I spent the early part of my career working at traditional Wall Street firms, and I learned a lot of great things from some very smart people.

But not all the lessons were good ones.

For example, I spent five years working at Standard & Poor’s.

I’ll never forget the first time I attended one of the company’s “investment policy committee” meetings, where some of the most important people at S&P decided where our customers should put their money.

At the time, what I heard in that meeting made all the sense in the world to me.

Today, after working with Daily editor Teeka Tiwari, I know that a different approach has helped increase our readers’ gains sevenfold.

In fact, understanding this one secret can make all the difference between earning 7% a year and earning 51.2% a year.

And the craziest part is that most of Wall Street still doesn’t get it.

For proof, look no further than a recent research paper created by JPMorgan Asset Management for its high-net-worth and institutional customers… I’m talking about big money investors who often look for investments beyond everyday blue-chips and ETFs.

It’s called “Getting to 7%,” and it’s a blueprint that clients are supposed to use to attain average annual returns in the single digits.

Can you imagine that?

We just learned that inflation hit 7% year-over-year in December, yet one of the biggest money managers on the planet is satisfied with their clients simply matching that.

Once you factor in the huge fees that brokers and advisors charge, following that type of plan virtually guarantees customers will get poorer in the current environment.

And this advice – which has a lot of similarities to what I heard during my time at S&P – is reserved for the company’s best and richest customers. It’s actually labeled “not for retail use or distribution.”

Maybe that’s a good thing.

Because here at the Palm Beach Research Group, we have a much better plan – one that has delivered a tracked return of 51.2% in 2021…

53.5% in 2020…

And an average return of 519% since Teeka took over our flagship Palm Beach Letter in June 2016.

Its long-term performance trounces what the broad stock market delivered over the same time frame…

It’s orders of magnitude higher than what Wall Street typically offers…

And it’s even superior to the returns generated by the likes of Warren Buffett, Peter Lynch, and George Soros.

So what’s our secret?

In addition to working hard, and never settling for anything less than the best, it’s pretty simple…

We Do Asset Allocation the Right Way

Asset allocation is the process of deciding what percentage of your money should go into different investment categories.

Studies show that roughly 90% of your overall returns come from asset allocation… not the individual investments you select.

Recommending assets of all different types gives readers the chance to profit from a wide range of trends.

It also keeps our money growing even when traditional markets are stagnant or dropping.

Plus, we take things a step further by making relatively small bets on investments that can make life-changing gains. Investments like cryptos, tech royalties, and pre-IPOs.

This “asymmetric” approach gives you the best chance to get massive winners without impacting your financial picture if things don’t work out.

When you add it all up, this is why we’ve posted arguably the best performance of any similar newsletter in our industry…

It’s why we have countless subscribers who have radically transformed their lives putting just small amounts of money into some of our recommendations…

And it’s why we will continue to wildly outperform the traditional Wall Street approaches, including those reserved for the wealthiest clients.

Let’s take a closer look at the nine asset classes we are currently recommending for 2022.

The Palm Beach Letter Asset Allocation Model

You’ve probably heard of the traditional 60/40 portfolio… where you invest 60% of your money in stocks, and the other 40% in bonds.

That’s exactly the type of asset allocation that my colleagues at S&P were using – a simple mix of stocks, bonds, and cash.

But with today’s high stock valuations and low-yielding bonds, this allocation offers very little in terms of growth or downside protection.

Meanwhile, JPMorgan Asset Management’s plan added in just a couple more asset categories.

At PBRG, we have nine. They are:

1. Equities 6. Altcoins
2. Fixed Income 7. Precious Metals
3. Real Estate 8. Collectibles
4. Private Markets 9. Cash
5. Bitcoin  

Here’s an overview of each asset class:

Equities: This asset class covers large-cap, mid-cap, and small-cap stocks across all sectors and industries. We also recommend exchange-traded funds (ETFs) and closed-end funds (CEFs) in this category.

Fixed Income: This asset class includes bonds, short-duration securities, preferred stocks, annuities, ETFs, CEFs, and bond-like alternatives, as well as alternative income opportunities such as BlockFi.

Real Estate: We prefer owning rental real estate directly. But we regularly offer other alternative ideas for exposure to this asset class – including REITs (real estate investment trusts), real estate funds, and real estate crowdfunding platforms.

Private Markets: This asset class includes private companies we believe are buyout targets or will file for initial public offerings (IPOs). Today, that’s available via a traditional IPO, direct listing, or SPAC (special-purpose acquisition company).

Bitcoin and Altcoins: This includes the crypto itself as well as other financial instruments (such as ETFs) tied to the crypto. Altcoins includes major, large, reserve cryptocurrencies besides bitcoin like Ethereum.

Precious Metals: This asset class includes gold and silver coins, bars, and funds. But there are other metals, including palladium, platinum, etc.

Collectibles: This asset class includes antiques, art, cars, comic books, rare books, sports memorabilia, stamps, watches, wine, and more.

Cash: This asset class covers actual cash, checking and savings accounts, money market, CDs, and certain cash-like ETFs and mutual funds.

Our nine allocation categories give readers broader market exposure. They also cover investments that are independent of the traditional stock and bond markets.

So if one part of your portfolio takes a hit, you’re set up so that some of your other assets can pick up the slack.

If you’re a paid-up subscriber and want to know exactly how much we recommend you should put into each asset class, click here to read our January issue. (Non-subscribers can click here to learn how to get a subscription to PBL.)

The Framework for a Rewarding 2022

Every investor has a different financial road map – including their individual monetary situation, risk tolerance, and investment time horizon. So we don’t recommend one-size-fits-all allocations.

You might keep a heavier allocation to Fixed Income. You might want to rely more on Equities.

Or perhaps you want to move to the upper-limit ranges for alternative assets, such as Private Markets and Altcoins.

Our basic framework gives you the flexibility to build a diversified portfolio that best fits your long-term investment goals. Plus, as I mentioned, it offers other layers of protection as well.

The important thing is that you don’t limit yourself the way Wall Street tells you to.

Best Wishes,

Nilus Mattive signature

Nilus Mattive
Analyst, Palm Beach Daily

P.S. Thanks in part to diverse asset allocation, our paid-up subscribers consistently beat the market year after year… with our crypto recommendations posting some of the highest gains across the board.

And while Teeka expects we’ll see bitcoin rise 10x from here to $500,000 in just four years… a coming crypto catalyst could unleash extraordinary gains – bigger and faster than anything we’ve seen this year.

He calls it the “Final Countdown,” and when it triggers it’ll send mainstream investors rushing into crypto. But once everyone is on board, the biggest profits will have already passed.

To learn more about the Final Countdown and receive the name of Teeka’s No. 1 crypto to play it, click here.