A League of Their Own

A league of their own... The Top 10 goes all crypto... Ten 1,000%-plus winners... Things are different today... Eric Wade's special space... The great debate: bitcoin versus gold... Mailbag: 'I want to meet you for a beer'...

Well, it finally happened...

Eagle-eyed Digest readers might have noticed a milestone last week...

As of Wednesday evening, the "Stansberry Research Top 10 Open Recommendations" list at the bottom of our daily Digest e-mail became filled exclusively with recommendations from Crypto Capital editor Eric Wade's model portfolio.

All 10... all crypto.

Let that sink in for a moment...

As longtime readers know, this Top 10 list represents our highest-returning active picks from most of our publications (a few aren't eligible for reasons we won't entirely get into here) at any given moment of time.

We're not talking about a small universe of possibilities... Between all the publications under our umbrella, hundreds of stocks are eligible to make this list every day.

And yet, today, they're all cryptos.

This milestone tells us a few things...

First, this is a tremendous accomplishment by Eric.

Thousands of investible cryptos exist in the world. But much more often than not, he has correctly identified the "best of the best"... the ones with the most long-term potential.

You don't put together 10 winners of 1,000% or more by accident... but that is exactly what Eric has done as we write. A blind squirrel sometimes finds a nut, but not that many times.

Today, Eric's model portfolio – which includes what he calls "blue chips" like bitcoin and Ethereum, as well as many other cryptos most people have never heard of – has returned an average of 815% across all 25 current positions.

Second, this is a group of recommendations that simply didn't exist a little more than 12 years ago. That's when bitcoin first entered the world. When we think about the other lesser-known cryptos that Eric recommends, they've been around for even less time...

Just a few years, if that.

This is all to say that the rise of cryptos has been truly spectacular – especially over the past six months or so.

Some might say it has been unpredictable, but we don't necessarily think so...

I (Corey McLaughlin) will admit that the speed and scale of the "rise of cryptos" has surprised me like it has a lot of other people – even some of the biggest bitcoin bulls.

But the chapters of the story have been a long time coming...

Many folks who are new to bitcoin and cryptos still don't realize that it was born out of the financial crisis of 2008. It was offered as a response to the greed that shook the system to its core.

But a little more than a decade ago, this "peer to peer" technology was really in its infancy. It was hard to trust... It felt like bitcoin was sprouting from a fringe corner of the Internet.

It was worth what it was – just a few cents at first... then a dollar by 2011... then a few hundred dollars by 2013. And by 2017, bitcoin was in a hot, speculative bubble, hitting $20,000...

Back then, many folks didn't know what they were really buying and simply wanted to get rich quick... and many of them got burned.

Don't get us wrong, people still – and will always – want to get rich quick and make the most of their money.

However, things are different today with cryptos...

For the past few weeks, bitcoin has been trading near $60,000... And Ethereum is at a new all-time high of more than $2,000.

Many Wall Street firms have spent the past six months getting into cryptos and offering products to clients who demanded them. As we wrote in the January 4 Digest...

Names like BlackRock (BLK), the largest asset manager in the world... Guggenheim Partners... hedge-fund titan Paul Tudor Jones... insurance company MassMutual... PayPal (PYPL)... and Square (SQ)... have all either already said they've allocated parts of portfolios to bitcoin or are considering investing hundreds of millions of dollars in cryptocurrencies.

MassMutual's move was really interesting... The company bought $100 million of bitcoin for its general investment fund, with the idea in mind of bolstering its pension investments.

More people are now mining their own crypto in places like Iceland, where they don't need air conditioning and the electric bill will be cheaper...

You now can buy and use bitcoin on PayPal. It's a new development this year, just like using PayPal to buy Beanie Babies or trading cards on eBay (EBAY) with U.S. dollars was a new development 20 years ago...

And this week, Coinbase (COIN) – arguably the most popular cryptocurrency exchange in the world – will become a publicly traded company on the Nasdaq stock exchange.

People seem to trust an emotionless technology more than central bankers... And we can't blame them.

Now, with all that said, you may think this story is over... You might believe the biggest gains have been made. All the crypto names in our Top 10 might suggest that, too.

But the thing is, the 'rise of cryptos' is still in the early days...

Maybe we're naïve, but we believe a serious – and still growing – appetite exists on Wall Street and Main Street alike for an asset that can't be manipulated by a few people at the Federal Reserve.

Like a lot of people, our founder Porter Stansberry started off with a skeptical viewpoint when it came to bitcoin. But by 2017, he was talking about its potential and the chance that cryptocurrencies could change our world forever.

The COVID-19 pandemic only accelerated the story...

Almost a year ago, we wrote in the May 19, 2020 Digest that it was "crypto's time to shine" for a few reasons... namely the more-of-the-same endless money "printing" from the Fed and its consequences. In part, we wrote...

If deep down in your gut you know that something is wrong with our monetary policy and our financial system... there is something you can do about it right now.

There is an alternative. And in truth, this is a valuable exercise for anyone, at any time. I am talking about investing in yourself...

And in the context of today's "unlimited QE" era – and the inflation that's likely to come from it – that means learning about the potential global, inflation-proof, administration-free currency of the future...

At its core, these are the forces behind the case for bitcoin... And they've clearly resonated with a lot of people, who are learning more and more about it every day. I was explaining the concept of "miners" to someone just yesterday while watching the Masters golf tournament.

As I explained the 21 million bitcoin supply cap and the fact that the final year bitcoins could be created (2140) is baked into its code, the person I was talking to said, "Oh, I get it."

We know this has been the case for many people...

Tens of thousands of people tuned in to Eric and Porter's "Capitalism in Crisis" event last summer, where they presented the case for bitcoin and other cryptos and detailed how best to take advantage.

During that event, they recommended that everyone at least own some bitcoin, calling it the best "asymmetric bet" of 2020... meaning a big reward for a small amount of risk. Since that event went live on July 30, bitcoin's price has soared 440%... So as you can see, those folks who took the advice back then have been rewarded handsomely.

But here's the thing... It's not too late to hop aboard this train.

For the past several years, Eric has covered the entire development of a new digital world beyond the world's most popular crypto with his thousands of subscribers... That's why he recently went live with another free event, "Beyond Bitcoin." You can watch it right here.

During this event, Eric talked again about the case for bitcoin's underlying blockchain technology, which is penetrating areas of life that most people don't even realize yet. And he discussed the potential moneymaking opportunities in many smaller, lesser-known cryptos...

Most people have never heard of these names, much less understand what projects they are attached to or what purpose they serve. But our point is, more and more people are hearing about these cryptos... enough that many of these names cracked our Top 10 Open Recommendations list over the past few weeks.

So today, we have a 'first' to report...

Eric's picks are truly in a league of their own... and we are treating them that way until further notice.

Starting today, Eric's top recommendations will be listed in their own section at the bottom of our daily Digest e-mails – the Crypto Capital Top 5. This decision serves a few purposes...

First, we never intended our Top 10 Open Recommendations list to include so many recommendations from just one service. In fairness to Eric's existing subscribers, we shouldn't be "giving away" 10 picks every day... even though we're not suggesting you buy these cryptos today simply because we listed them.

Second, we've heard from subscribers who look to our lists at the bottom of the Digest to see what's going on around our various publications. Right now, you might think that all we focus on is cryptos. Of course, that's far from the case... Regular readers know we cover everything from blue-chip, "capital efficient" stocks to microcaps to discounted corporate bonds and more.

Putting Eric's work in its own special space at the end of our daily e-mails will provide everyone with a better representation of what we do... And it fits well with our allocation advice about cryptos (only put in what you can afford to lose completely).

Plus, it gives us a chance to highlight everyone's work every day... and speaks to the excellent work that Eric does in Crypto Capital at the same time.

We'll keep our "Stansberry Research Hall of Fame" of closed positions as one list for now... But if (or when) Eric closes more winning positions to make the Hall of Fame, we'll likely have to revisit that arrangement, too.

It's a win-win-win as far as we're concerned...

If anything, this bit of needed logistical maneuvering on our part should give you another "data point" about the potential for cryptos today... As we keep saying, in many ways, this story is still just in the early innings.

If you are an Alliance member, be sure to check out Crypto Capital if you haven't already. You'll get much more than just the names of the best investible cryptos... You'll also get great work on the technology behind them... and practical advice for buying them.

In fact, just a few weeks ago in one of his weekly video updates, Eric again reminded subscribers that sending "test transactions" when they are making new purchases or getting their feet wet might not be a bad idea. And here's what he told subscribers, new and old, in his latest update on Friday about all the gains in the portfolio...

You very likely have some breathtaking gains on some of your positions. While they may remain buys in the portfolio – and new folks listen to this, listen to my words very carefully – because if you have breathtaking gains, you're almost obliged to take some money off the table and some profits.

We've talked about this before. It's going to become a recurring theme over and over again until this rally has fully played out. If you have, for example, a 30X or a 20X or a 10X... We have more than 10 open positions in the portfolio right now that are over 10X, over 1,000% gains. And that's after we've taken our principal off the table with our triple, which we do customarily.

It's no reflection on the health of a project for us to say, "Let's take our third off the table on a triple." Likewise, we may have something rated buy in the portfolio that we're still taking money out of to capture some of our principal back.

You may see, as time goes by, positions that we still like and still rate buy and that we're selling pieces of them at the same time. That is not contradictory information, that is position size management and portfolio management and, for lack of a better word, bankroll management.

Said another way, for all the success of the Crypto Capital portfolio, Eric is still a realist and extremely humble about the advice that he gives. We don't think you'll find a better guide to this world than him... The numbers speak for themselves.

The Great Debate: Bitcoin vs. Gold

Is bitcoin the greatest "store of value" ever invented? Why own "digital gold" when you can own the real thing?

On Wednesday, April 21, cryptocurrency bull Michael Saylor will go head to head with gold bug Frank Giustra to settle the great debate. And our colleague Daniela Cambone will serve as the moderator. Don't miss it...

You've watched her interviews... Now, you can sign up for Daniela's new series of specials, offers, and reports, completely free – starting with this blockbuster bitcoin-gold showdown.

Enter your e-mail address at DanielaCambone.com to get instant access to bonus content, special programming, and articles on the inner workings of the global economy.

New 52-week highs (as of 4/9/21): ABB (ABB), AutoZone (AZO), Berkshire Hathaway (BRK-B), Eagle Materials (EXP), Comfort Systems USA (FIX), Alphabet (GOOGL), Home Depot (HD), Intel (INTC), IQVIA (IQV), iShares U.S. Home Construction Fund (ITB), Lennar (LEN), LGI Homes (LGIH), Markel (MKL), 3M (MMM), Microsoft (MSFT), MasTec (MTZ), NVR (NVR), ProShares Ultra Technology Fund (ROM), ProShares Ultra S&P 500 Fund (SSO), Seagate Technology (STX), Trane Technologies (TT), Vanguard S&P 500 Fund (VOO), Waste Management (WM), W.R. Berkley (WRB), and Zimmer Biomet (ZBH).

In today's mailbag, more thoughts on Kim Iskyan's essay from Thursday... and feedback on the Friday Digest from Dan Ferris. Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.

"Reading your essay on stupidity made me howl with laughter. I am living in an Independent Living community that has been plagued by problems in the kitchen... In this case, the baked potatoes were always coming out of the kitchen at room temperature and as one person explained, 'It couldn't even melt a pat of butter.' My vote for stupidity displaces any other first-place holder. The fix? Keep the butter out of the refrigerator." – Stansberry Alliance member I.J.K.

"Dan's analysis of Bill Hwang's behavior in 'God Can't Protect You From a Leveraged Disaster' Digest article is spot on. Our church has a saying: 'Generosity is something God wants for us, not from us.' To think that God actually needs our money, especially when achieved through such selfish and unethical conduct, is an incredibly messed up value system.

"Dan, thanks for setting the record straight. I really appreciate your application of Scripture and wise advice." – Paid-up subscriber Richard B.

"Hi Dan, It is well recognized that fund managers with 'skin in the game,' i.e. they have a personal holding in most of the shares they invest in on behalf of others, achieve better results than those with no such holdings.

"Therefore, Mr. Hwang's idea of making God a direct beneficiary in his margin money-making schemes makes sense. In such a situation, God is likely to lend a hand and will be loath to kill the goose that lays the golden egg.

"I found your article of today especially interesting." – Paid-up subscriber Patrick K.

"God made man in his own image... and Man, being a gentleman, returned the favor." – Paid-up subscriber Geoff A.

"It's Long-Term Capital Management (LTCM) all over. Same sharks, although I would have imagined Credit Suisse would have learned from the losses then." – Paid-up subscriber Tim M.

"Thank you, Dan Ferris. Your essay on the Archegos was on the money. I've got to say 'Amen.' With all the craziness in the world of finance today, I had to go back to read the book of Ecclesiastes to gain some perspective. Solomon was a man of great wealth thousands of years ago, but he was still able to keep his wits.

"I love to read your stuff to gain financial wisdom. I don't need to accumulate great wealth to be happy or satisfied. I have plenty. 'Lord, give me neither poverty or riches,' Proverbs 30:7-9. I attribute my wealth today to reading great books early on, like the bible and The Millionaire Next Door. Stansberry has taught me a lot, including the tricks to trading for income. I love selling puts. I am also dipping my toe in cryptos.

"I feel like I know you guys at Stansberry personally. I wish we could meet to share a beer and some tales. In the sixties, I led a popular rock band in the Midwest called The Boys Next Door as the lead singer and drummer. Though we never made the Billboard Hot 100, my recordings can still be found on the Internet. I opened on stages in stadium for some of the best of the era, the Beach Boys, Herman's Hermits, The Hollies and Rascals.

"I decided after a few years of travelling to take a job where I could better control my success. I took a job selling electrical equipment, eventually landing at Siemens Energy and Automation, part of Siemens, the German Electrical Giant. I won numerous sales awards and retired after 20 years with a pension and 401K. I invested the money, including the pension. I continued to work a little selling and investing in real estate. But now I am totally retired. I manage some of my portfolio and let a professional manage the bigger part. I routinely outperform him thanks to the advice I get from Stansberry.

"I still waterski barefoot for fun at age 75. Seems like Sjuggerud is a surfer and another of you guys plays the guitar. Incidentally, I occasionally get calls from old friends to play my drums at a reunion or some other venue, even church. I also play guitar and sing regularly. If I ever get to Baltimore, I want to meet you for a beer. Thanks for your work." – Paid-up subscriber Jim K.

All the best,

Corey McLaughlin
Baltimore, Maryland
April 12, 2021