When investing it is of the highest importance to look at trends and determine how things are likely to pan out. In this article I will not get political, rather I will discuss things as a matter of fact from a policy perspective.
Generally speaking, Trump’s policies favor corporations with the 21% tax rate instead of the former administration’s 28% tax rate. While I thought the likelihood of a Trump second term was a strong possibility, with my investment portfolio I never put all my eggs in one basket (and good thing that I didn’t).
It is well known the Trump cut ties with the Paris Climate Accord a few years back, and what this meant for the progress of EV’s, alternative energy funding, and sustainability is that it took a few steps back from the investment growth in this area for a couple of years. Knowing that democratic candidates tend to favor policies that are for sustainability and green in nature, while also looking at the current state of the world from a sustainability perspective before the election I took a sizeable investment in the following stocks, and have yielded excellent results.
My Best Investments are NIO, XPENG, LI, PLUG, and Cryptocurrencies.
To get kicked off with what these stocks are, I will give a high-level overview. NIO, XPENG, and LI are essentially EV startups in China. With progressive policies under the new administration and the yearning of individuals and companies to be more conscious when it comes to their ecological footprint, I am confident these stocks will continue to grow over the next decade and beyond. I’ve seen countless videos of China where the smog is so thick you couldn’t see several buildings over, even though it was completely sunny out. A dirty musty fog is caused by internal combustion vehicles. My average returns on these stocks are 60%+, because of Biden’s stance on the EV market, and the need to transition to a more environmentally sustainable future. I saw when Trump losing this taking off much more and hedging my portfolio in my direction wouldn’t only mitigate losses in my “Trump” stocks per se but would bring tremendous gains as this industry is young, evolving, and is gaining visibility from some of the most important companies in the world.
On a side note, some may ask why I am an oil shareholder when the best possible answer is to transition to alternative energy? Why don’t I put my money where my mouth is with my oil money? It is not necessarily a black and white answer, and it is the obligation of the oil companies to adopt and progress on the energy transition to be carbon neutral. Should they go out of business? No. There is still a need for oil and gas until the population completely transfers to a more environmentally friendly alternative, that being EV, Hydrogen, or something else.
Gary Gensler, Biden’s new pick for the Commodity Futures Trading Commission (alongside expected inflation under a Biden administration), has brought neck-snapping returns to my portfolio this year. Specifically, my holdings constitute around 5% of my net worth in chronological order and are the following by amount. 1)Bitcoin, 2) Ethereum, 3) Tezos, 4Litecoin, 5) Cosmos, 6) Chainlink, 7) Band, 8) Stellar 9) Compound 10) EOS. I also have some XRP which is a decent crypto asset for transacting, but I am hesitant to mention it here because of its centralization.
My advice to those trying to make a lot of money in this space is to be patient and invest in projects you believe in, that have great growth prospects. There are entire books written on addressing the project fundamentals of these projects. Will any of the projects that I invested in go defunct? Maybe. Does it matter? No – because it is worth the upside risk, and I am diversified.
Administration and policy investing are so important when it comes to investing. Investing is not just about looking at the current health of a company, rather the entire picture – and beyond. Historical track records can mean a lot. Have you heard the saying I do not have a crystal ball? Looking at a team’s talent, vision, product-market fit, and use case viability is another way of assessing the potential and whether to invest.
If I can leave any parting advice to you today it is this. My best investments this year were based on assessing what is likely going to happen in the future, through hedging bets and taking a risk. Green policies (EV Stocks) and Inflation (Crypto Assets).
What do you think is going to happen in the future and how will you position yourself?
Have you ever said, “I wish I could have gotten into TSLA/AMZN/GOOG/FB/Bitcoin/Ethereum when it was under $100 a share/coin”?
There are other opportunities as ripe as those were, now you can… Think Ahead.