On March 8, the market’s fear gauge (the CBOE Volatility Index, or the “VIX”) hit 37… it’s highest reading since the start of the COVID pandemic in March 2020.
(A reading below 20 tells us the market is calm, while a reading over 20 signals fear and uncertainty… so a reading of nearly 40 indicates extreme market fear.)
Triggered by Russia’s invasion of Ukraine and oil concerns, it was more fuel for volatility that’s been roiling since the start of the year… due in part to the Fed’s desire to raise rates and 30-year record-high inflation.
I’m sure you’ve felt it, too. Maybe you’ve watched your portfolio drop 10–20% or more… maybe you’ve even sold-off some of your positions. (Something we don’t recommend you do.)
Luckily, there’s still an opportunity to make money in today’s market… and you don’t need to do anything like short a stock or make a high-risk speculative bet.
So, I want you to pay special attention to what I share with you today… because it’s insulated from wild market swings and can outperform when the market recovers.
For most of the last century, it was a “hidden” market only available to the Wall Street elite… but not anymore.
The “Hidden” Market
The “hidden” market I’m talking about is private equity.
Here’s how Daily editor Teeka Tiwari explains it…
During my time on Wall Street, I discovered a secret… There are really two markets: The “hidden” market, where the rich and connected make their millions… and the stock market for everyone else.
The hidden market is private equity. And it’s the playground of venture capitalists.
According to McKinsey & Company, this market has over $5 trillion in assets under management. For years, Wall Street has walled it off from you.
And for good reason: The gains it’s pocketing are truly massive – far bigger than what you get with regular stocks.
Teeka’s right.
You can see in the chart below that the average venture capital (VC) fund trounces the returns of public markets over the long haul:
Between 1995–2020, the U.S. Venture Capital Early-Stage Index has returned an average of 86.1% per year. Meanwhile, four major equity indexes have returned an average of only 6.7% per year over the same span.
That’s not a typo. Early-stage, private companies have returned more than 12x as much as public companies during the past two decades.
And now, recent rule changes by the Securities and Exchange Commission (SEC) allow ordinary investors to get in the game and invest in private companies before they go public…
They’re called Regulation CF and Regulation A+ offerings. The main difference is the amount of money each type of deal can raise.
Regulation A+ offerings can raise up to $50 million. And because of an important change that took place last March, Regulation CF offerings can now raise up to $5 million from the public every year. (Before that, the amount was just over $1 million.)
Minimum investments for Reg A+ deals generally range from $250–1,000. And you can often take part in a Reg CF offering with as little as $100.
The best part?
Private companies are insulated from public market chaos…
Private Companies Can Withstand Volatility
Companies raising funds through a Regulation A+ or Reg CF offering are private. And since they don’t trade on public exchanges, their valuations aren’t affected by market volatility.
By operating as private entities, they can methodically execute their business plans outside of the wild swings of the public markets.
The best private companies can easily build up substantial war chests, too. Then they can use that money to buy distressed assets on the cheap whenever volatility creates good bargains.
Meanwhile, if the market stays volatile, they can stay private until conditions are more favorable for going public.
For all these reasons, studies by research firms like Blackstone and KKR show that private companies outperform the S&P 500.
They have lower volatility than publicly traded companies, performing better during challenging times.
So, with all the volatility we’re seeing in the public markets, now’s a great time to get exposure to the best private companies…
And Teeka has found an opportunity that’s squarely in the sweet spot of what will be a multibillion-dollar trend: American Energy Independence.
Turn Uncertainty Into Opportunity
Gas prices were already skyrocketing before President Joe Biden issued his order banning Russian oil imports to the United States.
But Teeka’s discovery is a positive sign that the country’s brightest minds are turning their focus toward U.S. energy independence.
It’s a tiny company in the American heartland creating a revolutionary energy breakthrough.
Led by a legendary engineer and CEO, it’s found a way to produce environmentally sound oil – without drilling and fracking – and at a cheaper cost than anywhere else in the world.
We believe this private company could ultimately help offset some of the banned oil imports from Russia.
That’s likely a big reason why a Wall Street powerhouse has written a check to become its largest shareholder.
This firm’s deals are some of the most profitable opportunities of the past 150 years… including gains of 47x, 100x, and 159x.
And for the first time, you can get a seat at the table on the same terms as one of the largest, most powerful banking firms in the world…
On Wednesday, March 23, at 8 p.m. ET, Teeka will dig into the details during his first-ever U.S. Energy Independence Summit.
During this special briefing, he’ll tell you about this tiny company making shockwaves in energy and finance.
You’ll even learn which Wall Street giant has its backing (you’ll be surprised). Most importantly, Teeka will show you how to back this company while it’s still private.
That’s the beauty of this opportunity… Its private status means it’s unaffected by the volatility we’re seeing in the broad market.
You’ll be able to get into it at $1.25 per share, and you won’t need to be an accredited investor to take part…
However, as with all private companies, shares are strictly limited. And one of Teeka’s last private recommendations sold out in 12 hours.
So, click here to reserve your seat at this free event.
I know 2022 has gotten off to a rough start. And as the Russia-Ukraine conflict continues, so will volatility.
But in an environment like we’re in right now… private companies offer some of the best protection against volatility on the market chaos.
Be sure to join Teeka on Wednesday and let him show you how to turn uncertainty into opportunity.
Best Wishes,
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Nilus Mattive
Analyst, Palm Beach Daily