What's a fast way to become rich in financial markets?
We think the answer is simple to write, but tougher to do -
Identify a big trend change that very few see coming (think entire economies, industries, sectors) and be willing to put skin in the game to profit from it.
Essentially, you have to be willing to walk up to the current granite mountain of the status quo, take a closer look, and hopefully discover the mountain is just a curtain shielding an opportunity few have the guts to explore.
The grit, conviction, and ability to do the opposite of what everyone else is doing is not for the easily swayed.
John Paulson shorted the US. subprime mortgage lending market and earned $4B for looking behind the curtain of "mortgages for all".
Legendary Jesse Livermore breathtakingly shorted the entire stock market in 1929 and banked $100M.
Decades later, Paul Tudor Jones would use the same brazen playbook to short the 1987 market crash and took profits around $100M.
George Soros shorted the British pound in the 90s, and was elevated to the billionaire's club.
John Templeton shorted the tech bubble of 2000 and made off with a cool $80M in just a few weeks.
And then there are the crypto innovators, like Sam Bankman-Fried of FTX ($22.5B), Brian Armstrong of Coinbase ($11.5B), Chris Larsen of Ripple ($6B), Cameron and Tyler Winklevoss of Gemini ($4.3B each).
All billionaires in less than a decade (and the majority under 40).
They took risks that most would not, to accumulate a level of wealth 99% will never know. Facts.
This idea is the opposite of SEC Chairman Gary Gensler's recommendation to college students -
"If you were to save $5 a week, and you earned maybe 8% starting off while you're at college, you may have $130,000 plus saved by the time of retirement at 65."
Maybe have $130K saved for retirement?
Maybe earn 8%?
Maybe, is code for "good luck".
How long will $130K last, as cost of living inflation impacts paychecks from the grocery store to the gas station and housing?
Life costs more.
And will continue to cost more.
The risk of doing nothing is a gamble many of us are not willing to take.
The risk of gaining returns less than the rising cost of living and increasing taxes is too dangerous for many of us to ignore.
Studying the brilliant investment stories of the past 100 years, regardless if they went long or short, the lesson appears consistently - identify a big trend change and be willing to put skin in the game to profit from it.
Our analysis to date has been on the right side of Bitcoin's quarterly trend.
Crypto is a different animal than traditional finance. The daily trend shifts are swift and explosive.
The sweet spot for us to find a smoother path. A hidden in plain sight trend that keeps us out of daily pumps and dumps – but also gratifies the need to win within weeks to months (and not decades).
Follow Uncle Gary's advice, skip the $5 latte, save some calories, and be underprepared for our senior years.
No thanks, Uncle Gary.
We know we can't save our way into wealth in this blazing hot climate of global uncertainty.
We (like many billionaires) have to earn it by taking educated risks.