If you’re like most folks I (Chris Lowe) know, you aren’t sad to see the back of 2020.
A global pandemic left millions bereaved and knocked out large swaths of the economy… protests and riots erupted in the streets… and we witnessed one of the most bitterly contested elections in U.S. history.
And over 22 trading days in February and March, the S&P 500 plunged as much as 35%.
It was the fastest descent into a bear market in history.
A lot of folks were bracing for the “Big One” – an era-defining stock market crash.
Then Washington and the Fed stepped in with gobs of stimulus cash – from Paycheck Protection Program (PPP) loans… to quantitative easing… to $2,000 pandemic relief checks.
This ballooned the U.S. dollar supply by 25%. (That’s in terms of M2, one way to measure the dollar supply. It tracks the bills and coins in circulation, plus the dollars that exist in electronic form in bank accounts and money market mutual funds.) That’s its biggest yearly jump since 1960, when this data was first recorded.
This massive cash injection helped fuel dizzying booms in tech and biotech stocks. Silver and gold mining stocks went ballistic. The IPO (initial public offering) market soared.
And the cryptocurrency we’ve spread the word about in these pages skyrocketed. Bitcoin shot from $7,200 to an all-time high of $33,500 – a 386% gain.
Teeka Tiwari, Jeff Brown, Dave Forest, Nick Giambruno, Jason Bodner, and the rest of the Legacy Research team helped you stay calm as markets crashed.
As Teeka put it back in March as the S&P 500 was tumbling and panic was in the air…
Even as I catch myself silently mourning the temporary departure of my hard-earned dollars, I take solace in the fact that – so long as I just sit still – in time, the market will give me back far more than it has ever taken from me.
That’s why I want you to have faith that the sun will shine again.
In the following recovery, Teeka and the rest of the Legacy Research team gave readers a shot at more than 100 triple-digit winners in their model portfolios – including wins of 537%… 667%… 675%… and even 962%. (More on those here.)
Here’s the thing… Just because we turn the page in the calendar doesn’t mean the roller-coaster ride is going to stop.
So we’ll be standing alongside you to keep guiding you through these turbulent times… and unearthing more profit opportunities… in 2021.
Whether it’s alternative assets such as cryptocurrencies or pre-IPO deals… tiny gold explorers… or bleeding-edge tech and biotech stocks… we’ll be tracking the trends with the biggest potential for profit.
We’ll also be spotlighting the threats to your wealth… and showing you how to protect yourself.
Later this week, I’ll shine the spotlight on our analysts’ “big picture” predictions for the year. And I’ll show you how you can use these insights to really move the needle on your wealth this year.
Today, I’m sharing with you three predictions that will be as true in 2021 as they will be the year after that… and for as long as you’re an investor.
These are fundamental truths about investing that I’ve learned over my two decades as an analyst.
Understanding them won’t automatically make you wealthy. But it will go a long way to making you successful as an investor over time… which is our ultimate goal.
This may sound obvious. And in theory, it is…
But you’d be amazed at how panic-inducing it is to live through a real-life market correction or crash.
I’m not talking about just sleepless nights. We also do dumb stuff when we panic… like sell at or near the bottom. And that’s a sure way to lose money.
You have to understand… Markets are volatile by their very nature.
One thing you can be sure of is that the prices of investments you own – from stocks, to commodities, to cryptos – will bounce up and down.
Sometimes by a lot.
If they weren’t “risky” in this way, they wouldn’t offer a return.
There’s no free lunch. You don’t get the chance to make life-changing gains without shouldering some risk.
The more volatile an investment is… the higher the risk. And that’s not a bad thing. Higher volatility also means higher potential returns.
As regular readers know… bitcoin is a totally new kind of money that sprung into existence only a decade ago.
And its price has bounced around all over the place as investors figure out its true worth.
Just look at the “drawdowns” (peak-to-trough falls) bitcoin holders have had to suffer.
They had to hold on through 36%… 75%… even 83% plunges. But the payoff for perseverance was huge.
Bitcoin holders have seen annual gains of 1,317%, 1,375%, and 5,428% in recent years. The average annual gain going back to 2011 is 876%.
The same is true for the tech and biotech stocks Jeff Brown recommends… the tiny gold exploration companies Dave Forest focuses on… or the legal cannabis and psychedelic medicine stocks Nick Giambruno has in his model portfolios.
If you want investments that don’t bounce around so much, go for money market funds or bonds instead. Just be willing to accept the lower returns that come with the lower level of risk.
This is where nearly all the Hall of Fame returns our analysts have racked up for their readers have come from.
Take the 1,226% win Nick Giambruno scored on tiny psychedelic medicine stock MindMed (MMEDF) this year in our Crisis Investing advisory model portfolio. As I’ve been showing you, psychedelics are the next phase of the legal cannabis megatrend.
Or the 962% win Teeka Tiwari racked up in the model portfolio of our Palm Beach Confidential advisory. It was on a little-known cryptocurrency project involved in the buildout of a blockchain-based financial system.
A megatrend is an unstoppable global trend that has profound impacts on the economy and society.
Past examples are the switch from horse and buggy to gas-powered automobile… the rise of the internet… and the smartphone revolution.
But you don’t make life-changing gains by simply identifying market megatrends… You have to beat the crowd to the punch.
As I write to you about all the time, successful investing isn’t a function of what you buy. It’s a function of the price you pay.
And only in the early innings of a megatrend are prices still cheap enough to offer the prospect of truly life-transforming wealth.
That’s why, this year, we’ll be keeping the focus on disruptive new technologies such as gene editing… the 5G wireless rollout… and the electric vehicle revolution.
We’ll also be covering the rise of bitcoin and the buildout of the crypto economy… the bull market in precious metals… and the wave of cannabis legalization sweeping the globe.
These market megatrends are all still in their early innings. That means they offer the best opportunities to profit in the world today.
Here at Legacy, we employ more than a dozen of the world’s smartest investing experts.
In a typical year, they travel hundreds of thousands of miles hunting down the best opportunities to make life-changing wealth.
And we spend tens of thousands of dollars on research and analytics.
This has helped us make early calls on some of the world’s most profitable megatrends.
These include the rise of bitcoin, the gene-editing revolution, the rally in precious metals, the scramble for battery metals, the rollout of 5G wireless internet, and the renaissance in the IPO market.
But even we don’t catch every big market move…
We didn’t feature it in these pages. But solar stocks went on a tear in 2020.
More solar power came onto the U.S. electric grid than power from any other form of energy.
That helped make the Invesco Solar ETF (TAN) the best-performing stock market exchange-traded fund in 2020.
It rocketed 234% higher last year.
But that’s okay. You waste valuable psychic energy lamenting “could have beens.”
New opportunities come along all the time – and we’re excited to bring you more of them this year. But you won’t see them if you’re kicking yourself over the one that got away.
Regards,
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Chris Lowe
January 4, 2021
Bray, Ireland