2021 Was a pretty Good Year For Aggressive Dividend Investors, Especially If You made the Right Commodity Investments Merry Christmas – December 25, 2021,
Considering the circumstances, 2021 was a pretty good year for my Dividend investments, I set the bar for at least 10% annual return, this year I beat that easily and the energy and commodity sectors were very good to me. I prefer monthly paying dividends because they allow me to invest more and even take some risk on some stocks that don’t pay any dividends, but at heart, I’m a cash flow investor, but my capital investments didn’t do too bad either.
Will, I start selling in 2022, possibly, I never sell everything, but 2022 will be an interesting year because I like to point out that the economy should be one if the government begins CUTTING regulations, not increasing them, in 2021, the United States got a new ambitious President that clearly doesn’t have the fondest idea of why it’s never a good idea to add too many regulations to an economy.
Via Joe Biden and his regulatory policies on everything that’s needed to maintain America’s standard of living consumer price inflation became a thing that tanked his poll numbers. Moving forward, looking at his administration, I think it’s likely they’re going to beat the dead horse until they find a way to pass government spending bills.
The unfortunate reality of government spending during an era of rampant consumer price inflation is that it’s likely to create more consumer price inflation and because so many people are indebted, it wouldn’t surprise me in the least if consumers start defaulting on their loans and debt obligations, which of course equates to the private sector being forced to raise their rates or stop lending to risky borrowers.
This for the economy is deflationary and ECONOMIC deflation under a fiat monetary standard often equates to the government responding by printing more money. Unfortunately, as people know, printing money while prices are rising even during the best of times equates to more money purchasing fewer goods and services.
Adding fuel to the fire, is that the U.S dollar may even rally, because idiotic government regulation policy in the United States, doesn’t necessarily equate to the U.S dollar being worth-less in other countries that use the U.S dollar to do their business transactions. Not to say the U.S economy was perfect prior to Joe Biden, it’s just that Joe Biden created a toxic productive environment for America’s most productive people.
Now, although investors like myself can see this, it’s unlikely the average U.S voter understands that REGULATIONS are the problem. So it’s unclear to me what will happen in 2022, but I will be prepared to pivot based on the regulatory climate of all the progressive politicians in power. Typically when wages rise, they don’t come down, which could equate to permanent price hikes for consumers or future layoffs for employees.
The economy is looking very interesting moving forward and all signs in opinion point to austerity measures, which might take years to implement, sometimes things have to get really, really bad before they get better, and based on the regulatory environment and the political mood of easy money, easy lending cutting off those taps will be difficult.
Higher costs may lead to higher dividend payments, but of course, you have to pay attention to inflation, but for myself as an example, I don’t live beyond my means, some people like living beyond their means and that’s fine, but inflation hurts you most when live beyond on your means and don’t consider your spending an investment. Even when I buy food I consider it investing, I’ll bulk buy my food, and other things to offset inflation.
I consider fiat money COUPONS, I only consider Gold and Silver and skills that pay the bills money. So for myself, even during a hyper-inflationary environment, I look for ways to not only conserve but flourish.
Of course, we also have to factor in tyrannical governments when the economy tanks and that’s one of the reasons I write these posts, knowing that many will go unread, eventually when things get really bad, people are going to start asking questions why this is happening, and those of us who know that government is too big will have the answers people are looking for.
This is not the first time in history, by the way, this type of big government buffoonery has happened, it’s a frequent occurrence, and it happens whenever the money is corrupted. Gold and Silver is not only money it’s a reminder that Government or any time of spending is actually supposed to be called INVESTING, and all investments, in my opinion, are supposed to pay a dividend.
We know the governments are bad investors/spenders because they’re always in debt and their debts increase not decrease. In the real world if you’re consuming more than you’re producing perpetually you’re going to go bankrupt. The only reason any government is worthy of respect is that most humans want something for nothing. I’d say most humans are brainwashed, or ignorant but I can’t prove that, you really never know, so as a dividend or cash flow investor in 2022, you’ll want to pay close attention to government regulations.
If governments don’t cut regulations, expect more consumer price inflation and when you know consumer price inflation is coming you’ll want to position your investments to where you imagine the money will be going! Merry Christmas!
Interesting times ahead!