Make All the Money You Can in the Next Year and a Half
Make All the Money You Can in the Next Year and a Half
Maximizing Wealth Before 2026
2026 is the date. We have been warning about this for a long time, and today we want to emphasize it with an article you'd be foolish to ignore.
We believe there is a historic opportunity in the next year and a half, where a substantial amount of money can be made—possibly enough to support several generations.
Starting with the chart from a farmer created over 100 years ago, here's what we have.
After having filled our pockets in 2023, we will see an expansion period lasting until 2026. Let's verify this in the following charts.
We can observe how the S&P 500 index has appreciated nearly 30% in just under a year and a half, just as Samuel (the farmer) told us.
The case of cryptocurrencies is even clearer.
Here is an example of how Bitcoin has increased its market cap against the world's leading currency, the USD. What's truly curious is that if you don't live in the largest country in the world, your returns would have been even better.
This is the example from Argentina. Where you have substantially improved your purchasing power.
Powell is your friend
Now more than ever, we have seen how searches for stagflation have significantly increased on Google Trends. Everyone is wondering what it is and how it might affect them.
I'll summarize it for you: it's a process by which economic slowdown occurs at the same time as inflation. Obviously, it's a terrible scenario, but the situation is very different from what happened in the 1970s. In fact, the fear index tells us precisely that we are far from those levels.
As if that weren't enough, this week the Federal Reserve met to announce that it is keeping interest rates at 5.5%. This might sound negative; however, there are two takeaways:
It confirms that the economy is slowing down.
It confirms that there will be no further significant rate hikes, all this with oil dropping 3% and a previously announced reduction of QT.
Basically: 1. Interest rates will be lowered again. 2. More money will be printed. Both are the fuel that high-risk assets need to soar.
Accumulate all you can
I believe this is the most useful lesson for you. From now until approximately June 2026, try to make as much money as possible. Liquidity will return to the markets, and both indices and cryptocurrencies will rise.
One of the top macro crypto investors (Raoul Pal) describes it perfectly.
Here we have the Nasdaq versus the global liquidity index. As you can see, the correlation between both assets is very close to one.
What will happen next
As we have warned multiple times, the productivity of developed countries is dropping to 1. This means that for every dollar invested, only one is produced. Therefore, there is no progress. This is typical of the end of the cycle for great empires, as Ray Dalio well describes.
Just at that moment, we will be ready with a hedge that will protect at least 400% of our portfolio, and we will be able to invest at laughable multiples.
Time will tell, but I truly say that we are facing a unique opportunity.
Now, as every Sunday, I share our detailed portfolio with you.