Powerball & The Milkshake Theory

“My milkshake brings all the boys to the yard.” [The Wiggin Sessions] November 04, 2022 [WEBSITE]( | [UNSUBSCRIBE]( Powerball & The Milkshake Theory “My milkshake brings all the boys to the yard.” — Kelis, American singer [Addison Wiggin] Addison Wiggin Dear Reader, The Powerball jackpot is now up to $1.6 billion dollars. It will be the single largest sum ever doled out by the Multi-State Lottery Association. What would one do with such an egregious amount of paper dollars? You can write in your wildest dreams [here](mailto:WigginSessions@5minforecast.com). It’s not a trick question. Of course, most of the money goes to the government– after a back of the envelope calculation… if there is one winner and he/she were to take the lump sum, $187.8 million would be withheld for federal taxes. Who knows what the state and local school board or Boy Scout chapter would take. There are interesting facts about those who win the lottery. [Click here to learn more]( Devon hairdresser Mandy Williams celebrates her £1.6 million lottery win with husband Alan. (Source: Montage Communications) It’s what’s known as the “curse of the lottery.” A Kentucky man who claimed a $21 million prize in 2001 and lost it all by 2006… A West Virginia man whose daughter and granddaughter died of heroin overdose after he won $315 million dollars in 2002. An oft-cited statistic by the National Endowment for Financial Education (NEFE) claims that 70% of people who suddenly receive a windfall will lose all of it within just a few years. In January 2018, the NEFE publicly admitted the statistic was not, in fact, backed up by any of their research. Heh. “What’s this got to do with our investments, Wiggin?” you might ask. “After all, this is money we don’t have!” You’re right. But it’s Friday so, bear with me. There is something to learn from the psychology of lottery winners, no matter how catercorner it seems to be. Especially at the tail end of the longest bull market in history – 2009-2020. Brent Johnson, CEO at Santiago capital, went viral earlier this year for what he calls “The Milkshake Theory of the Dollar.” He argues that global central banks injected QE liquidity into the “milkshake” of the global market– much like a lottery winner suddenly airdropped a ton of cash– that made the market rosy-eyed and led a lot of investors to think they were geniuses. Now the swill of interest rate hikes, Bidenomics and green energy policy, the American empire of debt and credit, and the ever-growing United States military have “swapped out that syringe for a straw.” The theory envisions a scenario where the US dollar sucks up liquidity from other currencies worldwide. Hence the strong dollar. Like a too-stunned-to-speak jackpotter however, the money is flowing for all the wrong reasons. When the dollar strengthens, as the dollar index indicates it has, that means foreign revenues for corporations are making the gurgling sound at the bottom of the paper cup. Lower earnings for Dow and S&P 500 companies are just one reason the stock market is such a bummer to talk about. But, maybe the “milkshake theory” will be a fun way to explain to your friends and family this weekend why their Fidelity brokerage account has dropped so low YTD. Follow your own bliss. [Addison Wiggin] Addison Wiggin Founder, The Wiggin Sessions P.S. If you missed this week’s Session with Robert Breedlove– “freedom maximalist” and Bitcoin philosopher– you can watch it in full [here](. Sponsored by Stansberry Research “Financial Reset”Is Coming In 2023 [Click here to learn more]( People have seen serious losses in the stock market, and it’s going to get even worse –especially in 2023. But not in the way you might expect. If you know what’s coming, 2023 could actually end up becoming the best year of your financial life. [Click here to learn more](. Ed note: Got something to say? Send your feedback to The Wiggin Sessions [here.](mailto:WigginSessions@5minforecast.com) LISTEN ON [The Wiggin Sessions]( The Wiggin Sessions is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Consilience, LLC. delivering daily email issues and advertisements. To end your The Wiggin Sessions e-mail subscription and associated external offers sent from The Wiggin Sessions, feel free to [click here.]( Please read our [Privacy Statement.]( For any further comments or concerns please email us at support@5minforecast.com. 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