STOCKS ONLY GO UP!

Before I begin, please subscribe to my newsletter so you can get them directly in your inbox each week! This is a weekly letter focusing on Bitcoin, the new financial system, and the future of the internet.

Investors,

Everyone is a genius in a bull market.

In late 2017 I put a few thousand dollars I had into the crypto market. Almost immediately, I was seeing crazy gains. Up $100. Up $1000 and so on and so on. 

It felt like the bull train wasn’t going to stop. Then I went to a dinner party and everyone in their mother was quietly speaking about crypto. One guy even shouted out “Ethereum is the way to go!”

I remember telling my mom how much money I made in a single day and we both had a nice laugh. It wasn’t a ton of money compared to the OGs who courageously bought bitcoin early in the decade. However, it felt like a decent amount of money to me and sparked a wave of curiosity I haven’t felt in a long time. 

No way this market could go up for much longer! At the time, I had no idea. I had never experienced a bull market like this. My investment experience was minisicule compared to the Warren Buffets and Howard Marks of the world. 

As the weeks went on, I learned a little bit more about the technology, sold off my gains in altcoins, and put it all into Bitcoin. 

Shortly after, the bubble burst sending Bitcoin down to around $3000 a coin. It is important to note, however, bitcoin was making a higher lower, gaining momentum every single bull market. 

Looking today, I feel the same bull market energy in the equities market as I did in the crypto market in 2017. If dinner parties were still a thing (COVID we hate you),  you would hear about all the money people are making in their stock portfolios. Tesla would probably be brought up a few times. 

History doesn’t rhyme but it does repeat. 

I watched this fascinating video of Mark Cuban the other day explaining how investors are chasing performance rather than real value and true fundamentals. 

Full article here.

The article stated:

“This is not a fundamentals-driven market and it hasn’t been since the Fed intervened,” Cuban said, referring to the Federal Reserve’s extraordinary steps to buy corporate debt and Treasury bonds as part of its effort to keep the financial system running smoothly amid the pandemic.

Cuban, who was a tech investor during the tech bubble of the late 1990s, said current market valuations are “so similar.”

So when I hear two girls casually chatting about their Betterment accounts and how much money they have made, I start to get worried. When I hop on Xbox to hit the sticks and play COD, and my friends won't stop shilling me their next stock picks, I get worried. 

And now we have the famous & intelligent Barstool Sports founder, David Portnoy, with his famous sayings like:

“Stocks only go up! If it has letters, buy it. Hammer it. Stocks only go up.”

I even threw a thousand dollars in to ride this market. You might as well dance if the party is still going on. Like crypto 2017, I immediately started realizing gains. I bought Tesla of course, and Slack, and Square, and Twitter, and Alaska Airlines, and Apple, and Spotify. It didn’t matter what I bought, they all went up and fast. I was making money every day because “stocks only go up.”

David Portnoy has received a lot of criticism from traditional investors but let the record state, he is not wrong. No living investor has traded in a global pandemic market. One that has forced everyone to lockdown in their homes, push millions out of work, and activate the most ridiculous monetary stimulus plan by our good friends down at the Federal Reserve.

Take a look at this tweet by Charles Edwards:

The money printing press is forcing the stock market to rise and the wealth inequality gap to widen with it. 

According to a recent article on Zerohedge.com:

When the Fed, or the ECB or the JCB or any other central bank prints money out of thin air, and then deploys that “liquidity” into the market, are you, or the firm you work for, among the first, second or third order recipients of that fresh injection of money? If so, then you’re a Cantillionaire.

And the rest of us? We’re losers.

I recommended reading the full article to understand The Cantillon Effect. However, use this image as your guide into the future of a fiat money system:

Our grandparents and parents saved money for the future. The ones that were smart enough to understand the system, invested their money into assets like gold, real estate, and the public equity markets. They got richer and inflation worked for them, not against them. 

As the value of the dollar diminished over time, especially after 1971 when we went off the gold standard, it became harder and harder to save and buy a share of the corrupt system. Wages stayed stagnant, and now parents everywhere are confused why us 20 years-olds don’t have our lives figured out. Everything costs so much more and we have to go into debt just to afford it all. Why do you think there are fewer babies being born and couples holding off to have kids until a later age? We are trying to catch up! Our dollar is being devalued and we are running as fast as possible to save and invest so we can walk and enjoy the f*****g view. 

A few notable posts to share from Dan Held:

Source (1)https://www.linkedin.com/posts/dheld_bitcoin-activity-6691688830636056576-RpNX

Source (2)https://www.linkedin.com/posts/dheld_a-single-1-invested-in-1802-is-now-worth-activity-6689151741721751552-nE-n

I got on a bit of a rant there but it is hard not to scream from the rooftops and rip your hair out when you know how the system works. As Marty Bent says, “Fix the money. Fix the world.”

Yet the world we live in right now is a “stocks only go up,” world. I don’t know when this train is going to run off the tracks. Even Mark Cuban said:

“I have to keep reminding myself the internet bubble lasted multiple years. It went from 1995 to early 2000.” 

With what looks to be more money printing and another economic stimulus bill coming, investors could see this equity market inflated even more than it is. This bubble isn’t going to burst and end anytime soon. In these types of bull markets, volatility is your friend. You welcome volatility. Volatility brings massive up-swings. 

Bitcoin historically has been very volatile and should be the fastest horse in this race. If and when the bubble pops, I want my money in the soundest, scarcest money in the world - decentralized, immutable money, not controlled by any government or central authority. 

Keep on partying but know when to find the door. Yet according to Joe Walsh, “It's hard to leave when you can't find the door.”

Educate yourself, do your own research, learn what is really happening to our money and why stocks only go up, and proceed accordingly. 

Thank you as always for reading and listening. It means the world to me and I have so much fun writing these. 

Have a good rest of the week!

-molesy

Oh, and I might have to grab one of these bad boys since ‘stonks’ only go up:

https://store.barstoolsports.com/products/vineyard-vines-x-ddtg-vest?variant=32529834737761

Thanks, El pres.

As a reminder, this is not financial advice. Do your own research.

Subscribe at molesy.substack.com