It’s been an eventful week here at Port Phillip Publishing. The last two days have been spent absorbing and prodding the philosophies of some of the world’s greatest economic minds, and of course, our own writers.
Some speaker’s presentations were laced with pessimism and caution. Others were joyful about the future, and the financial revolutions that it will bring.
But overall, the Paradox of Prosperity conference was an event that can only be described as timely. The predicament that we find ourselves in financially — battling rapid change, rising debt and volatile markets — is one that requires deep consideration and a pragmatic approach to investing.
Now with the weekend upon us, there are many ideas to consider. Especially when it comes to the financial future of Australia and the rest of the world.
The religion of crypto
‘Even if you think I’m absolutely crazy at the end of this, if you miss the opportunity of crypto, you’ll be kicking yourself for the rest of your life.’
Sam Volkering kicked off Friday’s conference with a high energy, engaging talk that was imbued with idealism. He spoke of the technology revolution that cryptocurrencies are heralding, and how they have the potential to fix the flaws our current financial system is riddled with.
As Sam noted, the financial system that we know today, or the status quo, is a tightly controlled, centralised system. It’s overseen by government, regulators and ‘our mates at the bank’, as Sam so sardonically put it.
And while this system has worked very well for some, and they have been able to build momentous wealth, for others it has been a disaster.
Sam believes that this is the true ‘Paradox of Prosperity’. One in which, ‘most will be paying off a mortgage until they’re 75’, and have no free cash to invest.
As Sam noted, ‘The system doesn’t work for the many, it works for the few.’
Sam Volkering at the Paradox of Prosperity Conference
But with all of these people now connected through the internet, they have been able to build a more equitable, dynamic system.
The rise of crypto and blockchain has successfully ensured that everybody has the potential for prosperity.
And even though the news organisations like to report on the rise and fall of the bitcoin price, this misses the key point of cryptos. Which, Sam believes, is the infrastructure being built and their revolutionary potential — democratically, financially and in terms of data and privacy.
Sam urged the crowd to adapt their thinking about cryptos, and to avoid thinking about the coins in terms of price. As Sam says: ‘Imagine that fiat money doesn’t exist.’
As the crypto revolution takes off, we will be able to leave a broken financial system behind. The slow, inefficient and expensive system that caused the GFC and the dotcom bubble. And by staying in the right cryptos, there is a way to profit from the revolution.
A revolution or a bubble?
As always at Port Phillip Publishing, we like to publicise conflicting views. And Jason Stevenson, our in house resources expert, was a perfect opponent for Sam’s idealistic worldview.
Jason’s speech was centred on the idea that cryptocurrencies and pot stocks are merely a distraction from the real investment opportunities. In fact, it’s likely that they’re both bubbles inflated by media hype and public misunderstanding.
Jason steadfastly believes that there are sectors that will retain their iron strength in this volatile financial climate. But Sam just as firmly argues that the way to profit is by going head first into the crypto revolution.
Of course, it’s difficult to pick a side without hearing the presentations in full. Which is why we are offering a virtual seat to Paradox of Prosperity conference. It includes the full speeches of all of our editors, as well as global financial minds like Jim Walker and Dr Marc Faber. You can access your seat here.
This week in Markets & Money
This week, Harje’s 12-day Extreme Small-Cap Profits email course kicked off. It was published in Money Morning, but as it’s such a valuable read, I’ve summarised the series here.
On Monday, Harje outlined why investing in small-caps can potentially result in huge gains, and why it could be the perfect strategy to attain financial freedom. As he pointed out, small-caps aren’t a viable investment for large funds. And with less attention on stocks that are often undervalued, the big gains are up for grabs for investors like you. It’s just a matter of finding the hidden gems…
To learn how to find them, click here.
On Tuesday, Harje continued his small-cap series with a focus on the kind of stocks available in the market. As small-caps are companies worth under a billion dollars, those worth more than that fall into the mid-cap or blue-chip categories. Harje believes that mid-caps can be a great opportunity for expanding your portfolio, particularly with rapidly growing companies like a2 Milk. But when it comes to blue chips, investors shouldn’t fall into a false sense of security…
To find out why, click here.
When it comes to small- and mid-cap stocks, investors should love the volatility. That’s the magic that creates those envy inducing gains. However, it’s also important to minimise your risk when investing in the smaller end of the market. While it’s very hard to know what the market will do, there are certain companies you should avoid, and stop losses you should put in place. And as Harje wrote on Wednesday, the most important risk reducer is to only invest what you’re willing to lose.
To find out more, click here.
While small-caps have great wealth building potential, it can only be realised once you find the hidden stock gems. As Harje outlined on Thursday, you need to have the skills to find profitable stocks in both bull and bear markets. And while these gems can be found in all areas of the market, your best bet is to look into sectors that are growing…
To find out which industries Harje suggests, click here.
Then on Friday, Harje finished with week with a lesson on the business side of investing. The strength of the companies behind each stock will ultimately determine the returns you receive. As such, it’s better to think about investing as buying and selling companies. And when it comes to the companies you should look out for, there’s one key factor that is indicative of future success…
To find out what that indicator is, click here.
Until next week,
Editor, Markets & Money