Stocks are at record highs.
Cryptocurrencies are soaring.
Commodities are pedal to the metal…
And Washington wants to hand you even more free money.
Our mantra continues. It’s a great time to be an investor.
Oh boy… is it.
We’ve focused our efforts on crypto in recent weeks. As we said in our recent research, crypto is set to, once again, far outpace the gains from stocks over the next 12 months.
At this point, it’s going to be tough for stocks to catch up.
So far this year, Bitcoin is up by more than 55%.
Just last week, in our Alpha Money Flow research service, we sold our first two crypto plays. One was good for a 40% gain overnight… the other was a 63% win in 56 days.
But let’s be 100% clear…
What’s happening with these coins has very little to do with the future of money or some big breakthrough in crypto technology.
What’s happening is exactly what we said would happen.
Our Dow 100K thesis says this race to the top will continue to gain exponential speed as stocks and all things liquid soar to unthinkable highs.
The idea hinges on the fact that oodles and oodles (the most precise term in times like these) of cheap or even free money is spreading throughout the economy. With no firm foundation to build on (GDP growth still stinks), that money goes where it’s treated best.
For most folks, plunking money into a business or even a vacation home doesn’t make much sense. They’re wary of this free-money bonanza. They know it’s a mirage in the desert… the result of the simmering heat pouring from atop the printing press.
Instead, they’re putting their money into something liquid… and something that’s treating their money very well.
Stocks and crypto.
The New Investment Banks
We wrote about Apple (AAPL) and how it’s using the situation to flat-out print wealth for its shareholders.
With its $14 billion run into the debt market, it’s now as much of a bank as it is a phone maker.
But nothing shows the craziness of this situation like Mr. Crazy himself… Elon Musk.
He’s used the free-money bonanza to catapult himself to the No. 1 wealth spot in the world.
The moves this week by his pride and joy, Tesla (TSLA), prove the point.
Thanks to rampant speculation and having nowhere else to put their money, investors have pushed the value of the carmaker to $825 billion. That’s 1,300 times what the company is expected to earn this year – a valuation that only a Washington budget maker could reconcile.
But the stock has been stubborn this year. It hasn’t moved all that much over the past month.
So what’d Musk do?
He did what we’ve been telling readers to do for months… He turned to crypto.
As you surely heard on Monday, Tesla told the world that it now has a $1.5 billion stake in Bitcoin.
Again… money is going where money is treated best.
Let us remind you that it was almost exactly a year ago when Musk spooked shareholders by announcing a sudden secondary offering. The firm created an extra 2.65 million shares out of thin air and traded them for an extra $2 billion in cash.
And 75% of that money just went into Bitcoin.
Free money drove the stock price higher… Musk took advantage of it… and now he’s going use the same idea to make even more money.
Just like Apple and its buyback bonanza, these are the sorts of ideas we need to be investing in.
These companies are wisely taking advantage of one of the most lucrative setups in investing history.
Buy and Hold?
But now we come to the question of the decade. How long will it last?
Folks have pondered the idea since markets began to surge in March 2009. Many have stubbornly waited for the drop.
It never came.
But it’s no question how long this will last. As long as free money is flowing, the carnival will continue.
It must. There’s nowhere else for the money to go.
So make some room… There’s another $1.9 trillion on the way.
Elon Musk’s next project involves sending a huge network of satellites into space. He wants to create a blanket of internet in the heavens. It’s a moneymaking idea… but there’s an even better – pre-IPO – way to play this 5G-busting plan. Click here for our latest research.
Is your portfolio enjoying this bull ride? Tell us about it at email@example.com.