TBH: Motley Fool’s Stock Advisor Vs. Bitcoin who wins? (Update #6, Q2 Year 2)
Background
This is the second quarter update of year two. The sixth overall update since the expeirement started. To review previous updates please click here.
Performance to Date:
Bitcoin: $1,029.06 (-3.33% Return)
Is the bull back?🐂
From the looks of it one would say YES! After a horrible 2022, 2023 started off with a bang. After the FTX blow up and and people just losing faith in crypto Bitcoin started to catch a strong bid. Thanks to this dollar cost averaging strategy that I have going here the returns are a few percentages points away from being in the positive. This is all coming with no real positive/bullish news coming down for Bitcoin. Russia is still at war, America is still laying off people, interest rates are still high (by modern standards), and CPI inflation is getting sticky at about 6%.
Towards the end of the quarter banking started to fail. Silvergate, Silicon Valley Bank, Signature Bank, and Credit Suisse. Long story short these banks had bad balance sheets which got destroyed due to the repricing of bonds caused by the rate hikes by the Fed. One would think Bitcoin would tank (which it very well still could) but instead it been holding its own. Is this the true decoupling? or just the calm before the massive deflationary storm that is coming for all of us? Time will tell in the mean time I will continue with my $50 of fresh capital every month and buy my Bitcoin!
Stock Advisor: $903.72 (-13.13% Return)
Such a shame! 😢
It appears the Stock Advisor stocks from Motley Fool are not doing so well. They are down 13.13% Since the start of the experiment. The stock market has been very volatile. Every time the market thinks The Fed will stop raising rates the markets rip higher but soon as they get a whiff of a hawkish/tight Fed they tank. It is kind of sad to see the state of the market like this. So beholden to the Fed and far away from the fundamentals of a business. With that said we are truly living in unprecedented times. Protecting ones wealth will be the challenge for the 2020s. Will it be bitcoin? Or will it be these stocks that I paid a company to tell me to buy that will win out.
Conclusion
We are truly living in wild times. Government trust is very low. The war in Europe is still going on, America is trying to navigate this “soft landing” to combat inflation and ran into banks blowing up these last few weeks AND GET A FREAKING BAILOUT!!. In times like this one must ask what is a common person to do? Buy Bitcoin, Buy I bonds? Buy Real Estate? Buy Gold? Hold cash? None of these seem very appealing as each come with its own set of risks. Gone are the days of just setting and forgetting working hard and hopefully having some money left over to cover your expenses as you live your final days on this planet. The bankers and the politicians really screwed up the system for the better part of 40 or 50 years.
But in the end I am only one person and there’s only so much I can do. I am a Bitcoiner at heart and I really do think this technology can change humanity for the better. Looking at this experiment six quarters in is proof that you don’t need vanguard, Blackrock, Motley Fool, Fidelity to protect your wealth. You don’t need the stock market. Just buy Bitcoin and relax. Inflation and the cost of goods and services will fluctuate both Bitcoin and Motley Fool did not keep up with the inflation rate thus overall making your poorer over time but for those who have a long time horizon when it comes to saving for the future Bitcoin is winning this fight!
Now lets check to see how the passive investment tickers did over these last six quarters
S&P
9/13/2021 — - > 4,468.72
3/21/2023 — ->4,038.25
RETURN OF : -9.63%
DOW JONES:
9/13/2021 — > 34,869.63
3/21/2023 — > 32,769.00
RETURN OF: -6.02%
NASDAQ:
9/13/2021 — > 15,105.58
3/21/2023 — > 12,870.50
RETURN OF: -14.79%
The passive investor is getting crushed as well. No where to run or hide. Bitcoin is beating the passive investor as well. As the Bitcoin maxis say BUY, HOLD, REPEAT!. With these recent bank failures, Bitcoiners are sleeping well at night knowing their Sats cant be debased, and cant be lost due to poor risk management at some jerkoff bank. At this pace it appears paradise is in sight for me!! God Bless!!
Thank you for reading this article please have 1,000 sats on me use your lightning wallet to scan the QR code below take your Sats.
Hobbyist out!
