Whatever you think about our current administration, one thing is sure:
President Trump is certainly taking an active role in American business activities!
From his trade war with China to his public pleas to the Fed to lower interest rates, Trump is doing everything in his power to support big business in the U.S.
But his actions don’t just impact businesses — they also impact investors like you!
Thankfully, his actions have led to a bull market in stocks. Since he took office, stocks have jumped by nearly 40%.
But now Trump seems to be kicking off a new bull market…
But this time, it won’t be in stocks…
This time, it will be in crypto-currencies!
When Will This Bear Market End?
It’s been almost two years since the crypto bear market began.
Since early 2018, for example, the two largest cryptos, Bitcoin (BTC) and Ethreum (ETH), have fallen by 42% and 87%, respectively.
But that’s not the worst of it. Many small-cap “alt-coins” have fallen by 95% or even more.
And while we believe that crypto prices will eventually bounce back — just like tech stocks have done — it’s been tough to pinpoint when the recovery will start.
However, we just got our first clue as to what could jumpstart the next crypto bull market…
Ray Dalio: Bullish on Cryptos?!
Forbes recently published a report on billionaire hedge-fund manager, Ray Dalio.
Mr. Dalio runs Bridgewater Associates. With over $124 billion in assets under management, Bridgewater is the largest and most successful hedge fund in the world — and Dalio has been instrumental in the fund’s success.
He’s been able to identify winner after winner, regardless of whether he’s investing in stocks, bonds, commodities, futures, or anything else.
Historically, however, he’s stayed away from crypto-currencies.
Citing their volatility and lack of mainstream acceptance, he’s preferred to put his money elsewhere.
But now, finally, that might be changing….
Say Goodbye to the U.S. Dollar!
You see, according to the Forbes report, Mr. Dalio recently made some comments that indicate that his position on cryptos may be shifting…
And it’s all because of President Trump’s actions.
For example, Trump has been prodding the Fed to keep cutting rates. If he had his druthers, we’d be in a zero-interest rate environment.
In the short-term, low interest rates could help prop up U.S. businesses. But in the longer-term, they could hurt our country dramatically. You see, once rates have been cut to zero, the Fed can no longer use interest rates as a tool to combat economic downturns.
And without that tool, our entire economy could potentially go into a freefall — at which point, Mr. Dalio believes we’d see a massive devaluation of the dollar.
That could quickly destroy your bank account, your portfolio, and your retirement plans.
But here’s the thing…
While this could be disastrous for some investors, those who saw it coming and took the proper precautions could earn life-changing wealth.
Let me explain…
With a potential devaluation of the U.S. dollar on the horizon, Mr. Dalio believes U.S. investors need to start searching for what he calls “the next-best currency.”
In other words, a currency that won’t be impacted by any government decisions or policies.
In the Forbes report, Dalio recommends storing your money in gold.
But here’s the thing: based on the criteria he lists for a “next-best currency,” large-cap cryptos like Bitcoin could do the job even better.
As the author of the Forbes report wrote, Dalio’s statement is “about as ringing an endorsement of bitcoin […] as I have heard.”
In fact, even the head of the Federal Reserve recently referred to Bitcoin as “digital gold” — and cited it as a promising alternative store of value!
The Next Crypto Bull Market
Given Mr. Dalio’s track record and high profile in the investment industry, his comments are already making waves…
Investors are reading between the lines — and starting to look at gold and crypto-currencies as better places to store their hard-earned wealth.
If this becomes a trend, billions of dollars could start flowing into cryptos as investors flee the dollar.
And if that happens, crypto prices could rocket higher.
Does this mean you should dive back into the crypto markets today?
That’s the question on everyone’s mind…
So in next Wednesday’s newsletter article, Matt will answer that question.
So stay tuned and be sure to check your inbox!
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