With so many Bitcoin holders enjoying huge profits, many are wondering if it’s time to take some money off the table?
Or hold tight before the final stage of this bull market?
To settle this debate, Dan invites long-time friend and repeat guest, Eric Wade, back onto the show to take all things Bitcoin and cryptocurrency.
Eric is an early internet entrepreneur, angel investor, screenwriter, and editor of the Crypto Capital.
In a few short years, he’s recommended dozens of 100%+ winners and even ten 1,000%+ winners. He knows more about the crypto space than just about anyone on the planet.
During their conversation, Dan and Eric discuss the big gold vs Bitcoin debate, where Eric sees Bitcoin’s price in the years ahead, and even when’s the right time to sell your stack.
Plus, Eric shared some details on a new project he’s working on, which he plans to reveal on November 17th…
He’ll be talking about the top 6 cryptos his research shows has the highest upside at this stage of the crypto cycle…
You can get it 100% free of charge just for listening to his event. You can find more details at www.BitcoinBoomEvent.com.
Whether you’ve held Bitcoin for years, or if you’re curious about the opportunity of getting in today, this is a conversation you won’t want to miss.
Editor, Stansberry Research
Eric Wade is the editor of Crypto Capital, an investment advisory where he uses his unique strategy to find the best opportunities in the cryptocurrency space. He also is the editor of Crypto Cashflow - an advisory that focuses on high-yield, low-volatility crypto opportunities - and the tech-focused Stansberry Innovations Report's "Crypto Corner."
3:52 – Dan explains the problem with stocks like Peloton… “So, everybody thinks well maybe Peloton is the Apple of exercise equipment. And there is no Apple of exercise equipment, because as I pointed out in the Stansberry Digest, exercise equipment is a cyclical business, it’s not a great long-term bet ever!”
7:56 – “If the Nautilus example is constructive, Peloton is looking at south of $3 or $4 per share… That outcome of $3 per share for Peloton, that should not surprise anyone…”
14:28 – Dan invites Eric Wade back onto the show this week! Eric is the editor of Crypto Capital an investment advisory where Eric uses his unique strategy to find the best opportunities in the cryptocurrency space.
19:02 – Dan asks Eric, “I want to know where you stand on this ‘gold is dead, you gotta own Bitcoin instead’ idea that’s become quite the popular idea…”
22:34 – Eric says, “We hold gold in the Crypto Capital portfolio as a place to go risk-off…”
25:40 –Dan says people need to think about gold vs Bitcoin in a new way… “Gold is trillions bigger than Bitcoin at this point… the thing is though, gold is really small next to all the financial assets, all the stocks and the bonds and the currencies in the world…”
33:31 – Eric talks volatility… “Bitcoin is 40-some-percent of the crypto market right now, the first to hit $1 trillion. It’s the big one. So, I look at Bitcoin being the one that drives most of this…”
37:10 – Eric reveals the secret to how he sold his website for $1 million… “Well you’ve gotta say no to half a million first, and there’s not a lot of people out there who will do that…”
37:49 – Eric says Bitcoin will hit $1 million within our lifetime… “Every bear market Bitcoin has ever had is a succession of higher lows…”
39:06 – Dan talks about holding gold and Bitcoin for life… “I understand the diamond-handers with Bitcoin. I might even put myself in that category…”
43:50 – Dan and Eric discuss when to take profits off the table… “Let’s say you pick a crypto just right, and now it’s worth 70% of your portfolio… at some point, do you feel like scaling that back?”
47:55 – Eric is still bullish today… “I feel like I’ve got to keep one finger ready though, to try to increase my stack – Scrooge McDuck thought, he’s got a room full of gold that he swims around in, and he still wants more – that’s how I am with sats and with Bitcoin. I still want more.”
52:32 – Eric leaves the listeners with a final thought as their conversation closes “Listen to your frustrations. Listen to your own frustrations and try to figure out what they’re telling you…”
53:47 – Eric shares that he’s holding a crypto event on November 17th where he’s revealing 6 cryptos with the potential to go 10X higher. You can learn more at www.BitcoinBoomEvent.com
57:42 – We’ve got some great questions on the mailbag this week… One listener calls in with some kind words of feedback for Dan… Another listener who works as a surgeon writes in with first-hand knowledge on the issue of socialized wages… And another writes in with their opinions on the worker shortage… Listen to Dan’s response to this and more on this week’s episode.
Announcer: Broadcasting from the Investor Hour Studios and all around the world, you’re listening to the Stansberry Investor Hour. [Music plays] Tune in each Thursday on iTunes, Google Play, and everywhere you find podcasts for the latest episodes of the Stansberry Investor Hour. Sign up for the free show archive at investorhour.com. Here’s your host, Dan Ferris.
Dan Ferris: Hello and welcome to the Stansberry Investor Hour. I’m your host, Dan Ferris. I’m also the editor of Extreme Value published by Stansberry Research. Today, we’ll talk with Eric Wade, Stansberry’s in-house crypto guy and a good friend of mine. Eric knows crypto better than anybody I’ve ever spoken to or read about. In the mailbag today, some very thoughtful questions and a wonderful, wonderful e-mail from Dr. Nicholas B., who is a surgeon and comments on this myth that insurance is necessary to pay for all medical costs. And remember, you can call our listener feedback line, 800-381-2357. Tell us what’s on your mind and hear your voice on the show.
For my opening rant this week, I’m going to talk about something I wrote about recently because I think it’s a super important message for investors. That and more right now on the Stansberry Investor Hour. [Music ends]
Last Tuesday [laughs] – just a couple days ago – I wrote a piece for the Stansberry Digest. And it was all about the company Peloton, but I was really using Peloton as an example of a mistake that investors make that I think they’re making in a big way now. It’s already clear that it’s a mistake with Peloton but there are other companies out there that they’re making this mistake with.
And it starts with this belief that if a company has a great product that has a stark raving, you know, lunatic fanbase that loves it that that automatically means that that company is a great business and will be a great investment. And today, I have to tell you the lesson for investors is that doesn’t mean that at all. And I think this idea has come to us really from the example of Apple. Right? The FAANGs have really – the FAANG stocks – Facebook, Apple, Netflix, Google... which is called Alphabet now – they really had a huge, huge influence on investor expectations. Everybody’s always looking for the next Amazon, for example.
So they look for a company that is generating some cash but doesn’t have accounting profits because they’re reinvesting everything back into the business for growth, growth, growth. Right? And they have a vision in growth, not profits, but enough cash to reinvest and, one day, they’ll be the most profitable thing in the world and they’ll be worth trillions... like Amazon. But that’s extremely rare. It hardly ever happens and the odds that you found it in any given company are extremely remote. They’re way against you. By the same token, with the example of Peloton, this phenomenon I think comes from Apple. Because Apple is this company that has these great products with stark raving fans who just won’t buy anything else.
And it is a great business. Right? It makes more money literally [laughs] than it knows what to do with. Like tens of billions more than it knows what to do with, all the time. So it’s a phenomenal business as we all know. And so, everybody thinks, “Well, maybe Peloton’s the Apple of exercise equipment.” And there is no Apple for exercise equipment because, as I pointed out in my Stansberry Digest, exercise equipment is a cyclical business. It’s not a great long-term bet ever... ever. There was no hope that Peloton would be a great long-term bet and there still isn’t. And I used the example of Nautilus, the publicly traded exercise-equipment company.
Nautilus is a great brand. Bowflex, they own that. That’s a great brand. Universal Gym is another great brand. These are all brands that people love. But it’s still not a great business. If you look, I think – let’s see. I don’t remember the exact date, but I know it was 1999 when Nautilus went public. Right? So they went public in 1999. I think they went public in the teens, like maybe ’15, ’16. Maybe. It doesn’t matter. But they ran up to like $40, $40 or $50 – some huge number – at the top of the dot-com boom. And then it crashed, and then it kind of went sideways, and then it crashed again in the financial crisis and bottomed out like 63 cents.
The Bloomberg data on closing prices said it bottomed out at 63 cents in early [laughs] 2009 – from like $40 or $50. Right? You know, seven or eight years earlier. So then, it recovered and it went back to like $22 or $23 or something like that. Right? And now, I don’t know where it is. I think it’s around $9. And it’s basically gone sideways. It’s been a public company for 21, 22 years I guess now... and it’s gone sideways pretty much. Sideways to slightly down. You know? And it’s a just terrible long-term bet because – the flattering way to say it is exercise equipment is a cyclical industry, but it’s really a fad-driven industry. It’s driven by fads. Right?
The Bowflex was a fad and other – and the Peloton bike is a – it’s a fad. And it doesn’t matter how many people love them or how many people say, “I got in shape and I love this thing and it saved me from going crazy in COVID,” and all this stuff. It doesn’t matter. It will never – exercise equipment will never be a great business. And part of what Peloton and other companies try to do is, they try to tell you that it’s not, you know... it’s not just an exercise-equipment company. Right? They actually published this little graphic when they first went public back in 2019.
And I wrote about the company before it went public in – I think it was September 2019, two years ago. And they said – they published this little graphic that said, “We are a technology, media, software product, experience, fitness design, retail, apparel, logistics company.” Logistics. I mean, you know, all the other ones are crazy too. But it’s an exercise-equipment company, and there’s nothing they can do to change that. So, you know, what happened? Well, the stock went up 758% in 2020 off the bottom of the COVID scare because everybody was locked down at home, couldn’t go to the gym, bought exercise equipment. You know, their sales soared.
And guess what happened then? They peaked in January and the stock is down 70%. And that’s the way it goes for these companies and nothing was ever going to change that. And this is what happens in a huge bubble. People start to think everything’s different this time and that you can take a cyclical industry like exercise equipment and change it into, you know, [laughs] apparel, logistics, software, media, technology... all that stuff that Peloton tried to say that it was that it is not. Right? And if Peloton – if the Nautilus example is constructive, Peloton is looking at, you know, south of I think $3 or $4 a share or something, you know, from – I think it’s around $50 lately.
So that – in other words, that outcome of a $3 per share – that should not surprise anyone. Wow. From $167 it peaked at, in January, to $3... should not surprise anyone. But I’m sure it will. It does. You know? If it didn’t surprise anyone, you wouldn’t get these huge swings. So I think investors are in danger of repeating this mistake of believing that some company is the Apple of its industry, like Tesla. Right? Tesla tries to say it’s a renewable-energy company, it’s a battery company, it’s a software company, it’s different, the cars are different, everything’s different. It’s a car company and the stock has soared. It was like a 10-bagger very recently.
And it’s worth more than $1 trillion. The market value of Tesla is more than the next 12 publicly traded car companies, most of which are profitable, combined. And almost all of whom are about to come out with a competing product. And it’s this belief that having, you know, this first-mover advantage in a new industry or new product type is some great advantage. But it’s not. It’s a handicap because all your competitors are going to watch you and learn from all your mistakes. So investors are making a mistake, I think, with Tesla, and they’re going to wind up like Peloton investors – down 70% in a matter of several months before they know it.
And writing in to tell me how great the product is... is stupid. I know. I drove a Model S a couple years ago. It was the greatest driving experience I’ve ever had in my life. I talked to the car and told it that my favorite artist was this musician named Allan Holdsworth that nobody's ever heard of, and it just started playing Allan Holdsworth. It was great. And, you know, you step on that gas pedal and you are pushed back in the seat. It’s a rocket ship. It’s awesome. And it doesn’t matter because you can’t turn the car business into anything but a cyclical, low-margin, extremely insanely competitive industry just [laughs] like exercise equipment. OK? I’m not going to go on any more about this. You get the point.
But there is another example, though, that we found in the Extreme Value newsletter. We actually exited with a loss but we still nailed it. We got the call right even though we got the timing wrong. And that was this company Duluth Holdings. The company that makes Duluth Trading clothing. Again, fun product. Great brand. You know, Tesla’s a great brand, Duluth’s a great brand, but it doesn’t matter. And I remember we were shorting this thing in the high teens, low 20s and eventually we got stopped out of it in the mid to high 20s or whatever and people were telling me, “No, they’ll fix it. Everything will be fine. You’re wrong.”
No, they didn’t. The stock bottomed out below $4 and I think it’s in the teens now. Basically, since it’s gone public it has done what again? It has gone sideways because it’s a cyclical business. It doesn’t matter how much you like the product. It doesn’t matter what kind of quality the product is. You can’t change the clothing business or the exercise-equipment business or the car business. All right. Let’s move on. I hope you take my words to heart because, if not, you’re going to get killed in these businesses in the next couple years. But for now, I’ll leave it at that. Let’s go on and let’s talk to my good friend Eric Wade. Let’s do it right now. [Music plays and stops]
I want to share a quick story with you since I have Eric Wade on the show today. It’s about Walmart.
As we all know, more than maybe any other retailer out there, Walmart is synonymous with America. Right? The stores are massive. They sell everything and they’re everywhere. There’s thousands of stores all over America. But in recent weeks, they quietly made a particular move that some people might say is a direct shot at the economic heart of our nation. Yeah. Walmart did that. It’s small, it’s very small for now, but it kind of suggests that the U.S.’s largest retailer has plans to follow the more than 46 million Americans and counting who’ve taken action to escape our traditional financial system before it deals a permanent death blow to their wealth.
In 200 stores across the country, Walmart has cracked the door open for customers to convert their dying dollars – which have lost a stunning 97% of their spending power since 1900 – into a new form of money that could completely reset everything we’ve ever known about earning, spending, and saving throughout our lives. You might not notice anything right away and it won’t impact the way you shop there just yet, but by Walmart allowing its customers the ability to move their dollars into this new form of currency right there in its stores, it’s clear to see that quitting our broken financial system is becoming more and more mainstream every day.
And if you look at the numbers, it’s easy to see why. Check out the full story told by Eric Wade, Stansberry’s in-house crypto expert, by going online to walmartstunt.com. That website, again, is walmartstunt.com – all one word. Walmartstunt.com. [Music plays and stops]
It’s time for today’s interview. Our guest today is Eric Wade. Besides being my brother from another mother, Eric Wade is the editor of Crypto Capital and Investment Advisory where Eric uses his unique strategy to find the best opportunities in the cryptocurrency space.
Eric is an Internet entrepreneur, an investor who began picking stocks and trading futures contracts in college using his expertise to become a certified financial manager at the largest American retail brokerage. He eventually sold the Internet domain of his nickname, wallstreet.com, for over $1 million. Cool. Eric has also been an angel investor, a movie-script writer, and the founder of a family business that was recognized locally and internationally. He has also worked with some of the largest companies and ad agencies worldwide to expand their marketing reach. What hasn’t this guy done? Eric, nice to have you back.
Eric Wade: That’s going to be tough to follow [laughs]. Tough to live up to. Thanks for having me back.
Dan Ferris: You bet. It was great to see you in Las Vegas and celebrate with our Stansberry colleague, Ben Morris. And as you pointed out, we’re the three guys in all of Stansberry who recommended bitcoin. We couldn’t be more different. I mean, how do we get together on the same thing? On bitcoin of all things.
Eric Wade: Yeah. That was – to me, that was kind of an [laughs] eye-opening moment. Because I follow Ben and I follow your work as well. And I also try really hard to open myself up to people I don’t agree with. I don’t count you or Ben as that. I count you guys as seeing things differently and a great source of – just a wealth of experience between the two of you guys and approaching our investing market differently than I do sometimes. Right? And I saw that. “Ding-ding-ding.”
The three of us had all come to this different conclusion and made it onto the list as, I guess, taking a position in bitcoin. And I just thought, “What does that say, that it’s appealing to” – and I don’t want to mischaracterize anybody. But if anybody in the sound of my voice... if you don’t know Ben Morris, look into it. There’s something there that you’ll like. And you have to know Dan Ferris or you’re not [laughs] listening to this program very often. Right?
Dan Ferris: That’s right.
Eric Wade: And you’ll find something you’ll like there as well. And for me – I don’t know if you remember or not, my initial reaction was I sent you a quick note that said, “Is this a good – is this a crowded trade or good company to be in?” Because I think –
Dan Ferris: Yeah, I do.
Eric Wade: Yeah. And the longer you’ve been around in this, you try to avoid the crowded trades – and we even talked about that a little bit last time I was on – but you also want to be in good company. And I think it worked out that we’re in good company. We’re definitely in good company. It’s such a – I didn’t want this to be too long of an answer, but anytime anybody ever tries to explain bitcoin, how long does it take? An hour or two hours?
Dan Ferris: Right. Well, Eric, don’t worry about it.
Eric Wade: Right.
Dan Ferris: Don’t worry about it because everybody knows your answers are always too long.
Eric Wade: [Laughs] “Hey, let’s have Eric on and ask him two questions and it’ll take an hour.”
Dan Ferris: Yep.
Eric Wade: But my point was, this matches up with it. Right? That anytime you look at bitcoin and say, “It depends on what facet of it you’re looking at first.” Almost like a 20-sided die or something. Roll the die and what you see is what’s on top. And that I think fits perfectly well with Ben and trading opportunities and you and maybe value opportunities or, you know, looking long term and me with, “Is this a currency or is this a technology or a little of both?”
Dan Ferris: All right. Hey, your answers are long but they’re always good. So I try not to interrupt you because there’s always a lot of good stuff in there. I mean, and I expect it. Like, from a guy who’s done all these different things you bring a little slightly different perspective from many different, you know – your many different careers and endeavors in life. So it’s cool. But I feel like the first thing that you and I need to talk [laughs] about this time around is, like, I want to know where you stand on this like, “Gold is dead. You got to own bitcoin instead,” idea that’s become quite the popular idea.
Eric Wade: I disagree. And most of it comes from those two words of “dead” and “instead.” Because, I mean, gold is – what – a 5,000, 10,000-year-old wealth storage and transfer technology. And those are hard to kill. And it may be morphing into a role a little bit sharing some duty with bitcoin. And maybe this is the season that the Packers had both Brett Favre and Aaron Rodgers on at the same time or something. I don’t know. I don’t think so. But maybe there’s some truth in that that people can – it’s easy to attack gold. It’s very easy to attack gold from the outside. But I think there’s a lot of similarities, and that’s been beaten to death. But one similarity that I don’t hear enough talk about is that people who believe in gold really believe in gold in the way that people who believe in bitcoin really believe in bitcoin.
And I just think that the gold people – maybe they favor their volatility over a much [laughs] longer timespan than the bitcoin people who think, “Let’s get it over with. Let’s get our volatility out and on the table right now and then move on,” and it moves a lot faster. But gold is also worth trillions more than bitcoin. So if they ever reach parity – and I believe they will at some point. If they ever reach parity, we may see them looking more alike than different at that point. And I get it. Bitcoin’s digital and you can put, you know, $8 trillion worth of bitcoin in your pocket. I get that, and you can’t do that with gold. But you also – they don’t have to mimic each other in my mind. So I like them both.
Dan Ferris: Yeah. Yeah. They’re not mutually exclusive by any means. Also, one of my points – you alluded to it, actually. You said it pretty well. You know, you framed it in terms of, “Over what period of time do you want the volatility?” And people are complaining that gold is not performing – and the critics of gold, the real bitcoin bulls who criticize gold, are saying, “You know, gold isn’t performing like bitcoin. Therefore, it’s not as good as bitcoin at doing the same thing.”
And I just – that doesn’t make any sense to me. Gold is not supposed to be hugely volatile. It’s doing its job. Whereas, my next question for you then, Eric, is what do you think about bitcoin’s volatility? Because I have to admit the thing trades – look. I’m long. I’m a bitcoin bull. But bitcoin trades, I keep noticing, like a risk-on asset... like a biotech stock [laughs] or, you know, an exploration-mining company in a gold boom or something. You know? It just trades with a lot more volatility and in a risk-on, risk-off kind of fashion. And I wanted to hear what you might have to say about that.
Eric Wade: I agree. I agree. And I don’t want to give away too much, but we hold gold in the Crypto Capital portfolio as a place to go [laughs] risk-off. And I’m laughing at that because, in a manner of speaking, at some point I hope to be able to use this as a store of value, stablecoin-ish type of thing. That, if you’re looking at the world and thinking, “I could trade in and out of dollars” – right? Real estate to dollars, gold to dollars, dollars to stocks, et cetera. Sometimes dollars are the problem, not the solution. So then where do you go? And, you know, that’s where gold comes in. And I know. For gold guys out there... I know. I’m drastically oversimplifying this, and I also know that gold is not a stablecoin.
But to, you know, wrap your last thought into the answer to this question, gold moves differently. And if you don’t want it [laughs] to, you’re doing it wrong... is the way I look at it. Like, I want my gold to move differently or else, what do I need it for? And then when you look at bitcoin and the volatility and the up and the down, you’re absolutely right. It’s a risk-on until it’s a risk-off. And maybe we haven’t gotten to that – well, theoretically – risk-off. Right? Like, the people who really believe in bitcoin as a big, huge-concept currency feel that someday it could be the risk-off asset.
And you can’t make that argument with a straight face while it’s being this volatile. But, like, it’s got that seed planted deep down within it that people believe at some point this could be where you go. And I’m seeing this kind of verbal meme playing out on Twitter now of bitcoin and bitcoiners are attacking fiat. And I’ve got this pithy quote of, “Yeah. OK. Bitcoin is attacking fiat the way peace attacks war.” And that it’s not necessarily an attack as much as it is an opt out. Or, we’re trying to build something that you can opt out. And some of us are there sooner than others.
But I think that plays into that risk-on, risk-off. And we can pump the price up drastically because there’s just not that many sellers and then plunge the price very quickly because we’re used to the volatility and we don’t think of it as, you know, a 5% discount is where you rush in, in the way that maybe your favorite stock or your neighbor’s house or something... right? That you might buy it because it’s a little cheaper. Bitcoin, people that are trying to trade it are looking for bigger swings.
Dan Ferris: Right. And you made a good point. I have to go to a good point that you made earlier here. I don’t want to let it get away. You talked about the size. Gold is much bigger, it’s trillions bigger than bitcoin, at this point. And the thing is, though, gold is really small given – you know, next to all the financial assets, the stocks and the bonds and the currencies in the world. And gold – yeah. Oh, yeah. Not to mention all that. Yep. So yeah. So it’s funny to me that [clears throat] anybody would be so polarized about these two assets, both of which are kind of small on a world scale.
And both, you know, at least intended to do similar things. It’s just – and I guess my real question is, like, given the fact that gold’s been around for 5,000 years and fiat currency is doing very well for itself and doesn’t have anything to worry about really – it appears not to have anything to worry about. Right? We’re all using it. The dollar’s 60% of foreign exchange, 80% of global transactions. You know, there doesn’t appear to be a great problem or a need for the dollar to worry about gold or bitcoin. So, you know, why would any fiat – any central banker or simply any fiat-currency holder or supporter or lover ever worry about any of this? Right? It’s small. It’s too small.
Eric Wade: Let’s put you on the couch and me in the chair for a second, Dan. Because you just said something that I found kind of interesting... is that you started off talking about fiat and then ended up talking about dollar... because dollar is – to use a phrase I use all the time, “Dollar is the elephant that’s pulling the cart of fiat currency.” Right? That where the elephant goes, the cart’s going to go. And the dollar being the biggest, largest, most successful fiat currency that we have right now – I won’t say of all time [laughs] because there’s been some pretty successful fiats out there while they lasted. But it tells me that we’re in this interesting position, I want your take on this, of, is the world – do we right now have the luxury of ignoring or looking away from the problems that fiats cause or mask or allow us to paper over for lack of a better word. I think that’s a good pun there.
Dan Ferris: Yeah.
Eric Wade: Do we have the luxury of ignoring what most intelligent people and anyone who studied any monetary history says, “This is how they always end.” We’re not there today but…
Dan Ferris: Yeah. So I would frame that – I would say, “Look. We don’t have that luxury.” And I tell people they can’t afford not to own stocks because that’s your participation in this endless ascent of man. You know? Somebody recently pointed out that between 2012 and 2019 global poverty fell something like 40 or 50%. The most incredible thing in the history of, you know, global economics. And nobody talks about it, right? But yeah. [Laughs] It is breathtaking. Right? So you can’t afford not to have a stake in that. You can’t afford not to own stocks in good companies.
But you also can’t afford not to pay attention to what you just said. You can’t afford to leave yourself completely exposed to fiat when we know what the history is. You know, like you just said. We know how this ends and it doesn’t end well. And even though the dollar is this dominant, you know, elephant pulling the cart. Like you said, we've seen that before. And it doesn’t matter. It’s got an inherent flaw that eventually will kind of lead to its ultimate undoing and you have to be prepared for that. And I think part of that preparation is gold and part of it is bitcoin. Can’t afford not to hold those assets.
Eric Wade: I agree. And I sometimes try to – in my mind – picture a boat with a crowd of people on it. And let’s say it’s a harbor cruise or something, right? It’s going across the – for lack of a better word, we’ll just say San Francisco Bay from one side to the other side. And you know where the boat took off from and you know where the boat is going to end up. And somewhere in the middle of the bay, someone yells out, “Oh, a whale,” and everybody runs to the same side of the boat.
And then they say, “Oh, look a clipper ship,” or something and they all run to the other side of the boat. And the newspapers and the CNBCs and everything are going to write about, “Oh, the boat is rocking and the boat is going side to side,” and they’re going to take that. And that’s news, right? And it’s true and it’s happening and maybe deserves to be reported on. But looking off one side of the boat or the other side of the boat and tipping the boat side to side, whatever... and I’m presuming it doesn’t capsize because that’s a completely different story.
Dan Ferris: Yeah [laughs].
Eric Wade: But that sells papers. And I aged myself by saying that, didn’t it? But we know where the boat is going to end up docking. And you stop talking about where the boat is going to dock at some point. And I think, you know, a lot of people that maybe consider themselves somewhat-active, self-directed investors and they get caught up in this, “What’s on the left side of the boat, the port side of the boat? What’s on the starboard side of the boat,” maybe more often than, “Where is the boat going?” And the gold crowd I think is really, really good at, “I don’t care what side of the boat you’re on right now rocking the boat back and forth because I believe the boat is going to make it to shore or port.” Where we said it was going to. Right? Good or bad. I think that’s what the gold investors have had 5,000 years to train their brains.
Dan Ferris: Or whatever port you wind up in, right? You’re set.
Eric Wade: Right. Right. They’re thinking longer term than I think a lot of the other, more splashy stuff that we come across. And, you know, the difference between talking to a long-term investor or someone who’s seen more than one rodeo and someone who thinks that the headlines of the day are what’s going to determine our fortunes – I think that’s a big difference.
Dan Ferris: Yeah. Yeah. We’re back to time frame, aren’t we? We’re back to that perspective which, you know... with the way – well, we’ll just keep it focused on crypto because we have you here. With the way so many cryptos have just erupted – they’ve mushroomed into all this, you know... yes, dollar-denominated wealth but they made [laughs] a lot of people a lot of money really fast. And really fast starts to feel like normal, doesn’t it? And it’s not.
Eric Wade: And then, you think, “Hey, Eric. Wait a minute. Wait a minute. If you’re thinking long-term boat leaves from one side and it’s going to end at the other side, then why do cryptos – why are they so volatile? Why do they move so fast back and forth?” And, you know, using that same elephant dragging the cart, that bitcoin is – what – 40-some-odd percent of the crypto market right now... first one to hit $1 trillion. It’s the big one. So I look at this bitcoin being what drives most of this. Not all of it. I wouldn’t go out on a limb and say that... but most of this. And bitcoin doesn’t have a dividend, doesn’t have an earnings per share, doesn’t have sales numbers that they have to hit, a revenue, et cetera. It does have inflation –
Dan Ferris: Just like gold.
Eric Wade: Yeah. It’s running about 1.8% right now of inflation. And that’s the target for U.S. dollar inflation. I don’t know if we’ll ever see that again. I don’t know. Maybe we will. So in that respect, you can sort of almost think, “OK. Bitcoin is on par with fiats in that respect,” or gold. Or “Can it be a currency or a gold,” or something like that. But that still also doesn’t give you any insight into, “Then why does it move so fast?” And I think, at the end of the day, we’ve still got this sort of herd mentality... that we’ve set up – have you ever seen like a bridge when it starts swaying? And if you have, you know, a whole bunch of people walking or a windstorm or something like that and the bridge starts swaying or you’re pulling a trailer down the road and it gets into this sort of harmonic dissonance where it starts moving back and forth or something.
Dan Ferris: Yep.
Eric Wade: I think we get that sometimes in cryptocurrencies where – back to that, “Everybody run to the same side of the boat,” we’re fully capable of that, obviously. Maybe we know where eth boat is going to go but, yes, we’re fully capable of, “Everybody run to the same side and then everybody run back to the other side.” And when it’s a crowd and most of the people are not selling, there’s a group of people that hold their bitcoin that absolutely will not ever sell. You know, we call them the Rick Astleys, right? "Never going to give you up...” Guys that are never going to sell their bitcoin.
And I think sometimes – I want your opinion on this, your thoughts on this, because I don’t think I’ve ever really talked about this with anybody before... is that I think sometimes this, quote, “Price discovery,” that we find ourselves in with bitcoin. I think really it’s more of a “How hard are your diamond hands discovery?" that’s going on. That if I take your asset that – when it’s $3,000 or $4,000 and you say, “I’m never going to sell this” – and I’ve got some bitcoin that I bought at that price that I think to myself, “I’m never going to sell this.”
And I’m sure there’s other people out there like me. So you take that $3,000 or $4,000 asset and I think some magic, invisible market hand that’s saying, “OK. You won’t sell at the $3,000. How do you feel about $60,000?” And I think we have to rethink that. Right? Like, “Oh, I could pay off my house with that.” Right? And I wonder if some of that is what’s going on. It’s not price discovery per se as much as it is nerve discovery or diamond hands discovery. Because there are people out there that won’t sell at $3,000 but might sell at $60,000, and then there’s people that won’t sell ever. And those "won’t sell evers," you got to tempt them with $100,000. You got to tempt them with $200,000.
And like my domain story. Right? As people used to ask me back when people cared about selling domains is, "How do you sell a domain for $1 million?” And you say, “Well, you got to say no to $0.5 million.” And there’s not a lot of people out there in that day and age, 1999, where “You buy something for $7, would you say no to $0.5 million?” And Bitcoin may have a – and cryptos may have a little bit of that in it. Right? You don’t get $1 million unless you say no to $0.5 million.” And so, I think –
Dan Ferris: This is a brilliant point.
Eric Wade: Get there so fast that it shocks people. And then we give some of it back up, and there’s people that rode through the whole thing. And I think we overbuy and then we oversell on our way to $1 million bitcoin in our lifetimes. We’ll get ahead of ourselves and then we’ll get behind, and that looks like a bear market. But it’s higher lows every time. Every bear market bitcoin has ever had is a succession of higher lows and higher highs in the bulls. We’re still hitting across the bay or across the ocean and we’re still going to land on the other side.
Dan Ferris: Yeah. This is a very, very good point. You know, the one about, “How do you get $1 million? Well, you say no to $0.5 million, and not a lot of people are capable of that.” And it’s funny that we’re talking about the diamond handers and Bitcoiners. Because like for example, I talked about this on the podcast recently. I sold gold once, physical gold. I will never do it again... ever. I will never sell another ounce of gold in my life. Because even though I reinvested the cash – which is what I intended to do and have money on it and have more than I would’ve had if I hadn’t done it, I still would rather have the gold. I was like, “Whoa. I didn’t anticipate the feeling of not sort of” – and it was a small amount, so I’m good.
But it was a big enough amount so that I really – it made an impression on me what this asset really meant. And I understand the diamond handers with bitcoin. I might even put myself in that category because, Eric, [laughs] if I recommend this thing at around $10,000 and it’s now $60-something – you know, $65 or $66 or whatever it is lately – like when? You know, within less than two years. If not then – if I’m not selling now, then when? Right? If you got this 6-bagger on your hands and you’re not selling, then when?
And I think it’s the kind of thing where you are challenged to kind of say no to $0.5 million or say no to $60,000 because your – what I tell people is, I’m waiting to see bitcoin kind of take its rightful place in the world. You know, it’s still an upstart. Right? It’s still this volatile upstart that hasn’t totally proven itself in terms of we’re talking about, “When does it become the risk-off asset?” Right? So it hasn’t totally proven itself in that regard. And I’ll tell you something, man. If it ever does, boy... then we’ll all be diamond handers. You know? Because you won’t want to be without it. The same way I don’t want to be without gold. You’ve made an excellent – there’s also another thing baked in here that hints at, which is uncle points. Right?
You can have an uncle point where you say, “Uncle, I can’t take it anymore,” on the way up where you just made so much money you can’t resist taking the profit, and on the way back down. Right? You said people oversell when they get that correction. So "where’s your uncle point?" is a question that is never asked in any asset. You know? People talk about the long-term returns and why stocks are better than bonds or this is better than that or real estate’s better than something else and they never say, “And then, let’s talk about where your uncle point in this asset is.” You know? In any direction, right? Up or down. You’ve raised a very good point here.
Eric Wade: Yeah, I’m glad you brought that up with the uncle point. Because without knowing any specifics I completely understand – and I think probably your entire audience understands that. “Sold some gold, never do that again.” And makes me think you probably have a rational, intelligent position size there, right-sized for you. And whatever that is. Could be 80%, could be 8% could be 1%. I don’t know. But my point is, it tells me you’re sized right. And with cryptocurrencies, I really... especially bitcoin.
I’d really like to be able to say that because my heart, my wallet, my future Eric, my generations [laughs] below me, all want to be able to say that. But then you brought up that uncle point of – or is it a life-change point or maybe a “When do I become” – the phrase we use in crypto is, “irresponsibly long.” And I don’t mean ludicrously long or taking leverage risk because the bitcoin market has a way of finding leverage and snuffing it out from time to time. Not every time but from time to time... enough so that it’s Pavlovian almost.
But yeah. That uncle point of if I was to approach bitcoin and cryptocurrencies rationally and say, “I think my reasonable amount of exposure is, let’s say, 1%, 5%, 10%” – something like that. Right? And those are the different strata of, “How bullish are you? How bearish on the rest of the world,” et cetera. Right? You hear the fiat arguments and you’ve got your gold and you’ve got your ammo box and you’ve got your 50-year water and your Band-Aids and you’re ready to go on – come what may and bitcoin may hold a piece of that.
And then, you love technology so you buy some cryptocurrencies, et cetera. And then they go 10X or 20X [laughs] or 50X. Right? Because if your gold – if Dan Ferris’ gold – was worth... oh, man. There’s so many ways to go with this. Barring hyperinflation – right, because everything goes 10X and 100X in a hyperinflation, but let’s say we’re not in a hyperinflation world or a dollar-fiat hyperinflation world – and you pick one just right and now it’s worth 70% of your portfolio... I think we talked about this before on a previous episode, was there was a VC who said, “I have 50% of my money in bitcoin because I started with 5% of my money in bitcoin.”
So if you approached them and said, “What’s a rational amount of money to put in bitcoin, he would’ve never said 50%. And you almost might second guess and say, “Well, why are you getting your 2 and 20? What would ever” – I guess it’s a hedge fund. “Why are you charging people if all you’re doing is holding 50% in bitcoin?” And it’s like, well, maybe his answer would be, “Because I had the nerve to hold it there.” But at some point, then, don’t you think – do you feel like scaling that back? Right? If 5% was right, then is 50% still right?” And that question rolls around in my brain because I’ve got two hands.
And one of them is diamond and the other one is on the sell button, thinking, “At some point, shouldn’t I try to trade this? If it hits $300,000 tomorrow” – bitcoin I’m saying... hey. Let’s say I wake up tomorrow and my gold is $10,000 and I read everything I can read and it says, “Nope. We’re not in hyperinflation now.” I would think, “Maybe I should sell some gold and buy it back at $5,000 or $2,000 or $4,000” – right – “and increase the stack of my Scrooge McDuck stack of gold coins to swim in. And I still have that with some of my cryptocurrency. I have that hand on the sell button thinking, “Can I do this?” And that makes me think – and I’d like your input on this – if we’re still there, is this cycle of cryptocurrencies still an immature cycle? Is this Deion Sanders’ rookie year? Right?
Like, he had a phenomenal career heading into his rookie year or he wouldn’t have had that rookie year. Or Kobe Bryant. Right? Phenomenal high school career. Rookie year of any of these once-in-a-lifetime athletes. Michael Jordan’s. Right? You look at their rookie year and you think, “He’s a rookie and he’s doing all this stuff.” But they went on to have great careers afterward. And I talk about Deion Sanders because I just love a guy who can showboat and deliver. And I think sometimes bitcoin is more like Deion Sanders [laughs] than it is like gold. Because it showboats and then it delivers.
And are we there? Are we rookie year of, you know – rookie NFL year of bitcoin and cryptocurrencies? Because I think a lot of people think, “No. No. This is the – we’re here. We’re a $1 trillion asset. Multitrillions if you scoop all the cryptos up. Together we’re a multitrillion-dollar asset. We’re here.” No, I don’t think so. I think the fact that I still have at least one finger that wants to try to time out at $288,000 and buy back at the higher low of the next cycle... until I can shape that, until I can get to that point in my mind of Dan Ferris saying, “I’ll never sell another ounce of gold,” I feel like there’s still some maturity left to attain in the cryptocurrency industry such that it is. It’s not an industry but you know what I’m talking about. Right?
Dan Ferris: Sure. Yeah.
Eric Wade: I feel that maybe there’s still something there... that you can have both. Right? You can say, “Deion Sanders might be the best football player they ever recruited that year, but he’s still just a rookie. Wait till this guy has all the patterns down and wait till he’s, you know, juked 1,000 times and...” Right? Is there more to give? I think there is. I think we’re rookie year still. And that means maybe we can trade in and out. Maybe not. Maybe when the time comes, maybe when $288,000 bitcoin comes, I’ll say, “Nope. I’m not selling.” Maybe. I don’t know. I feel like I got to keep one finger ready, though, to try to increase my stack. That Scrooge McDuck thought, right? He’s got a room full of gold that he swims around in and he still wants more. That’s how I am with SATs and with bitcoin, is I still want more.
Dan Ferris: I see what you’re saying.
Eric Wade: I don’t swim around in it.
Dan Ferris: Right. Right. No swimming in a digital –
Eric Wade: I hope so. I felt like I was ranting.
Dan Ferris: Yeah. No. No. No. No. No. The point is well taken. And I think the analogy – if my thinking on this is right, I think the analogy is correct. When do you get to that point where you say, "Well, I’ll never sell this because...” The reason I’ll never sell gold is because it’s been around forever and it’s been doing something very valuable forever and it does what I need it to do, I can rely on it – I feel that I can rely on it – to do what it does. And when do we get that with bitcoin? And on the way up – on the way to that, yes, it’s this tradeable, volatile risk-on, risk-off thing. And it’s a good question. But my way to handle that is actually the opposite of [laughs] yours. It’s not to trade it. It’s just to wait. You know? It’s just, “Wait it out.”
Eric Wade: Yeah. When I say trade, I’m talking about years. I’m not talking about trying to day trade this. And there’s probably guys out there who are great – and I’m sure gals who are great at that. But yeah. Not me. I’m thinking if I bought something at $3,000, I get to $300,000, then maybe that is an uncle point. Or, again, we pull – you’re a guitar player. Think of your guitar string. You pull it way too far in one direction, you know what happens next. It goes back the other direction or the neck breaks off the guitar. And if the neck breaks off the guitar, I got gold for that. And like I said, 50-year water, et cetera, for that.
Dan Ferris: Yeah.
Eric Wade: But barring the neck – and I’d say that’s akin to the hyperinflation market. Right? If you can pull that guitar string so far that you break the neck of your guitar, you should’ve bought a better guitar for one. But that’s the – right – SHTF... can I say that [laughs] That’s that.
Dan Ferris: Stuff hitting the fan.
Eric Wade: Barring that, the string is going back toward the center of the guitar. And I think – yeah. I don’t know. I don’t want to trade it but I may at some point say, “Well, let’s lighten up a little bit here and wait for another bottom that we can buy two for one,” or something like that. I would love to be wrong. I would love for bitcoin to never ever do that 80% drawdown again. I don’t think we’re there yet. Maybe we’ll never see 80% drawdown but I think we’re going to overrun to the upside. Something will trigger it. I mean, we have diesel problems in South Korea because of Australia and China.
Who would’ve predicted that, that South Korea is going to get hamstrung because they can’t get their hands on diesel fuel or something? Right? What’s going to be the straw that breaks the camel’s back? I don’t know. But I think we’re overextended on a lot of fronts and I wouldn’t want to sell gold or bitcoin here. But maybe there’ll be a point where one or the other of them goes up to a ridiculous number and you do hit your uncle point and you’re thinking, “I got a little finger here that really wants to sell something.” The other nine fingers are diamond but I got a little finger here that wants to sell something and try to accumulate more. Not because I don’t believe in it but because I believe so much and I want to – yeah. Anyway. OK. I’m not a trader so don’t take that to mean this is sell advice.
Dan Ferris: No. No. No. No. No. I get it. Right. So actually, we’ve – I feel like the time has gone by in like two minutes here, but we’ve been talking for like almost 40 minutes. So I want to ask you my final question. And I intended today to get a little bit more technical but we didn’t do that. And I think that’s OK because the big issues – we’re still working out the big, 30,000-foot issues. And that’s kind of what we stuck with today. And I think that’s probably right. But if you could leave our listener with, you know, just one thought about the state of crypto or a general investment advice for crypto folks, like – if you could leave them with one thought today, what would it be?
Eric Wade: You threw me a little bit of a curveball because generally you don’t ask me something that – you don’t ask something that specific. It’s like a –
Dan Ferris: Because you never have one thought about anything anyway. [Laughs]
Eric Wade: I’m going to modify what I would’ve said for a general answer to be specific about crypto. And that is, listen to your frustrations. Listen to your own frustrations and try to figure out what they’re telling you. I don’t think enough people do that.
Dan Ferris: That’s smart. Listen to your frustration. Watch your own pain points, right?
Eric Wade: Yeah. Yeah. “What are they telling you?” Listen to them. Analyze them. Get to know them. Listen to your own frustrations.
Dan Ferris: Yeah. That’s really good. That’s really good. Because let’s face it. Most of us get frustrated or angry or have a pain point of some kind and we just want to get the hell away from it. We don’t really think about it and reflect – and you’re right. Listen to your frustrations. Reflect on them. I totally... I think you may have nailed the final question just about better than almost anybody who’s ever nailed it before. So I appreciate that. And it’s always good to talk with you, man. I love, love chatting with you.
Eric Wade: Yeah. Good talking to you again.
Dan Ferris: Yeah. So we’ll have to get you back on here sooner rather than later too.
Eric Wade: Wait. I’m supposed to be talking about... I’ve got an event November 17. I don’t know if you have any words to say about that.
Dan Ferris: What are you doing?
Eric Wade: November 17. And you guys might have a link that you can share with that for where people can go to sign up for it. But we’re talking about six cryptos that my team has uncovered that we think, even in this environment – we’re looking at where technology’s driving us and we think that even here, at these prices, we found six that can go 10x and we’re going to talk about the whys and the hows and then we’re even going to give away one of the six in the event that we’re talking about. And it’s 8 p.m. Eastern on November 17. And there’s got to be a link around here somewhere maybe you can share one with it. But look it up. Find out, you know, Eric Wade’s November 17 crypto event. We’re calling it the "10 Million Bitcoin Boom," because I think it’s going to create $10 million bitcoin worth of wealth. Not 10 million new bitcoin. And we’ll explain what that means.
Dan Ferris: Right. I got it.
Eric Wade: $10 million bitcoin worth of wealth that this boom is going to happen. And we’ll talk all the way through it and give away a free pick on November 17.
Dan Ferris: All right, man. That’s great. I look forward to watching that myself. I can’t wait to find out what the six cryptos are. But we will definitely, definitely be talking with you, hopefully sooner rather than later. I feel like it’s been a while. I feel like we need you on the show more regularly than we’ve had you. Because I’m constantly getting questions about crypto. We need to get you on here on a regular basis. You know? Like the "Monthly Crypto Corner" or something.
Eric Wade: Yeah. Right. [Laughs]
Dan Ferris: Yeah. We’ll talk about that. We’ll see if we can put it together. But until then, thanks a lot, man.
Eric Wade: Thank you. Take care. [Music plays and stops] Always great talking with Eric. And the URL, the website that we talked about that Eric didn’t know, is called bitcoinboomevent.com. So go to bitcoinboomevent.com and you can sign up totally free of charge to see Eric’s big event that he’s having on Wednesday, November the 18th. And that’s when he’s going to tell you about those six cryptos he mentioned with the potential to make 10 times your money. Once again, that’s bitcoinboomevent.com. Check that out. [Music plays and stops] Wow. Always great to talk with my friend Eric Wade, who actually – I have to tell you he’s like the single smartest crypto guy that I know.
I’m not saying I know everybody in the crypto space, but really thoughtful. And, you know, he’s not just talking out of his you-know-what. He’s been there and done that. He’s mined crypto. Like, he’s been involved with it intimately from the very beginning. And he’s probably – I don’t know what his mining status is today. He’s probably still mining it as we speak. But, you know, he’s really knowledgeable, so he’s really kind of a very deep thinker and he comes at it with experience in stock-picking and futures trading and other things.
So he’s got a really good perspective on it. Especially for you, for our Investor Hour audience in my humble opinion. That’s why I want to get him back here on a regular basis, because you guys are always sending us questions. So I’m going to put this thought out there and hopefully we’ll be able to put it together and get Eric on once every now and then to answer some crypto questions. Great interview, love talking with him. All right. Time for the mailbag. [Music plays and stops]
In the mailbag each week, you and I have an honest conversation about investing or whatever is on your mind. Just send your questions, comments, and politely worded criticisms to [email protected] I read as many e-mails as time allows and I respond to as many as possible. Also, you can call our listener feedback line, 800-381-2357. Tell us what’s on your mind and hear your voice on the show. And Hyman from Boston did exactly that. And let me play his question right now and then I will respond to it.
Recorded Voice: Hello, Dan. This is Hyman in Boston calling... mostly to thank you for your excellent work. Very entertaining. And entertaining and helpful. You know, financially helpful. I’m not saying that I – I don’t like the guests that come on there and blah-blah, the B.S. – they say one thing, this thing, whatever thing. I don’t really care about them too much because most of them I think they’re just full of crap or pretentious or just, you know... I don’t know. Maybe just – who knows? But I like listening to you because it instills in me the reminder to be skeptical... not to believe all the bullshit that’s being spewed out there from everybody. I like your skepticism, Dan. And you sound honest and genuine and very likable.
And that’s really what matters... listening to somebody that has some humor, that’s humble, that really says, “Who knows what may or may not – who knows what may or may not happen given the numerous variables?” But when it’s all finished, Dan, you be yourself and that’s what matters. People can identify that, that you’re being yourself. And you’re being helpful and you’re being – what’s the word, encouraging? Instill some optimism and some hope in people sometimes? I really love the rant about the government and this trial run. My brother and I talk about it all the time and we started talking about it in March of 2020 how this is a test to see, really, what governments can do and control and how people react. So we loved listening to it, Dan. Thank you from Boston, Dan, for everything. Thank you. We don’t miss your show.”
Dan Ferris: OK, Hyman. You said a lot of good stuff there [laughs], and so I thank you from the bottom of my heart about all your kind words about my comments and about the show. And thank you so much – you and your brother – for regularly tuning in. I really, really appreciate it. Thank you. Now, Hyman, I’m going to have to take issue [laughs] with you saying that most of our guests are full of crap... was the phrase that you used. I think that maybe you’re not giving them enough credit. Like, if I look at recent guests, last week we played our panel from the Stansberry Conference.
It had Buck Sexton, Ron Paul, Grant Williams, John Tamny, Trish Regan. Then before that, it was Jaime Rogozinski who was the WallStreetBets founder. And before that, it was Daniel Fields from Polen Capital, a very thoughtful – he’s the opposite of full of crap. OK? He’s a very thoughtful, insightful bottom-up investor who I think... if you haven’t listened to that one, listen to that one again. Matt McCall, John Barr from Needham Growth Fund, Keith Kaplan, Bill Bonner, Simon Hallett from Harding Loevner.
I mean, we’ve had a lot of really, really good folks on lately who are definitely not full of crap [laughs], Hyman. So just maybe give them another try. But once again, overall your message was very complimentary of the show and I’m really grateful that you’re out there, man. Thank you so much. All right. Next comes Dr. Nicholas B. And Dr. Nicholas B. wrote me a longer e-mail than I usually read, but I got to read every word of this thing, man.
He says, “Dan. I listened to the recent summit panel.” That was last week’s show. He said, “Prior to it, you addressed wages and how they respond to inflation, the lack of wages being recognized as adequate for the work required is possibly related to the quitting issue.” Because I noted that on a previous show that Americans were quitting their jobs in record numbers.
So Nicholas continues. He says, “I work in health care as a surgeon. Our wage scale has been socialized for nearly my entire career. I no longer see Medicare patients as I cannot be solvent if I do. Their rates have been underwater for nearly a decade and – oh, yes – there is a 9% proposed rate cut to take place as of January 1. This phenomenon has driven private practices out of business where hospitals have been ready and waiting to scoop up the labor pool. Well, it didn’t take long for the doctors who labored for years to become expert in their knowledge and care to be treated equivalent to the custodians,” of the hospitals I assume he means.
“No surprise here. The administrators have handed themselves the lion’s share of the profits and systematically stripped the positions of anything more than a, quote, ‘Living wage.’ And the physicians, of course, still retain personal liability for their care and decisions. I would love to hear your thoughts about this and predict that there will soon be a disproportional number of physicians who are represented in the work-stoppage group. It’s not just kids flipping burgers. The entire industry built on the income stream associated with medical practice has churned and devoured the golden goose but still believes that it will continue forever. Sooner or later, a nice dog becomes not so nice when beaten. For docs” – doctors – “the only option is to withhold services. The losers here become all of us... doctors and patients. My question is, do you see any other economic way for physicians to exert leverage given the brainwashing that, quote, ‘Insurance is necessary,’ has been continually fed to the public? I’m curious. Thanks. I enjoy the show. Dr. Nicholas B.”
Dr. Nicholas B, thank you, thank you, thank you, thank you, and thank you again for raising this “insurance is necessary” myth that is ruining the market for medical services. I won’t call it the health care system because that makes it sound like something the government ought to take over. And the insurance companies have taken over. And you’re right. Insurance is supposed to be for, you know, fires and floods and extreme illnesses and things. It’s not supposed to cover absolutely every trip you ever make to a doctor. And if you think that that doesn’t inflate the prices that you pay when you go to the doctor, you’re fantasizing. It can’t possibly not inflate them. You’re injecting this huge layer of cost. Right?
You’re adding administrators and insurance actuaries and all these people in between you and your physician. All you want to do is go to your doctor and take their advice and hear what they have to say about your condition. You don’t want to spend all this money on insurance and all the extra money on the services because insurance inflated the price. I’m so glad an actual doctor who has lived through this and who no one can tell you that it’s not this way – because you’re on the ground, you’re there, you see it happening. And what do I think? Look. There are physicians in the United States, Dr. Nicholas B., who have said, “I don’t take insurance anymore.”
They’re few and far between but they exist. And without some kind of a, you know – I don’t see any other way because the leviathan of insurance plus government – it’s too big. You can’t fight it. We’re definitely not going to get rid of it. And we should get rid of it. It’s horrible. It’s, once again, there’s this belief that some people are better and smarter and greater and that they know better than the marketplace and they can manage everything from the top down. “And you know what? Even if you don’t think they’re better and smarter, screw you. We’re going to violently take control. And if you try to fight us, we’ll throw you in jail and penalize you and ruin you.” Yeah. Totally agree, Dr. Nicholas B. Thank you, thank you, thank you.
Final question this week is from Elsa G. Now, Elsa, you asked a question previously about a stock recommended by a Stansberry editor. Then you said that it was a dividend stock and the dividend payout ratio was like 240%. And you wanted me to comment on that. Unfortunately, Elsa, I don’t know the stock that you’re talking about. And if I were you, I would direct that question back to the editor who recommended it. That’s all I can tell you. You did also add another question this week, and you’re commenting on this thing I talked about with people quitting jobs.
And you said, “You talk about the reason people quit their job. More reasons could be too much money free from government, too much capital gain the last one-and-a-half years on stock. Many Robinhood traders have just seen the market go up, up, up, up, up. I can tell you in Denmark,” Elsa says, “it is the same. Restaurants cannot get workers.” Sure. I don’t have all the answers, Elsa, and there’s probably many more – it’s probably far more complicated than I made it out to be because it always is in a giant, unfathomably deep multitrillion-dollar economy. Nobody has all the answers and most people – including me – who comment about economics are just full of it.
Because it’s too complicated. You know? That’s why economists are always so wrong... because they’re trying to make an insanely un-simplifiable thing simpler. And it’s hard, really hard. Impossible much of the time. But thank you for that. All right. That’s it. That’s another mailbag and that’s another episode of the Stansberry Investor Hour. I hope you enjoyed it as much as I did. We provide a transcript for every episode. Go to www.investorhour.com. Click on the episode you want, scroll all the way down, click on the word transcript, and enjoy. If you like this episode and know anybody at all who might enjoy listening to it, tell them to check it out on their podcast app or at investorhour.com.
Do me a favor. Subscribe to the show on iTunes, Google Play, or wherever you listen to podcasts. And while you’re there, help us grow with a rate and a review. Follow us on Facebook and Instagram. Our handle is @InvestorHour. On Twitter, our handle is @Investor_Hour. Have a guest you want me to interview? Drop me a note at [email protected] or call the listener feedback line, 800-381-2357. Tell us what’s on your mind and hear your voice on the show. Till next week, I’m Dan Ferris. Thanks for listening.
Announcer: Thank you for listening to this episode of the Stansberry Investor Hour. To access today’s notes and receive notice of upcoming episodes, go to investorhour.com and enter your e-mail. Have a question for Dan? Send him an e-mail, [email protected] This broadcast is for entertainment purposes only and should not be considered personalized investment advice. Trading stocks and all other financial instruments involves risk. You should not make any investment decision based solely on what you hear. Stansberry Investor Hour is produced by Stansberry Research and is copyrighted by the Stansberry Radio Network.
[End of Audio]