Inflation Is Coming Back Down to Earth 🌎

Consumers are angry. Investors are unhappy. But the good news is prices are about to come back down to earth. Here's why... [Shield] AN OXFORD CLUB PUBLICATION [Liberty Through Wealth]( [View in browser]( SPONSORED ["I've Never Recommended Something Like This Before"]( [AG on Stage]( Has the world's greatest stock picker gone mad? He picked Amazon, Netflix, Apple... [And now this?]( Alexander Green makes a BOLD prediction to a huge crowd in his latest TEK Talk... And it might just help set you up for retirement. [Click here to see more.]( EDITOR'S NOTE As Alexander Green explains in today's article, although inflation has recently tormented consumers and investors alike, relief is coming. That's why now is the perfect time to diversify your portfolio. Luckily, wealth-generating ideas abound here at Liberty Through Wealth. And one of them involves investing in income-generating assets... Studies have shown that dividend stocks have [outperformed the broad market by 222%]( over the past 60 years. Despite that, [many high-quality dividend-paying stocks are trading at a discount](. In Chief Income Strategist Marc Lichtenfeld's [FREE Ultimate Dividend Package]( not only will you learn how to lock in an ultra-safe 9% yield but you'll also learn about the [safest 8% dividend in the world]( - and so much more... [Click here to get started.]( THE SHORTEST WAY TO A RICH LIFE [Why Inflation Will Come Back Down to Earth]( [Alexander Green | Chief Investment Strategist | The Oxford Club]( [Alexander Green]( The market began the year with a plunge. Then it rebounded a bit. Now it has the jitters, with multiple sell-offs and rallies. The culprit is inflation. Consumer prices have risen at a 7% rate, the fastest level in 40 years. Inflation is the thief that robs us all. It crimps purchasing power. It reduces profit margins. And it erodes our standard of living. Moreover, it causes interest rates to rise and equity values - based on discounted cash flow analysis - to contract. Today's high inflation rate is largely due to a bungled pandemic response by the U.S. government, as well as many governments overseas. Economic lockdowns hurt manufacturing, transportation and retailing - and completely derailed the global supply chain. (They also destroyed many businesses and livelihoods.) Trillions of dollars of overly generous "stimulus and relief" spending fattened pocketbooks and encouraged millions of people not to work, exacerbating a labor shortage. The Federal Reserve was completely behind the curve, holding short-term rates near zero and continuing its massive quantitative easing program, even as it became clear that prices were rising sharply. Consumers are angry. They don't like high prices at the grocery store. They don't like $50 fill-ups at the pump. And they don't like having less to spend after they pay their overhead. Investors are unhappy too. Many believe high inflation is here to stay. But it's not. You want to know why bond yields are still under 2% and gold has hardly budged? Because inflation will abate by midyear and fall by more than half by year's end. Here's why... SPONSORED [Get Marc's Top 5 Dividend Stocks (FREE PICKS)]( World-renowned income expert Marc Lichtenfeld just released his [Ultimate Dividend Package](. Inside, you'll find his TOP FIVE dividend stocks right now. And today, he's giving you this package... completely free of charge! To get your FREE dividend recommendations, [click here now](. Relief Is Around the Corner The Fed knows it screwed up. That's why Jerome Powell and company put the world on notice that short-term rates are headed up and quantitative easing is coming off. Higher rates make it more expensive for consumers and businesses to borrow. That helps reduce pressure on prices. "Build Back Better" - with its additional trillions of dollars in deficit spending - is dead. Yes, Democrats will pass some of the provisions in the bill into law this year. But it won't have nearly the fiscal impact. Washington's inflationary spending is about to peter out. The economy expanded at a 6.9% rate in last year's fourth quarter. That helped deliver the strongest GDP growth since 1984. But that is already yesterday's news. Economists project a slowdown from the big reopening quarter in last year's first quarter. Indeed, the Federal Reserve Bank of Atlanta just forecast GDP growth of a paltry 0.1% for this quarter. Slowing economic growth dampens inflation too. Also, the pandemic caused consumers to spend much less on services. (When you are discouraged from leaving home, you will spend less on dining, leisure, travel and entertainment.) Flush with government cash, consumers picked up their spending for goods online instead. They bought computers, furniture, in-home exercise equipment and electronic gadgets galore. Goods averaged 31% of total personal consumption in the two years before the pandemic. That soared to 36% by last spring. With omicron on the wane, however, a major shift is occurring. The Commerce Department reports that spending on goods is down and - surprise, surprise - spending on services is up. How will that help reduce inflation? When consumers buy more services and fewer goods, it eases the pressure on the supply chain. And waning pandemic aid will motivate more people to go back to work, easing the labor shortage. In short, the slowing of the economy, the end of pandemic relief, a less accommodative Fed, a rising labor pool and the demand for more services at the expense of goods will cause prices to come back down to earth. This will ease the pressure on the Fed to raise rates, especially in an election year. That's positive for the economy, retail sales, corporate profits and, ultimately, the stock market. Good investing, Alex P.S. I wanted to let you know that one of the highlights of 2022 is fast approaching: our [Wealth, Wine & Wander Retreat]( in northern Italy. This June 11-22, join me and European travel expert Fritz Satran on an epic yet luxurious journey to Milan, Lake Como, Verona and Venice. We'll explore this extraordinary region - long recognized as [Italy's capital of finance, fashion and fine living]( - together, and I'll share exclusive financial insights along the way. You don't want to miss this Italian adventure. [You can find more details here.]( [Leave a Comment]( [Video: Another Crash?! Why?]( [Click here]( to watch Alex's latest video update. For Alex's latest video updates, subscribe on [YouTube](. 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Q Technology... Micron Technology... these are all little-known tech stocks that saw 10-bagger gains after getting into the Big Tech supply chains. It took as little as 18 months or as long as 12 years. And now, another $10 stock could join them. It just broke into the Tesla and Samsung supply chains. And Apple reportedly is collaborating with the company on a $330 million facility to add the company's tech to the iPad and iPhone. What is this special tech that the $10 stock developed? [See it in action right here.]( [The Oxford Club]( You are receiving this email because you subscribed to Liberty Through Wealth. Liberty Through Wealth is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. 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