Nick’s Note: Regular readers know that world-renowned cryptocurrency expert Teeka Tiwari is a globetrotter. When there’s a major blockchain event or an exclusive insider meeting, he boards a plane and heads to where the action is.
Last month, I met up with Teeka in Vancouver. He had just flown in from Tuscany, Italy, where he attended an invitation-only meeting with a small group of prominent players in the blockchain space…
By Nick Rokke, analyst, The Palm Beach Daily
Nick: T, you were pretty excited about your recent Tuscany excursion. Can you tell readers about what went on?
Teeka: I was invited to Tuscany to meet with some of the biggest investors and programmers in the blockchain space. But before we get into the biggest thing I took away, let me set the stage first.
We were in the hills of Tuscany. I would walk out of my room and see rolling hills filled with grape vines. And the meeting was held in a 10th century castle.
The castle had massive windows overlooking the valley, which is rare for a castle from that time. But since the walls are made of six feet of solid rock, they could support these windows.
It was hot there this time of year. I’m talking South Florida hot. But it stayed cool inside the walls of the castle. It was the perfect place to hold a low-key meeting and talk about the future of blockchain investing.
Nick: Sounds amazing. Italy is on my top 5 list of places to visit… So what did you learn at the meeting?
Teeka: I learned a lot there… But the most exciting thing I learned is that pension funds are getting closer to investing in cryptocurrencies.
I met with a guy who manages billions of dollars of pension fund money. He was making a fortune doing this. But he gave up that cushy job to do something different—to start a fund to help pension plans invest in cryptos.
This sounds crazy to some—pension plans are the most conservative money in the world. People rely on them for their income during retirement.
But pensions will start investing in cryptos. They’re already branching into alternative investments like hedge funds and private equity. They’re performance-chasing—and they have to. Here’s why…
We’ve warned readers that these pension plans are grossly underfunded—even after one of the longest bull markets in history. I mean, if they’re not fully funded now, when will they be?
According to one report, federal, state, and local employee pension plans have a combined $7 trillion in unfunded liabilities.
They need to get more returns, and one of the few places in the market you can do that right now is in cryptos.
Nick: I’ve done some work with pension funds in the past. And custody—who holds the assets in these plans—is a huge deal. There’s no way these funds are going to hold onto cryptos if there’s no custody solution for them… Do you see that coming soon?
Teeka: Nick, you’re absolutely right… And that’s what this guy I met is going to remedy. He’s going to create what’s called a “fund of funds.” A fund of funds is a hedge fund that invests in other hedge funds.
This may sound minor, but it’s not. A pension can invest in a crypto fund of funds because then, it will just own shares in other hedge funds. It won’t directly invest in cryptos.
Now, these pension funds can go to their trustees and say, “We just own shares of hedge funds.” They don’t have to say they’re invested directly in cryptos.
This guy is just one of about 100 people starting these crypto funds of funds.
Funds of funds are nothing new. They’ve been around for a couple of decades. But a crypto fund of funds will allow billions of dollars of pension fund money to flow into the space.
And a good portion of this money will flow into the crypto coin market. These funds will gear toward certain cryptos that appeal to institutions—projects that have highly credible teams that are solving big problems.
These are exactly the types of projects I’ve been recommending to my subscribers for almost three years. And despite the recent pullback, we’re up an average of 728.6%. Once pension fund money comes in, I expect those returns to skyrocket even more.
Now obviously, bitcoin will get a lot of attention from these types of funds. But there are many other cryptos that will attract pension fund money.
Nick: Thanks for giving us a peek into your insider network, T.
Teeka: You’re welcome.
P.S. Last month, Teeka held the largest event in our firm’s history, with nearly 50,000 people tuning in to his live broadcast from Glenn Beck’s Dallas studios.
As you can imagine, we were overwhelmed with questions—over 16,000 from across the world.
Due to the demand, Teeka has agreed to do a live follow-up Q&A briefing this Wednesday, August 8 at 8 p.m. ET.
Each month, we update our Elite 25 portfolio. We remove stocks that are too expensive and replace them with stocks that meet our three criteria for elite status.
In July, the Elite 25 rose 0.4%, while the S&P 500 ETF (SPY) was up 3.7%.
The two biggest winners were technology companies. Aerojet Rocketdyne (AJRD) jumped 14% and Ituran Location and Control (ITRN) bounced 12% on solid earnings reports.
On the downside, MCBC Holdings (MCFT), the parent company of boat manufacturer MasterCraft, fell 13% on no news.
Ituran Location and Control (ITRN)
Michael Kors (KORS)
Sally Beauty Holdings (SBH)
Papa John’s International (PZZA)
PetMed Express (PETS)
(Note: The Elite 25 system sometimes removes and adds the same companies more than once. When companies become too expensive, they’re sold. If they become cheap again, the system automatically reacquires them.)
Longtime PBRG friend Nick Giambruno’s essay “The Trouble With a $5 Coke” continues to draw interest from both sides of the political divide…
From Robert T.: I think your essay on “$5 Coke” was great and gave good insight about current U.S. affairs. I also read the reply from C.J. (See August 2 Mailbag.)
His/her opinion is that “the technology used to produce things that protect us is eventually used to develop consumer goods.”
Wouldn’t he/she agree that the useful things like the internet and GPS would have been invented anyway? That $800 billion per year spent on defense is quite an expensive way to get duct tape or cargo pants, just to name a few of the consumer goods. Not to mention the trillions that disappear in the Pentagon.
We could argue whether the U.S. is really safer because of all this military spending… But what if the government (if you want one) would spend it on doctors and medicine instead of soldiers and bombs? How many people would say, “Let’s kill them; they just saved our whole family.”?
In my mind, nobody is grateful for droning a wedding and you just lost potential customers who could buy a Coke, duct tape, or cargo pants.
From Donald M.: I appreciate the suggestion about buying quality closed-end funds. (CEFs). Any recommendations for us who are less familiar with these?
Nick’s Reply: Hi, Donald. Thanks for the message. If you’re a Palm Beach Letter subscriber, you can check out our portfolio right here to see which of our CEF recommendations are still buyable. If you’re not a subscriber, you can click here to read our three-step strategy to select your own quality CEFs.
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