The Wolf Den #894 - The True Essence of Wealth
Who will you become?
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In This Issue:
The True Essence of Wealth
Bitcoin Thoughts And Analysis
Altcoin Charts
Legacy Markets
The ETF Marketing War Begins On Google Ads
An Update On PYUSD
Two Presidential Candidates Are Anti-CBDC
The ETF Ad Competition is Fierce
Fees Continue to Drop
Bitcoin To Fall To $20K? The Real Inflation Rate | Macro Monday
The True Essence of Wealth
In a world where the superficial often shadows the substantial, the concept of wealth has been distorted, tangled in a web of materialistic displays and transient achievements. Yet, beneath this facade lies the profound truth about wealth - it's not just an external accumulation but an internal cultivation.
But what truly constitutes wealth? Before delving into this, it's crucial to define it. Wealth signifies abundance, an unfettered access to resources deemed vital for one's liberty or survival. For some, wealth might be synonymous with substantial bank balances or lucrative careers. For others, it represents the basics: clean water or a warm meal.
True wealth begins within the mind. It's the rich tapestry of thoughts, knowledge, and insights that one weaves over a lifetime. Unlike the fleeting sparkle of material riches, the luster of a well-nurtured mind endures, casting a light that guides one through life's labyrinth.
The journey to genuine wealth is a voyage of unlearning and relearning. Society, from our earliest days, scripts a narrative for us, outlining paths to conventional success. But true wealth requires breaking free from these narratives. It's about discarding the mental shackles and biases that limit our potential and rewriting the script of our lives on our own terms. True wealth is not what you see on social media.
Wealth is often misconceived as a measure of one's financial heft or the lavishness of one's lifestyle. While financial stability is a component, it's merely a chapter in the entire story of wealth. Real wealth encompasses the richness of experiences, the depth of relationships, the resilience in adversity, and the peace in solitude.
The truly wealthy understand that the pursuit of knowledge and wisdom is the most rewarding of quests. They invest in their minds, knowing that intellectual capital yields dividends that money cannot buy. They are architects of their destiny, shaping their paths with the bricks of knowledge, insight, and wisdom.
This journey to wealth is not a solitary one. It involves connecting with mentors, delving into the profound depths of literature, and engaging in conversations that challenge and elevate. The truly wealthy are discerning about the voices they allow into their space, knowing that the seeds of thought, once planted, can grow into either gardens of enlightenment or weeds of distraction.
Moreover, true wealth is recognized as a catalyst for societal transformation. The genuinely affluent understand that their resources entail a broader responsibility - to inspire, empower, and initiate meaningful change. It's about leveraging wealth to seed progress, foster hope, and drive a positive impact that transcends personal boundaries, influencing lives, shaping communities, and sometimes, even rewriting societal narratives.
In this light, wealth is also a tool of influence and transformation. It's about deploying one's resources - time, knowledge, or capital - toward initiatives that generate lasting benefits. Through philanthropy, mentorship, or active advocacy, the truly wealthy harness their abundance as a force for good, seeding progress and nurturing hope.
Furthermore, the essence of wealth extends into the legacy one chooses to leave behind. It's an imprint on the fabric of time, not marked by opulent monuments, but by acts of generosity, innovation, and principled leadership. This legacy, a true measure of one's wealth, is valued not in monetary terms but in the positive impact and enduring changes made in the lives of others and the broader world.
In the grand game of life, wealth is not about outpacing others but about outgrowing one's former self. It's about continuous growth, relentless pursuit of knowledge, and the courage to tread uncharted territories. Money, in this grand scheme, is not the end goal but a tool - a means to facilitate experiences, nurture relationships, and fulfill potentials.
As we navigate through our individual journeys, let's redefine wealth. Let's shift the focus from the bank balances to the richness of our experiences, from the price tags to the value of our relationships, and from the size of our assets to the breadth of our wisdom. For in the end, the true measure of wealth is not quantified by what we have but by who we become in the pursuit of it.
Bitcoin Thoughts And Analysis
Easy. We were watching the 50 MA as strong resistance. Now we will be watching it as support.
Everything is looking solid now, with mounting evidence that the bottom of this correction is likely in for a while.
Trading Alpha is giving us green dots now, above the track line.
All bullish signals from this indicator are back.
Altcoin Charts
For those who are new here, I share SETUPS and not SIGNALS. These are ideas that I am watching - if a certain thing happens, then the trade triggers. I am not telling you what to buy or when. I am showing you how I am watching certain charts and what has to happen for me to take a trade.
I know, I know. Memecoin. But the chart is the chart.
We had a great trade from around 710 all of the way up to the blue circle at 1190. This was based on holding the range lows and targeting the EQ of the range (dashed line). Now we have a descending resistance. I would not even consider this until that descending line is broken, ideally on increasing volume. Nothing to do now except set an alarm on that line and step away.
Legacy Markets
European stocks are seeing modest gains, and US equity futures are steady, as investors anticipate a critical earnings week. Notably, major tech firms like Microsoft and Alphabet are about to reveal their financials, which could influence the ongoing stock rally. The tech sector's surge is partly driven by hopes for Federal Reserve rate cuts, potentially boosting earnings. The market is closely watching the Fed's upcoming decision and Chair Jerome Powell's insights, with mixed predictions on future rate adjustments.
Despite the optimism, there's a cautionary note from JPMorgan strategists about the market's reliance on a few dominant stocks, reminiscent of the dot-com bubble era. The concentration in top stocks, primarily tech giants, mirrors historical patterns that pose risks to market stability.
Other financial news includes a minor uptick in oil prices due to Saudi Aramco's production strategy, geopolitical tensions affecting crude markets, and regional developments like China's economic pressures and Nigeria's currency devaluation. Overall, the market is in a delicate balance, awaiting pivotal cues from earnings reports and central bank policies.
Key events this week:
Eurozone economic confidence, GDP, consumer confidence, Tuesday
US Conf. Board consumer confidence, JOLTS jobs openings, Tuesday
Microsoft, Alphabet earnings, Tuesday
China non-manufacturing PMI, manufacturing PMI, Wednesday
Japan industrial production, retail sales, housing starts, Wednesday
Bank of Japan issues summary of opinions from January policy meeting, Wednesday
Boeing announces earnings amid US government safety probe, Wednesday
Federal Reserve interest rate decision and Fed Chair Jerome Powell’s news conference, Wednesday
US Treasury quarterly refunding, Wednesday
China Caixin manufacturing PMI, Thursday
Eurozone S&P Global Manufacturing PMI, CPI, unemployment, Thursday
US productivity, construction spending, ISM Manufacturing, initial jobless claims, Thursday
Apple, Amazon, Meta, Deutsche Bank, BNP Paribas earnings, Thursday
Bank of England interest rate decision, Thursday
US employment report, University of Michigan consumer sentiment, factory orders, Friday
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.3% as of 10:30 a.m. London time
S&P 500 futures were little changed
Nasdaq 100 futures were little changed
Futures on the Dow Jones Industrial Average fell 0.1%
The MSCI Asia Pacific Index fell 0.4%
The MSCI Emerging Markets Index fell 0.8%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0830
The Japanese yen rose 0.2% to 147.26 per dollar
The offshore yuan was unchanged at 7.1875 per dollar
The British pound fell 0.2% to $1.2680
Cryptocurrencies
Bitcoin rose 0.5% to $43,391.69
Ether rose 0.2% to $2,310.04
Bonds
The yield on 10-year Treasuries declined two basis points to 4.05%
Germany’s 10-year yield was little changed at 2.24%
Britain’s 10-year yield declined one basis point to 3.86%
Commodities
Brent crude was little changed
Spot gold rose 0.2% to $2,036.70 an ounce
The ETF Marketing War Begins On Google Ads
BlackRock, VanEck, and Franklin Templeton are at the forefront, leveraging Google Ads to market their spot Bitcoin ETFs. This move follows Google's recent policy revision, now endorsing ads for specific crypto products like Crypto Coin Trust products in the US. Although the policy's specifics are somewhat vague, it's understood to include instruments like the newly debuted spot Bitcoin funds.
Google's policy shift opens a significant marketing channel for these ETF providers, potentially hastening Bitcoin ETFs' integration into the mainstream market. These ETFs are considered a crucial link, merging the realms of traditional finance and cryptocurrency.
However, this development isn't without concerns. There's a wary sentiment in the crypto community about the policy's potential exploitation, especially by scammers. The advice circulating is one of caution: remain alert and consider using ad blockers as a defense against possible fraudulent activities that might bypass Google's screening mechanisms.
An Update On PYUSD
Remember PYUSD? The poorly named stablecoin created by PayPal back in August of last year? As we approach the six-month mark since its inception, I thought it would be worth sharing some updates.
PYUSD currently holds the 8th position by market capitalization on the global stablecoin charts, boasting a market cap just north of $300 million. However, when it comes to trading volume, the stablecoin finds itself in the 11th position, averaging a modest $10 million in 24-hour trade volume. While these figures may not appear alarming, it's noteworthy that PYUSD is being overshadowed by stablecoins I wasn't even aware of (such as First Digital USD, USDD) and only narrowly surpasses Luna's USTC, a collapsed stablecoin.
Although reaching a $300 million market cap is commendable, the majority of this figure is concentrated on centralized exchanges, with minimal penetration into DeFi. In essence, PYUSD seems to be a compelling centralized experiment, serving as a guide for potential issuers on what to do and what to avoid. On the whole, I commend PayPal for launching PYUSD and would argue that the stablecoin, despite its initial criticism, has brought a net positive impact on the space.
The ETF Ad Competition is Fierce
While the news of Google enabling crypto ads isn't groundbreaking, witnessing the ads in action is still interesting. If you haven't seen them yet, simply search 'spot Bitcoin ETF' on Google, and you'll likely encounter ads from Franklin Templeton, VanEck, BlackRock, or all three simultaneously. The next time you come across one of these ads, give it a click. For instance, Franklin Templeton does a commendable job catering to a simpler Boomer language, stating, “We believe that the journey to mass adoption of digital assets could be similar to the proliferation of new technologies in the 1990s and early 2000s. The latest in our suite of digital asset offerings, EZBC, is an easy way for investors to tap into this new asset class.”
One thing that I pointed out on Twitter was that this development isn't without concerns. There's a wary sentiment in the crypto community about the policy's potential exploitation, especially by scammers. The advice circulating is one of caution: remain alert and consider using ad blockers as a defense against possible fraudulent activities that might bypass Google's screening mechanisms.
Two Presidential Candidates Are Anti-CBDC
Former presidential candidate Vivek Ramaswamy and current candidate Donald Trump often dominate crypto-political discussions, but let's not forget RFK Jr. He was the first to accept crypto donations and publicly advocate for crypto. As anti-CBDC pledges gain popularity, RFK Jr. has now joined the movement, which shouldn’t be a surprise assuming he was a true crypto supporter all along. It's a positive pro-crypto development, but a similar shift from Biden seems unlikely.
Fees Continue to Drop
In addition to Invesco's ETF waiving its fee for either the first six months or the first $5 billion of assets, the ETF is now reducing the long-term fee from 39 bps to 25 bps. This adjustment brings it in line with BlackRock, Valkyrie, VanEck, and Fidelity. This raises the question if someone will drop lower, and whether the remaining ETFs will follow suit. I added the updated fee table below, lower fees are bullish for new money to enter.
Bitcoin To Fall To $20K? The Real Inflation Rate | Macro Monday
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Agreed. I would argue that since true wealth is primarily Abundance Consciousness, true wealth has at least 101 components with financial being only one of the components.