The Club Delivers New Crypto Research – From an Unlikely Source

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From Baltimore – On Friday, I received some eye-opening stats from the leader of our crack research team, Research Director Kristin Orman. She showed me proof that money continues to move out of stocks… and into emerging sectors, like cryptocurrency.

As Kristin highlighted, 12% fewer Americans owned stocks in June 2020 than in 2002. In 2020, both before and after the COVID-19 stock market crash, a Gallup survey found that just 55% of Americans were invested in the stock market. That’s 12 percentage points lower than the peak of 67% back in 2002, even though it was far more difficult to trade stocks back then then it is with today’s online platforms.

And Chief Income Strategist Marc Lichtenfeld added further insight to these surprising findings, noting that Americans’ personal saving rate, tracked by the U.S. Bureau of Economic Analysis, reached a record high of 33% in April 2021. That means Americans stashed 33% of their disposable income in savings accounts during the month of April.

As the chart below shows, that’s nearly twice the rate of the previous high reached in 1975.

And here’s what’s happening with the U.S. personal saving rate this year. It’s spiking again…

So with money not flowing into the stock market and so many Americans hoarding cash, where is the investor momentum?

It can be found in that portion of the Club’s recommended asset allocation we call “alternative assets.” These are typically real estate investment trusts, private equity, gold and, these days, cryptocurrency.

Since we continue to recommend that you diversify 5% of your holdings beyond stocks and bonds into these alternative assets… it’s about time we look more closely into investing in crypto.

Just look at how the volume is spiking in this sector…

Many of our Members have already jumped into this highly volatile sector… and right now, they’re probably very glad they did.

But many others may be thinking it’s too late – or crypto is too volatile – to invest in the sector.

We don’t believe that’s the case… for good reasons you can hear about in today’s Market Wake-Up Call with Marc and Senior Editor and host Rachel Gearhart. Marc, normally one of our more conservative strategists at the Club, talks about how to get into this sector in a low-risk way.

There’s no doubt that investing in crypto is speculation. We would never say otherwise. But Marc and Rachel discuss three ways you can turn this speculative investment into what we like to call a “smart speculation.”

By smart, we mean that these speculations are designed to avoid the following…

• Timing the market (it’s impossible)
• Investing in a sector you don’t understand (always a bad idea)
• Getting stuck in illiquid securities (you always need an exit strategy)
• Overestimating the sector’s potential (even if it’s cheap).

In his Predictive Profits VIP Trading Research Service, Marc takes a proven, lower-risk approach to investing in more speculative assets such as Bitcoin, or even altcoins.

For proof, just take a look at Marc’s Predictive Profits track record. The numbers speak for themselves…

When it comes to investing in where the money is flowing today, Marc has put together extremely insightful research and recommendations that you won’t get anywhere else.

“There are more and more companies coming online every day that are in the business of Bitcoin, where you’re not speculating on the price” of Bitcoin, Marc tells Rachel. “Their stock prices are not going to rise and fall with every tick of Bitcoin.”

To help you get started in your crypto allocation, watch this Market Wake-Up Call discussion and consider these three steps to success in crypto investing:

• Decide how much you’re willing to lose.
• Allocate a tiny portion of your portfolio to cryptocurrency.
• Understand what cryptocurrency is and how it works.

To see how to get Marc’s latest in-depth research on the crypto markets, including his specific recommendations as to where the best investments should be made today in this booming sector, just click here.

Enjoy your Sunday,

Julia