The Silent Killer of Your Wealth: It's Not Volatility |
The market will do everything in its power to keep you from making money. That's because it's efficient at exploiting human emotions. |
You've often heard me talk about volatility. That's because I've seen it rob investors of fortunes – not by wiping out their portfolios, but by scaring them into making the wrong move at the worst possible time. |
Fear does that. It tricks your brain into thinking survival means getting out when you should be staying in… Or getting in when you should be staying out. |
But there's another emotion – one I don't talk about as much – that might be even more dangerous than fear. |
It's boredom. And I've seen it wipe out as many potential millionaires as fear has. |
Unlike fear, boredom doesn't punch you in the face. It whispers. It lulls you into a false sense of "nothing's happening." And before you realize it, you've quit a life-changing investment because it didn't move high enough fast enough. |
Friends, I get it. Everyone gets bored at times. |
It's happened to me in stocks, real estate, and collectibles like cars and watches. I got bored, sold too early, chased the new shiny thing and ended up leaving millions of dollars in profits to other more patient investors. |
Knowing that you own a great asset is half the battle in getting rich from asset ownership. Time is the friend of the person with a portfolio of well-chosen assets. |
Always remember that over time, the value of great assets ALWAYS gets realized. |
Time will march on regardless of what we do… So shouldn't we make time our friend? |
The method I use now is to always make sure I have a healthy cash cushion and/or assets I can borrow against should an emergency need for cash arise. That gives me the freedom to sit through truly insane volatility. |
And make no mistake: If you want to close the gap between your current reality and your financial dreams in weeks, months, and years instead of decades… you will need to learn to harness volatility – in a way that works for you without wiping you out. |
From Snoozefest to Shockwave |
Here's an example of what I mean. Imagine it's 2011. Someone recommends you buy a certain asset at $7. |
And they tell you this: "Hold this for 15 years and you'll make 398x your money – turning every $1,000 into $398,230." |
Sounds like a no-brainer, right? But what if they also told you this: |
"You'll lose 50% on paper – multiple times." "It'll do nothing for three years straight." "People will call you crazy for owning it." "You'll question everything."
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You'd hesitate. Most people would. |
The asset I'm referring to is shares of Tesla (TSLA). And everything I just told you happened. |
From 2010 to 2012, Tesla barely budged… |
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Think about that. Tesla traded between $1 and $3 (split-adjusted) for three years. I'm willing to bet that a lot of investors who got into Tesla's IPO called it quits during those years. It was just a boring stock. |
But even if you held the stock through those boring times, you wouldn't be out of the woods yet. |
Look at this Tesla chart from 2013–2016. We see a huge move higher at the start. But then it goes through years of sideways action. |
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Shares ran as high as $19 (split-adjusted) and dropped to as low as $9. You'd have had to deal with those ups and downs for years before Tesla finally broke out. |
In 2019, I actually recommended Tesla to a group of high-net worth individuals at a conference in Carlsbad, California. It was trading around a split-adjusted $40 per share. |
It promptly collapsed 30% right after I recommended it… before going up 30x over the following two years. |
Today, Tesla trades near an all-time high of $450. That's over 39,723% from its IPO price – enough to turn every $1,000 into $398,230. |
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All that sideways action… All the volatility… All those massive drops… When you pull back the camera, they're now just blips on the radar. |
Friends, here's the takeaway… |
You can't judge the quality of an idea by its daily price action. Because if the market were truly efficient, Tesla wouldn't have gone through all that choppiness for years; it would have just gone straight up. |
That bears repeating: The Markets Are Not Efficient. |
The reality is this: While the market is efficient at exploiting your emotions – it's highly inefficient when it comes to pricing in the long-term value of disruptive ideas like electric vehicles (EVs), artificial intelligence (AI), and crypto. |
Don't Let Boredom Steal Your Future |
The market doesn't hand you generational wealth on a silver platter. It gives it to the few who can sit through the noise… the sideways chop… the dead years… and stay committed. |
I warned investors about this during the 2018 Crypto Winter – when bitcoin was bouncing between $6,000 and $7,000 for months. |
Everyone was yawning. Headlines were dead. No one cared. |
I said then: "Right now, your biggest enemy isn't fear. It's boredom." |
In July 2020 – same thing. Bitcoin was stuck in a tight range between $9,000 and $9,500. No excitement. No headlines. I warned again: "Boredom is costing people millions." |
And I meant it. |
Since I first recommended bitcoin in 2016, it's up 25,233%. You don't get that kind of return by trading every chop in price. You get those kinds of gains by holding through boredom. |
If you're a longtime follower, you know I believe bitcoin will eventually hit $1 million by the next decade. That's nearly 10x higher than today's prices. Will it go there in a straight line? Can I tell you the exact date that will happen? |
Heck no. It will not, and I cannot. |
Here's what I know: The route bitcoin takes to 10x is none of our business. All that matters is that it eventually gets there. |
Now, the only way you'll capture that gain is if you don't get shaken out by volatility or boredom. |
The Next 90 Days Could be the Most Exciting in Crypto History |
Friends, volatility is loud. Boredom is silent. But both can shake you out of a fortune. |
So here's what I want you to remember: You don't need to outsmart the market. You don't need to time every peak and trough. |
You just need to let time do the heavy lifting. And right now, time is on our side. |
Over the next 90 days, a rare window will open in the crypto market. And it's happening during what's historically the most bullish month of the year for crypto. |
Other than a glitch in October 2015 (when the market was down 4.5%), bitcoin has an average monthly gain of 22.9% in October. That's why we call it "Uptober." |
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Here's the thing: This year, Uptober isn't just another seasonal bounce. It's coinciding with a phenomenon we call The Convergence. |
If you're not familiar with The Convergence, it's the confluence of three major trends… |
The launch of exchange-traded funds (ETFs) focused on specific crypto sectors… A friendlier regulatory landscape… And mass financialization of crypto products leading to global institutional adoption. |
When I first introduced our research on The Convergence, bitcoin was trading a hair below $54,000. Since then, it's traded as high as $124,000. And as I mentioned above, over the coming years, I believe it'll eventually trade as high as $1 million. |
My research suggests the biggest gains from The Convergence will come from a tiny subsector of crypto tokens that have automatic payouts. |
We call these "crypto payouts." |
What makes these tokens unique is that they have automatic payouts that generate income month after month after month… no matter what's happening in the market. |
It's somewhat similar to the way some stocks pay dividends. Instead of receiving cash, though, you receive more of the underlying crypto. |
I recently held a special briefing to explain how these Convergence catalysts will push crypto payout tokens much higher. I also shared details about six crypto payout tokens I'm targeting in this niche sector. |
You can stream the replay right here. |
Friends, I've made every mistake you can when it comes to investing. In the 1990s, I traded too much. I gave up on great ideas too early. I let boredom rob me of fortunes. |
But I don't want that for you. |
So next time your investment feels "boring"... remember Tesla in 2010. Remember bitcoin in 2018. Remember this essay. |
Because sometimes, the most "boring" stretch of the chart is right before the explosion. |
And if I'm right, as the Convergence unfolds, you'll see some of the biggest fireworks in the history of crypto. |
Let the Game Come to You! |
Big T |
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