Too Hot Investment Thread

This is correct. If you are OK with that the zero fee approach is really appealing though.

 

BTC is on a tear today.

 

en fuego!

 

How are we celebrating your 90¢?

 

Robinhood announced they plan to do this.

 

Not completely off topic because it's about investing, but it's about a shady incident involving a wealthy grandmother and one of her sons and his two sons. Interesting read. Thought some here might want to take a look.

*Note, Bloomberg also provides a narration of the article you can listen to if you don't want to read it.


At 93, She Waged War on JPMorgan—and Her Own Grandsons
Beverley Schottenstein said two grandsons who managed her money at JPMorgan forged documents, ran up commissions with inappropriate trading and made her miss tens of millions of dollars in gains. So she decided to teach them all a lesson.

By Tom Schoenberg
February 17, 2021, 1:00 AM PST

Beverley Schottenstein was 93 years old when she decided to go to war with the biggest bank in the U.S.

It was a June day, and the Atlantic shimmered beyond the balcony of her Florida condominium. Beverley studied an independent review of her accounts as family and lawyers gathered around a table and listened in by phone. The document confirmed her worst fears: Her two financial advisers at JPMorgan Chase & Co., who oversaw more than $80 million for her, had run up big commissions putting her money in risky investments they weren’t telling her about. It was the latest red flag about the bankers. There had been missing account statements. Document shredding. Unexplained credit-card charges.

Although some relatives urged Beverley not to make waves, she was resolute. What the money managers did was wrong, she told the group. They needed to pay, she said. Even though they were her own grandsons.

And pay they did. With the help of her lawyers, Beverley dragged her grandsons and JPMorgan in front of arbitrators from the Financial Industry Regulatory Authority, or Finra. She sought as much as $69 million. After testimony that spread over months and ended in January, the panel issued a swift decision in Beverley’s favor.

 

My pet theory is since Bitcoin isn’t actually used for anything, there’s basically no price sensitivity. People will buy at $500 or $50000 because there’s no practical difference from the side of the purchaser. You’re just moving the decimal around the computer screen. Regardless of the price of the coin, it’s just viewed as $500 in Bitcoin. Add in speculation that it will just keep going up, and you have the recipe for a gigantic bubble.

Hard to imagine, but I don’t see any reason it can’t go to a million dollars a coin.

Incidentally, I think this is also one of the reasons for the bubbles we are seeing in stocks like GME. Allowing fractional ownership of shares just completely decouples your mindset from buying a discrete item (a bit coin, a share of stock), and transforms it into the idea of just converting your money in an different type of money that always goes up in value (until it doesn’t).

 

When you guys are trading stocks, how much value do you give the P/E score when making a decision on whether or not to invest in it?

I read somewhere that the lower the score is, the more potential there is in the company?

 

depends on the maturity of the company. Must always factor in growth potential.

 

Historically, a key number to look at. Today, not so much - depending on what vertical you're looking at.

Look at the PE and EPS of companies like Tesla v the rest of their industry. There's a lot of speculation involved in potentially disruptive areas like biotech, EVs, etc. With the bubble we've got, a lot of traditional views will keep one from realizing a lot of gains.

 

I own Bitcoin and I don't view it as a currency or commodity but rather a store of value. Currently, I don't plan on ever selling my Bitcoins. I plan on passing them down to my kids so they can have them when I am no longer here.

My thinking is this is the best hedge against the dollar that there is. Some people call it insurance.

You will always be able to calculate the value of a Bitcoin. It's basic division.

1 Bitcoin / 21 million = Bitcoin value

Since The Fed has an endless printing press when we apply this same formula to the US dollar it looks like this

$1 / infinity = $0

So if you're are looking at saving your money in the USD and you have a goal of saving $1,000,000.00....how much money are you really going to have to save to earn $1,000,000.00? It will probably end up costing you a million dollars to save that million dollars so what have you accomplished?

Companies like Tesla are looking at cash on their balance sheets like it's a depreciating asset, so how do they change that cash into an appreciating asset with the maximum return? The answer is Bitcoin.

This is why there is a wave of money coming into Bitcoin in particular but also other crypto currencies and DeFi projects.

The blockchain technology is going to completely change the way we bank, buy real estate, run supply chains, healthcare, etc.

You can already place Bitcoin and other crypto in wallets like Blockfi where you can earn interest (6%) on your Bitcoin and even borrow against your Bitcoin if you need it for liquidity. They are even coming out with a Visa Credit cards where I could spend my crypto and earn rewards in crypto currency.

For those that are looking for insight and tools to learn and trade crypto currency volatility tradethechain.com is a good source. I also would recommend having multiple exchange trading accounts along with multiple wallets. Yes, you will need to remember passwords which is why I also recommend a crypto notebook like this
Stonebook | Best Notebook for Crypto | Hardware wallet | Shieldfolio – Shieldfolio Inc.

Basically don't trade all your crypto in one place and don't store all your crypto in one wallet.

There also probably won't be another opportunity in our lifetime at this kind of opportunity.

Someone asked for price predictions on this current bull run for Bitcoin I'm guessing we see between $70k - $100k Bitcoin this year between now and the end of the year.

Keep in mind there will be a "correction" and crypto corrections are not like the 10%, 20%, 30% stock market corrections...crypto corrections are more like 50%, 60%, 70% corrections which is when the real buying opportunities take place.

 

One more thing on crypto.

For those people that are not comfortable getting on crypto exchanges, wallets, etc.

You can play/trade Bitcoin and Ethereum in the stock market with Grayscale funds GBTC for Bitcoin, ETHE for Ethereum and LTCN for Litecoin. This will allow you to trade from etrade, ameritrade, Robinhood, etc.