Inflation seems to be one of the most widely discussed issues of 2021 as prices continue rising across the board—everything from food, gas and clothing to rent and transportation.
At the same time, assets like real estate, stocks, and luxury items are going up, making the wealthiest individuals even wealthier.
So the question is – what can everyday people do to escape, and benefit from, inflation?
Well, Teeka Tiwari says he has the answer.
In a recent presentation, Teeka talks about the issues surrounding inflation and says it could turn out to be the “biggest wealth transfer of the century.” He also talks about how you can “be on the winning side” of it with his “inflation-protection investment” recommendations.
In this article, I’ll walk you through his inflation thesis and what he recommends. I’ll also give you the heads up about what he’s pitching (Palm Beach Letter) to help you decide if it’s worth it.
Breaking Down Teeka Tiwari’s Inflation Teaser
The presentation I’ll be discussing is located on the Palm Beach Research Group website and has the headline “Which Side Will You Be On?”
I’m familiar with Teeka Tiwari’s work, he’s one of the most popular “investment gurus” in the financial education space, and I’ve written about other predictions he’s made.
For example, the last one was about Genesis Technology which was about blockchain-related investments. The one before that was about his 3rd Trillion Dollar Trade, and that one had to do with investing in psychedelics.
This is the first time I’ve seen him do a presentation with such an ominous outlook, but he runs many presentations to promote his various advisory services.
Anyway, this time, he’s talking about a “terrifying new trend” (inflation):
A terrifying new trend that The Wall Street Journal called “inevitable” is forcing every American to make a crucial decision right now… one that could seal the fate of their financial future for this decade.
He also talks about a new bill working its way through Congress that he says could “set off the biggest market event of this decade.”
He refers to this bill as the “wealth transfer act.”
To be clear, that’s not the name of an actual bill or act. It’s just a term Teeka Tiwari uses to describe a $3.5 trillion reconciliation bill and a separate $1 trillion bipartisan infrastructure bill that are both being debated in the U.S. right now.
It’s a $3.5 trillion reconciliation plan that would fund every major program President Joe Biden wanted to include in his original infrastructure plan.
Combined with a separate bipartisan package, it’s expected to bring the total of new spending to $4.5 trillion.
From what I can gather, Teeka uses the term “wealth transfer act” because he believes that all of this spending leads to higher rates of inflation.
And he says inflation is leading to a wealth transfer as the cost of living goes up (making the poor even worse off) and asset prices continue rising (making the wealthy even wealthier).
Here’s a snippet from the presentation on how Teeka sees the situation:
Most Americans don’t even have enough cash to pay for unexpected bills, like an emergency car repair or medical bill.
Only 39% of Americans could pay for a $1,000 emergency expense.
Meanwhile, billionaires like Jeff Bezos are making so much money that they don’t know what to do with it.
Now here’s his explanation on why he thinks it’s happening:
Why are the super-rich getting richer than ever while millions of Americans are being left behind?
I can tell you it’s not because capitalism doesn’t work…
It’s not because we’re not spending enough money…
Or any other reason you might have heard from the media.
The truth is…
Inflation is great for the rich but not so much for everyday folks.
Think about it….
Who benefits when prices go up?
All the government spending and money printing is pushing assets like stocks, collectibles, and real estate higher.
And who owns those assets?
He provides more detail in the presentation, but that’s the gist of it.
Similar to a presentation by Dr. Eifrig on inflation that I recently covered on this blog, Teeka says inflation is running higher due to things like “money printing” and excess government spending, which in turn is creating an even wider gap between the rich and poor.
He also points out that there are some successful investors voicing concerns over these things, too. Like Ray Dalio, Paul Tudor Jones, Michael Burry, and Steven Druckenmiller.
It’s worth keeping in mind that some of what Teeka says is part of the narrative he’s using to sell his service, Palm Beach Letter. But I do think he makes some good points all the same.
What’s Teeka’s solution to inflation?
Teeka says his “#1 investment for inflation” is bitcoin:
I also recommend you buy Bitcoin, ticker BTC.
It’s my #1 investment for inflation.
He also says he has a “big portion” of his savings in bitcoin because he believes it’s a good protection against inflation and can help you grow your wealth faster than anything else.
I have a big portion of my savings in Bitcoin because it will not only protect you against inflation… but help you grow your wealth faster than anything you’ve seen before.
Many people in the bitcoin space believe it’s a good inflation hedge, and one of the main reasons for this is that it has a fixed supply of 21 million coins. In other words, it can’t be printed.
Personally, I think it’s a good idea to own some bitcoin regardless of whether we’re in an inflationary or deflationary environment, which is why I do own some. That’s me though. Please don’t consider anything on this page to be financial advice. It’s not.
That said, if you want to learn more about bitcoin, one of the most intelligent, well-written articles on the subject is this post from Lyn Alden. She really breaks down why it makes sense.
In the next section, we’ll discuss some other “inflation protection investments” Teeka is recommending aside from bitcoin and talk about his service, Palm Beach Letter.
Teeka Tiwari’s “Inflation-Protection Investments”
Aside from bitcoin, Teeka recommends three “inflation-protection investments” that are a mix of stocks, a crypto savings account he calls an “1170 account,” and some alternative cryptocurrencies (altcoins). In this section, we’ll take a closer look at these.
Stocks for the “Return of Inflation”
In the presentation, Teeka talks about how commodities skyrocketed during the 1970s inflation era and says these are a great way to protect against inflation.
So this bill could boost demand for commodities used in traditional construction projects, such as iron ore, copper, and aluminum…
And commodities essential for the energy transition such as lithium, tin, and nickel.
But instead of investing directly in commodities, I recommend investing in companies that produce them…
Specifically, he recommends three commodity-related companies and details his picks in a report titled “My Top 3 Stocks for the Return of Inflation,” which you get by joining Palm Beach Letter.
Teeka more or less says that if you hold cash, you’re getting robbed through inflation. While that might sound a little over the top, it’s true. Because inflation devalues the purchasing power of the currency, which means your money becomes worth less over time.
If your bank is paying you interest on the money you hold with them, and the interest rate is higher than the inflation rate, good and well. If not, your money is losing purchasing power.
For example, if you put $100,000 in the bank at the start of the year and the bank pays you 2% interest per year, you’ll have $102,000 by the end of the year. Happy days.
However, if the inflation rate for the year was 5%, then (net-net) the value of your money is down 3% (2% interest minus 5% inflation), which means you’ve (really) got $97K.
In other words, you might see $102K sitting in your account at the end of the year, but the purchasing power of that money is now $97K since the interest you earned was lower than inflation. This phenomenon is known as negative real interest rates.
Anyway, back to Teeka’s recommendation. There’s no such thing as an actual “1170 account,” but this is the name he gives to an account that allows you to earn interest on your bitcoin.
Here’s how Teeka describes it:
You see, Billionaire and co-founder of Paypal Peter Thiel partnered with Fidelity to fund and help create a new type of account I call the “1170 account.”
It’s a special type of account that can pay up to 7.5% interest…which is 125 times higher than the average savings account in the U.S…
But it also pays you interest in something that I believe will be worth a lot more in the future.
You see, the “1170 account” refers to a letter published by the Office of the Comptroller of the Currency (OCC).
I believe the company he’s referring to is BlockFi. As of writing, they pay much higher rates on assets like bitcoin than you can earn on cash in a typical bank account.
Of course, you need to consider the risks involved and everyone’s circumstances are different, but that’s what Teeka’s recommendation revolves around. And he details how it works in his report: “The Bitcoin Boost: How to Supercharge Your Crypto Gains With the 1170 Account.”
Lastly, Teeka talks about investing in some “small cryptos.” These are known as altcoins because they’re alternative cryptocurrencies to bitcoin.
This is my least favorite recommendation of his because, even though it is possible to make money betting on altcoins, it’s also very easy to lose money. And in my opinion, many of these tokens are scams so I tend to steer clear of them.
Nevertheless, Teeka details his top three altcoins in a report titled “Blockchain Millionaire: My Top 3 Tiny Cryptos.”
How do you get the details on Teeka’s picks?
To get the full details behind all three of Teeka’s recommendations, you need to read the three special reports he has put together:
- 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
And the only way to get those is to join his advisory service, The Palm Beach Letter.
What Is The Palm Beach Letter?
The Palm Beach Letter is an investment advisory service run by Teeka Tiwari of Palm Beach Research Group. As a subscriber, you get access to Teeka’s latest investment research and recommendations each month, the model portfolio, and regular updates.
Teeka is pretty well-known for his bitcoin and crypto picks, but for the most part, the service is focused on longer-term “buy and hold” companies and dividend-paying stocks.
The cost of getting started is $49 if you join through the presentation, and the company offers a 60-day money-back guarantee on this.
Who Is Teeka Tiwari?
Teeka Tiwari is a former hedge fund manager and is pretty well-known in the financial publishing space.
One of his main claims to fame was his recommendation of bitcoin in 2016, around the time he took over the Palm Beach Letter service. However, from what I can see, has established a solid track record over the years recommending stocks across different sectors.
Aside from being the editor of Palm Beach Letter, he also runs higher-priced services over at Palm Beach Research Group like Palm Beach Confidential, Palm Beach Venture, and Palm Beach Special Opportunities. And he’s often involved with promotions of his services like the one we’ve discussed today.
Teeka’s “wealth transfer” presentation is all about rising inflation and its impact on everyday Americans. In short, he suggests it’s causing the wealth gap to widen.
The solution he offers is a mix of bitcoin, altcoins, commodity stocks, and an “1170 account” that pays you interest on your crypto assets (which I think is a BlockFi savings account).
Overall, I think Teeka makes some great points about inflation, and I’m a fan of bitcoin. I also believe that, based on his track record, some of his stock picks could be good too.
And either way, The Palm Beach Letter is a legitimate advisory service, so depending on your goals and preferences, you might find it worthwhile. Especially for $49.
The only thing I would say is that, even though Teeka appears to have an excellent track record, there are no guarantees his recommendations will make you money going forward. So I wouldn’t rush into this without understanding the risks or expecting to get rich quickly.