Doctor’s Rounds for January 23rd, 2022

Discover My #1 Cashflow King
for 2022 and Beyond

Robert Rapier: It’s time for Dr. Joe Duarte’s latest “Daily Rounds” as we lead up to the Profit Catalyst Symposium on Tuesday, January 25th at 1pm Eastern time.

Dr. Joe Duarte: We’re finally getting closer!

Rapier: Yes, and by this point – with the help of our entire Investing Daily research team – you’re also quite a bit closer to narrowing down to the #1 Catalyst Trade for the coming year.

Duarte: Closer, but not quite there yet. Remember, we started with thousands and thousands of possible stocks, and countless ways of trading them. We’ve already got our top Moonshot Catalyst, our top Med-tech Catalyst, and our top Tactical Catalyst... so today we’re going into our top Cashflow Catalyst, and that will give us our four finalists.

Rapier: And then you’ll narrow down from those four finalists to find the #1 Catalyst Trade, and that will all be revealed at the Profit Catalyst Symposium on Tuesday.

Duarte: That's right. It’s been a painstaking process for us, but I think our viewers are going to like the end result and find it actually quite easy to implement.

I mean, it’s so hard to play this market right now if you don’t have appropriate guidance. You could say the entire market is “sick” (that's what the kids call it these days!) and that we’re trying to find a “cure” that individual investors can take to make this market work for them and come out on top.

Rapier: That sounds like something a doctor would say!

Duarte: Well what would an engineer say?

Rapier: Oh boy, the other analysts warned me that you would be a very tough debating partner… and that you might try to tell me some terrible “dad jokes.”

Duarte: OK, no more jokes. But I might live up to my reputation as a debater. So think about it… what would you say about what will move the market in 2022, Robert?

Rapier: Well, as you know Joe, I’m a stock picker and engineer. And my analytical brain would say that a process that’s gone “out of control” can lead to volatile and unexpected results. And that would describe the market’s current dangers and opportunities quite well. My field, coincidentally, was CHEMICAL engineering, so I’m pretty familiar with Catalysts as well.

Duarte: So how would you explain a Catalyst?

Rapier: A Catalyst enables or speeds up a reaction. In layman’s terms, it makes something possible that would otherwise be impossible. In this case, these are subtle trends that are changing the market, that will eventually emerge from our current state of confusion, and become the new forces that power our world.

Duarte: That's absolutely right, and that’s exactly what we’re looking for, something that juices up areas whether those trends are new technology Moonshots, new ways of improving human life and well-being with Med-tech, new Tactical ways of trading, or as we’ll discuss today, new ways of generating Cashflow.

Rapier: And of course the other change we’re looking for… the other thing we’re trying to “Catalyze”... is we want these trades to actually WORK. We want them to cause a change in our readers' portfolios, in their wealth!

Duarte: Of course, that goes without saying! Otherwise, they're not any good. We’re not here for theory, no matter how many doctors and lawyers and engineers we keep throwing at this problem… we’re here for trading RESULTS.

Rapier: As an engineer I can say that I appreciate how systematic your method is.

Duarte: Well, thank you. But it's true… with each of these Catalyst Trades, we start by narrowing down the possibilities, then we find an unstoppable trend that’s coming to a tipping point, an angle of attack, and a window of timing. That’s the method that resulted in a 2,021% annualized gain for readers in our recent “beta test,” and it’s the same one I’m using to try to reach for a 2,022% gain with the #1 Catalyst Trade for the year.

Rapier: I’m happy to help.

Duarte: Thank you, I appreciate it! And as we move toward the light at the end of the tunnel here… it’s been such an honor to lock horns with all of you guys, and to try to complete this “quest” for everyone who’s signed up, and who'll watch me reveal my #1 Catalyst Trade for 2022 and beyond.

Rapier: Well let’s go on a quest for some Cashflow today… starting with what you’re calling  “The Stream Catcher.”

Duarte: It’s hard to find anything you can count on in the market these days. But that’s what Rapier does in finding income-generating investments.

So I know you’re all about Cashflow — how does this focus on Cashflow reconcile with my search for exotic moonshots, exotic trades, etc.?

Rapier: Well, it makes a lot of sense actually. My readers know I am all about Cashflow.

Because Cashflow is at the heart of ALL profitable investing.

But in some cases there’s no way to access it except through a future capital gain or through “engineering” a trade for your own Cashflow… but there are certainly cases where the trends we’re tracking are being harnessed by very smart companies in ways that are generating Cashflows DIRECTLY and distributing them DIRECTLY in the form of dividends, distributions, royalties, and other such investor-directed cashflows.

So in these cases nothing beats the direct route… it’s just that finding something reliable that hasn’t already been “picked clean” is not easy, especially in an inflationary environment that can eat into your returns.

Duarte: I absolutely agree with you. And It’s also worth saying that not every transformation is a moonshot, a coup-de-grace, or a sudden breakthrough… some are occurring as steady undercurrents.

In fact, “The Stream Catcher” is a great example.

I mean, we’re talking about a brand NEW way of accessing an OLD Cashflow, which is royalties that are paid for entertainment properties on film, television, and music.

Just think of that new documentary about the Beatles… these cash generating properties can last for a long, long time. They make money EVERY time someone listens, or views, or hits that click button. And it also proves that there’s no force more powerful than nostalgia… the same people can experience them again and again, and also pass them down through the generations.

I mean, think about this... the money from this area actually BOOMED higher than ever during the pandemic, and it's still doing so into the current year. Which is why guys like Bruce Springsteen and Motley Crue cashed in on their music catalogs recently.

Look at Ringo Starr... he owns just a small fraction of those Beatles royalties and he still earns about $10,000 a day in royalties EVERY DAY.

Rapier: Yeah, even as the way we consume entertainment changes, this Cashflow can be persistent and growing They used to sell sheet music before recording technology even existed. Now we have high quality streaming that involves no physical transfer or even permanent transfer of digital files… but the royalty cash is still there. In that sense not much changes.

The trouble is that if you weren’t an actor, a musician, a producer, or a wealthy private investor, it was difficult to directly access these Cashflows. That’s where things have changed. There are a number of new platforms that allow trading these rights. Unfortunately, some of them still require very large investments into the hundreds of thousands of dollars.

Duarte: But that was in the past though Robert. Now there is one new instrument we discovered that allows you to access a huge set of music royalties and you can do that with one simple stock trade.

Rapier: Yeah, that is a really cool new concept for sure.

But the next Cashflow catalyst trade we want to discuss harnesses a trend that’s even older than the Beatles… we’re talking about 10,000 years old.

Duarte: Hey, there's nothing wrong with old! Human civilization started with a little technology known as agriculture that makes land more productive, and turns land into an asset… if you could have traded that Moonshot 10,000 years ago, that would have been the greatest investment of all time.

Rapier: Of course your land would also be around Baghdad and you would have lost it to invasion many times over.

Duarte: Well, there is that, isn't there. So let’s look at a second-best scenario and reveal what the world’s wealthiest investors are doing NOW as they pile into this very same asset.

A lot has changed in the last 10,000 years. But on the other hand, the more things change, the more they stay the same! Our civilization is still based on using land to grow food, and there’s always barely enough of it. In the past, this was because we lacked the power to transform most of the earth into agricultural land. We had to use the land that was most specifically suited to it. But now, we’ve used so much of the planet for other purposes — to house cities, to generate energy, and so on — that we don't have enough of it. But we still need that farmland.

Rapier: Exactly. And you know who is the largest owner of private farmland in the United States? Bill Gates. Others you’ll find high on this list are billionaires like Warren Buffett, John Malone, and Ted Turner…

Duarte: Well, no surprise there. Some of those you are talking about own ranchland, but at the same time, it can still be used to grow food so we’re going to analyze it similarly.

And we’re not vegetarians, after all, are we?

Rapier: Hey, you promised no more jokes!

Duarte: I don't remember that!

Rapier: Yeah, but listen, with the inflationary trend now, the investments of these very wealthy guys are looking all the more prescient. Imagine a guy like Gates who made his fortune creating intangible software Moonshots, and now he’s one of the biggest farmland owners in the United States. He knows these kinds of Cashflows are a key piece of the puzzle for investing in 2022, if not THE key piece.

Duarte: Sure. In a way, it's like music royalties. Farmland is not a new concept but we're not able to easily and directly play this as a small private investor until recently.

And likewise, there is now a simple, major-exchange stock trade we CAN trade to get exposure to this asset class, which is favored by billionaires.

Rapier: Great. Well, let’s talk about one more trade that gives us an edge against inflation, which may be persistent. We’re calling it “The Inflation Eraser.”

Duarte: I hate to show our age a little bit, but most of who us lived through the 1970s and we know that it’s possible to have “stagflation” (of course, that means inflation is occurring at the same time as economic growth is slowing). And this seems like the path we could be headed on today. There was a very good way to make money from that situation the last time it happened… it’s very shiny and it’s called gold. You would have made 5x your money by just sitting on it.

Rapier: For the record, I was in kindergarten when the 70s started. But, I’ve heard about those days.

In the current crisis we are NOT finding that gold is offering up the same inflationary hedge. In times of inflation, like right now, you’d expect the price of gold to go up. But that’s not the case. The price has basically stayed flat.

Why? That’s a difficult question to answer. One possible explanation is that the market is an inhuman force that doesn’t like to be fooled twice, so it tends to be that if everybody piles into the same area in expectation that it’s an inflation hedge, that very thing may not happen. Gold becomes a paper asset based on reflexive layers of investor expectations and in that sense it becomes correlated to every other asset we’re trying to hedge against like cash and stocks.

Duarte: Yeah. You could call this “The Wall Street Effect”… you can start with any asset, even those with physical commodity scarcity, and “financialize” it, sometimes to the point that it starts to go up and down with everything else.

Rapier: Indeed, that’s how it goes. Many of the arguments in favor of Bitcoin and other cryptocurrencies claim that they are going up precisely because they are hedging against inflation and this financializing, correlating effect of Wall Street,

Duarte: Yeah, but it seems more likely that Bitcoin is highly correlated to tech stocks and other market movements and it will undergo a bubble and pop similar to what we saw in 2000. The only question is when.

Rapier: So what CAN we find — other than song royalties and farmland — that can give us consistent Cashflow in 2022, and will benefit from this inflation trend and offer us not just a hedge but a reverse-correlated ADVANTAGE? What can go UP if everything else goes DOWN or at least diminishes in real yield?

What can we use to combat “golden stagflation,” to coin a term?

Duarte: Well one answer that we can find is that gold is not “that far off”... maybe precious metals is actually a better answer because they do have limited physical supply and they also have the backstop of being demanded for industrial processes in addition to being purely speculative commodities.

Rapier: OK, so we know about silver and copper and platinum, and we want to avoid something that’s too volatile like rare Earth metals where so much of the supply is controlled by China.

Duarte: So by process of elimination, one good answer is actually palladium.

And guess what they use palladium for? It’s used in the catalytic converters of automobiles. How’s that for a “Catalyst”?

Rapier: Great idea. Palladium went up 55% from March to November of last year as the inflation trend began to take hold during the pandemic.

And not to be a broken record but this is another area where your options were more limited in the past but easier for the ordinary investor now.

Duarte: You bet. It’s great to have different “angles of attack” especially in “sick” markets where volatility is crazy.

In fact, we now have the ability to trade either a large miner that obtains palladium as part of a multi-pronged operation, or there is also now an option for investing in a “pure play” that focuses on palladium in particular.

Rapier: Yes, there are many more choices today for an investor who wants to trade in something like palladium. There are precious metal companies that trade on the major exchanges – which I prefer as a more conservative investor. Also in that same vein are ETFs that trade in palladium. But if your risk tolerance is higher, there are plenty of smaller pure players in that space.

Duarte: Those are all great points, Robert.

Rapier: Finally, something we can agree on!

Duarte: Finally!

Rapier: You did it, Doc. You beat us all up, you wore us all out.

Duarte: Well, that explains why I'm so tired. But more importantly, we have our four finalists for the #1 Catalyst Trade of the coming year.

Rapier: And that means we’re all ready for the Profit Catalyst Symposium on Tuesday, January 25th at 1pm Eastern time.

Duarte: Well, you guys might be ready... but I still have a lot of work left to do!

Rapier: More research to narrow down those “final four” picks to your top Catalyst Trade for 2022?

Duarte: Right, I’ll discuss all FOUR of them in much more detail on Tuesday. You’ll be given the chance to see the exact stock ticker symbols, the trading method, the prices at which to enter the trade, the price to sell, the exact timing we’re looking for, and so much more. And to find out which one is my highest confidence… my #1 Catalyst Trade for 2022.

Rapier: OK well those are the doctor’s orders! For us, get lots of rest and get ready for Tuesday at 1pm with a sharp pencil and an open mind. For Joe, well my friend, get back to work!

Duarte: It is a lot of work, but it’s also an immense joy. I can’t wait to share my top Catalyst Trade of 2022 with everyone on Tuesday.

TUESDAY Jan. 25th @ 1pm EST: Join me here at right here at 1pm EST for the 2022 Profit Catalyst Symposium! I’ll reveal my #1 Catalyst Trade for 2022 and beyond and much more.