At Legacy, we don’t just help you grow your wealth. We help you hold on to it, too.
And with market volatility surging, timing your trades right is more important than ever.
A great example is what Teeka Tiwari has been doing over at our crypto-focused Palm Beach Confidential advisory.
In an October 27 video update, he warned subscribers he’d start to recommend taking some profits off the table.
And on November 10, he said he’d start trimming some underperforming positions from the model portfolio.
This process began on November 19, with a sell alert on OMG Network (OMG) for a 248% gain. (Yes, that’s an underperformer in crypto terms!)
Then last Friday, he issued a sell alert on 18 other positions.
The next day, bitcoin (BTC) plummeted 8.2%. Nine of the other top 10 cryptos by market value fell an average of 11%.
On Wednesday, there was more good news for Teeka readers…
Subscribers at his Palm Beach Crypto Income advisory had the chance to take profits on four long-term recommendations.
One was an income-paying crypto that gave them the chance to bag a total gain, including income, of 527%.
Then, that evening, Teeka put out another urgent message during his “Final Halving” Summit…
It had to do with a supply shock that’s about to squeeze the supply of new bitcoin coming into the market to nearly zero.
It’s not a programmed halving of new bitcoin supply, which happens roughly every four years.
Instead, it’s a unique event he says has the potential to pull forward more than a century of bitcoin halving gains – in the next 12 months.
If you missed Teeka’s summit… you can watch the free replay here for a limited time.
After all that good news, it’s no wonder his subscribers write in to thank him all the time. Here’s some of the latest praise…
Reader comment: Thanks, Teeka, for your generosity. You are an amazing person. I started with you in 2019, and following you has made me so much money. I am getting ready to turn 76, and I love following your lead. Again, thank you for including all of us [in your services].
– Ralph Y.
Reader comment: Teeka’s knowledge and advice are the very best! I can afford only very small investments. Yet the growth has been jaw-dropping. I’ll continue to put my trust in Teeka. Thanking you seems like it’s not enough.
– Donald M.
Reader comment: Love you and trust you and the team, Teeka. Have been following for years. I’m appreciative of your “hand-holding” and attention to all you do.
– Andrew R.
Next, another of Teeka’s readers got in touch with a question about the Grayscale Bitcoin Trust (GBTC).
The trust is an asset manager that allows investors to own bitcoin through its exchange-traded funds (ETFs). It’s a way for folks to track the price of bitcoin in their investment portfolios without having to buy and store crypto themselves.
And it’s a major player… With over 644,195 bitcoins under its management, GBTC is worth nearly $26 billion.
As I’ve been showing you, GBTC doesn’t always accurately track the price of bitcoin. It often sells at a discount or premium to the value of the bitcoin it holds.
This allows you, as an investor, to pick up bitcoin at a discount when GBTC drops below its net asset value (NAV).
Reader Walter P. wants to know more…
Reader question: How would I find out whether GBTC trades at a premium or discount relative to bitcoin at any particular time?
– Walter P.
Teeka’s response: Thanks for your question. I never formally recommended GBTC because it has [historically] traded at a huge premium to the actual price of bitcoin. It’s traded at premiums of 20%… 40%… and sometimes even 100%.
It’s traded at discounts, though – of about 10%… 15%… and 20%.
Why this pattern?
You’d expect GBTC to trade at a discount to its NAV. It carries a 2% annual fee. Meanwhile, it costs nothing to store your bitcoin on a digital wallet. But it can also swing to a premium because GBTC makes it easy for investors to buy bitcoin through the stock market… which makes it in demand.
As a rule of thumb, it swings to a discount when bitcoin is out of favor with mainstream investors. And it swings to a premium when it’s all the rage again.
Right now, the fund trades at a 13.8% discount to its NAV.
If you want to buy bitcoin, and you see GBTC trading at a discount of 10% or more like it is now, it makes sense to buy GBTC.
Now that the SEC [Securities and Exchange Commission, the main U.S. stock market regulator] has approved a bitcoin ETF, Grayscale can follow through on its planned conversion into an ETF.
The minute it does that, this discount will disappear.
You can find a free chart showing the premium and discount to NAV for GBTC here.
Switching gears, a question about 5G stocks for Legacy’s tech expert, Jeff Brown.
As I talked about in more detail here, 5G isn’t a run-of-the-mill upgrade of our current 4G networks.
It’s up to 100x faster. And it’ll make a suite of previously science fiction technologies a reality – including self-driving cars, AI (artificial intelligence) virtual assistants, remote surgery, and holographic projection.
But after a recent sell-off in the tech sector, some of Jeff’s 5G stock picks have been struggling…
Reader question: Hi, Jeff – I bought some of the 5G stocks you recommended a while back. They are down. I haven’t heard you talk about 5G much lately. Have I missed the run-up at this point?
I am debating if I should hold these or sell when I can and invest more in some of your newer recommendations in quantum computing, AI, or medical robotics.
I know you can’t provide individual investment advice, but I’m curious to hear your thoughts about 5G stocks in general right now and where you think they might go in the next 12 to 24 months.
– Brien T.
Jeff’s response: Hi, Brien. Thanks for being a subscriber. As you said, I can’t give personalized investment advice as a newsletter publisher. But I’m happy to share my thoughts about 5G’s future with you and my readers.
The 5G buildout has three phases.
In Phase One, we build the infrastructure of the new networks. That includes 5G base stations, towers, and fiber-optic wiring. We entered this phase in 2017. It’s still ongoing today. But it’s overlapping with the next two phases.
In Phase Two, devices go on sale. 5G phones and other products appear in consumers’ hands. This phase kicked into high gear last year with the release of the 5G iPhone. Even with the current chip shortage, sales of 5G smartphones are on track to hit 560 million this year.
In Phase Three, we begin to see 5G apps on these new devices. For example, a massively multiplayer online game on a mobile phone without any latency [delay]. That’s not possible with 4G. But it is with 5G.
We entered this final phase this summer. And we hit an inflection point a few months ago when 5G-enabled phones accounted for more than half of all smartphone sales.
That means 5G is just starting to get really exciting. Developers see there are enough users to start developing 5G apps.
Most people don’t care too much about 5G technology. But when we get more exciting apps they can access only with a 5G device… then we’ll see people get interested.
This kicks off a virtuous circle. More people buy 5G phones to get these apps. This leads to more 5G device sales, which leads to more 5G apps. The cycle feeds on itself.
We saw something similar with 4G. It enabled some of the greatest tech success stories of the past decade.
Uber (UBER), Lyft (LYFT), Amazon (AMZN), Spotify (SPOT), and the company formerly known as Facebook (FB), Meta Platforms (MRVS), all have 4G to thank for their success. Popular mobile games such Pokémon Go wouldn’t have been possible without 4G either.
Without 4G, many companies wouldn’t exist. Or they’d be a fraction of the size they are today. It’ll be the same with 5G. But the opportunity is much larger.
As we continue to build out 5G networks… and 5G coverage improves around the world… Phase Three will accelerate. So will the investment opportunities as it plays out.
Volatility is normal in tech stocks. And we’re certainly seeing a lot of volatility right now. But investors staying on the sidelines will regret letting this opportunity slip by. I don’t want my readers to make that mistake.
I’m going to make sure my subscribers at The Near Future Report and Exponential Tech Investor maintain exposure to the stocks positioned for growth in the 5G wireless tech trend. We have a couple more great years ahead of us in 5G.
That’s all for this week’s mailbag.
Remember, if you have a question for anyone on the Legacy team, be sure to send it to feedback@legacyresearch.com.
And if you haven’t already, don’t forget to check out Teeka’s research into bitcoin’s “Final Halving.”
In the replay, you’ll find out about six tiny crypto coins Teeka believes will rocket even higher than bitcoin when this unique event occurs.
Have a great weekend.
Regards,
Chris Lowe
December 10, 2021
Dublin, Ireland