Crypto is getting popular again... Eric Wade: This bull run has plenty left... The catalysts... What to know about bitcoin and Ethereum... Volatility goes both ways... Marc Chaikin on stocks in an election year...
 Bitcoin is at $60,000 (again)...
Isn't it ironic? Consider two related but very different events that came just hours apart... Yesterday in a New York City court, lawyers for the disgraced founder of cryptocurrency exchange FTX, Sam Bankman-Fried, asked a judge for a six-and-a-half-year jail sentence for their client. That's only about 100 years fewer than the maximum sentence "SBF" is facing. A jury found him guilty in November of multiple counts of fraud and money laundering while running the exchange and losing $10 billion of customers' money. Then today, bitcoin – the world's most popular cryptocurrency, the big kahuna of the very asset class that SBF nefariously operated in – traded above $60,000, and as high as $63,000, for the first time since November 2021. That was, of course, before it plummeted below $20,000 in late 2022 as the FTX scandal broke out. And as we go to press tonight, bitcoin is trading right above $60,000, less than 15% from a new all-time high... 
The quick takeaway of this juxtaposition: Turns out, the SBF/FTX story wasn't about bitcoin or cryptos specifically, but greed... and misguided trust... amid promise and a bullish buzz. You know, those age-old pieces of human nature. And if SBF weren't in prison without bail and facing sentencing next month... he might be making crypto trades all day long again. Because a bull market in cryptos is back... And this bull run might just be getting going... That's according to our Crypto Capital editor Eric Wade. Now, this shouldn't come as a big surprise to regular Digest readers. We shared in January that Eric was expecting big things from cryptos this year. Sure enough, bitcoin and Ethereum are up more than 40% over the past month... and bitcoin has gained 150% over the past year. So today, I checked in again with Eric and Crypto Capital analyst Stephen Wooldridge II to get their thoughts on if anything material had changed... We wanted to know: Would they still be buying after such a big move higher? In January, Eric outlined his three big catalysts for a bull market in cryptos this year... And Stephen recently wrote here about why he's bullish on Ethereum in particular. Ethereum is up 15% since his February 15 Digest. First off, kudos to both of them for getting the word out to Digest readers, Crypto Capital subscribers, and Stansberry Alliance members before these big moves. Secondly, and importantly, they say that while volatility in cryptos is par for the course and should be expected after a move higher like we've seen, the recent action could be the start of an even greater, longer-term run higher... The catalysts and the big story... The U.S. Securities and Exchange Commission green-lighting nearly a dozen spot bitcoin exchange-traded funds ("ETFs") in January was a spark. Anticipation of that late last year coincided with a move higher in cryptos after a sleepy two years. As Stephen explained, just over the past week, bitcoin ETFs have seen $600 million of inflows. And yesterday, BlackRock's IBIT spot bitcoin ETF reported a record $520 million in one day. That was more than all of the bitcoin ETF inflows combined from the day before. But bitcoin ETFs are just one of three major catalysts for cryptos in 2024, as Eric said in January. Another important one is coming up in April, with bitcoin's next "halving"... when crypto miners start receiving half as much bitcoin as payment for the computing power they provide. This event has been associated with past crypto bull cycles. And, as Eric explained in January, cryptocurrency adoption is growing in general. The technology that enables cryptos to work is becoming more widely used... linked to a variety of industries and even other emerging technologies, like artificial intelligence. Even more broadly speaking, Eric says he sees crypto ownership behavior similar to other crypto bull market cycles of the past. Possible parallels include the times when bitcoin rose from around $1,000 to near $20,000 in 2017, and when it reached an all-time high of roughly $69,000 in November 2021. Dramatic double-digit sell-offs followed both highs... yet the next cycle's highs were higher, like we could be seeing again now. As Eric told me in a note today... We know – by tracking the number of digital asset wallets that hold at least a small amount of crypto – that every bull cycle the number of people holding cryptos grows. So, demand continues to grow while bitcoin's famous "scarcity" design keeps a lid on supply. Only 21 million bitcoins will be created – ever. As fiat currency continues to be manipulated and devalued, that boosts bitcoin's value as an inflation hedge. As Stephen explained earlier this month, Ethereum has experienced a similar dynamic with recent upgrades to its blockchain that reduced the supply of the ETH token in the long run and brought more buyers into the crypto market. Add it all up, and as Eric said in January, this could be 'the greatest crypto bull market ever'... And as he told me today... I believe we're coming up on a very interesting time in the acceptance of cryptocurrencies such as bitcoin and Ethereum by a growing number of investors, speculators, and, most importantly, people who actually want to use the technology for what it is capable of. Because just like you could have made tremendous money recently from tech stocks such as Nvidia and Meta without ever once rendering graphics or giving a thumbs up to your nephew's snowboarding video... you can also make money from investing in cryptocurrencies without ever using the technology and merely buying the coins or tokens and selling them when the price was higher. But what's coming our way over the next year or two with cryptocurrencies is – I believe – a notable increase in how many people go beyond just trying to make money from cryptos and instead start to see value in the underlying technology and what it is capable of. This is important because most cryptos are designed to become more valuable as more people use them... We're seeing a form of technology adoption increasing thanks to the wildly successful launch of bitcoin spot ETFs for American investors, but we're only partway through the most well-known pattern for crypto... that being following a painful bear market with a bull run that quite often moves faster and further to the upside than most investors are prepared for. So, as for our question... In Crypto Capital, Eric recommends buying and holding both bitcoin (BTC) and Ethereum (ETH, as wrapped staked Ethereum)... as well as numerous other cryptos you probably have never heard of. As Eric told me today, "Even though recent price action has been exhilarating... all of our past rallies indicate this one still has plenty of bull market left." That said, again, please take note: Cryptos are volatile. Tailwinds or not, be careful assuming that it's a straight line higher for bitcoin, Ethereum, or any other crypto. Eric warns that even within crypto bull rallies, you can routinely see temporary pullbacks of 30% to 40%, so be prepared for volatility. Here's more from Eric's Crypto Capital analyst Stephen... Big spikes in volatility go both ways, and it's possible we'll see a pullback soon. That's why we spend a lot of due diligence finding the altcoins that will outperform the big movers, like BTC and ETH. In fact, we just sold 3/10ths of one that we've only been in for a couple of months for more than a 400% gain. So make sure to follow our team's research for more on how to make the best of this rally as it continues to soar to new heights. In other words, if you've never touched cryptos before, don't go diving in without a good guide. Alliance members and Crypto Capital subscribers, of course, can find Eric and his team's latest work, including monthly issues, weekly video updates, and updated trade recommendations, here. And stay tuned to the Digest, too. We'll keep you posted on what's going on with cryptos in the weeks and months ahead... along with the rest of the markets... and how you can access more of Eric's work. From insurance to cryptos... A brief tangent... Yesterday, we wrote about the value of a good property and casualty (P&C) insurance company's "float" and how to access our Stansberry's Investment Advisory team's latest P&C insurance stock pick. Today, we covered cryptos. Could there be more opposite ends of the risk spectrum? Probably, but "boring" insurance stocks and new-age cryptocurrencies are definitely in the ballpark for a winner. (Again, Stansberry Alliance members and existing Investment Advisory subscribers can find it here. And if you're interested in joining them, click here for more information on how to get started with a subscription to our flagship Investment Advisory publication.) The point I want to share can be too easily lost sometimes... It's that our team covers a lot of different sectors, asset classes, and businesses. Interested in small-cap stocks? Value? Options? Corporate bonds? Portfolio management? If you're looking for it, we most likely have research tailored to it. To that point, if you haven't checked out our entire lineup of investment advisories and trading services in a while, make sure you do... One more thing before we go today... Our friends are also worth listening to. And tomorrow night, Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, is going live with a free presentation you won't want to miss. For those that don't know, Marc is a Wall Street legend, with five decades' worth of knowledge, stories, insight, and experience that we've been fortunate enough to learn from... Tomorrow night, he is sitting down on camera to share – for free – what he has learned and seen over the decades about how stocks tend to perform during presidential election years... And he'll describe the big move he sees coming right around the corner... I expect he'll also talk about his powerful Power Gauge tool that he developed as a one-stop shop of sorts for gauging whether a stock is worth buying or if you should sell it. Plus, just for tuning in, Marc will give away a pair of free recommendations. It all starts at 8 p.m. Eastern time tomorrow night. It's totally free. We just ask that you register in advance so you don't miss anything. You can register and save your spot here.
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New 52-week highs (as of 2/27/24): AbbVie (ABBV), Atkore (ATKR), American Express (AXP), AutoZone (AZO), Pacer U.S. Cash Cows 100 Fund (COWZ), Copart (CPRT), Crispr Therapeutics (CRSP), Enstar (ESGR), Comfort Systems USA (FIX), Franklin FTSE Japan Fund (FLJP), Fortive (FTV), Home Depot (HD), ICON (ICLR), IQVIA (IQV), Micron Technology (MU), Nucor (NUE), O'Reilly Automotive (ORLY), Parker-Hannifin (PH), Ferrari (RACE), Regeneron Pharmaceuticals (REGN), Sprouts Farmers Market (SFM), Sherwin-Williams (SHW), Cambria Shareholder Yield Fund (SYLD), Veralto (VLTO), and Advanced Drainage Systems (WMS). In today's mailbag, we have an insurance-related success story. If you missed it, in yesterday's edition, we covered the sector and shared how you could find the latest insurance stock pick from our Stansberry's Investment Advisory team... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "My entire career has been one thing – P&C insurance. I retired last August after 45 years in the business. The most stable investments I've made with great returns have been in the insurance industry. It's something I know quite a bit about from hard markets to soft markets, how underwriters price risk, etc. But my best option play of all time was back in early 2009 after the great financial meltdown. Hartford Ins. Group was trading in the low single digits with a [price-to-earnings ratio] of 2. Like practically everyone else I was afraid of what might come next but I knew this company had solid enough financials to weather the storm, unlike many other financial institutions that needed massive government bailouts. "Keep up the good work with this sector as it will be a safer harbor than many other investments when the inevitable correction happens." – Subscriber Jim L. Corey McLaughlin comment: Jim, thanks for the note and congrats on your retirement. Love the story about the trade. All the best, Corey McLaughlin with Eric Wade and Stephen Wooldridge II
Baltimore, Maryland and Los Angeles, California
February 28, 2024
Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open positions across all Stansberry Research portfolios | Stock | Buy Date | Return | Publication | Analyst | MSFT
Microsoft | 11/11/10 | 1,348.0% | Retirement Millionaire | Doc | MSFT
Microsoft | 02/10/12 | 1,293.8% | Stansberry's Investment Advisory | Porter | wstETH
Wrapped Staked Ethereum | 02/21/20 | 1,173.5% | Stansberry Innovations Report | Wade | ADP
Automatic Data Processing | 10/09/08 | 905.6% | Extreme Value | Ferris | WRB
W.R. Berkley | 03/16/12 | 774.4% | Stansberry's Investment Advisory | Porter | BRK.B
Berkshire Hathaway | 04/01/09 | 625.0% | Retirement Millionaire | Doc | BTC/USD
Bitcoin | 01/16/20 | 505.8% | Stansberry Innovations Report | Wade | HSY
Hershey | 12/07/07 | 459.3% | Stansberry's Investment Advisory | Porter | AFG
American Financial | 10/12/12 | 441.7% | Stansberry's Investment Advisory | Porter | TT
Trane Technologies | 04/12/18 | 354.6% | Retirement Millionaire | Doc | Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.
| Top 10 Totals | | 4 | Stansberry's Investment Advisory | Porter | | 3 | Retirement Millionaire | Doc | | 2 | Stansberry Innovations Report | Wade | | 1 | Extreme Value | Ferris |
Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio | Stock | Buy Date | Return | Publication | Analyst | wstETH
Wrapped Staked Ethereum | 12/07/18 | 2,291.8% | Crypto Capital | Wade | BTC/USD
Bitcoin | 11/27/18 | 1,414.5% | Crypto Capital | Wade | ONE/USD
Harmony | 12/16/19 | 1,194.4% | Crypto Capital | Wade | POLYX/USD
Polymesh | 05/19/20 | 1,057.8% | Crypto Capital | Wade | MATIC/USD
Polygon | 02/25/21 | 899.8% | Crypto Capital | Wade | Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio.
Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios | Investment | Symbol | Duration | Gain | Publication | Analyst | | Nvidia^* | NVDA | 5.96 years | 1,466% | Venture Tech. | Lashmet | | Microsoft^ | MSFT | 12.74 years | 1,185% | Retirement Millionaire | Doc | | Band Protocol crypto | | 0.32 years | 1,169% | Crypto Capital | Wade | | Terra crypto | | 0.41 years | 1,164% | Crypto Capital | Wade | | Inovio Pharma.^ | INO | 1.01 years | 1,139% | Venture Tech. | Lashmet | | Seabridge Gold^ | SA | 4.20 years | 995% | Sjug Conf. | Sjuggerud | | Frontier crypto | | 0.08 years | 978% | Crypto Capital | Wade | | Binance Coin crypto | | 1.78 years | 963% | Crypto Capital | Wade | | Nvidia^* | NVDA | 4.12 years | 777% | Venture Tech. | Lashmet | | Intellia Therapeutics | NTLA | 1.95 years | 775% | Amer. Moonshots | Root | ^ These gains occurred with a partial position in the respective stocks.
* The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. | 
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