SPC Premium: Here's How You Win the Self-Fulfillment Recession
We saw this uncertainty coming; here's one stock that'll help you sail through ...
We’ve all heard the phrase “self-fulfilling prophecy” at one time or another.
But have you ever thought about where it came from? Or what it really means?
You should … because the phrase hits the bullseye right now.
American sociologist Robert K. Merton coined the phrase back in 1948 — describing a prediction or expectation that comes true because of the behaviors it creates.
In other words, if you expect something will happen, you’ll do the very things that make it likely to come true.
In short, it’s human nature in action.
As an example, Merton said that if a big enough group starts fretting that a bank will fail and they empty their bank accounts, the fear they began with actually causes the financial institution’s failure.
We see the same thing play out when the economy’s future gets murky (like now) with stubborn inflation, households shouldering record-high ($1.21 trillion) levels of credit card debt, and the talks about tariffs and trade wars supercharging it all. Consumer spending accounts for 70% of the U.S. economy’s power. So self-fulfillment could play out here. All that uncertainty could spool up into an “economic slowdown prophecy” that comes true as folks delay major purchases and cut back on spending in general.
That worry leads to individual action … rolls up into mass action … and then fulfills the recession everyone feared in the first place.
And the latest data from The Conference Board, a nonprofit think tank, is adding another heap of uncertainty on top of the pile.
Its Consumer Confidence Index registered its largest monthly decline since August 2021.
But this isn’t being shared to further FUD (fear, uncertainty, and doubt).
We’ve been talking about the tough road ahead since our last issues of 2024 to help get you prepared:
“If you want to count on one thing in the New Year, count on this …
Uncertainty.
Uncertainty … volatility … risk … they all kind of mean the same thing.
And each term was invoked many times by the Stock Pickers Corner (SPC) network of experts for their outlooks of what to expect in 2025.
For instance:
Matt Warder (The Coal Trader) predicted stubborn inflation sticking around 3% next year. Meanwhile, Mihail Stoyanov (The Old Economy) outlined a few inflationary scenarios in his 2025 outlook.
Mark Higgins, author of Investing in U.S. Financial History, told us in October the Federal Reserve may have cut rates too early. And Apollo Global Management Chief Economist Torsten Slok sees a 40% chance the Fed will raise rates in 2025.
Danny Brody (The Net Worth Club) said the S&P 500’s 20%-plus gains in 2023 and 2024 won’t be repeated — meaning 2025 is almost certain to be a stock picker’s market.
And Peter Krauth (Silver Stock Investor) even has a recession on his 2025 Bingo Card.”
Part of being a successful Wealth Builder is anticipating the “what comes next,” being prepared for “wild cards,” and investing for the long haul.
I’m talking about owning companies and assets that can thrive under the uncertainty we’re experiencing now.
One of those investments is a company that has seen its share price surge nearly 200% over the last five years as it always gets ahead of the most lucrative emerging trends, positioning itself to always be at the right place at the right time.
While it’s trading around $157 now, we see shares climbing to $545 over the next five years — a 247% climb.
The other investment serves as a safe haven during economic uncertainty (like now) but has a bonus benefit as “key ingredient” in solar panels, self-driving cars, data centers, and more.