So you think Bitcoin is worthless… 🚩🚩🚩🚩🚩

QUICK HITS FROM GRIT

Happy Friday Everyone 👋

Did you catch Genevieve talking about Bitcoin and the digital economy on FOX Business with Charles Payne this week?

Without giving it she said “player hating” and “Jamie Dimon” in the same sentence ; )

SIX things you need to know this week in 60 seconds.

If you’re reading this but haven’t subscribed, join our community of +43k smart, fun & edgy investors 👇

What kind of impact can a drone have on a business or government agency? If it’s a Draganfly, it can do a lot: mapping, surveying, data collection, temperature-sensitive deliveries, thermal, heart rate, and breathing rate scans...get the picture? Where can you find them?! On Wall Street*!
*as of 4pm ET, 10/14/21
1. MACRO

This week in increases: food, shelter, energy, and 2022 home prices

The Consumer Price Index (CPI) came in at 5.4% year over year, slightly higher than expected thanks in large part to increases in food and shelter (contributed to more than half of the index’s rise).

Energy prices, especially fuel and utility gas, surged as well (more on this later).

The real gut-punch (at least for most Millennials) came not from the CPI report, but from Goldman Sachs economists who are forecasting another 16% increase in home prices in 2022. Home prices, lest we forget, have already skyrocketed nearly 20% since September 2020.

GRIT’S TAKE: For new GRIT subscribers, make sure to check out my 2 part breakdown on the housing market here and here!

GRIT’S ACTION: We own stocks to protect ourselves against inflation.


Under the Radar

YOUR ENTERPRISE BLOCKCHAIN TRANSACTION PROCESSOR: A recent report concluded that BitcoinSV (BSV) is most representative of Satoshi’s original intention for Bitcoin. TAAL is a pure-play on the adoption of BSV, and they’re a revenue-generating machine! Revenue increased more than 6x in Q2 and guidance is calling for a boost of 70-80% for this quarter and we're talking millions*!

*This is sponsored advertising content.

2. DEALS & IPOs

SEO + free tools = $5B IPO

The site that helped many of us choose our first credit cards has filed for its IPO that values the business at around $5B. The 13-year-old company started out as a simple credit card comparison website and evolved to include free content and tools for things like mortgages, investing, and personal finances.

You’ve probably used one of their 25 financial calculators, for example.

Its stellar search engine optimization (SEO) is what drives visitors to the content and tools by dominating Google keywords associated with the types of affiliate financial products that are displayed next to said content.

NerdWallet makes the majority of its money off fees for driving conversions on these products (which is high when your SEO is top-notch).

GRIT’S TAKE: As Trung points out in his thread, free content/tools are becoming an effective way for companies to organically market to their target customers (think Canva with designers, or Shopify for first-time business owners).

GRIT’S ACTION: Not buying this IPO as I think the easy money has been made. But Fintech is eating the world.. When can I buy Stripe? Should I buy Square?

3. STOCK MARKET

Alpha Females

We finally have a definitive answer to which sex is the better investor, and the answer may come as a surprise to many. A study conducted by Fidelity tracked the performance of female and male investors over a 10-year period and found that women outperformed by 0.4%, or 40 basis points.

What’s even better is that women are putting their money to work at a higher rate than ever: two out of three women (67%) are investing in the stock market outside of their retirement accounts — this is up from 50% in 2018.

So what exactly are women doing better than men?

  • Aligning their money to achieve their overall goals

  • Investing consistently over time (i.e., not trying to time the market)

  • They trade less frequently (read: diamond hands)

GRIT’S TAKE: This sounds a lot like the GRIT playbook to me: buy great companies and leave them alone!

GRIT’S ACTION: Buy great companies and leave them alone ; )

4. COMMODITIES

We’re going to need more rigs

We’ve already seen what drastic shortages have done to the prices of natural gas and coal. Now, those price surges have spilled over into liquid gold, which is in high demand as manufacturers are being pressured to switch to oil to avoid absurd energy costs.

Meanwhile, we’re seeing a massive divergence between prices and the number of rigs operating globally. The pressure to move away from dirty energy has shale companies reluctant to pump money into, well…pumping. Even with prices above $80/barrel, the US, for example, currently has only 433 rigs in operation.

GRIT’S TAKE: A survey by Deutsche Bank of 8 major economies shows 59% believe oil will increase to $100/barrel, while 27% expect it to decrease to $60/barrel.

5. CRYPTO

So you think Bitcoin is worthless… 🚩🚩🚩🚩🚩🚩🚩🚩

“I personally think that Bitcoin is worthless.”

- Jamie Dimon

That’s a bold statement coming from a bank CEO who literally collects, packages, and sells junk for a living. You’d think that Dimon would take a look at the value of JPMorgan vs. Bitcoin (~$482B vs. +$1T) before saying something like this.

Or maybe he’d pick a different time — Bitcoin is averaging 3x the trading volume of Apple, Microsoft, and Amazon in October as it approaches all-time highs.

Dimon has been player hating on Bitcoin since 2014 (when the price was less than $1,000). Since then, Bitcoin has 57x while JPMorgan has *checks notes* 3x, so I’m filing these comments from him under “FUD” (fear, uncertainty, and doubt).

GRIT’S TAKE: Fun fact: 12% of Bitcoin holders have been HODL’ing for 10 years or longer! Check out my full interview with Charles Payne on Fox Business here!

GRIT’S ACTION: Diamond Hands on Bitcoin & Ethereum.

6. ENTERTAINMENT

Draftkings adds another notch to its belt

Leagues that Draftkings already has partnerships with: NFL, MLB, NASCAR, PGA Tour, UFC, NBA.

We can now add the NHL to that list after Draftkings announced this week that they’ll become an Official Sports Betting, Daily Fantasy Sports, and iGaming Partner of the league in the U.S.

They also made a deal with Turner Sports (think Bleacher Report) which makes Draftkings the exclusive provider of betting information and daily fantasy content to be broadcast on Turner networks.

GRIT’S TAKE: The sports betting space has had a very busy year with lots of deals going down — expect this to continue as regulations soften.

GRIT’S ACTION: Long Draftkings.


*SOURCES
1. CNBC, Yahoo Finance
2. Reuters, The Hustle
3. Businesswire
4. TheDailyShot, WSJ
5. Fox Business, CNBC
6. Yahoo Finance

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