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Is It Really Different This Time?
Well, sort of – and that makes all the difference.
Interest rates are at zero, and worldwide markets assume that will change little for some
time to come. Global coordinated monetary and fiscal policy are spiraling interest rates
to this flattened level with little prospect of upward movement. The combination of
monetary, fiscal, and interest-rate policy coordinated in this manner is unprecedented
and is being pushed to its limits.
Has Something Gone Horribly Wrong?
A subliminal fear may be permeating the markets, generating extreme movements,
causing both substantial profits and losses from massive capital flows magnifying price
movements within compressed time frames. How do we explain this, and more
importantly, how do we predict and profit from it?
Bitcoin Explains Everything – Read That Twice If You Need To
Bitcoin represents more than an investment curiosity, speculative bubble, or a new way
to store and transfer value seamlessly while apparently cloaked as some sort of new
currency. It is not a currency, but more importantly, it may be the vanguard of a new
investment approach representing an essential component of a new investment and risk
strategy paradigm.
Bitcoin is volatile, and that volatility is more compressed and extreme than almost any
other comparable investment. For example, Bitcoin rose more than 15% Monday, and hit
a new 52-week high Tuesday morning at more than $48,000. Year to date, Bitcoin is up
almost 60%. That seems ridiculous, but perhaps not. The latest volatile move came after
Elon Musk announced Monday that Tesla bought $1.5 billion in Bitcoin., allocating a
significant amount of its cash to an alternative investment – and that’s the point.
Alternatives Created. New Strategies Required
More such allocations to this and other alternative investments will become an essential
component of successful investing. Unique investment strategies that capture these new
forms of value creation can represent a superior investment portfolio considering
massive and irreversible changes in the global investment environment.