During the annual FreedomFest summit last week, outspoken economist Peter Schiff touted a bold prediction about the future of the U.S. stock market.
According to Schiff, corporate stock buybacks are terrible for the markets – and shareholders.
"I think share buybacks are going to come back to bite us," said Schiff. "I don't like companies that are buying back their stock."
But here's the problem…
Schiff has been saying the same thing for years.
Indeed, in 2014, Schiff warned Yahoo Finance that "shareholder value was being destroyed."
Then, in 2015, he issued the same warning to Nasdaq.
And again, in 2016, to GoldSeek.
You get the point.
All the while, the markets keep climbing, and we've been making you money…
In fact, the S&P 500 is up 23.6% since July 2014, the Dow Jones Industrial Average is up 26%, and the Nasdaq is up 39.9%.
And even if Schiff is right this year, the worst decision you can make is to get out of the markets.
Let us explain…
Schiff May Have a Point, but It Doesn't Matter
Money Morning Chief Investment Strategist Keith Fitz-Gerald, who also spoke on the panel, agreed that corporate buybacks aren't the best thing – but he also said that it doesn't matter, at least not in the short term.
"As an investor, do you really care where the profits come from?" argued Keith. "That's good for your retirement, that's good for your investments, that's good for everything that builds wealth."
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"If that creates profits for you – and you’re managing your risk appropriately in the interim - does it matter?"
You see, Keith understands that you can’t build wealth if you don't stay in the markets, even when the "perma-bears" are telling you to get out.
In fact, Keith sees one factor that is going to keep pushing the markets even higher: liquidity.
Liquidity is the term used to describe how easy it is to convert assets to cash.
Here's why it's so important…
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As Long as Liquidity Is Increasing, Prices and Profits Will Follow
"As long as liquidity is increasing, prices and profits will, too," says Keith.
You see, overall market liquidity continues to increase as more than 80 central banks around the world play to growth rather than austerity, according to Keith.
In other words, the more money the central banks pour into big banks and trading houses, the more liquid the market gets -- and the more profit opportunities you have as an investor.
"More than any other factor, that suggests more money flowing into markets rather than away from them. It won't be in a straight line, of course, but then again, rising markets never are," said Keith.
There are two kinds of companies that will benefit most from rising liquidity: those with large enough liquidity to absorb the hundreds of billions of dollars in fresh capital that's naturally attracted to them, and those in charge of their own destiny.
"Think FANG stocks here, but also the large defense contractors, too," recommends Keith.
At the same time, Keith suggests investors remember the "Unstoppable Trends."
This requires investors to think outside of the box and embrace change – even if it's frightening.
"Rather than trying to hang on to outmoded thinking like many investors are, what you want to be doing is shifting your thinking to those investments that are changing the very fabric of our society," said Keith.
Take Tesla Inc. (Nasdaq: TSLA), for example. Keith has long held onto the view that Tesla is more than just a car company.
"Tesla has the potential to uproot the entire energy grid," says Keith. "Underestimating Tesla, or looking at them with the wrong perspective, could cost you."
Indeed, TSLA stock is up over 1,519% since its debut IPO in 2010.
Keith puts it this way: "If I had to sum up everything, it'd all come down to four words…"
"…being in to win."
Keith Fitz-Gerald's Money Map Report subscribers who have followed along with his recommendations are now sitting on 10 triple-digit winners this year – including a 201.68% return and 132.35% gain that closed out in the same week.
Each week, Keith shows everyday Americans how to tap into the world’s biggest high-profit trends, ahead of the crowd.
There's nothing complicated or overly risky – and no guesswork involved.
Right now he's looking at another double-your-money opportunity, and there's still time to get in on it. Find out how to subscribe and access all of Keith's recommendations by clicking here now.
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