In our daily lives, we love bargains.
When we see a brand of coffee we like for half off in the grocery store… we’ll pick up two bags.
We’ll spend hours online hunting for the cheapest washing machine or TV.
We may even drive miles out of our way to buy gas for a couple of cents cheaper a gallon.
But in our portfolios, we behave differently.
We typically hate to see our favorite investments available at lower prices.
Instead of seeing this as a gift and scooping up bargains, we tend to sit things out until prices rise again.
That’s how we miss out on some of the biggest gains the market has to offer.
So in today’s dispatch, I’ll try to get you to act.
You see, one of our favorite investments here at the Cut is selling at a steep discount. And if you’re willing to buy, it’s a chance to 10x your money.
My name is Chris Lowe. I’m a veteran financial analyst and your editor here at the Daily Cut.
My mission is to bring you the best moneymaking ideas from Teeka Tiwari, Jeff Brown, Dave Forest, Nomi Prins, and the rest of the Legacy Research team straight to your inbox.
And today, over at our Palm Beach Daily e-letter, Teeka showed his readers why current weakness in bitcoin is a screaming buy opportunity.
As regular readers know, Teeka is a former hedge fund manager and a world-renowned crypto investing expert.
In 2016, he became the first guy in our industry to recommend cryptos in a major financial newsletter.
Since then, he’s given his readers the chance at gains of 20,859%… 31,275%… and even 65,171%.
So when Teeka makes a big call on crypto, it pays to listen.
First, it’s selling at the bargain counter.
Since its all-time high of $68,990 last November, it’s down to $38,300.
If you own bitcoin already… and need to sell it immediately for some reason… that’ll sting. But going back to our shopping analogy, it’s also a chance to buy more bitcoin at a discount – before it goes up again.
Second, we just got news of one of the most bullish developments since the cryptocurrency launched in 2009.
Investment firm Fidelity will allow folks to buy bitcoin in their 401(k)s.
As Bloomberg reported…
Fidelity Investments wants to bring crypto to its workplace retirement plans.
The firm announced Tuesday it will have a product ready in coming months to allow 401(k) plan participants to direct a portion of their savings into bitcoin. Employers that decide to offer the option will choose what percentage of an employee’s account can be directed into crypto, up to a cap of 20%.
Fidelity administers about $12 trillion in assets. That makes it one of the world’s largest wealth managers.
And about 23,000 companies use its retirement plans. That makes it the biggest retirement plan provider in the U.S. by far.
If you’ve been with us for some time, you’ll know that crypto adoption is what drives prices higher over the long run. Teeka…
I’ve always told my subscribers to ignore the day-to-day story and focus on the big driving story. And the big driving story of bitcoin – and all cryptocurrencies – is mass adoption.
Bitcoin is going from a relatively small market to a massive market. And that’ll take its price much, much higher.
We’ve looked at how publicly traded corporations such as Tesla (TSLA), MicroStrategy (MSTR), Block (SQ), and PayPal (PYPL) have added billions of dollars of bitcoin to their balance sheets.
We’ve also looked at how payment processors Block (formerly Square) and PayPal now allow their customers to buy crypto through their online payment apps.
We’ve even covered U.S. politicians’ adoption…
For example, Miami’s mayor, Francis Suarez, wants to turn the city into a crypto hub.
He’s pushing for the city to pay staff a percentage of their salaries in bitcoin. He’s advocated for accepting crypto for taxes. He even financed his 2021 re-election campaign with bitcoin.
Take Fidelity’s move to allow its customers to add bitcoin to their 401(k) plans. Teeka again…
Crypto retirement products will be highly profitable for financial firms because fees on retirement accounts are persistent.
Let’s say an employee starts saving for retirement at age 23. She can’t tap into that money without incurring taxes and penalties until she’s at least 59.5. So like clockwork, financial firms can charge fees on a retirement account for 36 years.
Wall Street money managers will be like hungry dogs eyeing a juicy steak. Once they see the profits Fidelity rakes in from its bitcoin retirement plans, they’ll say, “We need our own bitcoin retirement accounts. This market is too valuable to ignore.”
Teeka believes every major U.S. retirement planner will follow Fidelity’s lead and add crypto options for its clients.
The crypto has risen from a dollar value of zero just over a decade ago to being worth $38,300 a coin today.
And that’s without folks being able to add it to their 401(k)s.
Turning bitcoin into a 401(k) asset means a gush of new money flowing in.
Americans held $7.3 trillion in 401(k) plans as of last June. That’s up from just $3.1 trillion in 2011.
If we keep things simple and factor in the same rate of growth over the next 10 years, we’re looking at another $17 trillion in 401(k) plans.
If just 10% of that ends up in bitcoin, that would send the crypto to more than $125,000.
A 2019 report by real estate firm Coldwell Banker predicted that by 2030, millennials would inherit $68 trillion.
Millennials grew up in the computer age. Digital assets make as much sense to them as dollar bills and stocks do to boomers.
So it’s no surprise that about 40% of millennials say they own some crypto.
And that’s without it being an official 401(k) asset…
That inherited wealth won’t flow into 401(k) plans. But Teeka believes a lot of it will find its way into bitcoin.
We can’t say exactly how much. But again, let’s keep things simple and say 10%. That alone would mean nearly $400,000 bitcoin – more than 10x where it is today.
That’s why Teeka is urging his followers to take advantage of today’s weak prices and buy some bitcoin.
As he summed it up in Palm Beach Daily…
Down markets can be your greatest long-term wealth ally if you use them properly. Weak markets are a gift.
Buy the best assets you can when they go on sale. And when sentiment shifts, as it always does, it’ll position you to reap huge profits.
So I’m urging you to buy some bitcoin, too. It doesn’t have to be much. Even an initial stake of $200 is fine.
That way you can get used to buying and storing it before you buy more. Just remember that Teeka says your bitcoin holdings shouldn’t be more than 10% of your overall portfolio.
Until tomorrow,
Chris Lowe
May 2, 2021