🤑 Tips For Managing Wealth Wisely (From a Millionaire)

What’s on the Menu 🍴

So today we're gonna show you what investors should be paying attention to,

and some advice from one of our own bitcoin millionaires.

Let’s get it!

• What to Watch This Week 👀

• The Consumer Has Spoken: Corporations Need To Lower Prices ⬇️

• 7 Tips For Managing Bitcoin Wealth Wisely 🤑

• How This HATED Stock Became A Multi-Bagger (1,000%+)

Today’s newsletter is a 5 minute read.

What to Watch This Week 👀

We might be headed into the slower summer trading season, but there’s still plenty of drama in financial markets lately…

The software sector took a rare nosedive last week after high profile earnings misses by Salesforce and MongoDB.

Who had the retail sector massively outperforming software stocks on their bingo card?

This week the Bank of Canada and the European Central Bank will meet to set interest rates. The ECB could cut rates for the first time in several years.

In the US, all eyes will be on the monthly non-farm payrolls unemployment report on Friday.

The macro calendar is a busy one:

• US ISM Manufacturing PMI (Mon)

• US JOLTs job openings (Tues)

• Bank of Canada rate decision (Wed)

• US ISM Services PMI (Wed)

• EU rate decision (Thurs)

• Canada PMI (Thurs)

• China trade balance (Thurs)

• Germany trade balance (Fri)

• Canada unemployment (Fri)

• US non-farm payrolls / unemployment report (Fri)

Political uncertainty is rising with the recent Trump trial in New York and as 2024 US elections get closer.

Both crypto and metals have performed well year-to-date but remain in range bound consolidation phases for now.

We’ll be keeping an eye on those areas as well as the following assets & sectors:

📈 Rising Recently:

• Retail (XRT)

• Cleantech & Solar (TAN / PBW)

• Energy (XLE / XOP)

• Real Estate (XLRE)

• Homebuilders (XHB)

• Utilities (XLU)

📉 Falling Recently:

• Software (IGV)

• Semiconductors (SOXX)

• Chinese stocks (KWEB / FXI)

• Biotech (XBI)

• Airlines (JETS)

The Consumer Has Spoken:
Corporations Need To Lower Prices ⬇️

The pressured & choosy consumer has finally put the nail in the coffin of corporations passing costs along to them.

Corporations have been able to keep their margins afloat throughout the inflationary environment:

Management teams however, are feeling the consumer push back.

They know people are feeling the price pinch and they’re going to take their dollars elsewhere to find value if they have to. So… many retailers are starting to talk price cuts.

Target (TGT):

Target plans to lower prices on roughly 5,000 products this year. They’re having issues with the discretionary spending side of their business.

They seem to be honing in on “frequently shopped items” at lower prices to keep consumers happy, and returning.

McDonalds (MCD):

McDonalds customers have always gone there for a value. The dollar menu was all the rage.

Now, it’s more like the $5 menu.

Well, management is getting the hint as comparable sales take a dive year over year.

Management is officially talking about how to bring more value to customers and avoiding price increases in 2024.

Walmart (WMT):

Walmart is the GOAT (greatest of all time) at bringing value to customers and “rolling back prices”.

Management knows the drill, and this is why they’ve been able to capture so much market share even across higher income consumers (everyone is being price conscious)!

So of course, they’re lowering prices and keeping their lead as the go-to value retailer.

So, I think this is likely a good thing going forward.

The consumer is speaking with their dollars (or lack of spending dollars).

Management teams are going to have to figure out how to stop raising prices now, and keep their customers happy.

7 Tips For Managing Bitcoin Wealth Wisely 🤑

I was recently interviewed by CoinTelegraph about the lifestyle and mindset of being a bitcoin millionaire.

For the past 11 years being full-time in crypto, I've seen thousands of people build life-changing wealth and have done so for myself too.

But I've also seen people make wealth killing mistakes after building multimillion dollar portfolios.

Here are 7 tips for manage your newfound wealth wisely (with some of my quotes from the CoinTelegraph interview):

1. Understand the Tax Implications: Trust me, the IRS loves Bitcoin millionaires almost as much as they love their yachts. Don’t get caught off guard by hefty tax bills. Make sure you understand capital gains taxes and consult a tax professional to navigate the complexities. One of the first big challenges I faced was "paying taxes and figuring out how to optimize my tax strategy."

2. Create a Solid Financial Plan: A fool and his money are soon parted. Develop a comprehensive financial plan that includes short-term and long-term goals. Consider hiring a financial advisor to help manage your assets and create a sustainable investment strategy. ”When I was poor, I spent to look and feel rich. Now, I focus on my wealth-building journey as a game, with money as the token.”

3. Diversify Your Investments: Don’t put all your eggs in one crypto basket. Spread your wealth across different asset classes, such as stocks, bonds, real estate, and other assets, to mitigate risk. To avoid the burden of dramatic market fluctuations, I "self-imposed limits on the percentage of my portfolio that could be allocated to Bitcoin or other cryptocurrencies. I don’t want to have 80% of my net worth vanish during bear markets.”

4. Maintain a Balanced Lifestyle: Sudden wealth can lead to impulsive spending. It’s easy to lose your head when you’ve got a fortune at your fingertips. Stick to a budget, avoid lifestyle inflation, and remember the importance of financial security over extravagant purchases. The hardest part for many new millionaires is "holding on to their gains." I've seen a lot of people make quick money and lose it because of ego, greed, or recklessness.

5. Don’t Get Lazy - Stay Informed: The crypto market is as wild as a rollercoaster. Continuously educate yourself about market trends and new investment opportunities to make informed decisions. Remember, there's always another trade or investment opportunity right around the corner.

6. Consider Philanthropy: Giving back can be a fulfilling way to use your wealth. True wealth isn’t just about money; it’s about making a positive impact. Look into charitable donations or setting up a foundation.

7. Protect Your Wealth: As your wealth grows, so do your responsibilities and potential problems. Take extreme measures to protect yourself. Having a million dollars in crypto on a wallet is similar to having a real-life wallet with a million-dollar bill. If it’s stolen, there’s no way to recover it.

What else would you add to the list? Let us know on Twitter / X here.

📺 Video of the Day:
How This HATED Stock Became A Multi-Bagger

Multi-baggers are stocks that return multiples of your initial investment.

Stock investors seek out multi-baggers regularly. So, how do you find them?

I use the Abercrombie and Fitch turnaround as a case study in today's video and cover my OWN investment that I made in the stock and how the stock has performed.

Watch the video!

Food For Thought 🧠

"True wealth isn't about looking rich; it's about being
able to focus on what you love doing every day.”
- Chris Dunn

DISCLAIMER: We are not investment advisors, and this content is for educational purposes only. We don’t offer financial, legal, or tax advice. Nothing we say is a recommendation to buy or sell any assets. Trading and investing are extremely risky, so please be careful and do your own research.