🎮 Will Gaming Drive The Next Altcoin Season?

You've probably noticed that we post a TON of great charts from a platform called Koyfin.

Koyfin is our absolute favorite tool for tracking macro moves, screening for stocks, diving into company fundamentals, and tracking company news.

It's like having a Bloomberg terminal for 1/100th the cost.

Daily Dough readers can get 10% off Koyfin using this link

What’s on the Menu 🍴

We’re always on the hunt for the next big investment…

And today we want to share some ideas with you.

We also want to help you avoid getting scared out of the markets!

Let’s jump in:

• Doom-And-Gloomers Are Costing You Money 💰

• Will Gaming Drive The Next Altcoin Season? 🎮

• Is WE the next GME? We Doubt It! 🎢

• All Eyes On The S&P 500: Chart Update 👀

Today’s newsletter is a 5 minute read.

Doom-And-Gloomers Are Costing You Money 💰

Fear sells.

People love to listen to gurus claiming that the next big stock market crash is coming… or an economic depression is on the way.

It’s some of the most viewed content out there!

Unfortunately… it’s costing you a lot of wealth if you’re listening to these doom-and-gloom narratives.

Now, this doesn’t mean that we don’t see bad times, we do.

This has clearly been marked by multiple recessions historically and asset classes temporarily declining.

However, the stock market is usually in a bull market (good times), more than it’s in a bear market (bad times).

So… sure, a doom-and-gloomer calling for a great collapse is eventually right since our economy is cyclical.

But, they’re usually crying wolf for MANY years before they’re right…and it doesn’t last forever.

Let’s take Robert Kiyosaki’s tweet from March 2020 for example:

Robert was predicting that we would see the “biggest stock market crash in history” in 2016.

If you would have listened to him and refrained from investing:

You would have missed out on over 130% returns (more than doubling your money)

$10,000 would have grown to $23,251.

And there’s more:

Robert Kiyosaki often promotes Silver as an investment.

Many people pushing very negative narratives typically promote investing in metals (funny how that works).

“Accumulate silver now” he says.

The problem with investing in Gold and Silver, is they haven’t even come close to performing as well as the S&P 500 (stock market) has.

The proof is in the pudding that listening to the nay-sayers and doom-and-gloomers will cause you to miss out on growing your wealth.

Remember, investing isn’t about avoiding the bad times. Bear markets are part of the journey.

Investing is about being diversified enough to not get spooked when times get tough, and be able to invest MORE when prices are down.

Don’t let doom-and-gloomers rob you of your wealth.

Will Gaming Drive The Next Altcoin Season? 🎮

Let’s slice through the crust of today's burning question:

"When's the next altcoin party and did I miss the invite?"

Altcoin season is like Mardi Gras for cryptos – a grand ol' time when digital coins’ prices rocket.

Remember the 2017 ICO jamboree?

Everyone and their dog launched a project.

Whitepapers, shiny websites, a lofty goals of decentralizing the world were everywhere…

But a rare few shot up like a dough that's proofed just right. 🍩

Flash to 2021: The DeFi DJ set the stage, and NFTs – those quirky JPEGs – were the main act. 🥂

Pictures sold for the price of penthouses, and wallets thinned out faster than my patience in a bakery line.

There’s always a story steering these booms.

Take Axie Infinity, for instance. It skyrocketed like a yeast-infused baguette, from $1 to $160. 🕹️

But, in classic crypto fashion, took a nosedive back to a mere 5 bucks.

Our crystal ball (fine, it's just research and a bit of gut feeling) hints that the gaming world's about to sprinkle some serious flavor into the crypto soup.

As AAA game developers flirt with NFT integrations, certain game tokens might just sizzle.

Got your forks ready?

Keep your eyes on the crypto gaming aisle.

Some of these tokens are beginning to heat up, and we smell an altcoin season. 🔥

So how do you know when altcoins season is heating up?

We think it’s simple - When the crypto market cap chart shows a technical reversal, and valuations climb back above $450B.

If you want to stay engaged, check out our Wealth Building Community where members get reports, watchlists, and alerts. 🥖📈

Is WE the next GME? We Doubt It! 🎢

WeWork stock (ticker “WE”) had quite the rollercoaster last week, flipping from down 50% on Wednesday to being up more than 50% intraday on both Thursday and Friday.

Despite the fireworks, WE stock ultimately closed the week down 8% and is down 98% since it went public via SPAC in October 2021.

What seems to have caused the temporary enthusiasm last week (in an otherwise slow march of death for WE stock) was an attempt by meme traders to squeeze WE higher:

Having been involved early in the GME squeezes as well as capitalizing on the CVNA squeeze this year, we love to dig into the potential for stocks that could moon on short squeezes.

Unfortunately we don’t think WE has what it takes to go the distance. It’s half baked at best.

Why?

For starters, the short interest in WE stock is not very high at just 2% of outstanding shares and < 10% of the tradable float.

Compare that to GME where 100%+ of the float was shorted at peak, and CVNA where ~50% of the float had been shorted prior to the squeeze.

Both companies also showed green shoots of improving business metrics and liquidity.

WeWork is unfortunately still burning through $1 Billion in cash per year, and key metrics such as occupancy rates have gone in the wrong direction in 2023:

When WeWork went public in 2021, it forecasted that its co-working spaces would see occupancy rates reach 85% or higher by 2023.

That clearly hasn’t happened.

Rising office vacancies, high interest rates, weak venture funding, and slow return to physical offices have choked off the post-pandemic recovery in commercial real estate.

WeWork isn’t able to turn a profit at its current levels of occupancy. That may be why the former CEO and former CFO both resigned in May.

What does the future look like for WeWork?

Most of WE’s debt doesn’t mature until 2027, but the high cash burn has to be funded from new debt issuance, and that creates even more of an interest burden.

Unless WE sees a significant improvement in occupancy soon, the math suggests the common stock is probably worthless in its current form.

Softbank still owns almost 70% of the stock, as well as a large portion of WeWork’s recently restructured debt.

At some point Softbank must decide if it’s willing to keep funding an unprofitable business.

Debtholders might still squeeze out a positive return on WeWork, but barring a miracle it looks increasingly likely that public WE shareholders will be left holding an empty bag.

All Eyes On The S&P 500: Chart Update 👀

In a recent Daily Dough newsletter we broke down important price levels to watch in the S&P 500.

Sentiment has quickly shifted with investors.

They’ve gone from feeling upbeat about dodging a recession, to feeling uneasy about stock market valuations.

So, the question becomes, how low can we go and still feel like we’re in a bull market?

The S&P 500 is currently up 24% from the recent bear market lows.

This has been a pretty strong rally more than due for a healthy pullback.

Looking at the technical chart, there are a few major levels we’ve discussed:

The first major level: $4,330 (In orange)

and

The second major level: $4,200 (In red)

(If we bounce off of support this week (In yellow) and never breakdown further… forget about it- the market is confirmed strong with yet another shallow pullback.)

So, price falling another roughly -5.5% gets us to the major $4,200 support zone.

Everyone may start calling the end of the bull market if we reach this level.

However, if we got there, that still has the index being up roughly 11% year-to-date.

The only way we can get BEARISH on the index based on the technicals, is seeing price break BELOW $4,200.

So, even if the index continues to fall, we’re still in very bullish territory overall.

Delicious Bites 😋

• SBF Jailed Ahead of Trial

• A list of famous Investors, Operators, & Founders

• Financial conditions have de-coupled from bank lending

Food For Thought 🧠

"Today's gamers are tomorrow's game developers, storytellers, and entrepreneurs.”
- Unkown

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.