How To OUTPERFORM The Central Banks
All investing is a 'relative game'.
When you invest, you're swapping something of FALLING value, for something with RISING value.
Step ONE:
Trade dollars, which are programmed to lose purchasing power intentionally (inflation targeting is explicate currency debasement).
Step TWO:
Acquire 'assets', or investments that rise in price at a rate which EXCEEDS the loss in purchasing power of the dollars you traded.
Step THREE:
At some point in the future, you SELL the assets to receive more dollars to spend in the future.
It's a great scheme, but there's a problem. It's very difficult to consistently outperform the REAL rate of inflation, or currency debasement.
There IS a better way, but we don't have a long track record of returns...
Watch full episode here: https://bit.ly/3D6Hzpz
Why Small Cap Investing Offers Big Opportunities
Even Warren Buffett lamented the fact he couldn't invest in small caps, BECAUSE THEY HAVE TOO MUCH MONEY!
What's 'Small Cap' investing?
Simply put, it means you're investing 'small' companies, ideally with a promising future.
SOME of these companies CAN grow much faster than the bigger ones.
*Small caps can produce potentially better returns, but results will vary!
Watch full episode: https://bit.ly/3W4cEB9
Explaining Bitcoin Bonds: The Fusion of Old and New Finance
A bond is essentially a loan where you lend money to a government or company for a set period, receiving regular interest payments (called coupons) and getting your original investment back when the bond matures.
Think of an interest-only mortgage, but in reverse.
Investors hold bonds at the same time as shares to reduce the uncertainty of returns.
The problem with bonds, however, is that their returns, when accounting for currency debasement, are often negative.
The solution?
A Bitcoin bond, where 80% is held in a 5-year treasury note, and the remaining 20% goes into Bitcoin.
At the end of 5 years, you get your investment back, and the performance of Bitcoin is your yield.
Watch the rest here: https://bit.ly/4fefiuC
Are Investors Overly Optimistic About the Stock Market in 2025?
2024 was, for many investors, a pretty good year.
Surprisingly so, some would say.
I have an awkward question for 2025: Considering we're at, or near, all time highs in almost every area (NZ property excluded!), are investors getting ahead of themselves?
Check out the full chat here: https://bit.ly/3W4cEB9
Why Did Gold Go Bonkers in 2024?
In other news, Gold continues climb.
Why?
1 - Demand from countries like China,
2 - Strategic diversification by central banks globally.
3 - Gold's been marketed as an inflation hedge historically, and for those refusing to budge on Bitcoin, it's finding a place in portfolios again with renewed inflation concerns.
4 - There's an uptick in speculation that global currencies may go through some sort of reset.
5 - The inherent scarcity of gold is appearing more valuable relative to our currencies , which are being printed into oblivion.
What have I missed?
Check out full episode here: https://bit.ly/3Dlisja
How YOU Can Outperform Currency Debasement
When you're trying to understand what a 'good' return is, you need to consider a few things:
- What are the fees involved with the investment
- What are the taxes payable
- And what's the rate inflation likely to be.
It's that last one people get short-changed on, in my view [and what follows is OPINION only].
CPI (or the consumer price index) DOES NOT ACCURATELY capture the loss of our purchasing power over time.
So if FEES were 0.50%, taxes were 2%, and CPI was 3%, then 5.5% is the MINIMUM you need to get before you start receiving something for yourself.
But what if the TRUE loss of purchasing power was measured not by CPI, but by calculating the rate at which new currency was being created? Some suggest this is a rate closer to 10-15% each year.
At a minimum then, we'd need to get a return closer to 15%, just to preserve the wealth we currently have, let alone getting our money to work for us.
The 'industry' will place the focus on fees and taxes every time, but what about that last one?
Check out the full discussion here: https://bit.ly/3Vv34qv
Republican Policies: A Boost for U.S. Stock Market?
Why would a US economy under Donald Trump perform better?
Check out full conversation: https://bit.ly/3W4cEB9
Gold's Bull Market: The Cup and Handle Breakout
Here's something spooky.
One of the strangest, almost mystical aspects of interpreting markets, is 'technical analysis'.
Akin to 'reading tea leaves', the patterns in price and volume over time, CAN in fact, correspond to macro/fundamental events. In a weird way, technical analysis (TA) is a tool that may be able to predict the future.
Gold, for example, has formed (since around 2011) what's called a 'cup and handle'. Typically when this pattern forms it's indicative of a large increase in price to come.
Central banks, inflation concerns, geo-political concerns, and increasing talk around a currency reset are all fundamental factors at play at the same time.
Pretty crazy coincidence? It may just be, but meanwhile, Gold just keeps on truckin higher!
Watch full episode: https://bit.ly/3W4cEB9
Why I Changed My Mind About Bitcoin: Insider Insights
Respect and trust.
These are the two things you get when you 1 - admit you were wrong, and 2 - do something to change it.
Traditional finance: Banks, fund managers, advisers, and especially regulators - if you want [to regain] trust and respect, do some honest d/d on Bitcoin.
Check out full episode: https://bit.ly/4gF2EWN
Bitcoin: A Generational Asset You Can Borrow Against
What's the point owning an asset rising in price if you never actually sell it?
With your own home, the only way to receive a benefit TODAY from the rising value, is to borrow against it.
My wife asked me recently, what's the benefit of Bitcoin hitting $100k if we're not selling it?
It's early days, but the solution's becoming apparent - just like with property, we borrow against it. Eventually, even banks may 'take security' over Bitcoin, in exchange for issuing you new credit.
If you borrow against your Bitcoin, the borrowed money isn't considered 'taxable income'.
*There are options out there already but it's early days, and you'd do well to seek out advice before taking action.
Check out full episode here: https://bit.ly/3Vv34qv
Don't Be Confused With Risk, And Volatility
It's proven that if you bought Bitcoin at the peak but then held for 4 years, you'd still see a return of AT LEAST 20%.
'bUt it'S RiskY', they say...
It all depends on your timeframe, and how secure you hold it.
Check out full episode with Peter Dunworth here: https://bit.ly/3Vv34qv
How Financial Advisers Can Reduce Career Risk
After one goes a little deeper, there's ONE asset that allows the opportunity for investors a chance at outperforming not just inflation, but currency debasement.
It used to be (and still is to some extent) risky as a financial adviser to talk like this about Bitcoin.
Will it now increasingly be considered a career risk to FAIL to recommend even a small allocation, based on what we know today?
Would love to know your thoughts: Bad for environment (proven as false) / Only criminals use it (they use USD more) / It has no use case (they why is it $100k?)
Watch full episode: https://bit.ly/3Vv34qv
