person while ramping up the value of most assets, which benefits the wealthy.
But with the Fed now raising rates, and stocks tanking, isn’t that turning around?
Possibly, but Tiwari doesn’t seem to think so…
“… the Fed won’t raise rates significantly until their hand is forced…
“And that’s when the risks of letting inflation continue to rise outweigh the pitfalls of crashing the whole system with a crazy high interest rate…
“At that moment, all bets are off…
“We have a long way to go before that happens though…
“Because just like in the 1970s, the government will do everything in their power to delay the reckoning…”
Is he right?
I don’t know. I’ve heard many good arguments for continued inflation and many for a potential deflationary bust. I’ve also heard sound arguments for stagflation (which is essentially both inflation and deflation at the same time).
As for what actually ends up happening, only time will tell.
Nevertheless, that’s the gist of what Teeka Tiwari is predicting. That inflation is likely to remain high for a decade, despite rising rates. And the “solution” to all of this, as per Tiwari’s pitch, is his so-called “Maverick Investments.”
“Maverick investments have done very well for me…
“And in this type of environment, they’ll only get better…
“Because this is the beginning period for inflation… of a New Order of Money…
“It’s also just the very start for the gains you can see in Maverick Investments…”
What is a Maverick Investment?
Tiwari basically describes a Maverick Investment as an asset that he believes could do well during periods of high inflation. And according to Tiwari, the way to “spot” them is to find assets that are “real,” “rare,” and “enduringly desirable.”
What Are Tiwari’s “Maverick Investment” Picks?
Teeka Tiwari’s first pick appears to be some type of “collectible” NFT-related crypto play, and his second pick is a lithium mining company. He also teased several other investments, but given the lack of clues, I don’t know what those are.
In any case, let’s break down the clues he shared.
“The Maverick Collectible: My #1 High-End Collectible to Crush Inflation”
Teeka Tiwari’s first pick centers around “high-end collectibles,” which he claims have been “soaring” since the “New Order of Money” (aka high inflation) began in 2020.
“… high-end collectibles are mainstream investments for ultra-high net worth individuals.
“And if you’re looking for real, rare, and enduringly desirable assets that will kill inflation…
“This is one of the best places to do it.”
[…]
“Since the New Order of Money began, these assets are soaring…”
High-end collectibles aren’t very accessible to everyday investors, though.
For example, one of the examples Tiwari shared in the presentation was that of a high-priced watch he bought for $50k that apparently 8X’ed in price.
So I was pretty sure he wasn’t talking about investing in expensive watches. And before long, Tiwari dropped some hints about this pick that suggests it’s an NFT or something.
“New platforms have sprung up to democratize access to high-end collectibles…
“They securitize a collectible…
“In short, they turn it into a tradable asset that’s like a stock…
“And they sell shares in it…
“That means anyone can buy high-end collectibles just like buying a stock through your brokerage account… starting with $50 if you like…
“Just set up an account on the right platform, and you can be in the market today.”
He didn’t reveal anything else about this pick, but based on what he said above and knowing that Teeka Tiwari is a well-known crypto enthusiast, I’m willing to bet that this first pick has something to do with speculating on some crypto token or NFT-related “asset.”
I’m not even going to go into my thoughts on buying into glorified jpegs (lol); I will just say that this is a space that I recommend being extremely cautious of.
Anyway…
Let’s look at his next pick, which I was able to uncover…
“The Maverick Commodity: 2,898% Demand Growth for the Resource Elon Musk Desires Most”
Teeka Tiwari’s second pick is a lithium mining company.
In short, he pointed out that commodities tend to do well during periods of high inflation and said he believes that “the best story in the world of commodities” is lithium, which is used to make EV batteries (among other things).
Here’s a summary of what Tiwari said in the presentation:
“… another thing that does really well in periods of inflation is commodities…”
[…]
“… they can’t be printed…
“So when you print lots of money, commodities naturally go up in price…
“Because there’s more money chasing the same amount of goods…”
[…]
“For me, the best story in the world of commodities is related to the metals associated with EV cars…
“And specifically, lithium…”
[…]
“According to research firm Mckinsey, Lithium supply is only forecast to grow by 519% by 2030…
“It’s not nearly enough…
“And this supply squeeze is going to impact prices.”
[…]
“… I’m going to give you my #1 play to take advantage of the lithium boom…
“They’re a small company based right here in the United States…
“A pure lithium play – it’s all they do…
“And they have a competitive advantage over every other player in the market…
“They’re the only company which refines battery grade lithium in the entirety of the USA…”
What company is he teasing here?
Based on the above clue about it being the “only company” that refines battery-grade lithium in the U.S., I think Teeka’s lithium stock pick is Albemarle Corporation (ALB).
Albemarle is a specialty chemicals manufacturing company based in North Carolina, and according to CNBC, it “runs the only meaningful lithium mine in the U.S.,” which is located in Silver Peak, Nevada.
Albemarle is a large-cap stock that is trading close to all-time highs as of writing.
And it pays a very small dividend.
Is it a good investment?
I can’t comment on that; this is something only you can decide.
But there are some useful articles about Albemarle online, like this one on the Motel Fool, that you might find helpful.
And if you want to know if this is Teeka’s pick (for certain) and get all the details about his recommendation, you could see his “Maverick Commodity” report.
How do you get that? The above report, like the other reports he’s put together on his Maverick picks, comes with a subscription to his flagship Palm Beach Letter service.
The service costs $49 for the first year and basically gives you access to Tiwari’s latest Palm Beach Letter stock picks, research, and market commentary.
I’m not a member of this service, so I don’t know how worthwhile it is, but that’s the service you’d need to join if you wanted to access his reports, including the report about his “My #1 Maverick Investment,” which he shared virtually no clues about in the teaser.
Recommended: Go here to see my #1 rated stock advisory of 2024
Bottom Line
Teeka Tiwari’s “Maverick Investments” presentation centers around his prediction that inflation is likely to remain elevated for potentially the next decade. And after breaking down his thesis, he teased several different investments he’s bullish on.
One of them appears to be crypto/NFT-related, another is a lithium mining company, and the others he was very tight-lipped about, so I don’t know what they are.
Tiwari did make some good points about inflation in the presentation, but I have no idea if what he’s predicting will play out or not.
Nor do I know if his recommendations will work out or not.
What I can say, however, is that there is no guarantee you’ll profit from following his investment ideas. So I don’t recommend rushing into anything hoping to get rich quickly, especially since, as with any investment, there are considerable risks involved.
If there’s one sure way to lose money, it’s “apeing” into an investment based on what some guy on the internet said… without doing your own due diligence.
Anyway, that’s enough of my ramblings.
Thanks for reading, and all the best!
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