First off, let's take care of the required stuff... the truly important stuff. To our veterans out there, thank you. Without you, we wouldn't be allowed to do what we do. The location, the role and the rank don't matter. Every soul who has served deserves a tip of our undeserving hat. Economic freedom cannot come without political freedom. Both, sadly, are fueled by the blood and sweat of our nation's best young men and women. Thank you. How we transition away from such important stuff... we don't know. We'll just grind the gears and hope the machine holds. But it's crypto that we're aiming to get to this morning. There's a lot on our mind and a lot in the news. The wild-eyed enthusiasts have a new chant. "To the moon," they say. As one record after another is set, we pump our fist in agreement. When you see the math, you, too, will agree there's only one logical path. A Frightening RecordWe emailed a friend in the bond business on Tuesday afternoon. He's a big-wig who's at the center of many big deals each year. He helps keep the lights on in many towns and cities across the nation. He wrote us wanting to know our thought on interest rates... especially our thoughts on the "real yield" - the unspoken figure that comes from subtracting inflation from the standard figure that's touted oh so often these days. "Get ready for a record print," we told him. The 10-year Treasury took a big dip just as inflationary pressure notched another big move higher. Combine the two forces, and you get a jaw-dropping print from the folks at the Treasury yesterday. The real yield on the 10-year dipped to -1.17%. It's a record unlike anything we've ever seen before. Was it on the nightly news? Nope. Did it make The New York Times? Of course not. Most folks have no idea what to do with such a figure. A Treasury bond, supposedly the "safest" asset on the planet, is now a guaranteed loser... and it's becoming more of a loser every day. But if you've had the displeasure of reading this column each morn for the last few years, you know what's about to happen. Honk. Honk. We're about to put on our clown nose and toot our horn. Buy It AllWe've been writing about the death of interest rates and the powerful effect of tracking real yields since we got up in the middle of the night years ago and penned this column for the first time. Our mantra has been simple. Buy stocks! And now we're adding to that mantra. It's time to double down on crypto! Both asset classes, despite intense, widespread opinions to the contrary, have surged past one record after another. And guess what... they'll continue to bust higher and higher until the pressure on real yields wanes. With calls for double-digit inflation to remain through at least the middle of next year and a Fed that stubbornly and ignorantly refuses to raise rates... the trend will only gain speed from here. Official projection... we'll see a -2% real yield by tax day. Safety in SpeculationIn an interview yesterday, we were asked why we are so bullish on crypto and stocks. We pointed right to the negative number above. Investors have no other choice. There are trillions of dollars out there that need to turn into trillions more if this economy is to grow and remain "healthy" (certainly a loaded term at this point). Traditional methods won't get the job done. Bonds are a losing venture. Even a 3% dividend doesn't do squat when inflation is ripping past 5% toward 8% or, dare we say it, 10%. The only things that get the job done are so-called speculative assets. But when everybody is piling into them, are they really all that speculative? When even Tim Cook says they have a spot in a diversified portfolio... are cryptos as risky as the old-money crowd makes them out to be? That's why we beg our readers to track trading volume. It's more important than anything else these days. It tells us where the money is headed. An Easy TripleYou may recall that last winter we said the crypto industry's capitalization would hit $3 trillion this spring. It was at just a bit more than $1 trillion at the time. Well... guess what. We're there. The industry is now worth more than $3 trillion. That's huge. And it's not just Bitcoin that's getting all the money. No. In fact, it's responsible for less than half of the crypto trades being made today. Instead, the money is going into smaller, lesser-known coins - some of which have incredible fundamentals and real-world utility. We could try to keep up with the industry and the headlines... or we could simply track the volume pouring into cryptos. The latter is far easier to do. Until rates turn around (please don't hold your financial breath), the trend will continue. There will be one new high after another. There's no other option. Crypto will go "to the moon." Volume will lead the way. If you'd like to learn how to get your hands on three coins that have seen huge volume surges... click here. Manward's associate publisher and I just sat down to examine the best way to track these big volume moves and explore just how much money could be made. It may be our best conversation yet. Watch it here. Be well, Andy P.S. Alpesh's huge interview with Buck Sexton got all the attention... but our series of big conversations is far from done. You've got to see this one. It's the first time I ever got to talk about a billion-percent gain. Check it out. Want more content like this? | | | |
Andy Snyder | FounderAndy Snyder is the founder of Manward Press, the nation's premier source of unfiltered, unorthodox views on money and what it means for a free society. An American author, investor and serial entrepreneur, Andy cut his teeth at an esteemed financial firm with nearly $100 billion in assets under management. He's been a keynote speaker and panelist at events all over the world, from four-star ballrooms to Senate hearing rooms. | | |
| 
No comments:
Post a Comment