“Bull****…”

“I do not give a s***…”

“WHAT THE HECK!!!!!!!!…”

We read all of the notes you and your fellow readers send to us….

From the occasional ones that sting, like the one we’ll show you in just a moment…

To the ones that send a shiver down your spine because they are so inspiring.

In short: we hear you. We all hear you at Legacy Research.

(In fact, we’ll prove this point by sharing my personal work email address with you. Email me anytime you like.)

And there’s a reason why your editor has emerged from behind the scenes to talk to you directly each day in the Daily Cut.

Because you – the subscriber who pays for our research – are the most important part of our business.

And right now, we must stick together to share ideas… give honest feedback… and figure out solutions to weather what’s ahead.

You see, we talk to and publish the work of many smart people. And while they have differing views in many areas, I’ve never seen so many agree on one simple belief…

That America is heading for some dark, troubling times. Many believe a collapse is coming. Some believe it’ll be followed by a decade of market inactivity, and a slow death for savers and aspiring retirees. 

Now, they may disagree on the timeline…

Some say two years…

Others say three…

And a couple, like our W.D. Gann acolytes, Phil Anderson and Mason Sexton, have specific predictions about the “when.”

That’s why now, we’ve decided to create a more open and two-way relationship with our readers than ever before.

If we’re serious about helping regular Americans build, grow, and keep their wealth (and we are), we need (and want) to do a better job of listening to our readers.

That’s the only way we’ll ever have a chance to build a community around Legacy Research.

That’s also why we’re starting a new Friday tradition at the Daily Cut.

From Monday to Thursday, it will be the regular fare… expert insight from Legacy Research analysts… general and detailed market observations… and (hopefully) useful ruminations on something or other from your editor…

We’ll also publish guest essays from time to time. And anything else we feel you need to know, that you won’t get from the mainstream.

As for the Friday edition, it will look more like what you see below. Direct and honest feedback from you or your fellow readers, plus our direct and honest replies and solutions.

We’re certain you’ll enjoy it. And please, don’t be shy. Participate. The more interaction we have with you, the better your experience…

Your Direct Line to My Inbox

In last Friday’s Daily Cut, we explained there were changes ahead for Legacy Research.

We also explained we would reveal the full details in due course. That time isn’t quite yet… but it will be soon.

In the meantime, you can email my inbox directly, not via a customer service agent or anyone else. Here’s a screenshot of my Outlook:

Chart

The only thing we can’t do is reply directly to you… as much as we’d like to. It’s for legal reasons. We need to make sure there isn’t any hint of providing personal advice.

So, if you have any questions, observations, or concerns about what’s going on at Legacy Research, drop me a line at [email protected].

Of course, for regular customer-service-related queries, you should use the regular email address of [email protected].

They’ll answer those questions promptly.

Now back to today’s Daily Cut…

Your “2016 Editor” Would Agree, Your 2023 Editor… Not So Much

The best way we can describe how the Friday edition will work is that it will be “reader-led.”

We will specifically look at the questions and comments we receive from readers and use that as the basis of our essays.

One thing to be clear. It won’t just be about answering questions. From time to time, a subscriber may disagree with something we’ve done… or with something written or said by one of our analysts.

We’ll use this forum to either defend the analyst’s take… or perhaps to agree with the reader’s take and ask the analyst to justify their position.

What better way to get the most from our analysts than to “shine a light” on what they’re doing and saying, and then hold them to account for it?

In that vein, we’ll begin with a note from one subscriber, Walter, who doesn’t pull any punches. He writes:

Most of your communications talk about 500%, 5,000%, and 50,000% returns. It is an insult that you think your readers are so stupid as to actually believe that it is likely to earn that kind of return by following your advice. If your writers/analysts could produce those sorts of returns, they would not be working for you, or anybody else. You should try to make your bull**** more plausible so that it is not so insulting to your readers.

– Walter Z.

We don’t know for sure, but our hunch is Walter is referring to some of the claims made around our cryptocurrency services. They certainly do make what appear to be outlandish and wild claims.

And if we could roll back the clock to somewhere before 2016, your editor would wholeheartedly agree with Walter.

But today, and for the past seven years, the market has forced us to take a different view.

We say that because the kind of investment returns that seemed implausible seven or eight years ago are now almost routine.

For instance, take a recent presentation Teeka Tiwari gave about the “Final Collapse” of the U.S. dollar. He showed how a $1,000 stake in each of five previous crypto recommendations gave his subscribers the chance to make:

  • $27,390

  • $43,869

  • $57,000

  • $93,269

  • And $851,285

These aren’t back-tested returns. These are real recommendations he gave during a real briefing that could have made you serious and life-changing returns.

Now, just because Teeka made those picks before, does it guarantee you’ll see the same returns for his new picks?

Of course not. The returns could be lower… or if we’re being fair, perhaps even better than he predicts.

Here’s the thing, the crypto market has completely upended what is possible from speculations.

Your editor says that with some experience. I got my break back in the mid-1990s as a broker specializing in small-cap stocks on the London market.

I then went on to write a successful small-cap newsletter for six years… followed by a tech stocks service and a microcaps service.

I even launched an emerging markets newsletter in 2014 when most folks claimed China’s market was about to crash. I thought the opposite… that it had already crashed and there were gains ahead. (I was right.)

But here’s the thing…

Throughout that period, we recommended stocks that had the potential for terrific gains – 100%, 200%, our best (from memory) was around a 452% gain.

And yet, from around 2016, when bitcoin and later altcoins began to seriously enter the investing universe, it completely changed everyone’s expectations.

Suddenly, stock-pickers couldn’t compete. A stock-picker might predict a small-cap stock gain of, say, 300% over the next two years… meanwhile, crypto specialists could promise – and deliver – 300% gains in a few weeks… or 3,000% gains in a few months… or even a 10,000% gain in a year.

It was an extraordinary time.

For proof, let’s look at Teeka Tiwari’s track record. And again, just a reminder, though they may seem “make-believe,” these are real recommendations with real returns.

Of course, not everyone made these gains. Some may have sold out a little early or later for an even bigger gain. Or sold early or later for a smaller gain.

Regardless, here are some of the top results from Teeka’s Hall of Fame (two of them are stocks):

  • NEO… 37,573%

  • Binance… 14,926%

  • Chainlink… 3,544%

  • Hut 8 Mining… 1,753%

  • Lisk… 1,643%

  • Streamr… 1,447%

  • Silvergate Capital… 1,389%

  • Steempower… 1,241%

  • Waves… 1,209%

  • Ripple… 1,140%

  • Bitcoin Cash… 1,010%

Don’t ask me to explain what any of those cryptos do. I don’t have a clue.

But it’s irrelevant whether your editor understands it or not.

Did Teeka know for a fact in advance that each of these would make the returns achieved?

No.

But he and his analysts did know they had the potential for the kind of gains most investors will rarely see in their lifetime.

They knew that based on the individual ideas and what they could see from the market sentiment.

Now, it’s also true that crypto went through a savage “winter.” Teeka has been upfront about that all along.

In fact, Teeka always says that “volatility is the price of entry” to invest in crypto.

If you’re not comfortable with volatility, don’t invest in crypto. Simple.

In addition to that, as Teeka said in a meeting we both attended last week, if you’re not willing to accept a potential 80% drop in the crypto price, you shouldn’t be in it either.

So, we get the gist of what Walter says in his email to us. Our “2016 self” would agree with him 100%.

But in 2023… heading into 2024, we now have a different view.

Knowing the work Teeka puts in, and knowing the kind of returns he has achieved, there’s no doubt in our mind the claims made are a true reflection of what subscribers have been able to achieve… and given the right market conditions, a reflection of what’s possible in the future.

It’s just that it’s not for everyone.

And now onto another email from a subscriber…

Too Long and Wordy

This one is from reader Russ:

The daily report is too long and wordy. I am busy and need overview headlines I can cover quickly and then read the supporting details as wanted or needed.

As your information is not presented this way, I have unsubscribed approximately 20 times, but still get the emails. What is going on??

– Russ A.

In this case, the Daily Cut may not be the right email for you.

Instead, it sounds like you may prefer one of our other free e-letters. If you’re after something quick, before the market opens, we would recommend either (or both):

Both are ideal for active investors and traders, and both typically provide insight into an interesting potential trade set-up for the day or the next few days.

Just note that neither provides direct recommendations.

For example, on July 13, Jeff Clark wrote:

Long-time readers know we use the CPC to help gauge investor sentiment. It’s a contrary indicator – meaning when everyone is bullish, we want to be cautious, and when everyone is bearish, we want to be buyers.

The stock market rarely rewards popular opinion. So, whenever the CPC reaches extreme levels, it’s often profitable to bet on a short-term reversal in the other direction. If the CPC pops above 1.2 – meaning folks are rushing to buy put options – it usually pays to be a buyer of stocks.

And, when the CPC dips below 0.80 it’s often a warning sign of an impending pullback.

Of course, no signal works 100% of the time. The CPC dipped below 0.80 in early June, yet the S&P 500 rallied nearly 200 points last month. So, I’m not suggesting readers sell everything just because the CPC is below 0.80.

I am suggesting, however, that now is a good time to be cautious.

Raise your stop-loss prices. Maybe trim some positions and take some money off the table.

Jeff was almost perfect with the timing. As you’ll see on the chart below, the market topped out two weeks later…

Chart

And considering how the market behaved for the next four months, raising stop-losses and trimming positions was great advice.

As for Larry Benedict, he’s been closely watching the market’s favorite stock this year, Nvidia (NVDA). And he’s managed to guide readers through profitable up and down moves in shares.

For instance, on September 26, he wrote:

Now NVDA is down around 18% from its high, and short sellers may see a big opportunity if the stock continues to fall. But there’s reason to be wary of taking on short positions right now…

Despite this sell-off, though, we need to remember that markets overshoot in both directions.

NVDA had overshot in its massive run-up. But we now need to keep a close watch to see if NVDA could be stretching itself too far on the way down.

If it has, then it could be setting itself up for a potential bounce.

That’s exactly what happened. The stock bounced from $420 to $470 in two weeks:

Chart

As we say, we’re sure you’ll get great value each morning from both free e-letters. And, yes, they will run much shorter than our deeper dives into the economy and our guru’s latest market analysis.

Finally, for Russ’ attempts to unsubscribe. Leave that to your editor. We’ll pass his email to our Customer Service team and have them unsubscribe you from the Daily Cut.

Remember, you can email me directly at [email protected].

Thanks for taking the time to read today’s issue.

See you next week.

Cheers,

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Kris Sayce
Editor, The Daily Cut