Welcome back to Reader Appreciation Day!
If you’re new here, once a week, I turn the spotlight off the market and on to our Winning Investor nation.
This week, you shared your thoughts on central bank digital currencies (or CBDCs).
But before I jump into those, I want to share the results from last week’s poll.
I asked how you’re handling this bear market. Are you buying hand over fist, sitting on the sidelines or selling?
The results were decisive:
- 2% are selling everything.
- 3% are buying hand over fist.
- And a whopping 63.9% are sitting on the sidelines.
It’s an understandable answer. When the market is as unpredictable as a toddler, who wants to wade in?
But Ian King thinks you’re missing out.
On Wednesday, he wrote:
But at the same time, we’re reaching a critical turning point in this bear market…
October 19, 2022, marked the 289th day of this bear market.
Coincidentally, that’s exactly how long bear markets last (on average).
So historically speaking, we’re likely much closer to the end of this decline than the beginning.
Sentiment often sets new lows shortly before the market bounces back.
Things tend to turn around much faster than most investors expect.
Following bear markets, stocks return an average of 42% in the first year.
The last three bear market recoveries have been even more explosive — delivering an average gain of over 32% in the first three months alone!
Like Warren Buffett quipped: “If you wait for the robins, spring will be over.”
If you’d like the full details on which stocks Ian sees leading the next recovery, click here.
And now, let’s dive into your emails!
RAD Mailbag:
Would You Want a Central Bank Digital Currency?
Last week, Ian asked if you would embrace a central bank digital currency.
Check out what Winning Investor Nation said:
Ian, I can see no benefit to using a government issued and controlled digital currency. In fact, it’s scary.
— Art
Poor idea.
When we go to restaurants, the place often charges extra to pay by credit card or digital, then asks to please leave the tip in cash.
When we go to the road side food market to get freshly picked corn and veggies, they want cash.
When I go to the cleaners for my clothes, they don’t even have a credit card machine — cash only. My gardener and lawn people give a discount for cash.
Real People want Cash! Only the government or people who want to CONTROL US are interested in digital currency. People in Brazil or Venezuela need digital currency because theirs is not stable.
It is a Horrible Idea for individuals.
No, No, No to digital currency.
— HB
Would I use CBDCs?
Depends. What’s available (and working) to get around them?
— Roy
Similar to African Nations, I don’t trust our current government. I’ll continue to buy crypto along with silver and gold.
— James
Talk about craziness!!!! The idea of government having control over a person’s financial security along with a policy saying it has to be spent in a certain time frame!
The idea every time you used it may be subject to a tax.
Too much wrong with that picture.
If this turns out to be one $ way set in stone, I’ll definitely be buying crypto!
Although not crazy about that either for a few reasons.
— Peg
If you’d like to learn more about the proposed CBDCs, I suggest you check out Ian’s video here. He gives a great breakdown of exactly why the Federal Reserve wants a digital dollar.
But for the full details on how to protect your wealth from CBDCs, you can also watch our full-length presentation here.
And if you missed any of this week’s articles, make sure to check them out below.
This Week’s Winning Ideas
Why the Fed Really Wants a Central Bank Digital Currency — In this video, Ian breaks down what CBDCs are, how they’re different from cryptos and why the Fed wants to replace the dollar.
Will We Have Another Housing Crisis in 2023? — Ian and Amber discuss whether inflation will create another housing crisis like 2008. Plus a 2.0 tech that could help the real estate market!
When You Should Invest in Small-Cap Stocks — As we make our way through this bear market, it’s the perfect time for small-cap stocks. Here’s Part 1 of Amber’s small-cap investing tips!
5 Reasons to Buy Small-Cap Stocks in 2022 — Want to make the most of 2022? Here are five reasons to buy small-cap stocks, which could maximize your profits when the bear market turns.
3 Signs a Small-Cap Stock Is Ready to Soar — Part 2 of Amber’s small-cap investing series: three signs a small-cap stock is ready to soar, and three ways you can take advantage of it.
Best wishes,
Senior Managing Editor, Banyan Hill Publishing
