we are living in the greatest wealth transfer in the history of mankind and how you react to this will determine whether or not you end up financially secure in the future or if you are going to be struggling to survive however if you do take advantage and position yourself well you very well could 10x your entire portfolio or net worth over the next 10 years and this is my plan to 10x my wealth through high inflation over the next 10 years now the changes that are coming that I'm going to describe to you in this video are going to shock you we are going to take a deep dive into our current monetary system and we are going to understand what has happened in the past to get us to where we are today and we are going to understand and illustrate the new ways that the riches of the future are going to be made today now before I start getting into the history lesson I'm just going to say I'm not calling for any sort of market crash stock market crash real estate crash or anything of that sort and I'm not going to get you emotionally riled up and fear-monger you and then try to sell you something expensive at the end of this video I have simply been very very interested in this topic for the last 12 months because I myself personally have a multi-million dollar portfolio that I'm not only just trying to grow but I'm also trying to protect it from inflation's erosion so what I'm doing here is I'm just giving you my insights my thoughts and my beliefs based on all of the research I've done on the internet all of the books I've read and all of the people that I've talked to including my friends that are much smarter than I am now I'm going to warn you this isn't going to be like a a very basic video that's extremely easy to follow so if you have a short attention span I would highly recommend you save this video and watch it later now in order to explain to you guys why I think we'll be able to 10x our entire net worth over the next 10 years I have to give you a brief history lesson on some of the things that happened in our monetary system that changed things [Music] forever 2008 Alan Greenspan was the chairman of the Federal Reserve in the early 2000s which is the central bank responsible for setting monetary policy in the US leading up to the crisis Greenspan had lowered interest rates and stimulated credit growth to deal with the Fallout of the tech bubble bursting the easy monetary policy combined with a new law called the Commodities features monetization act meant that over-the-counter derivative growth exploded this meant that Banks and financial institutions were gambling excessively on the performance of different Securities now I know that may sound a little bit complicated but basically that just meant that Banks and financial institutions were taking on massive risk this included credit default swaps mortgage back Securities and collateralized debt obligations now all of these contracts meant that counterparty exposure exploded but this was by Regulators unseen due to the Shady reporting requirements now as all of this continued lending standards began to decline to Grant more mortgages to lowincome and subprime customers more and more Banks began began to gamble with each other on the direction of the housing market now this didn't last forever obviously and the unwinding began when the underlying mortgages began to default meaning that the people that owned the mortgages could not make their payments anymore the derivatives written on these Securities began to collapse in value and slowly Bank after Bank blew up be Sterns got into a cash crunch on March 12th 2008 and their CEO went live on television talking about the firm's stability 4 days later the Federal Reserve backed JP Morgan to purchase bear for $2 a share with the FED absorbing the toxic Assets in an LLC they spun up called Maiden Lane the FED lent $28 billion against the Assets in Maiden Lane to help finalize the sale a few months later AIG the insurance giant started defaulting on massive amounts of credit default swaps it had written on mortgage back Securities these contracts were essentially Insurance agreements to cover Bank losses in case the mortgages were not paid and once the homeowners began fail failing to make payments it meant that AIG incurred $25 billion in losses so the fed and the treasury injected 85 billion and then eventually $142 billion to save this failing Giant and this trend of the FED stepping in to save the day is a very very important key that you want to make a mental note of here next up on the list was the Investment Bank Leman Brothers Leman was one of the first Wall Street firms to get into mortgage origination and had even bought a subprime lender called BN C mortgage it wrapped up these mortgages into Securities and sold them to other Prime banks in 2008 losses began piling up and their Hedges proved to be ineffective due to volatility by September they were on the brink and the only buyers bar Clays and Bank of America fell through they declared chapter 11 bankruptcy on September 15th crucially this caused panic because the F had not stepped in to save this systemically important bank now I know this may sound a little bit complicated but what happened in 2008 was very very important to understand because that is when things started to change in our monetary system it's because of these changes that makes it almost Crystal Clear why we are going to be able to 10x our entire net worth over the next 10 to 20 years now after the collapse of Leman markets entered freef fall the prices of mortgage back Securities stocks and bonds all collapsed as a massive flight to safety developed everything was sold in a desperate bid to raise cash Fortune 500 firm like GE Ford and McDonald's panicked about payroll since they used the short-term debt markets to get cash for employee paychecks and the markets were frozen in fact according to New York fed president Timothy gner we were a few days away from the ATMs not working in the depths of the crisis the fed and the treasury worked together to launch new programs to save the failing system the treasury launched tarp TP which aimed to purchase huge amounts of toxic assets from the banking system it dispersed over $443 billion to stabilize the markets however this paled in comparison to the massive wave of money printing or money creation that was done by the Federal Reserve now prior to the crisis the Federal Reserve had $800 billion on their balance sheet but as Bank after Bank began to fail and fed liquidity injections began to ramp up their balance sheet went from 800 billion to $2.2 trillion markets which were in freef Fall slow their Decline and began to bottom March 2009 slowly the cracks in the system were papered over and stocks began a slow and steady Ascent hundreds of banks failed because they were too underwater to be bailed out and FDIC came in and put them into receivership before winding them down the markets had seen the largest burst of money printing since World War II and many were terrified of the consequences many economists particularly those with a Libertarian bent such as Peter sh immedi mediately decried this Reckless Behavior and predicted hyperinflation as early as 2011 from August 2007 to August 2011 Gold ripped from 660 to a record $1,840 per ounce and silver from $13 to $41 per ounce and this was all because of the fear of inflation around the corner now take a mental note of that because that is also an important part of this video the fed's balance sheet exploded to 4.4 trillion by 2016 as program after program shoved more and more money into the banking system however the inflation that many economists feared never came now despite the massive stimulus programs and bank bailouts the CPI which is the Consumer Price Index remained relatively steady around 2% for the next decade so how is that possible how can they print trillions in trillions of dollars but inflation or CPI stays relatively stable I mean how could that make sense just a few years ago they printed trillions of dollars and we saw inflation rise up to 9% which is what they report but inflation was definitely here and it's still here so why didn't it happen last time well in reality there are two economies there's the real economy and the financial economy the tital wave of new money that the FED printed did not cause inflation in the traditional sense because the money did not flow into the real economy The Goods the products the services all of the things that you and I consume on a daily basis the money instead float into the other economy the financial economy this is going to be your stocks your bonds private equity and commodities so in reality inflation did happen but a majority of it was not in goods and services it was in assets when the FED does QE or quantitative easing or money printing or money creation whatever you want to call it it is essentially creating Bank Reserves this is essentially cash for financial institution and allows them to trade and transact with each other easily by printing more Bank Reserves the Fed was putting trillions of dollars in the hands of the banks who turned around and either lent this new money or invested it soon after this the S&P 500 began its biggest bull market in history the FED slammed interest rates down to zero helping to boost asset prices as borrowing to speculate in the stock market now became very cheap the Fed was also trying to manipulate the real economy with low interest rates stimulating credit creation and thus in theory improving consumer spending however this creates a black hole of debt as interest rates plummeted every single sector of the economy began to borrow heavily student loan debt mortgages auto loans credit cards and even the national debt of the government began to rise quickly something had changed permanently since 2008 although economic growth stagnated over the next decade the markets continued to grind higher week after week with each QE program each new liquidity injection spy Rose upwards despite the economy going further into debt and growth not keeping up now shockingly if you divide the S&P 500 by the Federal Reserve balance sheet that chart has been flat since the great financial crisis the entire rally that we've experienced for the last 16 years has been somewhat of an illusion it is simply the result of a vast amount of new money flowing into the financial system now this isn't to say that there has been no growth in some sections of the economy just that the long running bull market is heavily due to the quantitative easing or money creation that has been going on and you can see this a little bit more clearly if you put the global liquidity chart on top of the S&P 500 chart these charts are almost the same and they certainly behave in the same way now the recent Divergence is due to new ways that the central banks have found to add liquidity but these additions don't show up on their balance sheets so it's hard to track the truth is is that the markets have become very very dependent on monetary easing addicted to the heroin of quantitative easing and low interest rates Banks were bidding up the price of equities every single day the massive wave of money that the FED created was trapped in the financial economy pushing the prices of everything higher the S&P 500 we can see here has increasingly run ahead of real economic growth this process began in 2008 and was occurring during the 2010s but this process accelerated even more after Co another fun chart to look at is this one where you have the Dow Jones in US Dollars on top of the Dow Jones in grams of gold over time which is very commonly an inflation hedge if you remember from the beginning of this video If if you look at the price of the Dow Jones in grams of gold over time it looks flat like it looks like it's been in the exact same spot for the last two decades the market overall has become fragile and the Magnificent 7 which are those high-flying tech stocks like Facebook Google Amazon are an increasing share of the S&P 500 Index and their outperformance has been pulling the market higher now they make up almost a third of the index which has 500 stocks in total this can increase with time as the S&P is market cap weighted so these few equities alone can pull up the index by themselves we can further see this overvaluation of stocks via something called the buffet indicator named after Warren Buffett this tracks the market cap of all equities divided by real GDP or gross domestic product as you can see the average for the last 50 years has been 95% and whenever we go above this ratio stocks began to get overvalued in 2007 we were at 102% but now we have run up to shocking 185% and I want to reiterate this again because I'm not saying just because things are at all-time highs like stocks and homes and whatever else and because they're currently overvalued by some indicators that they're going to crash I'm rather trying to point out the inflation in these assets that we are experiencing that we are seeing and this very well may not come down unless the FED reduces the amount of money in circulation or unless the system breaks this whole stock market rally has served to enrich the wealthy people of the world and this is asset price inflation this is another major key that you need to understand if you want to get on the right side of inflation and 10x your portfolio in the next 10 years or at least protect yourself from it eroding away this structural shift since 2008 meant that equities no longer followed fundamental cycles of growth and contraction instead now the correlation between Global central bank balance sheets is almost one meaning every new cash infusion the markets Rise by the same amount now let's shift a little bit and talk about the real economy the real economy's money supply is measured by something called M2 this include deposits at all of the banks and the cash in the money market accounts despite the massive QE programs since 2008 the money largely did not flow into the real economy and you can see that here in this graph put together by Peruvian bull as you can see the first time there was a massive increase in the fed's asset price side but no corresponding increase in M2 same as the second time but no fiscal deficits so only Bank lending grows and then the third time which was the money printing that was due to co which was bigger than all of them you saw a blip and a larger increase than ever before which is why we saw inflation in the real economy High higher than it was since then but a lot of that flowed into assets this time as well and even though I said this was a little blip it was a 42% increase in the broad money this chart shows money flowing into the financial economy until the third QE wave which had a much bigger impact on M2 and thus CPI more money chasing the same amount of goods or assets means prices go up there are two main ways in which the Bank Reserves can make their way into the real economy First Banks can lend money to Consumers to spend this can be a mortgage for a house a car loan or simply personal credit this type of growth is slow and steady and this is exactly what accounts for the gradual growth that you see in the M2 graph the other way that Bank Reserves can travel from the financial to the real economy is through government deficits whenever the US Treasury sells a bond it receives money from a bank called a primary dealer and then it can turn around and spend this money on Healthcare Wars infrastructure or social programs this means that the money now moves from the financial economy into the real economy stimulating M2 money supply growth and thus inflation so the real formula for inflation is QE plus government spending equals inflation in the aftermath of covid the FED embarked on its largest QE program yet as stocks and bonds collapsed at the same time the government ramped up spending to fund vaccines send stimulus checks and pay for unemployment benefits the combination of these two meant that one new money was being printed by the Federal Reserve and two that money was being moved into the real economy by way of deficit spending M2 money supply exploded by 6.2 trillion or 40% inflation which had remained subdued for over a decade now began ripping higher throughout 2021 and 2022 as the amount of money circulating in the real economy Rose logically prices did as well of course supply chain issues can also be blamed for some of this but inflation stayed well elevated even after the lockdown subsided inflation Hedges soared upwards in August of 2020 gold skyrocketed to over $2,000 an ounce and a year later the crypto bull market started as well Bitcoin ran up all the way to $69,000 by November of 20121 now to cope and deal with this inflation the FED had to respond so in March of 2022 they began their most aggressive tightening cycle ever starting from zero they hiked interest rates to 5.3% in just a year and a half however this time was a little bit different because this created an entirely new crisis this created a debt crisis and if you're wondering how you're going to 10x your money and protect yourself from inflation we are about to get there and I'm about to show you exactly what you need to do but understanding this this is extremely important and we're almost there you see leading up to this the government had been borrowing heavily for years the debt was at 23 trillion and Rising steadily presidents from both parties Democrat and Republican had been running deficits to fund Wars social programs and subsidies and politicians as they usually do kicked the can down the road don't expect anything else from them after Co hit the national debt soared due to new stimulus programs that were created to offset the Damage Done by the lockdowns as the FED hiked this created a massive spike in interest expense as both the total level and the rate paid on the debt Rose upwards in 2023 for the first time ever we paid over $1 trillion alone on the national debt now traditionally and it has happened in the past the Federal Reserve can raise interest rates to deal with inflation effectively this worked in 1980 under fed chairman Paul vulker because total debt to GDP was low and thus rates could be hiked to an eye watering 18% however this begins to backfire when debt to GDP is too high this is called the debt Paradox and once debt levels get too high anything that the FED does just makes it worse if they lower the rates and print more the already high fiscal deficits mean that the money they create flows into the real economy and causes inflation this further increases government spending as the cost of Social Security Public Works and Military Rises to fund this spending the treasury borrows more and because of that the debt grows faster and the other option of course is that they raise rates which typically like I just said does lower inflation however this time with debt levels being historically High interest expense for the government starts to explode which we are already seeing higher interest rates which again is a protocol to control inflation means that the government is going to spend more on interest and they're going to have to borrow more to spend more which causes inflation so the main tool that they use to fight inflation is going to actually cause inflation this is a devastating feedback loop and in the long run means that our debt growth is exponential and since there will not be enough demand for this debt the only other option is going to be for the Federal Reserve to monetize it or in other words they are simply going to have to create the difference literally create the money into existence and if they don't the government will default and die so yeah ironically about this whole thing the higher and the longer that they hold interest rates the more likely they are going to have to print and the more likely they are going to have to print more now the FED has already chosen the second path this year the debt is going parabolic and is Rising by about trillion dollar every 100 days in fact we are now paying more on interest costs than we do to fund the entire US military if all of the debt is refinance at the current rates around 5% we would be paying a staggering $1.6 trillion just of interest every single year and this is a third of all tax revenues when the time comes to pay off existing debt the treasury Issues new debt to cover both the principal amount previously borrowed and the accumulated interest in 2024 approximately 8 TR trillion dollar of debt is being refinanced this means interest expense will move up again on the debt further worsening the spiral obviously the longer the FED holds rates higher the worse the problem becomes the Congressional box office estimates that the national debt will grow to $48 trillion by fiscal year 2034 but this doesn't take into account the gravity of the situation in another projection the expectation was 40 trillion by 2027 in February alone debt Rose by 200 80 billion and for the first 2 months of the year it increased by a total of 470 billion at the current rate the debt is projected to reach 37 trillion by the end of this year and 40 trillion by the end of 2025 surpassing the Congressional budget offices forecast by 2 years now this is the question that we have to ask how is this massive amount of debt issuance going to be absorbed in the last great financial crisis we escaped largely by borrowing a lot of it from foreigners in fact they bought almost 3 quarters of the debt from 2008 to 2016 however in the recent covid crisis the foreigners only bought a fraction of it this Gap in financing had to be made up somehow with the banks already stuffed with treasury bonds and Retail investors basically Tapped Out the FED had to print the difference in one year the Federal Reserve became a larger holder of government debt than all other Global central banks the FED is now on the hook for keeping the global monetary system running without added liquidity things start to fall apart quickly not even a year after the Federal Reserve began to taper Banks started to blow up starting with Silicon Valley Bank within 2 months five more Banks had failed including a globally systemic important Bank credit Swiss authorities responded with a new solution this time instead of doing QE they would find hidden ways to stuff more liquidity into the financial system this started with the bank term funding program also called btfp which allowed Banks to borrow against bonds at base value instead of the market price essentially allowing them to not realize any losses on these Securities this program ballooned to $167 billion at its peak another way the Federal Reserve can quietly inject liquidity is by drawing down the reverse repo facility this is a place where Banks and money market funds can deposit cash and receive treasury Banks as short-term overnight loans these bonds can be used to satisfy collateral or legal requirements at its peak in late 2022 there was over 2.5 trillion dollar parked here any cash left here is essentially Frozen as it is held on the FED balances sheet during 2023 and 2024 this has been falling which means cash is re-entering the banking system in total around $2.1 trillion has moved back adding more liquidity and helping to boost asset prices at the current Pace reverse repo could be completely drained in a couple of months the fed's current taper is also somewhat of an illusion although the FED is publicly reducing it balance sheet it is doing so in a way to minimize the loss of liquidity now it can do this by only selling short-term bonds and keeping the long-term bonds because the longer the bond duration the more Capital banks have to hold as Reserve against losses swapping long-term bonds for short-term bonds is thus stimulative as it frees up money that Banks can use to speculate on other assets as we can see in this graph which breaks the fed's treasury Holdings down by maturity during the last few easing Cycles and especially after covid the FED added a lot of long-term bonds to their balance sheet in order to take it off the books of the banks who were stuffed with them however as the FED began to taper in 2022 this duration risk was not laid off meaning they did not sell these long bonds into the market the breakdown is even clear to see in this rate of change chart here where we can see the FED purchasing large quantities of every maturity during covid and the subsequent QE programs and then easing up on purchases by 2022 in fact what is shocking here is that during the taper not only did the FED not become a net seller of long bonds depicted in yellow maturities over 10 years but in fact the Holdings increased as the FED laid off the rest of the bonds this was another way of secretly adding liquidity to the system without it showing up on their balance sheet or in public announcements and the treasury is joining the effort with a change in its issuance schedule last November they published a press release stating that they were reducing the amount of long-term bonds and increasing the amount of short-term bonds to be issued in fact they had been doing this for several years and the problem has gotten worse again since the fed's cutting cycle this type of stuff is the behavior of banana republics or poor third world countries who cannot convince anyone to lend to them long-term so they rely on short-term funding all of these actions have simply bought more time and have stopped Banks from blowing up the change in debt issuance means that more money is freed up so that Banks can hedge against their losses in other parts of their portfolio and this is stabilizing the system despite what people may think inflation is not a once in a decade phenomenon it comes in waves even during the 1970s there were multiple waves of inflation each one being higher than the last one this year the deficit is at 1.1 trillion and we are only halfway through the fiscal year which started in October of 2023 inflation bottomed at 3.1% in January of 2024 but has slowly and consistently been rising since then if the government deficit continues to remain this High we are not going to have an option hiking up interest rates to combat inflation is going to make the debt worse and lowering them will just cause more inflation the FED is trapped in a black hole of their own design now I've already mentioned this early in the video but I'm going to restate it here because I can imagine a lot of people are going to leave a comment not understanding why they have to print more money and why there's no alternative so if they do not run QE the treasury is going to run into a problem of who is going to buy the bonds the banks and money market funds are already stuffed and the retail investors can only buy so much if nobody bids at a treasury auction and gives money to the government this means that the government will not have the money it needs to operate and spend money on all of the things that it does if the government went bankrupt and could not secure any more money very quickly there would be a lot of pain millions of people would lose their jobs financial markets would literally melt because treasury bonds are like the backbone of this entire system and they are literally collateral for so many different types of trades in the financial system and we would surely surely have a massive and painful depression so the easier less immediately painful and faster solution is to just create the money just create the difference and since they have no option you know what that means it means that generational wealth transfer is going to happen from Savers to debtors from bonds to inflation Hedges and if you are on the right side of this equation you will profit immensely and those who are ignorant or those who just can't be bothered are going to see their wealth erode and slowly disappear so this is the moment you've all been waiting for what do we do well there are multiple answers to that but there are only two things you need to do it's very simple the first thing is you need to have a diversified portfolio with uncorrelated assets the second thing is you need to own assets that are going to increase in value due to inflation these are inflation hedging assets there are three categories of assets that rise during inflation you have low risk medium risk and you have high risk starting with low risk we have gold gold has been an inflation Hedge for a millennia in fact in ancient Rome generals got paid in Gold if their families held on to that gold it would roughly have the same purchasing power today a high-end tailored toga would cost half an ounce today which would be roughly the same as a nice Italian custom suit the price of 1 o of the metal has recently jumped up to $2,400 and this was a 23% gain in 6 months this is a massive move for an asset that has a $10 trillion market now as I'm filming this video today at the end of April of 2024 the current price of gold is $3,300 per ounce and I'm super super glad that I bought gold when I started learning about economics and investing and diversification and all that back when it was only $1,700 I only wish I bought more of course and that's okay because I actually just recently bought a ton a ton of gold even at this price right now land is also a great investment there's only so much available and it is needed for farming housing and businesses making it a valuable and intrinsic asset real estate has an average rate of return of 8.6% according to the FED has also made significant purchases of mortgage back Securities during their easing programs supporting the housing market via QE additionally if you get low rates on the debt used to purchase the land you can easily earn free money as you are borrowing at a lower rate than the return producing a positive spread now moving on to the medium risk stuff here at medium risk you're going to have equities stocks are a higher risk but higher reward play as of February 2024 the S&P 500 has delivered an average annual return of 12.68% over the past decade assuming Dividends are reinvested of course when adjusting for inflation the average return including dividends over the same period as 9.56% of course this is not evenly distributed and some stocks serve as much better inflation Hedges than others for example oil and natural gas stocks Fidelity's select energy ETF is up 62% in The Last 5 Years high-flying tech stocks also outperform mainly due to their size which draws in more Capital as the S&P 500 market cap is weighted the NASDAQ 100 ETF QQQ is up 33% in the year as its biggest Holdings Microsoft Apple in Nvidia have rallied and now we have high- risk so for highrisk I have cryptocurrencies these are some of the highest risk risks plays but also the most sensitive to inflation in 2021 as inflation soared Bitcoin ran all the way up to 69k before pulling back due to the Fed rate hikes and withdrawal of excessive monetary stimulus as an asset Bitcoin functions like digital gold with a fixed Supply cap and a steady issuance schedule that is impervious to Rapid change the price is rallying again has spot ETFs have been approved now trillions of dollars of institutional money can flow in Bitcoin does have an extreme volatility as the average drw down from the peak each cycle is around 80% but this volatility has been dampering with time as the market cap grows so here's the major key and this is what we call diversification or at least what I call diversification you have 30% in real estate 30% in business 30% in reserves out of which 20% of that is gold and then you have 10% in speculation so again I think this goes without saying but none of this is financial advice everyone is different and Everyone likes to invest differently but in my op opinion being Diversified with uncorrelated Assets in this way is something that I really like now for me I'm a little bit younger and I want to take on more risk because I have a high-risk appetite that's just the type of person that I am so I'm going to just go out there and be honest and say that I have more than 10% in speculation uh and most of that speculation is definitely crypto for me so now let's run a couple simulations of a portfolio so that we can see what happens to your portfolio over time based on the investment decisions you make and the ways you diversify your money we will assume no contributions and no withdrawals and this will be pre-tax and we'll make sure to rebalance this portfolio every single year we'll also adjust for inflation in all of these simulations so that you can see your wealth really actually going up your purchasing power actually significantly increasing over time instead of just seeing your portfolio inflate now the base case is just saying you do absolutely nothing for the next 20 years you just sit on your cash and it sits in a bank account and does nothing if we assume a base case inflation rate of 4% Which is higher than the target but probably going to be closer to the actual rate of inflation when it's all said and done most outcomes of this type of investing will gain barely any purchasing power over the long run so this is obviously something that you do not want to do because you are going to get screwed now let's start to introduce some risk here is example of the basic risk parody portfolio this is standard for financial advisers to recommend to clients and it's basically comprised of 60% large cap US stocks and 40% us investment grade bonds including us treasuries as we can see this portfolio does substantially better but the median return will only net you $337,000 after inflation the worst case only makes 160k after 20 years which is a measly 2.3% real return every single year best case scenario with this type of portfolio puts you at around 550,000 now don't forget this is a 20-year time period starting with 100 Grand no contributions or withdrawals so here's an example with some mid- risk Investments we will include a 20% Reit which is exposure to real estate 10% oil ETF and 70% S&P 500 the median real return is 7.49% netting you 422k after 20 years the most optimistic case will return 11 .5% in real returns growing the portfolio to 875k after 20 years with a starting balance of 100K now so far that's pretty decent but I think that you could still do better now we are going to run a portfolio with more high-risk assets but also inflation hedging assets because we know that during times of inflation these inflation hedging assets go crazy and we expect inflation to be a problem for the next 10 years this one has 20% Bitcoin 20% gold 20% oil and and 40% a generic S&P 500 Index Fund the median return on this portfolio would net you $1.5 million after 20 years and the most bullish case would net you 145 million now of course this is just kind of a fun one because it's based on the historical returns of Bitcoin and as everybody knows Bitcoin has gone crazy since the Inception of it and because of this and very obviously I hope the most optimistic and even the median level of optimism in this portfolio are for most people going to be highly unlikely that is unless of course you got in very early however even the most bearish case of this portfolio possible would net you $3.2 million after 20 years and that is once again adjusting for inflation this represents a 32 times real gain on your initial $100,000 and now we are going to analyze and look at the most realistic portfolio and the portfolio that is closest to resembling what I mentioned earlier with the 30 % business 30% real estate and 30% reserves Etc now the only difference is that instead of 30% in real estate and business I put 25% in each of those categories and I put the extra in speculation because like I said I'm younger and I have a higher risk appetite so this is what my portfolio looks like but in fact I may even have a little bit more speculation but we're not going to talk about it we're just going to analyze the portfolio and as you can see starting with $100,000 never adding or taking anything out of it investing the dividends rebound balancing it regularly and exposing yourself to inflation Hedges and some speculation after 20 years we get to $1 million 96,000 after adjusting for inflation so this is just a clean clean 10x and this was from the previous two decades which as we know because we explained in this video the next two decades are going to be much more inflationary than the last two decades and because of that because of that inflationary itself and because of the fear of inflation these assets are going to rise more in the next two decades than they did in the last two decades and that's why I'm very very confident and I fully believe and I'm putting my money where my mou is because this is how I'm investing I fully believe that for the next decade or two we are going to see some crazy crazy generational wealth happening and now you can really see the power of adding asymmetric bets and inflation Hedges to your portfolio even a small allocation or maybe a little bit more than a small allocation can have a massive effect effect on it and by rebalancing the portfolio the returns get evened out over time and I also do want to mention that although we did the Bitcoin portfolio which many people may just immediately dismiss I would urge you not to because yes Bitcoin was a massive massive opportunity and a lot of people didn't get in early enough for it to be like life-changing money but a lot of people did and if you pay attention to this kind of stuff then next time an opportunity like that comes around and it will you'll be able to take advantage of it and I person personally know multiple multiple people that got in crypto very very early and they have more money than than anyone in the world would know what to do with it's absolutely insane all I'm saying is you will get your shot if you are smart about it now you don't want to be that guy that takes out a second mortgage on his house and puts it in salana but you also don't want to be that guy that completely stays away from speculation because somebody on the news said it was a Ponzi scheme you want to identify value make a plan be Diversified and extract the value now this is exactly what I've been doing personally myself with my portfolio and just in q1 of 2021 I did 18% in one quarter I rebounds quarterly or as needed because I'm more involved in the markets uh cuz I'm younger whatever but yeah it did really really well shout out to bitcoin and crypto and to speculation and including Hedges here are very key if inflation does return which as we all know now is very likely to happen they will outperform everything else and add asymmetric returns to your portfolio boosting your portfolio significantly allowing you to build real wealth now I got to give a shout out to perivan Bull because he helped me me and him talk a lot and we discussed these topics but he helped me a lot with the research for this video you can find his YouTube and his substack with his newsletter in the description which I read every single time he posts he puts forth great content on the internet and he's also very active on Twitter which is where I found him and he does a great job breaking down complex topics around macroeconomics now if you guys want to learn more about me you can watch my story video here where I talk about how I went from zero to where I'm at now and if you want to watch a video I made explaining why I think America is headed for collapse I made an entire documentary on that video which there is a link to here and I do have to mention if you guys are interested in learning how to drop ship which is a way you can make money on the internet it's an online business we just dropped our new platform which is completely free it's howto drop.com you can go there you can enroll for free and you can get access to all of our videos uh and go through them and learn how to start your first online business and start making money