Daily Reckoning

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  • The Three Stages of Investment Booms

    The Three Stages of Investment Booms

    This post The Three Stages of Investment Booms appeared first on Daily Reckoning. The boom in cryptocurrencies is following the same script that has played out over, over and over again. You see, every boom follows a sequence of three stages. Every single boom throughout history has followed this script. The stock market boom in the roaring ’20s… the tech boom in the 1990s… the housing boom in the 2000s. And now the booming cryptocurrency market is following this exact same 3-step script. First, only early enthusiasts are courageous enough to invest in the new trend. That’s stage 1. Then, institutional investors (the so-called “smart money”) jump in. That’s stage 2. Finally, the public joins the party, triggering a massive explosion in price. That’s stage 3. If you know how to use this roadmap, you could make an absolute fortune. And to help you understand how this 1-2-3 sequence works, let me show you what happened during the 1990s boom in tech stocks. In the mid-1990s, most people didn’t even know what the internet was. In 1994, the morning show NBC’s Today had a segment where one of the anchors asked, “What is the internet, anyway?” While most people were …Read More »
  • Crypto Alert: Mastering the Volatility

    Crypto Alert: Mastering the Volatility

    This post Crypto Alert: Mastering the Volatility appeared first on Daily Reckoning. It was the most expensive pizza ever bought in the history of human existence… In May 2010, an unknown programmer named Laszlo Hanyecz exchanged 10,000 bitcoins for two Papa John’s pizzas. About $30 could have netted you the 10,000 bitcoins Laszlo needed to fork over for his two pies, according to Coinbase. It was the first real-world bitcoin transaction. But that’s not the only reason it made history. Fast-forward to today and we find ourselves smack in the middle of a bitcoin buying frenzy. Everyone will remember 2017 as bitcoin’s breakout year. In January, bitcoin was trading near $1,000. It crossed above $3,000 in June. Then it hit $5,000 in September. On Dec. 7, the great bitcoin rally screamed to a staggering $19,000 before falling back to $15,000 in a matter of hours. Bitcoin has proven it can turn just a few bucks into a fortune. But the dips and rips are more volatile than in any other market in history. But with my Seven-Figure Formula, you could master it. Time to seize the day! The Simplest Way to Profit From the Bitcoin Boom So what’s the best …Read More »
  • How to Buy the Next Great Tech IPO for Pennies on the Dollar

    How to Buy the Next Great Tech IPO for Pennies on the Dollar

    This post How to Buy the Next Great Tech IPO for Pennies on the Dollar appeared first on Daily Reckoning. One share of Facebook stock will cost you almost $180. A single share of Netflix is worth almost $200. Apple stock will run you more than $165 per share. But these popular tech stocks look downright cheap compared with Amazon and Google. You would have to fork over more than $1,000 for just one share of either of these household-name tech giants. If you’re looking to get in on the ground floor of Wall Street’s next tech all-stars on the cheap, you’re better off going after hot names right when they debut on the public markets, right? Wrong. The most anticipated initial public offering of 2017 was Snap Inc. (NYSE:SNAP). The company is the creator of the Snapchat app that’s constantly distracting your kids. As you would probably expect, it debuted on the market eight months ago to a hoard of hungry buyers. Unfortunately, investors grabbing shares of SNAP weren’t exactly getting in on the ground floor. The hot social media stock was valued at around $30 billion the first day it hit the New York Stock Exchange. Like most …Read More »
  • The True Rate of Inflation

    The True Rate of Inflation

    This post The True Rate of Inflation appeared first on Daily Reckoning. Dear Reader, The Federal Reserve pursues its 2% inflation target with a zeal verging on derangement. Yet it progresses toward its target as poor Sisyphus of Greek mythology progressed uphill with his rock — in vain. Core inflation registered 1.9% in January… and 1.5% in June. The most recent core inflation number? A Sisyphean 1.4%. The rock rolls downhill. Here we speak of official inflation. But is actual inflation dramatically higher? Today we pierce the mask of statistics… expose the myth within… and hazard a true inflation reading… The Fed’s 2% inflation appears as distant as the summit of Sisyphus’ hill. Experts dispute the causes — depressed worker wages resulting from globalization, “secular stagnation,” the astrological misalignment of stars and planets, etc. But assets such as stocks, bonds and real estate have been the scenes of dramatic inflation over the past several years. And therein hangs an epic tale… Joseph G. Carson, former global director of economic research at AllianceBernstein: U.S. financial markets have in the last 20 years experienced three unprecedented booms in asset prices and two busts. During this span, the market value of real and …Read More »
  • Inflation Can Return Much Faster Than You Think

    Inflation Can Return Much Faster Than You Think

    This post Inflation Can Return Much Faster Than You Think appeared first on Daily Reckoning. Consumer price inflation has remained persistently low, despite the Fed’s best efforts. This has led many people to ask where the inflation is, because the Fed has created trillions of dollars since the financial crisis. But there has been inflation. It’s just been in assets like stocks, bonds, real estate, etc. How about bitcoin? Bitcoin increased about $2,000 yesterday alone! It’s trading at about $16,000 as I write. We’ve never seen anything like it. The bottom line is, we’ve seen asset price inflation, and lots of it, too. But the question everyone wants to know is when will we finally see consumer price inflation; when will all that money creation catch up at the grocery store and the gas pump? It’s difficult to say exactly. But once it does happen, it will likely strike with a vengeance. Double-digit inflation could quickly follow. Double-digit inflation is a non-linear development. What I mean by that is, inflation doesn’t go simply from two percent, three percent, four, five, six. What happens is it’s really hard to get it from two to three, which is ultimately what the Fed …Read More »