Last week, the markets got hammered…
As of last Friday, the S&P 500 was down 1.2%. The tech-heavy Nasdaq dropped as much as 2.6%. And individual companies like DocuSign have crashed as much as 45.8%. (Since then, we’ve seen quite a rally.)
The crypto market wasn’t spared either…
Bitcoin and Ethereum saw pullbacks of as much as 19.7% and 19.2%, respectively.
I’ve been warning my readers of a pullback in stocks and cryptos for a few weeks now.
And told them not to worry when it happens…
If you listen to the media, the main causes of this sell-off were fears over the omicron variant of the coronavirus… the supply-chain crisis… and profit-taking by investors before the end of the year.
The truth is no one really knows why the market sold off…
I certainly don’t. And I’ve been doing this professionally every day of my life since I was 18.
The only thing I care about during a sell-off is whether or not a bull market is coming to an end… or if it’s just a normal pullback in an ongoing uptrend.
Friends, let me tell you this: Bull markets don’t roll over and drown in a sea of pessimism. They end in a spectacular blow-off top to the upside.
And I can unequivocally tell you we’re not there yet.
We’re in a long-term secular bull market in stocks. And we’re still in a bull market in cryptos.
I’ve been using this weakness in stocks and crypto as a buying opportunity… You should, too.
What I’m really excited about, though, is the sell-off in bitcoin. I consider it a perfect moment to “back up the truck” and load up on more.
So, if you haven’t bought bitcoin yet… this is your opportunity to get exposure before it crosses $100,000. And if you already own bitcoin, it’s a great time to add more.
How I Stay Sane During Insane Markets
When I allocate my own investment dollars, I use three “time buckets.”
I allocate my money based on what I need access to in the short term (weeks and months), the intermediate term (1–3 years), and the long term (4-plus years).
After going broke in the late 1990s, I wanted to make sure that no matter what life threw at me… I’d have the capital to weather any financial storm.
I had to dump some great investments in the past because I didn’t have enough money available in a short-term bucket to carry me through tough times.
That’s why I now keep what many people would consider an inordinate amount of money in cash equivalents I can liquidate at a moment’s notice with no penalties.
I pay a lot of money in lost opportunity costs for this short-term liquidity.
But when life kicks you in the rear – which is inevitable – having a short-term bucket you can dip into without wrecking your long-term plans pays for itself.
Like insurance, I hope I never need it… But I sure do sleep better at night having it.
It’s also the reason why I have no mortgage on my home. And with rates as cheap as they are… many will (rightly) consider that a truly dumb decision.
Yes, I agree it’s crazy to pay off your mortgage from a pure numbers standpoint…
But from a peace of mind standpoint, the joy I get from not owing money on my home is a bigger reward than the extra money I could make by taking out a mortgage and investing the balance.
Plus, having a big liquidity buffer means I can make long-term bets and not get scared out of them.
As I look back over my biggest investment blunders, they’ve always come from selling too early because of fear or not having enough liquidity.
By allocating my investments into time buckets – and keeping a good supply of ready liquidity – I’ve been able to stay invested through some truly horrific volatility.
Let’s talk about how I use this approach with bitcoin…
The World’s Best Long-Term Asset
Over any rolling four-year period, you could have made money in bitcoin. I believe that will continue to be true for many more years to come.
For instance, I believe bitcoin will be worth about $500,000 per coin sometime in the next four years.
If I’m right – and assuming you buy bitcoin now and hold it until then – it would mean a compound annual growth rate (CAGR) of approximately 76.1% per year.
Anytime I think about allocating long-term money anywhere other than bitcoin, I ask myself, “If I don’t need the money for at least four years, is there any other investment that can beat a 76.1% CAGR?”
And there’s nothing I’m looking at that can beat a 76.1% CAGR from now to 2025.
So my long-term investment dollars go to bitcoin… There’s just no other asset out there that can compete with it over the next four years.
This mindset helps me get through periods of crazy volatility like we’re seeing now.
Especially if I’ve just plunked down $65,000 for BTC – which I recently did – and it drops to the high $40,000s.
When that happens, I tell myself:
“When you look at the chart four years from now and bitcoin’s at $500,000… you won’t even see the little blip between $48,000 and $65,000. It just won’t even register. So don’t sweat it.”
Just remember: Volatility is the price you pay for outlandish returns. So long as you have the right mindset… you can safely ignore the volatility.
And if you’re still not convinced, read on. I’ll show why you must absolutely buy some bitcoin while it’s still cheap…
Here’s What Happening Next in Bitcoin
Every four years, the number of new bitcoins coming into the market gets cut in half.
This always results in a massive rally for bitcoin and a handful of altcoins. By now, everybody thinks they have this cycle all figured out.
Smart money buys about a year before a bitcoin halving and sells about a year after a halving.
That’s been a great way to make money since 2011… But it won’t work anymore.
Sellers getting out “ahead” of the bear market will experience a level of regret that will follow them to their death beds.
That’s because next year, bitcoin will break the four-year cycle with something I’m calling the “Final Halving.”
This Final Halving is not pre-programmed like the other halvings. But it’ll have a tremendous impact on bitcoin’s price anyway.
That’s because we’re about to see the incoming supply of new bitcoin drop by as much as 98.2%.
I know the idea of a Final Halving doesn’t fit the old blueprint. That’s because according to bitcoin’s code, we still have 29 more halvings left. That’s the story everyone’s told.
I’m here to tell you that all those halvings are irrelevant. They no longer matter.
Here’s why I say that…
A group of bitcoin insiders has done something that was supposed to be impossible.
They’ve discovered a “backdoor” way to reduce the amount of bitcoin coming to market down to virtually zero in 2022, and no one is talking about it.
That’s why tonight at 8 p.m. ET, I’m holding my special Final Halving Summit. During this event, I’ll tell you why the Final Halving will pull forward a century’s worth of halving gains in as little as 12 months.
Think about that…
The 2020 halving set off a 10x gain. The halving before that triggered a 50x gain. And the one before that, a 100x gain.
Now, imagine what will happen when we have the equivalent of 29 halvings at once. The gains will be insane. And when bitcoin eventually hits $500,000, we’ll trace it all back to the Final Halving.
That’s why I want you to tune out all the negative news.
We still have at least 10x upside in front of us, but that’s nothing compared to the gains I think you can make in a handful of coins set to soar 50x higher or more from the Final Halving.
Tonight, I’ll share details on these six coins I believe will rocket even higher than bitcoin. I made the same promise to you in March 2020 when bitcoin dropped 50% in a day, all the way down to $4,000.
I told you to ignore the volatility, buy bitcoin, and buy five coins attached to bitcoin’s next halving…
Since then, bitcoin has been up as much as 17x, and the five coins I recommended have been up as much as 38x.
The Final Halving will be even bigger.
That’s why I want you to join me at my free event tonight at 8 p.m. ET.
I promise you won’t find this information anywhere else. That’s why it’s imperative to your financial future that you find out all the details you can on bitcoin’s Final Halving.
I hope to see you there.
Let the Game Come to You!
Editor, Palm Beach Daily