You can make 1,000%-plus gains in crypto… But only if you follow this one simple rule… In the mailbag: “I wouldn’t trust Facebook with my identity”…
Today, we’re circling back to one of the big themes on our radar at The Daily Cut – the rise of the crypto economy.
That’s because, after a bear market that raged all last year, prices have come roaring back.
Bitcoin has more than doubled from its bear market low of $3,200.
And some of the crypto recommendations in the Legacy Research model portfolios are up 8,993% (Palm Beach Confidential)… 228% (Crypto Income Quarterly)… and 95% (Disruptive Profits).
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And as you’ll learn below, colleague and world renowned crypto expert Teeka Tiwari says the rally is just getting started.
But to understand where we’re headed… we first need to know where we’ve come from.
The rest of the crypto market followed suit. It plunged 84% from its peak last January.
The press dubbed it “Crypto Winter.”
And it tested the mettle of even the most bullish crypto investors. Many lost faith and bailed.
But Teeka urged his readers to stay the course. And with Crypto Winter now in the rearview mirror, we’ve gotten a steady stream of emails from readers thanking Teeka for his guidance during those trying times.
Here’s just one example, from Clayton F. in last Tuesday’s mailbag…
Teeka, just wanted to share a note of thanks for all of your work on our behalf. You’ve stayed with us through Crypto Winter – and you didn’t run or hide. I respect and admire your character and core values. I’m grateful. Many thanks.
It’s not hard to see why Clayton… and the other readers who sent messages of support… want to thank Teeka.
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The prices of many of the top cryptos dropped 70%… 80%… even 90% in some cases.
But through it all, Teeka stood firm on his long-term bullish outlook for the crypto market. He urged his readers to be patient with the price dips.
And he regularly sent video alerts to Palm Beach Confidential subscribers about the crypto bear market.
Here’s an alert Teeka sent out last Thanksgiving…
We’ve stepped into the middle of a “tsunami” of negative news in the cryptocurrency market. There’s mass panic.
So what do we do about it? What we do is we go and enjoy our families. We unplug from all the minutia and the craziness that’s going on in the cryptocurrency market, because we can’t control it. We know this is a volatile asset, and we’ve dealt with that by having small, equal position sizes.
So we have to be rational and ask ourselves, “Okay, the market is getting hammered. Is this an asset class that we still think makes sense?” And I still have to say that’s a resounding yes.
Teeka was urging his readers to focus on the long-term case for cryptos… and to phase out the short-term price noise.
Teeka came from humble beginnings.
He grew up in Britain’s foster care system. But when he was 16, he moved to the U.S. with just $150 in his pocket and the clothes on his back.
Just four years later, Teeka became the youngest vice president ever at investment bank and brokerage firm Shearson Lehman. He spent the next 15 years on Wall Street… and another decade running a private fund.
This gave him a ringside seat to the dot-com boom. Teeka saw some of the most successful stocks in history zoom higher… then plunge lower… before delivering life-changing gains.
There’s a lot we don’t like about Amazon’s business practices, but it’s one of the greatest wealth-building vehicles in history.
It went public in 1997. From there, it climbed 135,867% to its all-time high in September 2018.
That would have turned your $10,000 investment into almost $14 million. That’s why I said the gains on offer were life-changing. That kind of money would make a nice retirement nest egg.
But to earn those gains, you would have had to suffer through drawdowns of 56%… 65%… and even 94% during the dot-com bust.
Most folks panicked and bailed far too early to get rich from owning Amazon shares.
Since it went public in 1980, to its all-time high last October, Apple shares shot up 40,042%.
That’s enough to turn every $10,000 into over $4 million.
But folks who held on had to suffer through a peak-to-trough loss of 80%. And there were several drops of 40% or more.
And how many investors do you think had the stomach for those kinds of price plunges?
Our bet – very few.
Take the top-performing open recommendation at our crypto investing advisory, Palm Beach Confidential.
It’s a Chinese crypto project called NEO that runs decentralized applications. And it’s up 8,993% since Teeka added it to the model portfolio in February 2017.
Ether is another one of Teeka’s big winners. He added it to the model portfolio in April 2016. And since then, it’s up 2,628%.
And bitcoin, which Teeka recommended that same month, is up 1,741%.
But those kinds of gains come with the rollercoaster-like volatility.
Look at the table below. It shows all the drawdowns the world’s most widely traded cryptocurrency – bitcoin – has been through since it launched in 2009.
| Bitcoin Drawdowns | |
| 2013 | -83% |
| 2014 | -71% |
| 2015 | -78% |
| 2017 | -40% |
| 2018 | -72% |
He keeps a watchful eye on the recommendations in the Palm Beach Confidential model portfolio.
But he doesn’t let day-to-day price changes rule his thinking.
It’s an important lesson if you want to make money in any kind of market over time… be it cryptos… or stocks… or commodities. Teeka…
Mr. Market, as the godfather of value investing, Benjamin Graham, reminded us, is best thought of as a moody teenager. Sometimes, he’s on a high… and is bidding up assets beyond their fundamental value. And sometimes, he’s in a sulk… and is prepared to sell the same assets for less than they’re really worth.
And you don’t want to give the pronouncements of moody teenagers too much thought.
What does Teeka focus on instead of price moves? As he put it…
When I’m figuring out the future of any investment involving new technology I ask myself two key questions: Are more people using this tech? And is it getting better? In other words, I look at the rate of adoption and the pace of innovation.
This is the only way to tell if the investment in question has a future. I’m not saying I don’t ever look at prices. That’s just not possible. But I don’t let price be my guiding star when it comes to my assessment.
Last year was one of the most exciting years on record for cryptos on both the innovation and the adoption fronts.
For example, on the innovation side, we’ve seen big strides in projects that allow investors to earn income on their crypto investments… something that up until recently didn’t exist.
And on the adoption side, a bunch of high-profile banks and corporations are building out the crypto economy.
For example, JPMorgan Chase, the biggest bank in America, said it would be launching its own digital coin (called JPM Coin) to transfer payments between clients’ accounts.
And as we put on your radar here, Facebook, the world’s largest social media company, is in the process of launching Facebook Coin. It will be a digital coin backed by the dollar. And Facebook’s 2.7 billion users will be able to send and receive it through their Facebook, WhatsApp, and Instagram messaging apps.
You also have the upcoming launch of the Bakkt cryptocurrency exchange. The company behind it is Intercontinental Exchange (ICE), the owner of the New York Stock Exchange.
Meanwhile, financial services giant Fidelity says it will be rolling out its own crypto trading platform within weeks.
And Teeka says crypto adoption will continue to snowball… making now a great time to be a crypto buyer.
In fact, Teeka says crypto assets will be in every major institutional portfolio in the future. As he puts it, it will push the entire crypto market “higher than you think is possible.”
He’ll be showing you the catalysts that will drive the next crypto boom…
And why the next stage in the evolution of the crypto economy will be growth of an order of magnitude greater than we’ve ever seen before.
So I hope you tune in.
Meantime, for a limited time, you can check out Teeka’s presentation from our first annual Legacy Investment Summit last year.
In it, Teeka revealed why 2019 would be what he calls the “year of Wall Street greed”… and how you can set yourself up to profit as institutions rush into cryptos. Watch it right here.
Readers turn back to Jeff Brown’s Bleeding Edge, our free tech e-letter and the newest addition at Legacy Research.
Last Wednesday, Jeff – our tech expert here at Legacy Research – covered Google’s plan to replace your smartphone with smart glasses… a regulatory body’s shot at the blockchain industry… and Facebook’s sneaky move to find out more about you.
It’s gotten readers thinking…
Jeff, my sincere thanks for the ongoing Bleeding Edge tech data flow. Keeping ahead or at least abreast of the rapidly changing technology environment is a definite task. Your efforts are very well appreciated. Facebook – not a chance. FATF – FACTA on digital steroids… Google Glass 2.0 – would love it, but it’s connected to their AI… Pass.
– Jim P.
I wouldn’t trust Facebook with my identity. I think I’m going to quit Facebook as a user. Who needs it?
– Janet L.
Switching gears, another reader turns back to the battle for supremacy between the U.S. and China, after Legacy Research cofounder Doug Casey painted a grim picture for America…
A dispiriting picture you’re painting, Doug. Sadly, nobody stays on top forever, not even the U.S. I’ve long accepted that China will emerge as the world’s foremost superpower.
This doesn’t mean we’re just going to dry up and blow away. We’ll simply become something like a typical European power, too enervated to bother even reproducing. (Sigh! These kids are just too much trouble!)
Well, what the hell. I’ve had my fun, and all my kids are launched on successful careers. Always look forward to and enjoy your columns.
– John M.
Are you also quitting Facebook, like Janet L.? How are you taking advantage of Crypto Spring? Write us at [email protected].
And keep your questions coming, too… Every Friday in our mailbag editions, we turn to the Legacy team for answers. (Catch up on the latest here.)
Regards,
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Chris Lowe
May 27, 2019
Mahón, Menorca
P.S. You’re invited… From September 23-25, join me in Southern California for the second annual Legacy Investment Summit. I’ll be there… along with Teeka, Doug Casey, Jeff Brown – and the rest of the Legacy team.
And before Friday, you can get a ticket for hundreds of dollars less than everyone else will pay… I hope to see you there.