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Safeguarding Your Investments and Your Future in the Coming New Year

Safeguarding Your Investments and Your Future in the Coming New Year

Episode #68  |  December 30th, 2021
Listen Now

In This Episode:

Trish Regan is calling out the Federal Reserve… again.

How is it that the Fed just now decided inflation isn’t “transitory” and that monetary policy needs to be reined in?

“The problem with the Fed,” says Trish, “is that they are always a day late and a dollar short.” The Fed’s policy failure has Trish increasingly concerned about the stock market in 2022.

It’s the reason why she sat down with Dr. David “Doc” Eifrig for this week’s podcast. Doc, who writes Retirement Millionaire and Retirement Trader, is known at Stansberry Research as the retirement guru because he’s helped so many folks secure wealthier nest eggs and more prosperous golden years to look forward to.

Doc talks with Trish about how to best safeguard your portfolio… your happiness… and your life in the coming new year. Doc shares his outlook on being the best investor and happiest person you can be.

Listen and learn… Get more from Doc at ComingInflation.com and subscribe to Trish’s e-mails at AmericanConsequences.com. You can also follow Trish on Twitter @Trish_Regan and by subscribing to her daily podcast

Guests:

Dr. David Eifrig

Editor of Retirement Millionaire
Dr. David Eifrig has one of the most remarkable resumes of anyone I know in this industry. After receiving his BA from the Carleton College in Minnesota, he went on to earn an MBA from Northwestern University’s Kellogg School of Management. From there, Dr. Eifrig went to work as an elite derivatives trader at the investment bank Goldman Sachs. He spent a decade on Wall Street with several major institutions, including Chase Manhattan and Yamaichi. Sick of the greed and hypocrisy of Wall Street... Doc left his senior vice president position to pursue medicine. He graduated from Columbia University’s post-baccalaureate pre-medicine program and eventually earned his MD with clinical honors from the University of North Carolina at Chapel Hill. Along the way, he has been published in scientific journals and even helped start a small biotech company, Mirus. In 2008, he joined Stansberry Research and launched his publication, Retirement Millionaire. He has gone on to launch Income Intelligence and Retirement Trader, which uses options to help people construct safe, reliable income streams. He also owns and produces his own wine (Eifrig Cellars) in northern Sonoma County, California.

Transcript:

Trish Regan:               [Music playing]

Hi, everyone. It’s Trish Regan. A strange day is coming to America, lots of strange things happening, I think we all know that. So if you have any wealth at all, you might want to consider where you’re putting your money in 2022, because there could be some serious disruptions. We could see some massive shifts in the wealth divide in 2022, and I’m guessing you want to be on the positive end of that. There are a lot of people who worry that stocks could get crushed in the months ahead. There are a lot of people that worry we may have seen a top. And there are a lot of people that are excited we could create a whole new group of millionaires.

So, if you own stocks, you should be thinking long and hard about where you’re putting that money. Marc Chaikin, a legend of Wall Street, he has some predictions that you want to hear. Go to www.strangeday2022.com, www.strangeday2022.com. Marc is giving away a free stock recommendation, which is no small thing, considering you could’ve doubled your money four different times on various stocks he recommended last year, so do check it out, strangeday2022.com. Again, strangeday2022.com for a prediction you probably can’t afford to miss if you own stocks right now.

[Music playing]

Inflation is here, inflation is a reality. The question is, does it turn into mass inflation? We have a lot of reasons to worry, actually, going into 2022. Hello, everyone. Welcome to American Consequences With Trish Regan. I am Trish. It’s good to have you here. And let’s play a little sound from Mr. Jerome Powell, who suddenly somehow finally realized inflation isn’t transitory.

 

Recording:                  There’s a real risk, now, we believe, I believe, that inflation may be more persistent, and that may be putting inflation expectations under pressure, and that the risk of higher inflation becoming entrenched has increased. And I think that’s part of the reason behind our move today, is to put ourselves in a position to be able to deal with that risk.

 

Trish Regan:               Ah, now you tell us. Now you tell us, Jerome. [Laughs] I’m sorry, but you know what, I have been pounding the table for, like, a year now, right? I have been pushing, pushing the Fed to try and do something. Instead, they’ve been out there buying up mortgage-backed securities, buying up Treasurys, artificially flooding our markets with all this cash, when, by the way, they should’ve been doing the exact opposite. They could’ve done this seven months ago, easily have scaled back all those asset purchases, and we would’ve then been in an environment of being able to increase rates instead of constantly leaving them at these record lows. Well, now, he’s kind of in a jam. I mean, day late, dollar short, here, buddy. I mean, for goodness’ sake, you had the opportunity.

Now we’re dealing with Omicron, and you tell us you want to scale back now? I mean, these guys just don’t get it. It is highly frustrating. They’ve finally figured out inflation might just be a little more persistent than they thought. I mean, I’m sorry, but inflation’s been going on now for well over a year. It’s now at the highest level in terms of what producers are paying for goods, which they always pass on to consumers, and we’ve been seeing that month after month after month, highest it’s been in 40 years. I mean, we have to go back to Carter’s time to see stuff like this. And the Fed’s just catching up to it? Oh, now he says he’s going to reduce the pace of net asset purchases…

 

Recording:                  Beginning in mid-January, we will reduce the monthly pace of our net asset purchases by $20 billion for Treasury securities, and $10 billion for agency mortgage-backed securities. If the economy evolves broadly, as expected, similar reductions in the pace of net asset purchases will likely be appropriate each month, implying that increases in our securities holdings would cease by mid-March, a few months sooner than we anticipated in early November.

 

Trish Regan:               Yeah, he’s phasing it out, and now interest rates are going to be going up, they’re talking about three times, next year. Well, they all better hope for one thing. They’d better hope that we don’t run into economic challenges as a result of businesses closing and businesses shutting down. I mean, already you saw the NHL had to cancel its season. We’re seeing a lot of travelers start to get increasingly nervous, I mean, it’s feeling like déjà vu. I would feel better [laughs] if the Fed had done what it could’ve done seven months ago and was in a position to be more accommodative during challenging times. But like I said, day late, dollar short, story of their lives.

Anyway, I’m really excited to have on this show, to talk about ways to live and ways to invest and ways to be happy in 2022 – isn’t that what we all want, isn’t it, right, ways to be happy? Well, part of that means understanding how to live within your lifestyle, how to enjoy living within your lifestyle, and how to make sure that you’re healthy and that you have enough money to live. I’m so thrilled to have with me here today Dr. David Eifrig, editor, analyst, and physician, I should point out – yes, he has a medical degree, as well [laughs] – at Stansberry Research. He has been at Stansberry Research since 2008, when he launched his flagship publication Retirement Millionaire, showing readers how to live a millionaire lifestyle on a whole lot less money than you ever thought possible.

He has since launched numerous other newsletters including Retirement Trader, and his track record – we’re going to talk about this in a little bit as well, but his track record is pretty darn impressive: 136 consecutive winners. That’s what I call pretty good stuff. Anyway, Doc, welcome. It’s great to have you back on the show.

 

Dr. David Eifrig:        Thanks for having me, Trish. I really appreciate you bringing me back. That’s always a good sign when someone’s invited back to someone’s place.

 

Trish Regan:               [Laughs] Well, you know, I love talking to you, but one of the reasons I wanted you here today on this show is that we’re going into a new year, and this is the time when people sort of say, “OK, what are my goals for the year? What are my personal goals? What are my health goals? What are my investment goals?” And I think, you know, there’s a lot of people out there, you can put them into different buckets, some people have been investing in this market and they’re loving every minute of it. You’ve got meme traders out there that are, you know, definitely loving every minute of it – it’s become almost like a game. And there’s also investors out there that, you know, I think it’s fair to say, love it when they’re making money [laughs], but really hate it when they don’t.

And it makes them, understandably, sick to their stomach when the market starts getting really volatile and goes down. And so, I thought it would be good to have you back to talk about what you’re concerned about, what you like in this environment. And also, I think, Doc, you have a really good handle on making sure that people are able to achieve their goals in retirement, so, you know, what are the things that they need to be thinking about. So, that’s sort of big picture, if you would, it’s why I wanted you on this particular show. And tell me what’s on your mind right now, what are you thinking about, as we go into 2022, as investors are saying, “OK – ” you know, rolling up their sleeves – and by investors, I mean mom and pop investors, people at home that need to make sure that they’re going to have some money there in retirement.

What’s your concern for them? How should they be thinking about the new year?

 

Dr. David Eifrig:        Yeah, perfect, Trish, and, you know, I wanted to say it’s kind of like I’m being introduced, now, to your people, again. But I want to just kind of remind them a little bit, I have this strange background where I was a psychology undergrad in a small liberal arts college in Minnesota, where I picked up sort of an understanding of human behavior. And then I went off to Kellogg, got an MBA, I worked for Goldman Sachs. And then at 40, I went to medical school. And all along, I discovered, and believe fundamentally, even today more than ever, that institutions – and that would include government and the formal structures – don’t have you, the individual’s, interests at heart.

And I’ve seen that, you know, from my high school days [laughs] in Minnesota to even now where I have a winery, a small winery in northern California, where I come out, I spend a lot of time in the East Coast, but I’m back and forth, and you discover these forms and filings for things that don’t make any sense. And you find taxes and fees and rules and regulations. Just the simple act of weighing my grapes and reporting who weighed the grapes, having someone sign and cosign the weight of the grapes. I’m both a grower and a buyer, so I sell grapes off to a large famous wine group in northern Sonoma, as well as make my own wine. And so, I’m on both sides of this thing [laughs] where sometimes I’m signing it as the grape seller, sometimes I’m signing it as the buyer, and it’s just this rigmarole, and then the filing that goes on.

And so, my – I just want to say, where I come from is this belief that authority and institutions don’t give a darn about you. And it’s even now in the medical space, now, you ask about retirement, but, you know, with what’s going on with COVID, the new Omicron variant and the multiple variants that will come after this, and now people recommending three boosters. And it’s just a matter of time before people, I think, will see, you know, when are they going to recommend the fourth booster and the fifth booster and the sixth booster, and then discover that “Wait a second, I thought these vaccines were designed to stop this.” And then someone will do research and discover that maybe people that had natural immunity, you know, those who didn’t get vaccinated early, maybe someone will research it – and I’m making this up, I don’t have any facts on it, I’m just saying that they’ll discover and do actual real science on.

And maybe human immune system is better than a lab-designed, by Big Pharma, by a buddy of Fauci’s at companies, and, you know–

 

Trish Regan:               No, I hear you. Look, I mean, I think what you’re getting at is the system’s a little bit rigged. It’s a little bit rigged against individuals, in favor of sort of an institutional elite class where everybody kind of is in on something. And it’s like, you know, if you’re the little guy, the small business owner, I mean, the red tape [laughs], I know, I mean, you’re not kidding me, it’s insane the amount of paperwork they put you through.

In terms of, you know, the vaccine stuff here, look, I would just say this, I mean, the reporter from the New York Times who was kicked off of Twitter for life for making the statement, back when you weren’t supposed to say these things, when the vaccine first came out, that the vaccines probably wouldn’t prevent you from getting COVID but could prevent you from dying.

I mean, he got kicked off. He’s suing them, now, because [laughs] he was kicked off.

 

Dr. David Eifrig:        Was that Alex Berenson or was that somebody else?

 

Trish Regan:               Yeah, no, that’s Alex, yes.

 

Dr. David Eifrig:        Yeah, so what’s interesting is, I’ve read a bunch of stuff of Alex’s and I like him. I think he’s not a true scientist, but he’s a great writer. And in fact – this is a strange pitch – he’s actually a novelist. And I just read his most recent novel, which is just spectacular. He’s a really fun, great writer, and if you ask me the name of the book, I can’t remember it, but people could… So, yeah, when the New York Times and the editor in chief and editor get booted for questioning and writing about policy, procedure, science, you know, discussion, it should be open. We should be able to look at things and try to figure them out together. Yeah, yeah, we’re on the same page.

 

Trish Regan:               We’re going to get to investing, but I think it’s important for people to understand how you think about the world and how you come to sort of your sensibility in terms of helping people take some control, right, over their future and their lives. Because it’s tricky out there and, you know, it’s kind of like, you know, the little guy trying to make one’s way in this just sea of institutional biases.

And so, I think that that’s kind of, that’s an important part of who you are, Doc. And it’s important for people to know that. I mean, you’ve also got an incredible track record, I know you documented 136 consecutive winners in your Retirement Trader newsletter. I know how much you have helped people.

And by the way, I heard that, because you and I were just out at the Stansberry Conference together, we were both speaking. And, you know, I’m new to the family, but I met so many subscribers out there who came up and told me that if it wasn’t for you, they wouldn’t have the stability in their lives that they have now. So, I mean, I know of course on paper that you’ve had all this success, but it was really something hearing it from individuals themselves. So, you’re kind of, I get it, you’re the renegade, right, [laughs] out there, you know, with your winery saying [laughs] you-know-what to government institutions, big business, and all that like. So, knowing that’s where you come from, how does that affect your investing decisions or your recommendations?

 

Dr. David Eifrig:        Sure, and by the way, I was just told, this morning, that Retirement Trader, that particular newsletter, again, we hit 100 winning closing trades in a row, today. Which means, you probably don’t know this, but as just kind of fun, for good luck, when I hit 100 the first time, a few years back, I decided to not shave my beard until I had a loser. And so, we went 36 more trades [laughs] and my beard got really, really, really, really long. Now, COVID has brought out that long beard in a lot of people, so I think I’ll fit in more, but I’m hoping I can grow the beard for a long, long time again. I was happy to see that and hear that.

Yeah, I think – you know, my conservativeness about investing and my thinking about how to continue to be a participant in equity, stock, ownership, in fixed income, that’s essentially loaning your money to somebody else in exchange for fair and reasonable payment back, you know, these are all things that I imagine and think about. And this morning, in a team meeting with guys in our Portfolio Solutions, I’m sort of the leader of this group where, you know, they’re talking about their mindset. And they are a millennial group, a couple of them, in this team, you know, they think a 10-year Treasury of 1.3 or 1.4% – and that’s where you loan the U.S. Treasury your money for 10 years at 1.4% – that that’s a reasonable, good investment.

And when I pressed them on it, I said, “Well, what about inflation?” Already you’re guaranteeing losing money this year, probably next year, with the Fed having a target inflation rate of 2%. If they hit that, which they can’t and they won’t, but imagine that just by chance they did – you’re guaranteeing the federal government, on one hand, you’re loaning their money, the other part of the federal government is saying they want to guarantee you lose it, because inflation is taking 2%, so you’re losing .6% a year. Like, that’s the intention of the U.S. government. So why would you loan the U.S. government your money right now? Why would you? And in fact, the only reason I think that interest rates, that part of the interest-rate curve of maturities, five-year, 10-year, 20-, 30-, is because the Federal Reserve has gone from having $1 trillion in U.S. Treasury paper to $6 trillion in a matter of 20 months.

And that’s just, it’s crazy to me, it’s made up, it’s fake, it’s phony. I don’t think it’s going to end well, I just don’t know when it’s going to end. And so, between now and then, you have to imagine hedging yourself, and to me, hedging against some sort of U.S. dollar currency collapse or something of that. You don’t want to buy U.S. Treasury paper. So that’s kind of off the books for me. Gold has been, because the U.S. dollar, relative to Europe, where they’ve even gotten worse in terms of the government printing money, our dollar looks stronger, so gold has not really done anything for a hedge. But you probably have to own maybe someone mining gold in some way, but you’re talking 2, 3% of your portfolio. And back to sort of from a top-down look, I’m a believer in owning 15, 20 different investment ideas, and part of that might include your own home and your real estate.

Part of it might include loaning money to a local restaurant startup, where I guarantee you, I’ve invested in probably seven or eight restaurants, half of them go bankrupt within a couple years. But I have fun loaning my money to and around the community, in exchange for maybe free meals, in exchange for some goodies, free dessert, or glasses of wine or something, over the time that they’re trying to make it. And then I’ve had a couple that have done really, really well, I’ve gotten my money back a couple times. That’s kind of fun for me. So I would encourage people, at this time, to think about businesses that are maybe more local to you, if you know of a local small microcap, that is, the business is publicly traded but smaller and in your area, if you know about them and how they’re doing, you might consider investing in them.

But in my newsletters – I have a couple, a handful of them, I’ve got four of them – we look at all of this stuff and try to put it together for people. But I believe in owning businesses that have, especially if inflation lingers, you want to have businesses that have pricing power. So, for example, Intuit – and I’m not recommending Intuit and we don’t have it in our portfolio, but I’m looking at it. Intuit is something that you realize, if everyone’s using them for their taxes, their personal taxes, as taxes get more complicated, as the world goes on, you’re going to be more and more stuck with them, or you’re going to have to go to an accountant, which would be more expensive. So, there’s their stickiness. And if last year they charged you $99 for your 1040 forms, and it took you two hours to do your taxes, what prevents them from raising it to $110 or $120 this year? You’re not going to not use them. All of your data is stored there, all of your information for the last five years, so they have pricing power.

So, businesses like that, that have you and you can’t really get away from them, you’re paying a monthly or a quarterly – Google is an example. I’ve got, you know, I forget my amount, 200, 300, 500 gigabytes, which, you know, I’ll run out of soon enough when I keep taking videos. I’m paying – I think I pay them 100 bucks a year, and all of my stuff is stored there. Like, if Google raises it to $110 or $104 or $120, I’m not going to just get rid of my Google account, figure out where else to store my stuff in the cloud, or I’m not going to buy a hard drive again and store it in my house. So, these are all businesses that understand this, have pricing power, have stickiness, so those are the kind of investments you want to be in.

 

Trish Regan:               By the way, Intuit’s interesting, they also did that $12 billion deal for Mailchimp, which is just an incredible business. But keep going with this, because I think this is important.

 

Dr. David Eifrig:        Yeah, sure, and a competitor to Mailchimp is Constant Contact. I have, for my website, for my winery, their internal e-mail system is iffy at best. So, I mean, I looked at using Mailchimp or Constant Contact, and I think they’re probably about the same, as often happens when excellence occurs, I mean, two or three businesses end up owning the market share of most all of them. But, you know, this is an e-mail system that allows me to upload my lists for my website of my names, customers, and organize and send pretty e-mails with pictures of me messing around in the vineyard or bottling stuff. And then, it tracks that customer, sends them to my website, and then gives me information analytics on, “OK, did –”

And I could do, like, AB testing on stuff and see, “OK, when I do the, you know, red bottle of wine on a white countertop, that sells more than a red bottle of wine on a black countertop.” You know, crazy things that help you if you’re in sales. Salesforce is another business, like, if you’re using Salesforce and you’re a large company… and at Stansberry, we use Salesforce. How are we going to – who’s going to come in and convince us to change our customer-relation management system and team? And so, businesses like that we look at, we like to invest in, and we like to take opportunities. If the stock trades off or the market trades off and they drop down as well, we look for opportunities and times to buy these kinds of businesses.

And I don’t think they’re going away, no matter what the government does. So, yeah, I would say on one hand you have in the back of your mind, “Don’t trust institutions to tell you what to do,” and then, at the same time, take advantage of what government and institutions are using and telling you they’re going to be using and have to be using. I think people might’ve just seen the Defense Department, part of their budget got passed and they got, you know, I don’t know how many billions, tens, hundreds of billions of dollars, to build submarines and to build attack submarines and an aircraft carrier and all this. So, we’ve had, in and out of our portfolios over the years, some of those defense companies, Huntington Ingalls is a ship maker on the East Coast, General Dynamics, Lockheed Martin, all of these things you have to consider in your portfolio.

And then, you sell them, if you made a fair amount of money, more than – I always recommend to anyone who’s investing anything, you write down or record somewhere when you’ll get out. And in brokerage accounts, you can set your sell targets and review that yearly, you know, simple things that, so you don’t miss out on capturing profits. That’s kind of one of the hardest things to actually do is sell when you’ve made money. But these are all things that I look at and consider. Our company, we also have a person who is, I would say, a world guru in the electronic stuff, the currencies, the blockchain, the – you know, I don’t – it’s not that I don’t follow it because I don’t want to, it just doesn’t offer me any value.

It’s a chance to speculate, people around me have speculated. I’m investing in a company that uses the blockchain to legitimize the ownership of things. You can talk about things, electronic art, that’s coming, that’s not going away. We’re looking at electronifying wine, so that you know for sure that wine, when I bottled 350 cases, one of those bottles really came from that bottling, that day, in my winery. So it’s a real – it’ll get rid of some counterfeiting, or certainly make counterfeiting much harder. These are all technologies –

 

Trish Regan:               Wait, is that like an NFT?

 

Dr. David Eifrig:        No, no, that’s not an NFT, I’m just saying, these are things that use technology and use blockchain to legitimize the ownership of stuff.

 

Trish Regan:               I’m a huge proponent of that, I just want to say, I just wrote on that, this week, because [laughs] I have to tell you, I’m amazed. We started a Trish Regan store, so, on my website, people can buy, you know, hats and – you know, all that. I have, like, a leisure line, and I design this stuff, right, myself and with some designers and – and before you knew it, Doc, there were other stores selling Trish Regan’s stuff, that they were literally copying and selling using my name. And I thought, “You’ve got to be kidding me.”

And so, I think that, in this sort of brave new world, you know, anything that we can develop to ensure authenticity – it’s a little harder, you know, with a wine than, I guess, with a hat, but – you know, authenticity matters and that’s important. And technology can be a driver of that. Have you guys identified companies that you like that are sort of able to do that, or, you know, might be on the cutting edge of that space?

 

Dr. David Eifrig:        Yes and no. I was kind of alluding to that, that we have people in our group and our team. There’s one guy, his name is Eric Wade, and Eric has thought about this stuff, has played in it, has interacted in it for years, and thinks about it, eats, sleeps, and drinks it. And so, if I was going to buy something in the electronic space and technology space like that, he would be my first call and my first read, and read his newsletter and understand that. I think a couple of his companies, he was having so many successful hits – and again, I’m not trying to market for him, but we had to change our – we have, like, a “top 10” list that goes on our daily, that everybody who is a paid subscriber gets. And it’s, like, the top ten active positions at Stansberry, the all-time best.

We had to make a whole new category [laughs] for him, otherwise, he was going to fill all the tables with his ideas and things. And again, this is not a pitch, I didn’t invest in his stuff, I love reading it, my knees start to shake, my hands shake, but eventually, what I see as speculation, people will begin to understand it, and then you’ll have, again, you’ll be left with two or three companies in the space. And that’s the time I’ll invest in those things. I’m not a… one of the things I loved about Goldman Sachs, they taught me, is don’t ever be first mover in a space. Go and watch, see what the first mover does, and then, see how they failed, see what they did well, and now go in and take over that space, take over that industry. And that’s what Goldman is –

 

Trish Regan:               I wanted to ask you about that, what were you doing at Goldman? You were a derivatives trader, is that right? And you mentioned that you just gave it all up and went back to medical school.

 

Dr. David Eifrig:        Yeah, so, our group, this was in the mid-’80s, early-’90s, Salomon Brothers had the first what you could describe as derivatives. And derivatives are things like options and futures and forward contracts that trade off of underlying real instruments, and they’re sort of derived from the real thing. You could almost argue an NFT is a derivative, too. But, yeah, so, if large institutions and companies needed to hedge and take advantage of market anomalies, let’s say you were producing oil in South America and wanted to hedge it with gold or hedge it into gold priced in U.S. dollars, or whatever it was you wanted to do, Goldman and our group would help these people do that. And so, you know, again, they let Salomon do it first, and then they hired a couple of the people from Salomon, and then, I was newly minted MBA and joined that group.

And, yeah, so, you know, it taught me some lessons about first-mover, second-mover advantages to that, and Goldman people might not know this, too. Like, right now, the carbon credit thing, I mean, they’ve been contemplating that for 20, 25 years, and have let some other people run it, and now they’re big into that. And wouldn’t be surprised if we discover, in a couple years, that Goldman Sachs, you know, the book on their profits, they’re making 20, 30% from trading the carbon credit market. And so, you know, whatever you think about global change, temperature change, warming, cooling, Goldman and institutions like that, you have to pay attention to them, because they’re in there making money hand over fist. So finding that opportunity makes sense.

So, anyway, that’s kind of my take on the technology and things that we look at. And like I said, Eric Wade is the guy that, if I suddenly said I want to allocate 4% of my portfolio to that area, I would study his newsletter, yeah.

 

Trish Regan:               One of the things I would just point out, for a lot of people in the crypto space, they have this idea that, you know, bitcoin is, “Oh, well, this is safe and this is going to be better than the U.S. dollar, blah blah blah,” and I actually think that’s completely – look, I like bitcoin, I’ve always liked bitcoin, I could probably call myself a bitcoin maximalist. But I’m not going to be delusional about thinking that this is a “safe space.” This is what you call the Wild West, and then some. And so, I don’t think that it’s fair to be out there – and Eric doesn’t do this, certainly. He definitely, I think, emphasizes to everyone the challenges within the crypto space. But none of the cryptos are what you would call sort of safe investments. They have huge, huge fluctuations.

And so, to your point, Doc, if you want a diversified portfolio, there’s nothing wrong with having cryptos, and maybe you have a basket of cryptos, maybe it’s a little Ethereum and a little bitcoin and Solana, which I’ve become more interested in, recently, because of the role it could play in the Web 3.0 or the metaverse. But that’s, you know, it’s one portion of your portfolio, you know, and you want to have other things in there, as well. And so, I think what you’re advocating is for, really, people to have a diversified solid approach. Is that fair?

 

Dr. David Eifrig:        Yes, that’s absolutely true, and we know that when you have – you’re trying to get to your overall net worth to grow over time. And to make an example, I could take the extreme where, if you put your eggs in one basket, then you really have to watch that basket really, really close. And if you get the right basket of egg, or eggs, you can really do well, but it’s going to be from the same chicken, the same kind of egg. I, on the other hand, prefer to have a bunch of different things in that chest and have them be somewhat uncorrelated with each other, so that overall, you’re maximizing your growth, but you’re not getting destroyed. When the market trades down, some of your other things will continue to do well.

Like I said, if inflation starts to pressure some stocks, you’re going to be in stocks that have pricing power, and we’re starting to see some of the announcements, you know, that these firms have been able to increase prices and hold market share, hold volumes and things that they’re selling. So, yeah, and having a basket, you know, I tell people, in any pick that I recommend, I say don’t put more than 4 or 5% of your money into that. And so, if you were fully invested with my ideas across my four pubs, you might have 25 to 20 things in there, maybe 18, 17 ideas. And again, the critical thing is to write down what you plan to make from those investments, over what period of time, and come back and make sure you check on that and look at that.

 

Trish Regan:               You know, I know that you launched this flagship publication when you first joined Stansberry in ’08, a pretty challenging time when a lot of people were probably looking to retire and it was tricky. You launched a publication called Retirement Millionaire and what it does is it shows people how to live a really wonderful lifestyle, a millionaire lifestyle, on, you’ve said, less money than you’d imagine possible. What is it that you sort of push as the theme, there? I mean, aside from, you know, having your money go further and further, and I think that’s sort of everybody’s dream, right, you know, you want to be able to live as well as you can, but not everybody has the capacity to be living like a millionaire.

And it sounds like the theme of what you’re trying to push here, what you’re recommending for people is to be able to make their money go further, to make their retirement go further. How do they do that?

 

Dr. David Eifrig:        Yeah, so, let me give you two examples that are kind of out of, not in the investment space, for a minute. But just to remind folks, the Retirement Millionaire newsletter was designed to take advantage of my background. So, half the newsletter every month is about finance, investing, a little mix of personal finance, and the investment idea for that month. The middle of it are sort of tips and five to six little I would call them life hacks. And then, the back part of it is health stuff. So, one of the reasons and things I got into that was, given my medical background, I discovered back long, well, 20 years ago, certainly, that, for example, I was doing my emergency room rotation as a medical student, and someone had a stroke, and this was prior to the time where they thought about a stroke as a brain attack. That is, it didn’t have the sense of urgency, it didn’t have the belief that you could do anything.

And I read the literature and I went up to the head of the ER, that night, I said, “Listen, this person’s having a stroke. Can we give them aspirin? Can we give them TPA?” which, by just sheer chance, I have a cousin who is a patent holder on TPA, back in their San Francisco days, in the biotech days. And so, I knew about TPA and it’s what was used to – it’s a clot buster, right, it’s what’s used in heart attacks. And I was, like, proposing this to her, and she told me to get back to work and mind my own business and how could I know what I’m thinking about, as a medical student. And I’m 41 years old at that time, I’m probably – I was probably older than she was, and I was offended that she didn’t listen to me and care about that.

And so, at that moment I realized, I sort of followed that particular old guy that had a stroke, and the cost to society about what to do. So, I started writing this to Porter Stansberry’s subscriber base and saying, “Listen, if you have these symptoms or that symptom, immediately, just like you would for a heart attack, go take aspirin.” Now that’s the standard. If you call 911 and they say, “What’s your emergency?” like, you know, that’s the first thing you’ll take. And we know that it’s the same cardiovascular problems that cause heart attacks that lead to strokes. And so, I wrote about that a long time before, thought about, think about it. So that’s kind of my health stuff, and I write about various different things.

But recently, to give an example of how I help people do that is, I wrote a piece – well, so I talked about, like, for example, Southwest Airlines. Southwest Airlines had a deal going in October through I think the first week of December, they don’t have it now. But people should have gone and gotten a credit card with them. They had this incredible offer that they had about five, six years ago, that if you moved all of your charges on – I think you had to charge something like $5,000 in the next 90 days – you got a companion pass. So imagine if you’re in a town that’s got Southwest, and suddenly you just decided to not use your other credit cards, or decided to charge things on a credit card, pay them off immediately so you don’t have interest charges, you could’ve gotten a companion pass for all of 2022, fairly quickly. Well, you immediately cut your travel costs in half, if you had done that.

Similarly, I just wrote, last Friday, a piece on – you know, I have a winery, I make 350 cases of wine, I charge 110 bucks a bottle for my wine. But I wrote a piece on, “Don’t let anyone convince you that a $110 bottle of wine is better than anything else that you’ve had or tired or liked.” The key is to try [crosstalk]

 

Trish Regan:               Can I jump in? I’ve had your wine. It’s a really good bottle of wine. But keep going. [Laughs] I actually would argue that it’s better than a lot of other, you know, $200 bottles of wine I’ve had. But keep going.

 

Dr. David Eifrig:        Yeah, no, I think so, and I know, you know, I know about the oak that I use, I know the balance that I create, but that might or might not be what you, the individual person, want. And so, I wrote this essay, you know, my team and I put it together, and what I did once, is, with my team, I said, “All right, let’s do this, let’s blindfold each other,” you know, more virtual than real, “and go in a room, we’ll have someone pour glasses of wine,” and this was a couple Thanksgivings ago. And we said, you know, I think we had six of us in the room, and deciding on what wines we liked. And it ranged in price from a $60 chardonnay to a 3-liter probably 50-cents-a-glass cheap white wine, and we had stuff in between, and we tasted.

Turns out, one of my favorites that particular tasting was Franzia. They make a crisp white wine. Why do I like it? Well, I like it because it didn’t have a whole lot of sugar, didn’t have extra what we call residual sugar in the wine business. And I, the wines that I make, are dry, fully dry, I don’t add back grape sugars to make it sweet for your Coca-Cola tastebuds. Nothing wrong with that tastebuds, but I don’t like that, so I want to make something I like to drink. Turns out Franzia realizes there is, on the cheap end of the market, people who like that same dry, crisp white wine. And you may love something in the middle that’s got sugar in it, you’ve got residual sugar, 2, 3, 4% added back to lots of big brand-name wines.

You might be drinking a $50 bottle of merlot tonight or cab that has added sugar back. My point is, it’s about what you like and finding that and exploring that, and exploring, for me, I’m not going to drink Franzia because there’s no artistry in that. That’s just a big chemistry lab experiment. I want to support local winemakers. I want to support people who are playing and only selling 200, 300, 400 cases, and are driving used cars, but they’re artisans with wine. I want to experience new grapes. A woman who taught me how to make wine just got some Sangiovese grapes. People might know this from Italian – it’s an Italian grape variety used to make chianti and used to make some of the super Tuscans. She’s made, like, this beautiful, beautiful Italian variety, in Dry Creek Valley in northern Sonoma. I mean, it’s gorgeous.

And her winery, I’ll just put, you know, a plug in for her, it’s Zouzounis. She’s a Greek incredible fun winemaker who’s taught me stuff. She actually buys some – she bought some zinfandel from one of my vineyards, this year, as well. So my point is, I want to support those people at whatever price point it takes for me to do that. But you can find value. And so, you know, the essay was about, for Thanksgiving, or if you’re celebrating Christmas, or whatever holiday this time of year, New Year’s, find wines that you like, and then go back, write it down.

 

Trish Regan:               Well, I think there’s also something, correct me if I’m wrong, but is there something in your message about, you know, enjoying what life has to offer, and kind of understanding, you know, “This is what I have to work with,” in terms of, you know, whatever your financial situation is. “This is what I have to invest and put away for the future, but I’m going to enjoy my life.” Which means I don’t have to have the $110 bottle of wine or the, you know, $2,000 bottle of wine, or, you know, you can spend as much as you want on some of this stuff, but find what works for you –

 

Dr. David Eifrig:        And if you have a budget, you know, if you are someone who does budget, which is kind of rare, but let’s say you do have limits on your spending and you are thinking, “Wow, I’d really like to try Doc’s wine,” I would tell you to find a less expensive dry white wine, to be sure that you like dry white chardonnays, to be sure that you like – you know, California-style is different than French. And go and talk to someone – you might be able to find a bottle of wine that gives you, if you were blindfolded, exactly the same amount of pleasure for a tenth of the price. And that’s OK.

 

Trish Regan:               Yeah, [laughs] we used to do that, when we were younger, we’d get friends together and do, you know, the brown bag winetasting. But let me ask you this: how does that, in your view, relate to life and retirement overall, and how does it relate to investing?

 

Dr. David Eifrig:        Yeah, so it relates to life in one simple thing: that for health, for example, one of the healthiest things you can do is go for a walk every day, work up to where you’re going, say, three miles, which for many people of all ages would take about an hour, maybe less, work up to that. But do it every day. I can guarantee you’ll live longer than you were going to live otherwise. I guarantee it. The science on it, the studies on it, there is no doubt: the ability to move relatively swiftly – and a 20-minute mile is not that swift, but it’s moving – you’re going to, I guarantee you, you’re going to be able to, very inexpensively, improve your health.

You don’t need to do other things and spend other money on vitamins and all this kind of stuff. You can do it with just something as simple and cheap as walking. Same thing with your investing. You can do it with not necessarily buying individual stocks. You can buy mutual funds, you can buy ETFs that invest in the basket already, some might even have 50, 60, 70, 80 stocks in a particular sector. You can buy these baskets of stocks, let’s say you wanted to invest only in the health care space, you can do that cheaply, and you just watch that one basket of stocks in the health care space. So, it’s about doing it – I don’t know if I really fully answered your question, other than the price at which it costs to live and to invest and increase your wealth for the future can be come at different ways.

If you have a habit – you know, I think there was a book, a long time ago, called The Millionaire Next Door, you know, this idea of the latte factor, all that, you know, don’t spend money, or do a treat-yourself-once-a-week to stuff, and spend the rest of the money on investing, slowly. It takes time, but it’s easy and fun to do, but do it. Get out and walk. That’s the best thing I know for your health.

 

Trish Regan:               Get out and walk and get out and invest, I see a theme, here, I really do. And, you know, look, it can feel intimidating and daunting and, you know, I live in the Northeast, so it’s not fun to walk in the middle of winter, but we do it every day. We do it every single day. We do about four miles. [Laughs] And I feel really terrible if I don’t get it in, Doc, I just feel awful. But, you know, there’s other things I do which, you know, I do pay attention to the markets, and, you know, I have certain strategies and I try and stick to those. And I think what you’re saying here about, you know, enjoying life and living within your means and kind of exploring within your means is an important theme.

And you’ve got to take that moment to kind of reflect and understand what it is you need, maybe, versus what you want. And kind of also recognize that what you want may not really be what you need.

 

Dr. David Eifrig:        Exactly. And, you know, to me, COVID and the challenge with influenza-like illnesses, for older populations, shortens life. So anything you can do to improve your immune system functioning, and like I said, walking is one of the best things I know what to do, and will prolong your life. And, you know, the mechanism by how that happens, we’re not sure. We know that marathon runners, because of the pounding, their bones and the marrow which is inside the bones, which is where your white blood cells are produced, we know that they always get colds after, because it forces immature immune cells out into the blood, and that triggers sort of clunky reactions to things and sickness and symptoms of colds. Whereas, walking everyday probably properly stimulates your bone marrow and your production and release of these things, really literally gets squeezed out into your body in a healthy way.

And we – I don’t know, I think life is simpler than we sometimes make it, and I – I preach that in Retirement Millionaire like, there’s ways to sort of hack around institutions, hack around authority, to get more than you think you can get and have, and do it ethically, do it where it feels good doing it – that’s kind of my take on this as the end of the year of 2021, so.

 

Trish Regan:               [Laughs] All right, so, any advice for 2022? Besides walking?

 

Dr. David Eifrig:        Yeah, 2022. Don’t go for home runs. I’m a guy – there was an old baseball player for the Minnesota Twins named Rod Carew. I think he led the league many, many years. The true baseball afficionados, which I’m not, will probably tell me I’m wrong, or something else. But Rod Carew used to hit a lot of singles, and I’m just a believer in hitting singles and doubles in stuff that you do. And life is really, really fun when you’re on base. So, don’t go for the home run, because you’re going to be striking out. You might hit a home run, but you don’t even get to stop on a base… you have to circle and go back into the dugout, whether you strike out or hit a home run. So, that’s my analogy and metaphor for 2022, how about that, Trish? [Laughs]

 

Trish Regan:               I’ll take it, I’ll take. All right, and where can people find you? Stansberryresearch.com?

 

Dr. David Eifrig:        Yeah, stansberryresearch.com, Retirement Millionaire – I’m not going to do a shameless plug for my winery –

 

Trish Regan:               For your wine? Why not? We talked about it. [Laughter]

 

Dr. David Eifrig:        Eifrig Cellars, yeah, E-I-F-R-I-G. [Laughs]

 

Trish Regan:               Eifrigcellars.com. It’s really, really good. Anyway, thank you, Doc, it’s wonderful to catch up with you again. Have a wonderful, wonderful New Year, and we’ll talk again very soon.

 

Dr. David Eifrig:        Great, thanks, Trish, and thanks to your team, and happy New Year.

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Trish Regan:               Oh, so great to hear from Doc. It’s wonderful to hear his perspective on how we can all enjoy our lives a little bit more, and how we can make sure that we’re safe and secure and living well in this brave new world. So my thanks to Doc Eifrig. You can go to stansberryresearch.com and get more of his research, including that Retirement Millionaire newsletter, including that Retirement Trader that he told you all about. These are good picks, by the way, as we go into 2022, because I think this is a chance for everybody to think long and hard about what their investing goals are, what your life goals are, right? Which is part of his Retirement Millionaire.

I think our big takeaway is to remember to walk every single day. Anyway, again, my thanks to David Eifrig. I want to encourage you all to go to americanconsequences.com, and sign up for this podcast, make sure you’re downloading it. You can find me online, not just at americanconsequences.com but also on The Trish Regan Show, my other podcast that comes out daily. I look forward to seeing you there. And you know, most of all, I just want to wish everyone a very happy New Year. You know, it’s been a challenging couple of years, and it feels, in some ways, like we’re way back in déjà vu times, we’re living through this again. And yet, I think we have so much to look forward to, I really do.

If you’ve been reading my writing in americanconsequences.com, you know how excited I am by technology, how excited I am by the potential for the metaverse, and all that that will bring our way. This technology revolution really is just getting started, so there’s so much to look forward to, really, as investors and as people. Thank you. Have a wonderful New Year. And I’ll see you next week.

 

Recording:                  [Music playing]

Thank you for listening to this episode of American Consequences. Want more Trish? Read her weekly articles Thursdays in our magazine at americanconsequences.com, and subscribe for free to get all of our daily articles and the monthly magazine. We’d love to hear from you, too. Send Trish a note, [email protected] This broadcast is for entertainment purposes only and should not be considered personalized investment advice. Trading stocks and all other financial instruments involves risk. You should not make any investment decision based solely on what you hear. Trish Regan’s American Consequences is produced by Stansberry Research and American Consequences, and is copyrighted by the Stansberry Radio Network.

 

Recording:                  Opinions expressed on this program are solely those of the contributor and do not necessarily reflect the opinions of Stansberry Research, its parent company, or affiliates. You should not treat any opinion expressed on this program as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Neither Stansberry Research nor its parent company or affiliates warrant the completeness or accuracy of the information expressed on this program, and it should not be relied upon as such. Stansberry Research, its affiliates, and subsidiaries are not under any obligation to update or correct any information provided on the program. The statements and opinions expressed on this program are subject to change without notice. No part of the contributors’ compensation from Stansberry Research is related to the specific opinions they express. Past performance is not indicative of future results. Stansberry Research does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this program. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this program may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs, and is not intended as a recommendation that is appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this program. Before acting on information on the program, you should consider whether it is suitable for your particular circumstances, and strongly consider seeking advice from your own financial or investment advisor.

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