1 00:00:00,160 --> 00:00:03,280 Speaker 1: What happens when nine trillion dollars in boring four to 2 00:00:03,279 --> 00:00:05,760 Speaker 1: oh one k money gets permission to chase yield. 3 00:00:05,800 --> 00:00:09,119 Speaker 2: Because that's about to happen. Trump's signing the order. The 4 00:00:09,160 --> 00:00:09,840 Speaker 2: game is. 5 00:00:09,800 --> 00:00:12,880 Speaker 1: About to change forever. I'm talking about trillions of dollars 6 00:00:13,080 --> 00:00:16,200 Speaker 1: that have been stuck in losing or low yielding retirement 7 00:00:16,239 --> 00:00:19,480 Speaker 1: accounts now being able to go by bitcoin or private 8 00:00:19,480 --> 00:00:22,720 Speaker 1: equity or real estate. And for the first time in history. 9 00:00:22,920 --> 00:00:24,200 Speaker 1: Now this isn't speculation. 10 00:00:24,600 --> 00:00:27,360 Speaker 2: It's happening. And here's what everybody's missing. 11 00:00:27,600 --> 00:00:32,080 Speaker 1: This is about the entire financial system reorganizing. When the safest, 12 00:00:32,440 --> 00:00:37,360 Speaker 1: most conservative money in America, retirement accounts, starts chasing alternative assets, 13 00:00:37,600 --> 00:00:41,000 Speaker 1: you get what's called an asset supercycle, now, the kind 14 00:00:41,040 --> 00:00:43,839 Speaker 1: that creates generational wealth. So in this video, I'm going 15 00:00:43,920 --> 00:00:47,360 Speaker 1: to show you exactly which assets explode first, the timeline 16 00:00:47,360 --> 00:00:49,879 Speaker 1: that Wall Street doesn't want you to see, and how 17 00:00:49,920 --> 00:00:51,839 Speaker 1: to position yourself before. 18 00:00:51,520 --> 00:00:52,440 Speaker 2: The herd arrives. 19 00:00:52,520 --> 00:00:56,440 Speaker 1: So let's go all right, So we are talking about 20 00:00:56,640 --> 00:00:59,120 Speaker 1: one of the biggest moves in the financial system that 21 00:00:59,120 --> 00:01:01,520 Speaker 1: we've seen today. Of course, it all comes on the 22 00:01:01,560 --> 00:01:06,040 Speaker 1: back of Trump's executive order. Another one, now, He's racked 23 00:01:06,120 --> 00:01:08,520 Speaker 1: up quite a bit of executive orders. Not something I'm 24 00:01:08,600 --> 00:01:11,039 Speaker 1: super fond of. But anyway, that's beside the point. That's 25 00:01:11,040 --> 00:01:13,000 Speaker 1: a whole another topic front of the video. What we're 26 00:01:13,040 --> 00:01:17,040 Speaker 1: talking about is his executive order that's unlocking about nine 27 00:01:17,480 --> 00:01:21,120 Speaker 1: trillion dollars and a massive amount of money, about forty 28 00:01:21,200 --> 00:01:24,600 Speaker 1: three trillion dollars total are in these retirement accounts in 29 00:01:24,600 --> 00:01:28,560 Speaker 1: the financial system. But this is affecting about nine trillion dollars. Now, 30 00:01:28,640 --> 00:01:31,120 Speaker 1: the big move is that it can now take money 31 00:01:31,200 --> 00:01:33,840 Speaker 1: the nine trillion in four one ks and can it 32 00:01:33,880 --> 00:01:37,240 Speaker 1: push them into what we call alternative assets. Now, alternative 33 00:01:37,280 --> 00:01:40,199 Speaker 1: assets is where I've basically made my entire career. Forget 34 00:01:40,240 --> 00:01:42,080 Speaker 1: the stock, the S and P five hundred, We're talking 35 00:01:42,120 --> 00:01:44,640 Speaker 1: about alternative assets. I'm going to break that down for 36 00:01:44,720 --> 00:01:47,520 Speaker 1: you now. Part of the reason why is because, of 37 00:01:47,520 --> 00:01:50,600 Speaker 1: course the S and P. Five hundred hasn't really been 38 00:01:50,640 --> 00:01:52,960 Speaker 1: getting people where they need to be. We know that 39 00:01:53,000 --> 00:01:56,520 Speaker 1: about half of all baby boomers are broke. They have 40 00:01:56,560 --> 00:01:59,200 Speaker 1: no money, number one, Number two. Of the half that 41 00:01:59,240 --> 00:02:02,200 Speaker 1: do have money average about two hundred and forty thousand dollars. 42 00:02:02,240 --> 00:02:05,840 Speaker 1: So we need to get the returns to improve We 43 00:02:05,840 --> 00:02:07,760 Speaker 1: need to get them to make more money if they're 44 00:02:07,760 --> 00:02:10,920 Speaker 1: going to have any success or any hope of retirement. 45 00:02:11,160 --> 00:02:11,359 Speaker 2: Now. 46 00:02:11,440 --> 00:02:13,160 Speaker 1: Part of the reason why they've not been able to 47 00:02:13,200 --> 00:02:16,160 Speaker 1: do this so far is because apparently it's too risky. 48 00:02:16,600 --> 00:02:18,799 Speaker 1: People aren't smart enough to know what they're doing. It's 49 00:02:18,840 --> 00:02:21,200 Speaker 1: too volatile. So we must protect them. At least that's 50 00:02:21,240 --> 00:02:23,600 Speaker 1: what the government thinks, and Trump says, no more, no 51 00:02:23,720 --> 00:02:27,040 Speaker 1: more of that, So he signed this executive order to 52 00:02:27,160 --> 00:02:30,280 Speaker 1: specifically allow people to take their own money in their 53 00:02:30,280 --> 00:02:32,440 Speaker 1: four oh one K that they was holding the back 54 00:02:32,480 --> 00:02:34,040 Speaker 1: from what they want to invest into, and now they 55 00:02:34,120 --> 00:02:34,840 Speaker 1: could direct it. 56 00:02:34,960 --> 00:02:35,080 Speaker 2: Now. 57 00:02:35,080 --> 00:02:37,040 Speaker 1: A couple things that I think are worth noting in 58 00:02:37,080 --> 00:02:41,400 Speaker 1: this specifically is we can see that this order unlocks 59 00:02:41,400 --> 00:02:43,720 Speaker 1: a massive opportunity for PE firms. 60 00:02:43,560 --> 00:02:46,200 Speaker 2: Private equity, and crypto investments. 61 00:02:46,200 --> 00:02:49,200 Speaker 1: So bitcoin and cryptocurrencies, Like I said, about nine trillion dollars. 62 00:02:49,440 --> 00:02:53,000 Speaker 1: The White House officials said, alternative assets again, not the 63 00:02:53,080 --> 00:02:56,080 Speaker 1: SMP five hundred. They offer competitive returns. We need them 64 00:02:56,120 --> 00:02:59,280 Speaker 1: to get their returns. It offers diversification benefits and will 65 00:02:59,360 --> 00:03:02,679 Speaker 1: improve americans retirements prospects. 66 00:03:03,040 --> 00:03:05,079 Speaker 2: That's the key piece. We need to get them a 67 00:03:05,120 --> 00:03:05,799 Speaker 2: little bit more money. 68 00:03:05,800 --> 00:03:08,239 Speaker 1: If they're going to have success, because surprise, surprise, social 69 00:03:08,240 --> 00:03:09,200 Speaker 1: Security is not going to be there. 70 00:03:09,320 --> 00:03:09,560 Speaker 2: Okay. 71 00:03:09,600 --> 00:03:12,760 Speaker 1: It says that typically they have a fiduciary responsibility to 72 00:03:12,880 --> 00:03:16,120 Speaker 1: plan participants people in the four one K to select 73 00:03:16,280 --> 00:03:22,359 Speaker 1: appropriate investments, and alternative investments often are more volatile than 74 00:03:22,400 --> 00:03:23,440 Speaker 1: typical funds. 75 00:03:23,639 --> 00:03:25,200 Speaker 2: Okay, so they're trying to protect them. 76 00:03:25,520 --> 00:03:27,960 Speaker 1: They don't want them to diversify out too much because 77 00:03:28,320 --> 00:03:31,840 Speaker 1: typically alternative investment investments are more volatile. 78 00:03:32,040 --> 00:03:33,440 Speaker 2: Okay. I'm going to show you some of the data 79 00:03:33,480 --> 00:03:33,919 Speaker 2: around that. 80 00:03:34,280 --> 00:03:37,480 Speaker 1: So this is a chart right here of the treasury bonds. 81 00:03:37,520 --> 00:03:40,080 Speaker 1: This is represented by the TLT, which is an ETF 82 00:03:40,080 --> 00:03:42,600 Speaker 1: of the long US Treasury bond, which is supposed to 83 00:03:42,600 --> 00:03:45,360 Speaker 1: be the risk free rate. It's the bedrock of the 84 00:03:45,400 --> 00:03:48,400 Speaker 1: global financial system. And what this shows us is that 85 00:03:48,600 --> 00:03:52,640 Speaker 1: over the last five years, you've lost about fifty percent 86 00:03:52,800 --> 00:03:55,760 Speaker 1: of your money. Now, most financial plans in a four 87 00:03:55,800 --> 00:03:58,320 Speaker 1: one K your financial advisor put you into is something 88 00:03:58,360 --> 00:04:02,240 Speaker 1: what's called a sixty forty portfolio, meaning sixty percent of 89 00:04:02,240 --> 00:04:04,520 Speaker 1: your money is in stocks, forty percent of it is 90 00:04:04,560 --> 00:04:05,120 Speaker 1: in bonds. 91 00:04:05,440 --> 00:04:06,640 Speaker 2: And look at what's happened. 92 00:04:06,680 --> 00:04:09,120 Speaker 1: You've lost fifty percent of your money so rather than 93 00:04:09,320 --> 00:04:12,080 Speaker 1: your money being stuck and your plan advisor putting you 94 00:04:12,080 --> 00:04:14,040 Speaker 1: into plans like this that lose money, I think it's 95 00:04:14,040 --> 00:04:16,320 Speaker 1: a good idea to let you choose where you want 96 00:04:16,360 --> 00:04:19,880 Speaker 1: to put your money. But let's explore the alternative investments. Okay, 97 00:04:20,080 --> 00:04:23,400 Speaker 1: the three horsemen of these alternative investments. We're talking about 98 00:04:23,440 --> 00:04:26,200 Speaker 1: real estate. We're going to dig into that private equity. 99 00:04:26,240 --> 00:04:27,839 Speaker 1: We'll take a look at that, and of course my 100 00:04:27,920 --> 00:04:30,599 Speaker 1: favorite bitcoin will take a look at that. So let's 101 00:04:30,800 --> 00:04:33,039 Speaker 1: go through these one at a time. Let's start with real estate. 102 00:04:33,080 --> 00:04:34,720 Speaker 1: Of course, if you've been following me for any time, 103 00:04:34,760 --> 00:04:36,480 Speaker 1: you know that I started my career in real estate. 104 00:04:36,640 --> 00:04:38,760 Speaker 1: I still own real estate. I like real estate. But 105 00:04:38,800 --> 00:04:41,280 Speaker 1: there's a couple things that we should know, specifically around 106 00:04:41,279 --> 00:04:43,320 Speaker 1: in your four to one K in your retirement account. 107 00:04:43,560 --> 00:04:46,720 Speaker 1: They talk about liquidity, they talk about volatility, and in 108 00:04:46,720 --> 00:04:50,120 Speaker 1: real estate is certainly ill liquid You can't sell it quickly. 109 00:04:50,800 --> 00:04:53,320 Speaker 1: At best case scenario, it's probably a couple months. Sometimes 110 00:04:53,360 --> 00:04:55,240 Speaker 1: it could be even worse, depending on the market cycle 111 00:04:55,279 --> 00:04:56,080 Speaker 1: where you're located. 112 00:04:56,120 --> 00:04:57,560 Speaker 2: Things like that. The other thing with. 113 00:04:57,560 --> 00:05:00,400 Speaker 1: Real estate is that there's high transaction costs. It's very 114 00:05:00,440 --> 00:05:04,000 Speaker 1: expensive to sell a piece of real estate. It's also big, 115 00:05:04,360 --> 00:05:06,440 Speaker 1: big sales, big purchases, big amount. So let's just say 116 00:05:06,480 --> 00:05:09,280 Speaker 1: you needed five thousand dollars for a purchase or ten 117 00:05:09,360 --> 00:05:12,120 Speaker 1: thousand dollars fortification. You can't just get five or ten 118 00:05:12,160 --> 00:05:14,479 Speaker 1: thousand dollars out of your house, so it's i liquid. 119 00:05:14,839 --> 00:05:17,920 Speaker 1: There's high transaction costs to move them. And so most 120 00:05:17,960 --> 00:05:19,560 Speaker 1: likely if people were going to use this in a 121 00:05:19,680 --> 00:05:22,479 Speaker 1: retirement account, they'd probably use something like a rate, a 122 00:05:22,520 --> 00:05:24,960 Speaker 1: real estate investment trust, something like that. They wouldn't want 123 00:05:24,960 --> 00:05:27,000 Speaker 1: to own it directly. They wouldn't want the maintenance headache. 124 00:05:27,000 --> 00:05:29,360 Speaker 1: They wouldn't want the property managers getting calls late at 125 00:05:29,400 --> 00:05:30,719 Speaker 1: night when your toilet's breaking down. 126 00:05:30,640 --> 00:05:31,160 Speaker 2: Things like that. 127 00:05:31,920 --> 00:05:34,120 Speaker 1: Some other things with real estate in a retirement account 128 00:05:34,120 --> 00:05:38,200 Speaker 1: that can be problem matic is a geographic concentration risk. 129 00:05:38,520 --> 00:05:40,760 Speaker 1: But if we take a look at the case Shiller 130 00:05:40,839 --> 00:05:42,919 Speaker 1: index for real estate, we can see a couple things. 131 00:05:43,320 --> 00:05:46,000 Speaker 1: Number one, this goes back to nineteen eighty eight. Real 132 00:05:46,120 --> 00:05:49,880 Speaker 1: estate had been pretty much flat here until the dot 133 00:05:49,960 --> 00:05:52,000 Speaker 1: com bubble blew up. When the dot com bubble blew up, 134 00:05:52,080 --> 00:05:54,800 Speaker 1: rates went down, real estate went up into a bubble. 135 00:05:55,120 --> 00:05:56,960 Speaker 1: Two thousand and eight we had the real estate crash, 136 00:05:57,000 --> 00:05:59,479 Speaker 1: and we've been basically on an upward trend ever since. 137 00:05:59,720 --> 00:06:02,279 Speaker 1: So the last couple decades real estate has been a 138 00:06:02,320 --> 00:06:04,920 Speaker 1: pretty good investment. Now, let's stack this up and take 139 00:06:04,960 --> 00:06:07,919 Speaker 1: a look at it in a chart here. So what 140 00:06:08,000 --> 00:06:11,839 Speaker 1: we have here is reates versus direct So how should 141 00:06:11,839 --> 00:06:13,920 Speaker 1: we own real estate, especially if we can get money 142 00:06:13,920 --> 00:06:16,919 Speaker 1: from our retirement account into real estate specifically, So the 143 00:06:16,960 --> 00:06:20,480 Speaker 1: investment type here is an equity rate. Here is a 144 00:06:20,960 --> 00:06:23,520 Speaker 1: private sire commercial real estate, and here we. 145 00:06:23,520 --> 00:06:24,880 Speaker 2: Have us home prices. 146 00:06:25,040 --> 00:06:29,440 Speaker 1: And what this shows over one year, the rates have 147 00:06:29,560 --> 00:06:32,240 Speaker 1: performed better in a one year period eight point seven 148 00:06:32,360 --> 00:06:35,920 Speaker 1: versus two six and two seven. Over three years they 149 00:06:36,000 --> 00:06:39,040 Speaker 1: didn't do too well. However, they lost less. Let's just 150 00:06:39,040 --> 00:06:42,240 Speaker 1: stay in commercial real estate and over five years and 151 00:06:42,279 --> 00:06:44,560 Speaker 1: over ten years they outperformed. So if I was going 152 00:06:44,600 --> 00:06:46,880 Speaker 1: to move some of my money in my four one 153 00:06:46,960 --> 00:06:49,640 Speaker 1: k into one of these horsemen's into the real estate bucket, 154 00:06:49,960 --> 00:06:53,000 Speaker 1: the equity rates are probably the best option for me 155 00:06:53,160 --> 00:06:54,000 Speaker 1: in this scenario. 156 00:06:54,279 --> 00:06:56,280 Speaker 2: Now, of course, there's more advanced options. We're not talking 157 00:06:56,279 --> 00:06:58,920 Speaker 2: about that. We're just talking about in your retirement account specifically. 158 00:06:59,279 --> 00:07:02,000 Speaker 1: It looks like it's when there. Okay, remember those numbers. 159 00:07:02,279 --> 00:07:04,000 Speaker 1: We're going to stack all these up at the end. 160 00:07:04,040 --> 00:07:04,400 Speaker 2: Okay. 161 00:07:04,760 --> 00:07:08,479 Speaker 1: The second horseman would be in my alternative investments is 162 00:07:08,560 --> 00:07:12,600 Speaker 1: private equity. Now Tony Robbins recently wrote I Believe, his 163 00:07:12,720 --> 00:07:14,880 Speaker 1: third book on money, part of the trilogy, where we 164 00:07:14,920 --> 00:07:17,560 Speaker 1: talked about private equity being one of the best investments 165 00:07:17,600 --> 00:07:20,280 Speaker 1: that you can get into, and he talks about wre 166 00:07:20,320 --> 00:07:22,080 Speaker 1: Typically you're going to make twenty to thirty percent on 167 00:07:22,120 --> 00:07:24,720 Speaker 1: your money versus you know, sp five hundred and six 168 00:07:24,800 --> 00:07:26,800 Speaker 1: or eight percent return. A couple things they know about 169 00:07:26,800 --> 00:07:30,560 Speaker 1: private equity. Typically they have pretty high minimum investments, so 170 00:07:30,600 --> 00:07:32,640 Speaker 1: typically you probably need to be an a credit investor. 171 00:07:32,760 --> 00:07:34,600 Speaker 1: Means you're making over two hundred fifty thousand or a 172 00:07:34,600 --> 00:07:36,160 Speaker 1: million dollars of assets, and. 173 00:07:36,160 --> 00:07:38,600 Speaker 2: Typically you need to put two hundred and fifty thousand. 174 00:07:38,280 --> 00:07:41,440 Speaker 1: Up to one million dollars into private equity. Also, the 175 00:07:41,480 --> 00:07:43,760 Speaker 1: thing with them is they're not very liquid. Typically you 176 00:07:43,800 --> 00:07:46,600 Speaker 1: have to lock up about five to ten years. When 177 00:07:46,600 --> 00:07:48,840 Speaker 1: you put your money into the fund, it's stuck there. 178 00:07:48,920 --> 00:07:50,840 Speaker 1: You can't get it back for like a five to 179 00:07:50,880 --> 00:07:53,880 Speaker 1: ten year period. Not ideal if you're towards the end 180 00:07:54,320 --> 00:07:56,520 Speaker 1: a nearing your retirement. Obviously, if you're just starting out, 181 00:07:56,640 --> 00:07:57,240 Speaker 1: maybe that works. 182 00:07:57,280 --> 00:07:57,600 Speaker 2: Okay. 183 00:07:58,080 --> 00:07:59,960 Speaker 1: As I said, typically you have to have an accredit 184 00:08:00,080 --> 00:08:00,960 Speaker 1: investor requirement. 185 00:08:01,240 --> 00:08:02,640 Speaker 2: Of course, liquidity issues. 186 00:08:02,800 --> 00:08:05,240 Speaker 1: If you're within that lock up period, you can't get 187 00:08:05,280 --> 00:08:07,520 Speaker 1: any of your money out. And then typically they have 188 00:08:07,680 --> 00:08:10,440 Speaker 1: very high fees, so you're typically going to pay two 189 00:08:10,600 --> 00:08:12,960 Speaker 1: or twenty What that means is of the money that 190 00:08:13,000 --> 00:08:15,160 Speaker 1: you have in the fund, they're going to take two 191 00:08:15,160 --> 00:08:17,840 Speaker 1: percent as management fees, So every year, two percent of 192 00:08:17,880 --> 00:08:19,920 Speaker 1: the money of in goes to management. And then on 193 00:08:20,000 --> 00:08:23,120 Speaker 1: the upside, they're going to take twenty percent of the 194 00:08:23,160 --> 00:08:24,160 Speaker 1: gains that they get you. 195 00:08:24,400 --> 00:08:26,760 Speaker 2: Okay, let's take a look at how this is working out. 196 00:08:26,840 --> 00:08:30,600 Speaker 1: What we can see here is that we are currently 197 00:08:30,640 --> 00:08:34,319 Speaker 1: getting more and more allocations going to private equity from 198 00:08:34,480 --> 00:08:37,160 Speaker 1: large institutions. And the reason why is again because of 199 00:08:37,200 --> 00:08:41,000 Speaker 1: their performance, right, because they're beating regular funds. And what 200 00:08:41,040 --> 00:08:43,600 Speaker 1: we can see here is the allocations we see for 201 00:08:43,760 --> 00:08:47,600 Speaker 1: endowments and foundations. They're the leader in allocating to private equity. 202 00:08:47,720 --> 00:08:50,840 Speaker 1: Endowments being like Yale, Harvard, things like that. We can 203 00:08:50,880 --> 00:08:54,360 Speaker 1: see they're allocating about twenty five to thirty two percent 204 00:08:54,960 --> 00:08:57,680 Speaker 1: of their entire fund towards private equity, just so you 205 00:08:57,679 --> 00:09:01,199 Speaker 1: can see how they're allocating this. Again, most people, most 206 00:09:01,240 --> 00:09:03,720 Speaker 1: individuals don't have any, but the endow onents they do 207 00:09:03,800 --> 00:09:06,440 Speaker 1: twenty five to thirty two percent. Okay, what we can 208 00:09:06,440 --> 00:09:08,240 Speaker 1: see is since they've been doing this and sort of 209 00:09:08,320 --> 00:09:11,040 Speaker 1: going back to Tony Robbins book, we can see the growth. 210 00:09:11,240 --> 00:09:13,560 Speaker 1: Here's the year two thousand and look at the amount 211 00:09:13,559 --> 00:09:14,239 Speaker 1: of growth. 212 00:09:13,960 --> 00:09:15,440 Speaker 2: Here we are. This is only to twenty twenty two. 213 00:09:15,760 --> 00:09:19,319 Speaker 1: You can see the enormous move for money going into 214 00:09:19,360 --> 00:09:22,200 Speaker 1: private equity, chasing yield. The S and P five hundred 215 00:09:22,200 --> 00:09:25,160 Speaker 1: hasn't been performing well, the mag seven have four hundred 216 00:09:25,160 --> 00:09:27,600 Speaker 1: and ninety three, other companies not doing so well, and 217 00:09:27,640 --> 00:09:29,839 Speaker 1: so they're chasing yield. Where do we get it, Well, 218 00:09:29,880 --> 00:09:32,600 Speaker 1: they move to private equity. Well, let's stack these up 219 00:09:32,600 --> 00:09:34,440 Speaker 1: and take a look at what we've got so far 220 00:09:35,480 --> 00:09:38,480 Speaker 1: and what we can see. Here's the assets we have 221 00:09:38,520 --> 00:09:42,119 Speaker 1: private equity right here, here's the S and P five hundred, NASDAK, 222 00:09:42,160 --> 00:09:45,480 Speaker 1: the Russell two thousand and then the Treasury bond. What 223 00:09:45,520 --> 00:09:47,640 Speaker 1: we can see over one year, three year, five years, 224 00:09:47,679 --> 00:09:50,160 Speaker 1: and ten years. And what we can see is that 225 00:09:50,240 --> 00:09:52,480 Speaker 1: while private equity looks really good. 226 00:09:53,120 --> 00:09:55,080 Speaker 2: Actually, the winner has been the NASDAK. 227 00:09:55,440 --> 00:09:57,440 Speaker 1: What we can see over one year, three years, five years, 228 00:09:57,440 --> 00:10:00,080 Speaker 1: and ten is we have seven point one percent. One 229 00:10:00,120 --> 00:10:02,600 Speaker 1: P five hundred did better over one year. The Nasdaq 230 00:10:02,679 --> 00:10:05,840 Speaker 1: did even better in the one year period. Over five years, 231 00:10:05,840 --> 00:10:09,559 Speaker 1: we got seven percent here in private equity, almost eleven 232 00:10:09,640 --> 00:10:10,360 Speaker 1: percent in the. 233 00:10:10,320 --> 00:10:12,200 Speaker 2: S and P five hundred, eight and a half in Nasdaq. 234 00:10:12,679 --> 00:10:16,720 Speaker 1: Five years, sixteen percent in private equity, about sixteen percent 235 00:10:16,840 --> 00:10:19,240 Speaker 1: SP five hundred, but almost nineteen. 236 00:10:18,840 --> 00:10:19,760 Speaker 2: Percent in the Nasdaq. 237 00:10:19,800 --> 00:10:22,880 Speaker 1: And over ten years we have fifteen percent in private equity, 238 00:10:23,000 --> 00:10:26,800 Speaker 1: thirteen percent in five hundred and sixteen percent in Nasdaq. 239 00:10:26,840 --> 00:10:28,760 Speaker 2: So all of them are actually pretty close. Now. 240 00:10:28,840 --> 00:10:31,880 Speaker 1: Of course, this is a private equity index. Some have 241 00:10:32,000 --> 00:10:34,480 Speaker 1: done way better, some have done way worse. What we 242 00:10:34,480 --> 00:10:37,480 Speaker 1: can see somewhat pretty close now. The Russell index has 243 00:10:37,520 --> 00:10:40,520 Speaker 1: done pretty poorly overall, hasn't kept up about half of that. 244 00:10:40,840 --> 00:10:41,520 Speaker 2: I did put. 245 00:10:41,400 --> 00:10:43,880 Speaker 1: The US Treasury bonds on here just so you could 246 00:10:43,880 --> 00:10:47,400 Speaker 1: see over one year, lost five percent, over three years, 247 00:10:47,440 --> 00:10:51,880 Speaker 1: lost ten percent over five years. They've done pretty terrible. 248 00:10:52,000 --> 00:10:54,000 Speaker 1: We also have real estate down here at the bottom 249 00:10:54,320 --> 00:10:57,200 Speaker 1: ten percent, four percent, six and a half percent, and 250 00:10:57,240 --> 00:10:59,200 Speaker 1: six percent So what we can see here is that 251 00:10:59,240 --> 00:11:03,079 Speaker 1: the Nasdaq has been better performing than real estate and 252 00:11:03,200 --> 00:11:03,920 Speaker 1: private equity. 253 00:11:04,160 --> 00:11:05,120 Speaker 2: And of course most of you. 254 00:11:05,080 --> 00:11:07,160 Speaker 1: Can buy the Nasdaq and this and P five hundred 255 00:11:07,160 --> 00:11:09,079 Speaker 1: in your four to one ks right now. You don't 256 00:11:09,120 --> 00:11:11,680 Speaker 1: need alternative investments to do that. Okay, let's go to 257 00:11:11,720 --> 00:11:16,920 Speaker 1: the third horsemen of alternative investments, my favorite, of course, Bitcoin. 258 00:11:17,160 --> 00:11:19,040 Speaker 2: Now, part of the reason why I love bitcoin. 259 00:11:18,800 --> 00:11:22,120 Speaker 1: Is it's brand new, it's technology, it's changing the world 260 00:11:22,120 --> 00:11:22,720 Speaker 1: as we know it. 261 00:11:23,440 --> 00:11:25,600 Speaker 2: But it's also had the best performance. 262 00:11:25,640 --> 00:11:29,520 Speaker 1: It has been the best performing asset over pretty much 263 00:11:29,559 --> 00:11:31,840 Speaker 1: any period in time fifteen years, ten years, five years, 264 00:11:31,880 --> 00:11:33,880 Speaker 1: three years, and one year. Let's take a look at 265 00:11:33,920 --> 00:11:36,120 Speaker 1: it when we stack it all up. So if we 266 00:11:36,160 --> 00:11:39,320 Speaker 1: have private equity, sm P five hundred, NASDAK Russell Treasury, 267 00:11:39,360 --> 00:11:42,840 Speaker 1: and now we have Bitcoin here. So instead of seven percent, 268 00:11:43,000 --> 00:11:45,560 Speaker 1: twenty four percent or twenty nine percent, the Nasdaq looked 269 00:11:45,559 --> 00:11:50,120 Speaker 1: really good. Bitcoin did seventy, not twenty nine, seventy. 270 00:11:49,920 --> 00:11:50,800 Speaker 2: Over three years. 271 00:11:51,200 --> 00:11:52,719 Speaker 1: We had the winner here the s and P five 272 00:11:52,800 --> 00:11:56,240 Speaker 1: hundred at ten point nine, but Bitcoin did sixty three percent. 273 00:11:56,600 --> 00:11:57,640 Speaker 2: Over five years. 274 00:11:57,920 --> 00:12:01,040 Speaker 1: We had the winner right here at nas eighteen percent, 275 00:12:01,240 --> 00:12:04,640 Speaker 1: but Bitcoin did eighty two percent over ten years, we 276 00:12:04,679 --> 00:12:07,319 Speaker 1: had the winner right here again back to the NASDAK 277 00:12:07,360 --> 00:12:10,320 Speaker 1: at sixteen percent, but Bitcoin did one hundred and thirty 278 00:12:10,480 --> 00:12:13,559 Speaker 1: nine percent. So pretty much, over any time period you 279 00:12:13,600 --> 00:12:17,360 Speaker 1: want to look at, bitcoin has outperformed. Hard to argue 280 00:12:17,400 --> 00:12:19,600 Speaker 1: with that, but how people would argue with it? But 281 00:12:19,600 --> 00:12:22,880 Speaker 1: they'd say, but the risk, it's too volatile. 282 00:12:23,000 --> 00:12:24,200 Speaker 2: Well, what we want. 283 00:12:24,080 --> 00:12:26,319 Speaker 1: To do as investors is we think about the risk 284 00:12:26,400 --> 00:12:28,400 Speaker 1: adjusted returns. One of the ways we do that is 285 00:12:28,400 --> 00:12:31,319 Speaker 1: we use something called a sharp ratio. The sharp ratio 286 00:12:31,400 --> 00:12:31,960 Speaker 1: looks at. 287 00:12:31,840 --> 00:12:34,600 Speaker 2: Both the risk and the reward that we have. 288 00:12:34,920 --> 00:12:37,240 Speaker 1: So if we take a look at the sharp ratio 289 00:12:37,400 --> 00:12:40,120 Speaker 1: of a couple assets, let's look specifically at the sharp 290 00:12:40,240 --> 00:12:44,600 Speaker 1: ratio of Bitcoin and the US Treasury. Specifically, what we 291 00:12:44,640 --> 00:12:46,960 Speaker 1: can see is that the max draw down of the 292 00:12:47,040 --> 00:12:50,400 Speaker 1: US Treasury for the last five years ending June thirtieth, 293 00:12:50,440 --> 00:12:52,840 Speaker 1: twenty twenty five was forty eight percent. 294 00:12:52,920 --> 00:12:55,720 Speaker 2: About half your money was lost hold in US treasuries. 295 00:12:56,080 --> 00:12:57,520 Speaker 2: In bitcoin, it went down. 296 00:12:57,559 --> 00:13:00,280 Speaker 1: The max draw down was actually seventy six percent, so 297 00:13:00,320 --> 00:13:03,319 Speaker 1: the draw down was much worse. However, if we look 298 00:13:03,320 --> 00:13:05,720 Speaker 1: at the sharp ratio, which looks at both the draw 299 00:13:05,760 --> 00:13:09,000 Speaker 1: down and the return profile. We see that TLT was 300 00:13:09,160 --> 00:13:12,200 Speaker 1: point thirty nine, which was very risky. We see that 301 00:13:12,240 --> 00:13:16,600 Speaker 1: Bitcoin was over one, which was much much safer. And 302 00:13:16,640 --> 00:13:18,839 Speaker 1: the reason why is because you have to look at 303 00:13:19,080 --> 00:13:22,280 Speaker 1: both the return and the game, or the risk and 304 00:13:22,320 --> 00:13:24,120 Speaker 1: the reward. I should say, so when we look at 305 00:13:24,200 --> 00:13:26,959 Speaker 1: TLT over one month, three months, six month, one year, 306 00:13:27,000 --> 00:13:30,720 Speaker 1: three or five years, and we see that again it 307 00:13:30,800 --> 00:13:33,679 Speaker 1: is down heavily five years thirty eight percent, But if 308 00:13:33,720 --> 00:13:36,199 Speaker 1: we look at Bitcoin, it was all gains. 309 00:13:36,280 --> 00:13:37,800 Speaker 2: Over one thousand percent game. 310 00:13:38,240 --> 00:13:40,680 Speaker 1: And so you have to understand risk and reward in 311 00:13:40,720 --> 00:13:42,280 Speaker 1: both of these, and so we can see across the 312 00:13:42,320 --> 00:13:45,000 Speaker 1: board bitcoin wins. But a couple things to keep in mind. 313 00:13:45,000 --> 00:13:49,360 Speaker 1: It's not just about total performance, total volatility, total risk. 314 00:13:49,400 --> 00:13:52,600 Speaker 1: We also want to think about liquidity. How fast can 315 00:13:52,640 --> 00:13:54,600 Speaker 1: I get my money out? Like with real estate specifically 316 00:13:54,600 --> 00:13:56,439 Speaker 1: if I have single family residents, how long does it 317 00:13:56,480 --> 00:13:58,480 Speaker 1: take me to get money out if I just need 318 00:13:58,480 --> 00:14:01,840 Speaker 1: a little bit five thousand, three twenty thousand? How liquid 319 00:14:01,960 --> 00:14:04,240 Speaker 1: is that market? All right, now, let's get to the 320 00:14:04,320 --> 00:14:06,600 Speaker 1: super cycle part of this, because, as I said, we 321 00:14:06,640 --> 00:14:09,800 Speaker 1: have about nine trillion dollars that's going to be unlocked 322 00:14:09,920 --> 00:14:12,400 Speaker 1: and it's going to rush into these types of assets. 323 00:14:12,440 --> 00:14:14,720 Speaker 2: So what does history say about this? 324 00:14:15,080 --> 00:14:16,679 Speaker 1: What can we learn? Well, a couple things that we 325 00:14:16,720 --> 00:14:19,160 Speaker 1: can learn. First of all, we know that the four 326 00:14:19,200 --> 00:14:22,800 Speaker 1: to one K was created by the Revenue Act in 327 00:14:22,920 --> 00:14:25,800 Speaker 1: nineteen seventy eight. Okay, so it's when they change things, 328 00:14:25,840 --> 00:14:28,800 Speaker 1: when money started flowing into it. We know that stocks 329 00:14:28,840 --> 00:14:31,640 Speaker 1: became standard in a four to one K around the 330 00:14:31,680 --> 00:14:34,520 Speaker 1: early nineteen eighties. We saw that the S and P 331 00:14:34,640 --> 00:14:37,600 Speaker 1: five hundred in nineteen eighty one was about one hundred 332 00:14:37,600 --> 00:14:40,880 Speaker 1: and thirty and today it's about fifty eight hundred. That's 333 00:14:40,960 --> 00:14:45,720 Speaker 1: a forty four times increase since the four to one 334 00:14:45,800 --> 00:14:49,040 Speaker 1: k's came into existence and started buying stocks what we 335 00:14:49,120 --> 00:14:53,160 Speaker 1: call passive flows, passively buying them. Now, this is this 336 00:14:53,240 --> 00:14:56,280 Speaker 1: is different than retail investing. Retail investors are trying to 337 00:14:56,320 --> 00:14:59,200 Speaker 1: time things. Should I buy now? Should I wait? Four 338 00:14:59,200 --> 00:15:02,280 Speaker 1: to one k's are every other week. My paycheck has 339 00:15:02,320 --> 00:15:04,200 Speaker 1: money that goes into my four oh one K and 340 00:15:04,240 --> 00:15:06,960 Speaker 1: it automatically buys back to the passive income. But for 341 00:15:07,040 --> 00:15:10,120 Speaker 1: an illustrative chart, we can see here from nineteen thirty 342 00:15:10,720 --> 00:15:13,360 Speaker 1: until this point when the four ones were created nineteen 343 00:15:13,440 --> 00:15:15,160 Speaker 1: eighty we can see that the S and P five 344 00:15:15,240 --> 00:15:18,160 Speaker 1: hundred was relatively flat. Yes, it went up and down, 345 00:15:18,280 --> 00:15:19,480 Speaker 1: but it was relatively flat. 346 00:15:19,680 --> 00:15:23,320 Speaker 2: But look at what happened since four to one k's 347 00:15:23,600 --> 00:15:26,760 Speaker 2: started buying the S and P five hundred, it started 348 00:15:26,800 --> 00:15:27,600 Speaker 2: going straight up. 349 00:15:27,840 --> 00:15:30,320 Speaker 1: So, if history is our guide and we now know 350 00:15:30,400 --> 00:15:33,200 Speaker 1: that the four one ks can unlock and that capital 351 00:15:33,240 --> 00:15:36,320 Speaker 1: can now move into three types of alternative assets, what 352 00:15:36,360 --> 00:15:38,160 Speaker 1: do you think happens to those three. 353 00:15:38,000 --> 00:15:39,400 Speaker 2: Types of alternative assets? 354 00:15:39,600 --> 00:15:42,000 Speaker 1: Well, that may not be definitive, but let's put a 355 00:15:42,080 --> 00:15:44,200 Speaker 1: let's put a number on it here. What we can 356 00:15:44,240 --> 00:15:47,080 Speaker 1: see is that if we do the math on how 357 00:15:47,120 --> 00:15:49,360 Speaker 1: the capital should flow, we can see again, if there's 358 00:15:49,480 --> 00:15:52,400 Speaker 1: nine trillion dollars sit in four O one k's, if 359 00:15:52,720 --> 00:15:57,480 Speaker 1: one percent of that allocation moved into alternative assets, that's 360 00:15:58,000 --> 00:16:02,280 Speaker 1: almost ninety billion dollars. Ten percent of that moved out 361 00:16:02,280 --> 00:16:03,880 Speaker 1: of four own k's and into one of these three 362 00:16:03,880 --> 00:16:09,840 Speaker 1: assets are all three, that's almost nine hundred billion dollars. Now, 363 00:16:09,920 --> 00:16:13,560 Speaker 1: just to put things into some math, If that's almost 364 00:16:13,640 --> 00:16:17,040 Speaker 1: nine hundred billion dollars, the entire crypto market is only 365 00:16:17,320 --> 00:16:20,720 Speaker 1: four trillion. Bitcoin's only about two trillion dollars. So what 366 00:16:20,760 --> 00:16:23,320 Speaker 1: happens when almost one trillion moves into a two trillion 367 00:16:23,360 --> 00:16:24,000 Speaker 1: dollar market. 368 00:16:24,840 --> 00:16:27,640 Speaker 2: Yeah, it explodes. You can do the math. But let''s 369 00:16:27,640 --> 00:16:28,880 Speaker 2: look at some other parts of history. 370 00:16:29,040 --> 00:16:31,320 Speaker 1: What we can see here is we can understand that 371 00:16:31,400 --> 00:16:35,560 Speaker 1: pension funds entered also into stocks in the seventies. We 372 00:16:35,640 --> 00:16:38,160 Speaker 1: know that insurance companies started buying real estate in the 373 00:16:38,240 --> 00:16:42,080 Speaker 1: nineteen eighties. We know that endowments they started moving into 374 00:16:42,080 --> 00:16:43,360 Speaker 1: stocks in the nineteen nineties. 375 00:16:43,560 --> 00:16:45,480 Speaker 2: This is into private equity and to venture capital. 376 00:16:45,720 --> 00:16:47,920 Speaker 1: And we have the tech boom, but now we have 377 00:16:48,000 --> 00:16:49,800 Speaker 1: retirement accounts moving. 378 00:16:49,600 --> 00:16:52,360 Speaker 2: Into this new alternative investment class. 379 00:16:52,560 --> 00:16:54,840 Speaker 1: Let's take a little bit more charts, So let's look 380 00:16:54,880 --> 00:16:58,840 Speaker 1: at gold, for example. We can see what happened right 381 00:16:58,920 --> 00:17:01,720 Speaker 1: around the same time nineteen eighty gold had been kind 382 00:17:01,720 --> 00:17:03,360 Speaker 1: of moving higher, and then look. 383 00:17:03,200 --> 00:17:05,399 Speaker 2: At the growth that we have right there. As a 384 00:17:05,400 --> 00:17:05,720 Speaker 2: matter of. 385 00:17:05,720 --> 00:17:09,760 Speaker 1: Fact, you can see before it happened and after, before 386 00:17:09,840 --> 00:17:10,880 Speaker 1: gold became legalized. 387 00:17:10,920 --> 00:17:13,520 Speaker 2: A lot of people don't understand this, but back here, well, 388 00:17:13,520 --> 00:17:14,320 Speaker 2: we don't go that far. 389 00:17:14,359 --> 00:17:18,200 Speaker 1: Back in nineteen thirty three, the US government took everybody's 390 00:17:18,240 --> 00:17:21,560 Speaker 1: gold and made it illegal to even own gold. And 391 00:17:21,640 --> 00:17:24,640 Speaker 1: it wasn't until here that you were able to own 392 00:17:24,760 --> 00:17:25,479 Speaker 1: gold legally. 393 00:17:25,520 --> 00:17:25,879 Speaker 2: Again. 394 00:17:26,280 --> 00:17:30,119 Speaker 1: So again, when a rule change happened legally and people 395 00:17:30,160 --> 00:17:32,720 Speaker 1: could move their money into the asset, what happened, Well, 396 00:17:32,800 --> 00:17:33,399 Speaker 1: gold went. 397 00:17:33,320 --> 00:17:35,720 Speaker 2: Up, as you can see over four times. 398 00:17:35,960 --> 00:17:38,360 Speaker 1: This is the history and this is what happens when 399 00:17:38,440 --> 00:17:41,320 Speaker 1: money gets unlocked and can move into new assets. 400 00:17:41,440 --> 00:17:42,760 Speaker 2: It creates a super cycle. 401 00:17:42,960 --> 00:17:45,199 Speaker 1: So I've been talking a lot about something I call 402 00:17:45,280 --> 00:17:49,159 Speaker 1: the quantum wealth window. About every fifty years we have 403 00:17:49,200 --> 00:17:51,080 Speaker 1: a technological revolution that opens up. 404 00:17:51,440 --> 00:17:53,080 Speaker 2: Now there's two things that happened. 405 00:17:53,200 --> 00:17:56,840 Speaker 1: One of the technology changes the course of humanity, right, 406 00:17:56,960 --> 00:17:59,280 Speaker 1: like instead of walking and riding horses, we had to 407 00:17:59,320 --> 00:18:01,560 Speaker 1: have cars. Right, instead of having to send a letter 408 00:18:01,600 --> 00:18:03,200 Speaker 1: in the mail, we now have the internet and email, 409 00:18:03,560 --> 00:18:05,640 Speaker 1: and we have that going on right now. We also 410 00:18:05,720 --> 00:18:08,399 Speaker 1: know that the richest people in the world, the legacy wealth, 411 00:18:08,760 --> 00:18:09,800 Speaker 1: was always created. 412 00:18:09,520 --> 00:18:11,119 Speaker 2: In one of these wealth windows. 413 00:18:11,359 --> 00:18:13,600 Speaker 1: Now we are in the sixth wealth window we've seen 414 00:18:13,600 --> 00:18:15,640 Speaker 1: in the last three hundred years. And at the same 415 00:18:15,680 --> 00:18:19,040 Speaker 1: time we're seeing this, we're seeing now nine trillion dollars 416 00:18:19,119 --> 00:18:22,439 Speaker 1: being unlocked and ready to rush into these new asset 417 00:18:22,440 --> 00:18:27,280 Speaker 1: classes cryptocurrencies, bitcoin, etc. Now this isn't just another trade, 418 00:18:27,280 --> 00:18:30,520 Speaker 1: it's not a short term move. This is a structural 419 00:18:30,800 --> 00:18:34,520 Speaker 1: reformation of the entire capital market, right, not another trade. 420 00:18:34,640 --> 00:18:37,919 Speaker 1: We're talking about nine trillion dollars that just got permission 421 00:18:38,000 --> 00:18:39,960 Speaker 1: to now come out of their locked gates in a 422 00:18:40,000 --> 00:18:43,359 Speaker 1: four one K and can now come into these assets again. 423 00:18:43,600 --> 00:18:47,160 Speaker 1: Not a correction, a reformation, and this is the greatest 424 00:18:47,320 --> 00:18:50,600 Speaker 1: wealth transfer in history. Now, if you want to know 425 00:18:50,680 --> 00:18:53,719 Speaker 1: more about how we're positioning for these and how that 426 00:18:53,800 --> 00:18:55,959 Speaker 1: money might move into bitcoin and where that goes over 427 00:18:56,000 --> 00:18:59,200 Speaker 1: the next ten, twenty, thirty forty years, you might want 428 00:18:59,200 --> 00:19:01,480 Speaker 1: to watch this video right here, and I'll see you 429 00:19:01,480 --> 00:19:01,760 Speaker 1: over there.