Earnings season is in full swing… and some of the largest companies report this week. I highlight a few winners and losers—like Tesla, Facebook, UPS, and Intel—and the most important characteristics to pay attention to as companies report. [0:40]
Gold—which has been out of favor for some time—is quietly moving higher… and so are 10-year interest rates. I go over the multiple themes affecting stocks (both good and bad), including how companies are dealing with inflation and supply chain issues. [3:05]
As cryptocurrencies continue towards new highs… the biggest story in the space this week has been the partnership between Mastercard and crypto payments network Bakkt—which will bring bitcoin access to more than two million people. [5:25]
Next, I share some exciting news in the security token industry… and how investors can take advantage of this multitrillion-dollar opportunity. [12:20]
Plus, I recap an incredible offer on my Crypto Intelligence advisory—including how to lock in a free crypto pick. [20:50]
Crypto exchange Exodus recently began trading on tZERO. I give my take on the recent price action in Exodus and explain why both companies have bright futures…
Plus, I share a simple rule to keep emotions—and your portfolio—in check. [26:00]
Finally, with several Crypto Intelligence recommendations trading on different exchanges, a subscriber wants to know why I typically only discuss a few exchanges. This is a great question and it’s nothing personal. I break down some of the features of different exchanges… and my goal to get as many people into the space as possible. [31:45]
Today’s episode of Wall Street Unplugged is sponsored by Masterworks.io… bringing blue-chip art to the average investor.
Contemporary artworks appreciate 14% a year on average (vs. the S&P’s 9.5%)… and Masterworks is the ONLY company tokenizing this billionaire-preferred asset class.
For a limited time, Curzio readers can skip the auction waitlist.
Start your fine art collection with Masterworks.io.
- Earnings for Tesla, Facebook, UPS, and Intel [0:40]
- Conditions are perfect for gold to explode [3:05]
- How Mastercard is bringing bitcoin to millions of people [5:25]
- The multitrillion-dollar opportunity in security tokens [12:20]
- An incredible Crypto Intelligence offer—and how to lock in a free crypto pick [20:50]
- Why Exodus and tZERO both have bright futures [26:00]
- Why Frank highlights some crypto exchanges more than others [31:45]
Wall Street Unplugged | 811
Over 2 billion people will soon have access to bitcoin
Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on main street.
Frank Curzio: What’s going on out there? It’s October 26th. I’m Frank Curzio, host of the Wall Street Unplugged Podcast, where I break down the headlines and… Tell you what’s really moving these markets. It’s a great podcast for you today, which is sponsored by Masterworks, which is bringing tokenization to the 1.7 trillion art industry. But there are so many themes going on, whether it’s inflation concerns, earnings going crazy right now. It’s going to get crazy over the next two weeks. I believe there’s over 200 companies in the S&P 500 reporting just next two weeks. Thus, why we see some blockbuster results.
Frank Curzio: Tesla also signing a deal with Hertz. Hertz is going to buy 100,000 of their cars. This puts Tesla over a thousand dollars a share into the $1 trillion market cap club. I’d be surprised if you didn’t know that because everybody mentioned it every single place in the world. But just in case, for those of you who have been at a touch, now you know. Trillion dollar market cap club. UPS reported great numbers, surprising considering FedEx couple weeks ago, three, four weeks ago reported, and it was disaster. Big separation there.
Frank Curzio: You’re looking at Facebook, decent numbers. Slack originally went up and then pulled back a little bit. But we’re seeing results all over the place. A lot of volatility. I mean, look at the bombs. I mean, Intel was terrible. The stock got nailed. Snap blaming Apple’s new privacy issues. It goes to show you how powerful Apple really is, through their app. The iPhone, downloading to their store or Google store, whatever. But it just shows you how much power they actually have over so many companies, including Facebook because Facebook also warned about that as well, which is going to hurt a little bit on the advertising side because the advertisers can’t really see as much information as they want to, because they can’t track as much as they can, which is everything in your entire life. And Apple kind of pushed back on that.
Frank Curzio: We saw Kimberly-Clark report, terrible as well. Sales of tissue related products, sanitizers, weak. It speaks to little pricing power, a thing I’ve been telling you about. Companies that have pricing power, those are the ones you want to buy. Those who don’t are going to be in big trouble because they can’t push off those higher price because they’re getting charged more for raw materials, labor, everything across the board. If they can’t push those higher costs onto the consumers, look out. And you’re seeing that this earning season.
Frank Curzio: So, big tech earnings on deck with Microsoft, Google AMD reporting today after the close. And that’s a big question, right? Can these big cap companies continue to drive the market higher? And you better hope so, because we have six 1 trillion market cap companies, which make up a little over 20% of the S&P 500, big driving force. And by the way, Apple and Microsoft, their market caps are over $2 trillion. We can’t be throwing trillions around all the time. It’s crazy just to say that.
Frank Curzio: Looking at one asset class going high that nobody is talking about. I mean, nobody is talking about this asset class going high right now, nobody. And it’s gold. It quietly pushed through 1800. Chart looks great. I mean, bounced off 1720 levels, 1730 level twice the past six months, four months. Seeing gold stocks running higher, again kind of under the radar. That’s what you want to see with sectors. No one’s really talking about gold. Everybody talking about everything else. The 10 year over 1.6%. Remember when it started pushing higher, a lot of tech companies got hit. Now, tech companies have come back, and we’ve seen the 10-year drift higher. And slowly, but it is going high.
Frank Curzio: Still super low historically, but could it impact the housing market? You’ve got mortgage rates moving higher. So, fewer loans, fewer refinancing. Let’s see how that plays out. Again, still is historically low, but it will cut into some of that. Supply chain issues is still going on, still impacting so many companies, especially autos outside of Tesla, which I think was the big report with Tesla, how they’re not seeing the chip supply issues that every single auto manufacturer is seeing.
Frank Curzio: But I did see a lot of companies raise sales and earnings near the top of their estimates for the rest of the year through 2021, while also saying supply issues will impact sales. Think about that for a minute, because these are companies obviously have pricing power. So, they’re warning and saying, listen, our sales will be so much better without this, but we’re still going to post unbelievable sales, a lot of record sales. And you’re looking at UPS was one. Hasbro was another. Today, we have supply chain issues. It’s going to hurt. They’re on Christmas, but they still raised their sales estimates to the higher end, 16%. Holy cow. Imagine if you didn’t have those supply chain issues.
Frank Curzio: It’s a really busy week, a lot going on. I love this part of the market, this time of the market, where it’s just so many earnings and listening to so many conference calls, getting new ideas and stuff like that. You want to be careful not buying stocks the day or two before they’re reporting earnings. You’ve got to be very, very careful. Again, you have Snap, boom, you just got nailed out of nowhere, right? Big surprise. Better off waiting until after maybe you see a 10% rise in the stock, but still you have a basis. And why did it rise? It rose because of the news. Maybe they raised earnings, so that’s a good thing. Doesn’t mean you missed out. It’s better than just buying something going in blindly.
Frank Curzio: But really crazy week, a lot going on. But to me, if you had to ask me what was the biggest story of the week thus far, hands down, MasterCard, how it partnered with Bakkt to offer Bitcoin and credit services to their customers. Now why is that such a big deal? You’re looking at Bakkt, which has become a huge player in crypto, cool digital exchange and a platform which was spun off from Intercontinental, which owns the New York Stock Exchange. Interesting when you see the trails of the companies getting into crypto.
Frank Curzio: Then you had in March, Bakkt signed a partnership with Starbucks, where you could use Bitcoin to pay for your coffee. You also convert loyalty reward points into Bitcoin. Then, on October 8th, signed a partnership with Google where Bakkt users can add their virtual Bakkt visa debit card into Google Pay, which is going to allow to then purchase anything, anywhere where Google pay is accepted. I mean, you’re talking about millions of businesses and over 10 million users. And now, you throw in yesterday’s announcement, which was before the open for MasterCard. Now, why do I think this is such a big deal? MasterCard has 2.8 billion cards issued. It has a relationship with over 20,000 financial institutions around the world, including almost every one of the largest a hundred banks, if not every one.
Frank Curzio: But the 2.8 billion users, 2.8 billion, this is what you need to understand. Let’s say if just 2% of these people, which amounts to 56 million decide to use their reward points, get into the millions of programs offered in retail stores, you guys know what I’m talk about. Everyone’s like, “Let me get email for points,” or whatever this way you come back in. But 56 million decide to use their rewards, only 2%. That amounts to 56 million, and they convert them into Bitcoin. So, this is not people using cash, but their points and rewards, which basically sits there offering no interest. And yes, you can use it for whatever and discounts and $20 here or there off whatever order, clothes, whatever you’re using it for. But now, you can use it to purchase Bitcoin.
Frank Curzio: So, 56 million people, put that in perspective right now, as of September only 46 million Americans, which amounts 22% adult population own Bitcoin. And its market cap for Bitcoin is over 1.1 trillion, which nobody throws Bitcoin in that trillion dollar club. I think it should go in there, right? Along with Microsoft, with Apple, Facebook, Google, Amazon, Tesla. Right? There are six of them, and you have Bitcoin. There you go.
Frank Curzio: Essentially you’re going to double the market. And maybe some of these 56 million people already own Bitcoin, of course, but we’re seeing a massive influx of new buyers into the crypto markets. And when we look at companies like MasterCard, and I’ll throw JP Morgan in there, and these guys are kind of late to the party when adopting crypto. You know what Jamie Dimon said and Bitcoin, whatever. “It’s a fraud, it’s garbage,” whatever, tulips. Now they’re both going all in, saying, “Hey, you know what? This is what our customers want.” I love the way they put that. “This is what our customers want,” which is true. Their customers do want it.
Frank Curzio: But you know what else your customers want, every single one of them? They want to pay less fees in terms of financial transactions, wiring money, sending money around the world. Plus with crypto, also a faster transfer, more safety using a blockchain. So, the reason why you’re getting into crypto, what your customers want, but the real reason why in offering services now is because you have to, since this is a legitimate threat to your business model. And if you don’t, you risk becoming the AOL of the financial industry. And there’s a real reason why you need to accept crypto as a financial institution and adopt it. It’s here.
Frank Curzio: You have almost every large financial institutes that are integrating Bitcoin on their platforms. Morgan Stanley, Goldman Sachs, Citigroup, UBS, BNY Mellon, Barclays, Fidelity, Standard Chartered, PayPal, Square, Visa, BT, the Bitcoin ATM machines everywhere. I’m seeing them everywhere. I travel. I go to hotels. I see everything. I take pictures and post on my Twitter, @FrankCurzio. Those ATMs are provided by NCR, by the way, which is the largest ATM manufacturer in the world and has over 650 banks as partners rolling out ATMs for Bitcoin. But when you look at Bitcoin, it’s real, it’s exciting. It’s so very early in terms of adoption, where 20% of adults in the US own it. Limited supply, which makes it inflation, hedge, and store value to classes for investors who buy and hold shit forever, right? That’s what they do.
Frank Curzio: Well, you’re looking at some of it as an inflation hedge, storing value. Look at gold. People, they hold it forever, no matter what, which is a good sign for Bitcoin. It’s a great play on endless money printing. I’m so sick of politics out there, I think on both sides. Also, a great play against Wall Street. It’s just disrupting everything. And look, I don’t know where Bitcoin’s going this year. People say it’s going to a $100,000. Some say it could go to $250,000. We’re pretty close to the end of the year, $250,000, a little crazy. Some say it will retest the lows of $39,000 after hitting a double top. I mean, I don’t know. I’m not going to pretend I know what’s going to happen, but I can tell you likely, likely it’s going a lot higher over the next 24 to 36 months. That’s what I care about as an investor.
Frank Curzio: And that’s not a long time. I think it’s going a lot, lot higher, longer term, as you see more and more people adopting this. It’s still very small in terms of 45 million, 20%, 22% of the population. Now you have all these reward programs, all these people going into it, and this is just happening over the past month. It’s opened up tremendously. But what you need to realize as Bitcoin surges and goes a lot higher, you’re going to see even more money, especially institutions force their way into the crypto markets. They have to allocate money to it. And they’re going to money into the fastest grow segments within crypto, which is DeFi, an 80 billion industry already. It’s growing incredibly fast.
Frank Curzio: Goldman Sachs already filed for a DeFi ETF. The company reported $13 billion in sales. They’re not going to do a DeFi ETF unless this is a massive market or they believe it’s a massive market. And NFTs, you look at almost every legendary athlete and celebrity is in this trend, which means the billions of people following them on social media are hearing about it every single day. That’s why it’s getting wildly adopted. Is there a lot of garbage in this industry? Absolutely. But there’s also a lot of cool stuff in the industry.
Frank Curzio: And then you have security tokens and trading platforms open like crazy. A lot of fun right now. Hundreds of millions being raised right now, lots of new security tokens, tons in the pipeline. We know we got good connections. And why is that? Because it’s over $500 trillion in illiquid assets that will become tokenized. And all of it’s not going to become tokenized, but 1% is $5 trillion. You know how big a $5 trillion market is? Take your five biggest trends that you know of, EV, marijuana, cybersecurity, whatever. Bigger than all those combined. But you’re looking at disruptive trends. How do these happen? This is something I’ve followed throughout my career because getting into these trends early, you could buy the crappiest company and make money on.
Frank Curzio: But how does it become disruptive? What’s the process? Because you do have so many different stages, like the original idea stage. Hey, that’s a great idea. That’s awesome. That’s sounds pretty cool. Let’s try to build on it a little bit. You can say, let’s build a little infrastructure. You start building the platform. Then you look at the regulations of the market, how the regulatory authority is going to regulate the industry. You need to figure that out. I mean, that’s going to filter it to how much capital you raise. If it’s hard to get into an industry, and that’s what happened with security tokens. There was just nothing going on. And a few people wanted to invest in something that they’re not sure of. Now the market’s opened up, the regulations. Again, we want to get more certain on those regulations, but we are going to go to securities here because a lot of these things trading on all these platforms in crypto are securities.
Frank Curzio: They’re going to have to list securities. That could happen now, six months, two years from now. That’s going to result in an explosion in security tokens. That’s why you’re seeing so many these platforms develop. And another one just raised $150 million, a pure security token exchange, not a trading platform, an exchange. When you have the capital race stage, that’s when capital comes in. But the ultimate confirmation is the institutional adoption, to where the biggest players are running into the industry, like we saw big data, cloud, AI. They weren’t really getting in 2011, ’12, ’13, but you saw the money continue to filter in. And once you see that, once you see the big money pouring in, that’s the money from institutions that have what, what do they have? Huge political connections, huge connections on the regulatory front.
Frank Curzio: So, when they’re investing, they know that, hey, this is for real. When Goldman says they’re launching a filing for a DeFi ETF, that’s them going to all the guys that worked at the SEC that now work for Goldman, all their politics and everything. “Hey, is this going to work? What do we need to do to make this work?” before they make that announcement. They don’t just say, “Hey, let’s do this,” and then talk. No, absolutely not.
Frank Curzio: But once you see that, the institutional money coming in, that’s the confirmation that the trend, hey, this isn’t something little fad. This is going to go away. It’s getting adopted. And the opportunity to make a massive amount of money is real. And look, that’s why we’re in crypto. I mean, Bakkt, it’s publicly traded, BKKT. I looked at this stock, it’s very, very small, was small. But the stock was $10 on Monday at the open and announced that they own MasterCard, the stock went up, went to like $20, like $17.20. I saw $13, $15, $17. And the next day, I didn’t even know it closed up. It closed up 200% to $30 yesterday. Today was over $40. I don’t know where it is at the close or when you’re going to list, it’s over $40. I’m not telling you to buy this. Again, research on it. They’re doing a million sales right now.
Frank Curzio: And again, the market cap is inflated tremendously, but the growth potential is there. And that’s what people invest in. That’s what drives that premium. And you’re really going to justify the fundamentals with Tesla, I mean, the 100,000 cars for Hertz? When would they get to delivered? Who knows. A trillion dollar valuation? There’s no way you can come up with evaluation for that. But the excitement is, hey, these guys are the major player. They’re going to continue to be major, but they’re going to grow forever and ever. So, once you have that within your stock and you’re in a massive growth industry, these things take off. And that’s what you’re seeing across the board.
Frank Curzio: I mean, not across the board. There’s a lot of crap tokens out there, but Bakkt is an actual stock. It went up tremendously, but that grow potential is there for them. I mean, signing partnerships with the biggest payment service companies in the world, Visa, MasterCard, Google Pay. Next thing you know, stocks are off to the race, and it doesn’t take long. This is what I’m talking about. The crypto. This is the very early stages of growth, especially when looking at DeFi, NFT, security tokens.
Frank Curzio: And look, I talk about this a lot. I’m not going to turn this into a crypto podcast. I cover all the sectors, all technologies, going to always provide great interviews from experts across all sectors. But right now, this is the biggest opportunity I know of. And when I say big, I’m talk about institutions. I don’t care about them. I used to work for them. I’m talking about retail, mom, pop investors, where you could generate Wall Street like returns since the crypto market is one of the few you’ll see where you can invest in ahead of Wall Street and get in on so many of these great technology and companies on the ground floor. And their evaluations are inflated through a SPAC and an IPO. Holy cow. A lot of that growth’s already taking place. Yes, you could make money on those things, but that’s what has me so excited.
Frank Curzio: That’s what I said three years ago. When I created Curzio Equity Owner’s token where any investor can own an equity stake in my company, Curzio Research. We’ll be trading on tZERO, going to make that a lot easy for everyone in December. I’ll let you know when that happens. Again, we are a small cap, still essentially a startup of four years, it’s risky, but having a chance to invest in the ground floor of anything is pretty cool if you believe in the business. But tZERO is the largest security token platform in the world based on volume, you’re not going to see a ton of volume right away. Reminds me of 2015, ’16 with Bitcoin starting to get adopted. ’17, boom. You saw the explosion, but now it’s liquid. But here’s the early stages of this industry.
Frank Curzio: I’ve got to tell you doing that early, which up to nine months ago, I didn’t know if I was an idiot or I got this right, but it’s now reaping the benefits. So, we have lots of companies coming up to learn how to launch these things. That’s a good thing for us, for Crypto Intelligence investors. That’s why we have a promotion out there right now. There’s a great chance you’re going to have access to some of these ideas in the very early stages. And when you do, they offer discounts before they start trading, which is normal. We did that with our token, for the early investors. And that’s pretty cool.
Frank Curzio: I’m not going to lie to you, crypto is an incredibly risky market. It could be invested in a lot of startups using new technology, but the chance of using your risky capital within your portfolio, the chance to invest in something that could return 20 X, 50 X, 100 X, it’s not crazy. You could look, coinmarketcap.com. Look at anything on there. The top 100, 200, 300, just look at the yearly charts. If you think Bitcoin’s going higher, a lot of those things are going to follow. But you could generate those returns instead of what, three to five X returns, which is almost close to the match you could see on new stocks coming to the market, especially when they have these large IPOs considering they don’t have billion dollar, multi-billion dollar valuations.
Frank Curzio: That’s huge from a risk/reward perspective, which I know being in this business 27 years, that’s what everyone wants. I don’t care if you’re 90. I’m not going to tell you to invest everything, but maybe 1%, 2% of your capital in the hopes that could turn into something blockbuster and life changing. Everybody wants that. Everybody that invests in the market wants that. You need to have opportunity, the chance to have that Netflix or Microsoft investing early, or Google. That’s what’s exciting about this, again from a risk/reward perspective. Let’s say if you invest everything, it’s going to go up 10 X, 20, 30 X, no, but just that opportunity where you could get into some of these things is incredible. And it’s still early. You see MasterCard 2.8 billion cards they have. I just said 2% of people. Imagine if 5% of people adopted. 10% of people say, “Hey, you know what? I put my rewards in Bitcoin. I’m going to leave it there.” It’s a limited supply. What do you think is going to happen to Bitcoin?
Frank Curzio: These are opportunities you’re going to see in Crypto Intelligence as a subscriber, as well as lots of new crypto recommendations that are trading right now. If you interested learning more about this newsletter and the video on our website, take a look at it. It’s not long. It’s a little over 15 minutes, but you’re going to see the huge opportunity in crypto. I even share my full portfolio winners, losers, you can see everything outside of the actual stock. I’m not giving away the cryptos and the stocks I’m recommending, obviously. Got to protect my subscribers who pay for this service, but you’re going to see the average position is up over hundred percent. That’s something I’ve never seen in my career. And that’s something I want to open up to everybody.
Frank Curzio: But even if you don’t subscribe, take a look at the video, plus they give away a free pick. It’s a crypto I’m sure you’ve never heard of, but it does have massive upside potential. You’ll know after you watch the video why. It’s a name you’ve never heard of, but has partnerships some of the biggest companies in the world. But in that video often is described Crypto Intelligence, which a lot of you already took me up on. I want to thank you. Partnership, I’m excited. And it’s not surprising you took me up on that offer. It’s our best offer since we launched a product four years ago, which includes 40% off the retail price and giving you an extra year for free. And why am I doing that, giving you the extra year is because I don’t want you to be in this for six months. It’s a volatile market. Not even 12 months, but 24 months.
Frank Curzio: I mean, that’s when you’re going to see these trends, DeFi, NFT, security tokens develop. That’s when we’ll be able to get into a lot of these things, security tokens. Sure, we’ll be able to get in a few of those things at discounts, be trading on tZERO for a while. Really, really exciting time. Plus, you get to see me. Right? Half the time, you get to monitor my performance, my research. You can see how much work goes into every recommendation and provide a video for each pick every single month, breaking down my entire thesis. But, hey, if you’re interested, that’s it. Fine. It’s good for another four days. That said, if you’re not interested, no worries. Yeah. Maybe crypto is not right for you. And I get it, but try to learn about this industry. Try, because after the next four days I’m taking this offer off, and that’s it.
Frank Curzio: Listen, for me, I like to push products when I think the opportunity there where you can earn a lot of money. In the past two years, I’ve been urging you guys, listen, learn about crypto. Learn everything you can about crypto. At this stage right now and seeing these trends within crypto, again, to me that MasterCard, that was the biggest news. You had some good earnings, a lot going on, still supply chain issues. It just shows that the adoption was still in the early stages. And the next phase of crypto really going to explode. And I’m not just BS’ing you.
Frank Curzio: We did launch the security token three years ago. We’re in this industry. So, it’s really exciting stuff. But if you want to subscribe, fine. If not, no worries. We get lots of questions about it, firstname.lastname@example.org. If you’re going to subscribe, definitely do it to that offer. It’s on our website, curzioresearch.com. Again, if not, no worries, but start learning about crypto. It’s a great opportunity for anyone listening to this podcast. We’re getting lots of requests. We can’t do better than that. If you want it, no problem. Yes, no, I don’t care. But start learning about this industry. You could do that, do a lot of our free resources on our site, other sites, which we link to, which we provide too. Just great context in this industry, something I’m extremely, extremely, extremely excited about.
Frank Curzio: Now, before I take any questions, which are going to be two questions, I want to talk about Masterworks. Last week, I interviewed Scott Lynn on Wall Street Unplugged where he showed you how Masterworks is using tokenization to disrupt the $1.7 trillion art industry. But through his site, masterworks.io, anyone could sign up, invest in a number of great paintings from legendary artists. You could do this by buying a small steak, right? That’s tokenization. That’s what our company is. It’s selling a small steak of your company and he just decided to disrupt the art industry, which $1.7 trillion’s a massive industry. But again, $500 trillion in assets that could be tokenized. So, I love what Scott’s doing here.
Frank Curzio: So, in short, the art industry used to be reserved for elite, super rich people. Not anymore. You could invest in these paintings and participate in their upside. So, it’s an awesome platform. You have to request a reservation to be able to buy and sell art. However, I talked to Scott and this was right after the interview, and we had a lot of fun. He’s like, “Hey, if you ever want to come down to New York City and see the studio and stuff like that…” It was really, really cool. I’m going to take him up on that offer. But he said, “Listen, I liked the interview and for your Wall Street Unplugged listeners, they could sign up today and bypass a request invitation process, which a little bit of a pain in the neck. You’ve got to go there, request it, wait for them to hear back from them.
Frank Curzio: You don’t have to do that, right. All you have to do is use a special link that he provided, his company provide to me, which is www.masterworks.io/wsu, and you can sign up for an account. I signed up for an account. It’s very easy to do. Once you do, you can see lots of things. See all the paintings on there, their worth, how much you’re trading for. You can go to the secondary market, also provide some great educational material for new investors who are just learning about this incredible asset for the first time. So, really, really cool stuff. And remember, if you’re going to go there, that special link for Curzio Research listeners, you have special access to Masterworks by going www.masterworks.io/wsu.
Frank Curzio: Now, let’s get some of your questions. First one’s from Brenton. He’s excited to be a new CCI subscriber. I have three questions, Crypto Intelligence. He goes, “What do you think of Exodus? Their price on tZERO has dropped since their listing. Do you think it’s a good buy? Number two, what do you think of tZERO as a buy? Chosen this to list your company here and you believe in this long-term trend of SDOs. So, when investing in tZERO makes sense now, especially given the recent downward price trends. On portfolio management, how do you keep up with what is happening without falling into the trap of checking your holdings every day, which is easy to do? Thanks so much in advance.”
Frank Curzio: All right. All good questions. When it comes to Exodus, when it comes to tZERO, you’re going to see a lot more people investing in these platforms or in these particular security tokens. They’re going to be listing more and more tokens. I believe we’re going to be the next on that platform. Then, you’re going to see dozens and dozens and dozens of more lists. They have them in the pipeline. You’re going to see more platforms coming out. And that’s when you’re going to see volume really explode because tZERO is the largest by volume, right? Out of the entire platforms trading platform security tokens, but you’re not going to see crazy volume. It’s still early. Right now, they have four listings. I think we’re going to be five. But again, you’re going to see dozens and dozens and dozens more. Now, you’re see more and more accounts go into this.
Frank Curzio: As you see that, more people are going to buy into these names because they are in an industry that’s awesome. And Exodus, I mean, this is a legitimate company. I’m talking about tens of millions in sales. These guys have an amazing platform. We know them, and great, great guys. So, Exodus I do like, also tZERO. Yes, it’s going to be volatile. Don’t buy full positions. But as you see this develop, remember tZERO’s going to make their money through trading fees. So, you’re going to see that trading activity. Think of some of the platforms, if you’re using crypto now, whether it’s Coinbase or Kraken, you see a massive volatility taking place. Binance.US, whatever you trade on. Gemini, whatever. That’s where we’re going to be in security tokens. That’s when you’re going see tons and tons and tons, tZERO, generating tons of profits, right. That’s when you’ll see it reflected in it. That’ll be coming over the next year, the next two years. So yes, I do like both of them.
Frank Curzio: And the last question on your portfolio management, “How do you keep up what’s happening without falling into the trap of checking your holdings every day, which is so easy to do?” It’s a great question. If you’re checking your holdings every day, I’m not talking about trade. So, if you’re checking your holdings every day, if it’s a stock or a sector, it probably means you have too much invested in it. It does. It’s that simple. I’m not saying you don’t check it like every two weeks, or if you see a stock that was going up tremendously, or if it’s going down, when down trend’s going to end or whatever. Yeah. You want to put stops on a lot of positions. It’s not the perfect formula or the perfect solution. I mean, you might get triggered for your stop and the stock could take off and you’re like, damn.
Frank Curzio: But what’s the other scenario? Say if that stock gets hammered and you have 30, 40, 50% of your portfolio in it, that money’s gone. And maybe the whole market crashed because of that, right? Maybe the whole market was coming down and that stock got nailed harder than the market, but that’s a time where you want to have money in the sidelines to buy. That’s why it’s important to use stops. But if you’re checking every single day, you have too much in that security or you have too much within that sector. So, take some out. And so, I want to say, when things go up a hundred percent or you see that quick move, sell half or sell a little bit. If you sell half, your cost base is relatively zero. I’m not going to talk about taxes or anything. But now, you take out that money, and you’re not concerned.
Frank Curzio: I mean, we’ve done that in a lot of our portfolios where we’ve seen, 20, 30% price movements up or down. And a lot of times these things continue to take off, because we want to let our runners continue to ride, those winners to ride. But when you’re looking at what to do and why am I checking this every day? Be careful. It means that you have too much in that situation. And not only that, you’re going to wind up making the wrong move. I can almost guarantee that you’re going to sell it when it’s down, and you’re going to look to buy it when it’s up, when it’s going higher. I mean, that’s what you tend to do if you’re looking at it every day.
Frank Curzio: Again, talking from experience and lots of young investors and even new investors, that’s normally what happens. That’s what like 85% of people do. They don’t buy it when nobody likes it, they buy it when everybody loves it. The stock running up tremendously and say, “Hey, I got it. I got it. I got it.” And then you wind up doing the wrong thing because your emotions are really, really tied into it, right? You’re looking at the stock and the stock movement is dictating whether you should buy, sell, and what you should do when really, it’s the actual company you’re buying and the fundamentals behind it, and if they exist as that growth profile exists.
Frank Curzio: Like Bakkt, are they going to continue to sign up? They better sign up a lot of people, I mean, that stock is through the roof, 2, 300% in two, three days. Are they going to continue to sign up people? How long to generate that revenue? What’s the next step? Building out the platform, raising money, getting new investors. Again, you want to look at all these steps, but you’re not really looking at that if you’re just looking at it every day, because the only thing you’re looking at is the price. And who knows? I mean, you’re looking at Bitcoin, felt at 39,000, 40,000. What was that? 45 days ago. And it’s 62, 63, right? Hitting new highs over 66.
Frank Curzio: If you’re looking at it, you’re going to let the price dictate what you want to do and you don’t want that, right? Because you want to be able to buy, at least from my perspective, the stocks, that I recommend in my newsletters, I usually look for catalysts that are going to happen anywhere from three to six months out to 18. And if these companies can develop those catalysts or hit on those numbers, this thing is really going to take off, and we’re going to make a lot of money on the stock. That’s how I look at it.
Frank Curzio: But if I’m looking at, hey, they reported a bad quarter, came down a little bit. Maybe I took a half position, I could add more. And monitoring it like after the first two quarters and they’re still in that trajectory of, hey, they’re meeting their goals. This is what they’re doing and they’re paying off whatever it is, that catalyst that I think is going to send the stock roaring higher, I’m going to stay in it. So, I don’t care if it goes down a little bit or whatever. I’m not going to look at that, if that makes sense. So hopefully, that answers your questions, Brenton, your questions, all three of them.
Frank Curzio: So, the next question is from Cody, and it’s going to be last one. He goes, “Hey Frank, I noticed some of your crypto picks that the coin can be found on both Coinbase and Voyager mobile. For example, this September recommendation, is there a specific reason you recommended to pursue that coin on Coinbase instead of Voyager? To me, Voyager seems like the move because it offers interest benefit. Thanks for everything. Look forward to hearing your thoughts, Cody.” Cody, that’s a great question. And this is what I mean, why I love hearing from subscribers because, for me, I’m looking at a lot of new people to crypto coming in here, and that’s how I treat it.
Frank Curzio: You’ll see in the videos, when I do the videos of Crypto Intelligence is, I’ve got to explain, hey, you could buy this on Coinbase. I want to buy it at the easiest places. From now on, going forward, I’ll show you the page you can look at on, I think CoinMarketCap has it. If you scroll down, it’ll have the exchanges. Even on the page, if you go to their home page of the crypto and recommending, you know they’ll have a token page, and they’ll show exactly where this thing trades. And I make sure that US investors are able to trade this before I buy it. It doesn’t make sense for me to recommend something that you can’t get into, right? That doesn’t make sense. It’s the easiest way for you to cancel your subscription. I would, if somebody did that.
Frank Curzio: So, I want you to be able to get into these things, but I usually provide the easiest way because I’m looking out for new investors, but Voyager is an amazing platform. Voyager is one of the plays in our portfolio, that’s an actual stock. We recommended at 86 cents, and we’re a up, I think 10, 11 X on it, 11 X plus the last time I looked. I did a couple days ago. And I think crypto is moving a little bit higher. So, it’s a name that I saw. I love the management team. I love what they would do. And I love the platform. I love everything. Those guys are great. So yes, Voyager could be better. And going forward on Crypto Intelligence, I won’t just give you like the easiest way to play it because I always figured, hey, people in the crypto market know where to buy this at other places. But you know what, that’s my fault. I shouldn’t expect that.
Frank Curzio: Going forward, I’ll put all the platforms, exchanges that these things trade on, including the easy ones and some of the other ones and provide that extra page for you when I’m doing my videos. But no reason. Voyager is probably a better platform in some ways than Coinbase, and Gemini is probably a better platform in some ways. It depends which ones you use, which ones you like. Again, sometimes when you sign up for crypto, it’s not like E-Trade where whatever stock you recommend, you could buy on E-Trade or Fidelity or Schwab. Sometimes it’s only certain exchanges where these things are trading and you’ve got to open up. And then it’s easier to transfer your Bitcoin, Ethereum, stablecoins from one platform to another. This way, you could buy it on that platform, but you have to sign up and open up an account through that platform.
Frank Curzio: So, that’s normal in this industry. Hopefully, all this is going to get connected, which is pretty exciting because I think it will. And there’s a lot of companies working on that and taking advantage of the arbitrage opportunities on different platforms. We’re getting lots of great stuff going on in this industry. But whatever platform you see fit, and I’ll provide a lot more of those platforms, and I’ll provide all of them that these things trade on, my new recommendations to trade on going forward. So, I really, really appreciate the question, Cody.
Frank Curzio: Okay guys, that’s it from me. Questions, comments, email me, email@example.com. I have a lot of great interviews coming up, reaching out to a lot of people that have booked in advance a lot of cool stuff. Really, really exciting guests. So, really looking forward to those interviews. I have an exciting guest actually coming up on Thursday. Awesome. Awesome. Awesome. Going to provide some ideas for you, so really, really cool. Definitely give a listen. That’s all I’m going to say. Just teasing it right now. But again, questions, comments, I’m here for you. Email me at firstname.lastname@example.org. Thank you so much for listening. I appreciate all the support. Now, I’ll see you guys tomorrow. Take care.
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