We come to this issue at a particularly volatile moment for crypto. Prices that were up have retreated significantly in recent weeks amid wider concern about the health of the U.S. and global economies.
When I first started writing this issue in late April, we were up in many of our positions. Now, we are down in most of them. That speaks to the speed with which crypto can move, but it also reflects the rebound potential crypto possesses. Assets that are down can very quickly reverse course and move higher.
Right now, all markets are moving to the beat of the Federal Reserve as it tries to attack inflation with higher interest rates and by cutting back on the free money it pumps into the economy through bond-buying programs. These moves by the Fed have spooked investors globally, who are worried there’ll be less cash flowing into the markets.
Short term, the Fed and its actions are a definite hurdle. Fear and euphoria are the strongest short-term influences on risk assets such as stocks and crypto. Right now, there’s a lot of fear, so prices are down.
But longer term, all the trend lines are positive.
Crypto is the future of so much of our economy. I see this fear-driven moment as a buying opportunity for those who are patient. Indeed, in the months ahead, crypto is quite likely to disconnect from stock prices as investors realize they can earn more in crypto than they can in growth and tech stocks in an inflationary period.
So, in this issue, I wanted to focus on a longer-term trend that will drive our portfolio. And no trend will be more impactful and more important than the rise of the metaverse.
I’m sure you’ve heard of this term. It’s everywhere of late. Basically, it refers to the internet, but in 3D.
The metaverse is what the internet will become, and this future is already taking shape today.
While a great proportion of mainstream media writers pump out inaccurate, negative stories about the metaverse, the reality in the corporate world is exactly the opposite of what you’re being told.
I don’t want to steal the thunder of this quarter’s dispatch by listing a bunch of names here. But as you read the issue, pay particular attention to those corporate names investing in the metaverse and then ask yourself, “Who’s story is more reputable: the writers with no skin in the game and a couple days’ worth of reporting…or the global corporations putting tens and hundreds of millions of dollars to work right now in building out business models that include a metaverse component?”
I know that answer.
And I’m hoping that after you read this issue, you know that answer too.
As I told friends and acquaintances at a dinner in Playa del Carmen, Mexico recently, “This is part of the greatest wealth-creation event in human history.”
I wholeheartedly believe that.
And many of the investments in our portfolio are uniquely positioned to benefit as the metaverse becomes our future.
