Update - September 14, 2021

Here Comes the Crowd!

Golly… we may be onto something.

Ever since I went public with it, I’ve taken heat from the mainstream crowd about our hefty allocation to crypto.

As long as real interest rates are negative, I recommend 10% of your portfolio be in cryptos.

The traditionalists are aghast at such an idea. The old-school 80/20 crowd is shocked by its boldness.

And now… they’re starting to see things as we do. (A slew of triple-digit gains doesn’t hurt.)

Here Comes the Crowd

We’ve never given TV pundits much credit, but Kevin O’Leary just said something you’ll want to hear. He said he wants to take his crypto holdings to 7% of his portfolio by the end of this year.

He’s at a timid 3% now.

“Trillions of dollars” could pour into the market, he says, if crypto becomes a new asset class.

If?

Bitcoin just became a sovereign currency in one country. Another country is headed that way quickly.

Just about every big bank in the country is opening its doors to crypto… and many are even letting folks hold it in their savings accounts.

The question isn’t whether crypto will become an asset class… The question is whether it will become the asset class.

The folks who answer that question right and get ahead of it will be the ones who make oodles of money.

You know my stance. As long as massive amounts of money are up for grabs at record-low prices, the push needed to take crypto to the top of the financial world will be forceful and unrelenting.

That’s why we keep publishing more and more on the subject.

New Reports Now Available

If you haven’t seen them yet, we just put a few new reports on our site.

They reveal two of the hottest “base portfolio” coins on the market today and detail the income-generating potential of crypto. And, in a reader favorite, we’ve published our in-depth guide that shows exactly how to buy a crypto.

You can access all the reports right here.

There are a few key things to note about the coins shared in these reports.

First, these are “set it and forget it” type of coins. They’re some of the leaders in the space and are set to dominate over the next few years… or even longer. While they’re quite likely to go up in price over the next few months (as folks like O’Leary see what we’ve been talking about and dump big money into them), the gains over the long haul could be tremendous.

Second, because these coins are featured in a report that will likely be live on our site for many months, and because of their “buy and hold” nature, they will not be tracked in our official portfolio. Over the years, I’ve found that when entry dates – and therefore entry prices – are so different, it confuses things.

But, of course, I will keep you updated on them just as I do with all of our positions.

And if you’re interested in more crypto plays, especially the fast-moving, smaller coins that tend to make the biggest headlines… stay tuned. I’ll have more details on that front later this week.

I’m excited.

Right now, though, I’ve got one of those stock updates I promised you.

Wall Street Alchemy

My latest recommendation just made an announcement that may confuse some readers.

Hercules Capital (HTGC) just told us it will commence a public offering of $325 million worth of bonds. Most investors are trained to hear the words “public offering” and immediately think of a dilutive secondary offering of shares. That is not what’s happening.

The company is issuing bonds… not stock.

It’s a common move, especially for a business development company like Hercules.

The company is offering five-year bonds at a rate of 2.625%. Through a public offering, it’s essentially taking a loan from anybody who wants in on the deal. It won’t be a single bank or entity buying the bonds.

Hercules will use the money to do two main things… pay off more expensive debt (in this case, the company has earmarked the cash to pay off loans with rates above 4.5%)… and make more investments in small, high-potential companies.

This sort of deal is why the company is so attractive and why it’s a great play for this ultra-low-rate environment. It’s almost like alchemy. The company borrows for less than 3%, invests the cash into profitable ideas and rewards its shareholders with a 7%-plus dividend.

And we get not only the dividend… but also the potential for strong share price appreciation as well.

Bottom line… this is good news for the company. It’s doing more of what it does so well.

If you haven’t read the latest monthly issue and bought shares of the company, do so now.

Finally, tying all these ideas together, Coinbase Global (COIN) – which is not a position in our portfolio or touted in our reports – just announced it will offer a $1.5 billion bond of its own.

It’s a big deal worthy of our attention. It’s not only a lot of money but also a sign of Wall Street’s firm acceptance of the company and its business – a crypto exchange.

Coinbase had no trouble getting the money it wanted at a price it likes.

The offering was for $1.5 billion worth of bonds… but the company received at least $2.4 billion worth of demand within hours of making its announcement.

It’s more proof that crypto is here to stay and that Wall Street’s insatiable appetite for yield is the absolute biggest and fiercest driver of this market.

For more on crypto… stay tuned to your email.

Folks who want in on the smallest and fastest-moving coins will have their chance later this week.

P.S. A good friend of ours just sat down for a big interview to discuss how skittish investors can take full advantage of one of the biggest bull markets in history. If you’re risk-averse or just want to explore a different way of investing… click this link.