To investors,
Fred Krueger had a great write-up yesterday about the importance of “8%” in modern finance. He started by pointing out since 2000, global money supply has been growing exactly at 8%.
But then Fred pointed out that US debt has also been growing at 8% — what a coincidence!
Next, if you look at the S&P 500 and add in dividends, then you see another result that looks pretty damn close to 8%. If you incorporate taxes, “you lose a minimum of 25%.”
Fred shows that housing is in a slightly different situation. He says “houses grow less. Even after rents, and without factoring in property tax and maintenance, the growth is more like 6.5%.”
So what does all this mean? Why should you care? Fred explains that “we have a "leaky bucket" that loses 8% of its value a year. Stocks almost make up for it. Not after taxes. Housing does not make up for it. At all.”
Which brings us to the big conclusion from Fred’s analysis — “Bitcoin doesn't leak and is growing 40% per year.” I actually disagree with Fred here. Bitcoin’s compound annual growth rate over the last 10 years is 85% and if you look over the last 5 years, bitcoin’s compound annual growth rate is 62%. These are video game numbers for a financial asset that is just now starting to hit its stride in terms of institutional adoption.
Hope you all have a great day. I’ll talk to everyone tomorrow.
- Anthony Pompliano
Founder & CEO, Professional Capital Management
Darius Dale Explains Why Stocks, Bitcoin & Gold Are Great Assets To Hold During the 4th Turning
Darius Dale is the Founder & CEO of 42Macro.
In this conversation we talk about why bitcoin, gold, and stocks will continue to win, Elon Musk & DOGE, spending bill, and how markets across the world are reacting.
Enjoy!
Podcast Sponsors
Figure – Lowest industry interest rates at 9.9% at 50% LTV! Take out a Bitcoin Backed Loan today and buy more Bitcoin. Check out Figure and their Crypto Backed Loans! Figure Lending LLC dba Figure. Equal Opportunity Lender. NMLS 1717824. Terms and conditions apply. Visit figure.com for more information.
EightSleep - Recently launched The Pod 5, a high-tech mattress cover you can easily and quickly add to your existing bed. Use code Anthony for $350 off your Pod 5 Ultra
Bitizenship - Get EU residency through Portugal’s Golden Visa while maintaining Bitcoin exposure. Book a free strategy call at bitizenship.com/pomp..
Bitwise Asset Management - Crypto specialist asset manager with more than $10 billion client assets and more than 30 crypto solutions across ETFs, index funds, alpha strategies, staking, and more. Learn more at bitwiseinvestments.com
Maple Finance - Maple enables BTC holders to earn native BTC yield. Learn more at Maple.Finance!
Xapo Bank: Fully licensed bank that integrates traditional finance and Bitcoin. Earn up to 3.9% interest in BTC. Spend globally with a debit card that gives 1% cashback in BTC. Borrow up to $1M instantly with Bitcoin-backed loans.
Simple Mining offers a premium white-glove Bitcoin mining service. Want to grow your Bitcoin stack? Visit Simple Mining here.
Gemini - Invest as you spend with the Gemini Credit Card®. Issued by WebBank.
Core - Earn trustless Bitcoin yield. No bridging. No lending. Just HODLing. Begin Staking Your Bitcoin.
BitcoinIRA - Buy, sell, and swap 75+ cryptocurrencies in your retirement account. Pay less taxes. Earn up to $1,000 in rewards.
Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.
You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren't finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research.
Share this post