Dow vs. Bitcoin

Join us today at 4 p.m. ET for “The Race to 40K” featuring Louis Navellier and Matt McCall

 

Will the Dow or bitcoin hit 40K first?

Last week, we asked our Digest readers to chime in with their thoughts.

So, what does the collective Digest readership believe?

We’ll get to that below.

But first, let’s revisit what’s behind the question for any readers who aren’t up to speed.

Today at 4 p.m. ET, we’re hosting a special event called “The Race to 40K.”

The purpose is to debate the question from above …

What will hit the “40,000” mark first — the Dow or bitcoin?

The origin of today’s event dates back some weeks, when our CEO, Brian Hunt, caught wind of a friendly disagreement between two of our top analysts — Louis Navellier and Matt McCall.

Louis — very bullish on stocks today — argued the Dow would hit the 40,000-mark before bitcoin’s value topped $40,000.

That move from the Dow would require a climb of about 50% from today’s prices.

Matt — also bullish on stocks, but believing bitcoin is setting up for a bigger move in a shorter timeframe — argued for bitcoin.

That would mean about a 250% jump.

After hearing their respective cases, Brian felt the difference of opinion would be interesting and helpful for our InvestorPlace readership. So, he asked Louis and Matt to debate their positions live.

That’s what taking place today at 4 p.m. ET.

Whoever loses will donate $5K to the charity of the other analyst’s choosing.

With that background behind us, let’s get to the good stuff — in other words, what’s in it for you.

When you attend, you’ll get all the reasons why Louis is so bullish on stocks today, despite all the uncertainties facing the market.

You’ll also get Matt’s thoughts on the crypto market, and why he believes it’s setting up for an explosive move.

Best of all, Louis and Matt have agreed to share the names of their top picks poised to benefit from these respective bull markets. So, you’ll be walking away from the evening with market analysis and free, actionable recommendations.

So, for the rest of today’s Digest, let’s give you a sneak peek at what’s coming this afternoon. Specifically, let’s dive into a few of the reasons why each analyst believes he’s going to win “The Race to 40K.”


***Five reasons why Louis is betting on the Dow

 

In Louis’ Monday update to subscribers, he touched on five tailwinds behind stocks.

For his first point, he writes “our market is an oasis for the world.”

While acknowledging the U.S. GDP has taken a massive hit from the coronavirus lockdowns, Louis tells his readers its numbers are still better than expected. And far better than some European countries, like Germany.

This strength is likely to continue attracting foreign capital, helping boost stock prices.

Second, Louis points toward incredibly low interest rates.

He explains how when the Federal Reserve is keeping bond yields next to nothing, stocks become much more valuable.

Plus, companies can refinance their debt at ultra-low rates. That will help their cash flow, earnings, and bottom line — and by extension, their share prices.

For Louis’ third point, he brings in U.S. dollar weakness:

You might think, “The dollar is weak? That’s horrible!”

Well, not really.

Ironically, a weak dollar is good for multinationals, and half the S&P 500 companies’ sales are outside America … which means it’s paid in foreign currencies.

If those get stronger against the dollar, that’s actually more money for many of our companies.

(Though Louis references the S&P above, we can use it as a proxy for the Dow for the bet.)

Four, Louis tells readers that trading volume has been light on down days.

He explains that the key with any sell-off is the volume. As long as trading volume is light and there’s no panic selling, stocks should be okay. And that’s what we’ve seen recently.

Finally, he points toward an earnings season that has featured an abundance of positive surprises.

From his update:

I always watch corporate earnings very closely. And the magnitude of the earnings surprises, even the sales surprises have been nothing less than incredible.

Some bad earnings will come out later, and good earnings tend to come out early; that’s just normal for the market. But by and large, I’m very, very pleased!

You can expect Louis to expand upon these details and more at today’s event.


***What about Matt and the case for bitcoin?

 

Let’s begin by jumping straight into Matt’s Sunday update to readers:

For starters, bitcoin is already hot and bullish sentiment is soaring.

It broke through $11,000 on Monday on strong volume, climbing 13% for its biggest single-day gain in nearly three months.

It is up over 55% this year, almost double gold’s increase, while the Dow Jones Industrial Average is down more than 8% — although it’s made a fantastic 40%+ climb off its March 23 bottom.

Now, while all that is true, the simple mathematical reality is bitcoin needs to climb 250% for Matt to win, compared to just 50% for Louis.

What’s behind Matt’s confidence that this can happen are two big catalysts.

Back to Matt:

One is increasing mainstream adoption. It’s simply becoming more and more a part of our everyday lives.

Rumors are swirling that digital payments leaders PayPal (PYPL) and its smaller mobile payment service Venmo both plan on rolling out cryptocurrency buying and selling to users soon.

Matt goes on to point toward Square (SQ), another digital-payments firm that allows bitcoin purchases in its Cash App.

He also highlights news from last week in which the Office of the Comptroller of the Currency announced it will finally allow federally chartered banks to custody cryptocurrency.

Matt’s second big bitcoin catalyst turns out to be something that’s already happened — the halvening.

Back to Matt:

Up until a couple months ago, a “bitcoin miner” received 12.5 bitcoins for mining a block. Miners today receive 6.25 bitcoins as a reward.

The end result is that ALL bitcoins are more valuable.

The two halvenings prior to 2020 show it takes a little time for bitcoin to take off. Bitcoin started to go vertical about five months after the halvening that took place in November 2012.

 

In 2016, the halvening took place in July, but bitcoin didn’t start to soar until almost a year later.

 

The latest breakout could well be the start of this next big move, so you haven’t missed out. In fact, you could be in the perfect position to capitalize on bitcoin’s next big boom.

Matt will be digging into more details on these catalysts, as well as other crypto tailwinds, later today.

If you’ve got any money in the crypto universe, tune in to hear what Matt believes is coming your way.


***Before we wrap up …

 

As we noted at the top of this Digest, last week, we asked readers to write in to give us their thoughts on the likely winner of “The Race to 40K.”

It turns out, the winner — by the tiniest of margins — was …

Bitcoin.

Whether you fall into the Dow or bitcoin camp, join us today to get Louis’ and Matt’s thoughts — maybe one of them will sway your opinion.

And remember, you’ll get specific recommendations for how to play both bull markets simply for joining.

The truth is, with both advisers so bullish, it appears there’s no loser here … just a matter of which winner comes faster.

Just click here to sign up. Hope to see you there.

Have a good evening,

Jeff Remsburg


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/dow-vs-bitcoin/.

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