Today's average investor has less than 10 years of experience, with a sizeable number of investors having entered the market for the first time in the last 5 years...
After getting destroyed in Crypto, NFTs, and ARKK they now realize that a "safe investment strategy" is to accumulate U.S. index funds with 50% of their money and put the other 50% into big tech stocks like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Meta (META) and Tesla (TSLA) for growth (not realizing their "safe" U.S. index funds are heavily concentrated in those same "growth" stocks trading at unsustainable valuation multiples as their growth deteriorates).
Everybody has FOMO and is frantically chasing anything with upward momentum because they heard on CNBC that we are in a new bull market that will last for many years due to AI! They ignore the record insider selling that is taking place in all of these companies. They want to get fully invested ASAP before the NASDAQ hits new all-time highs like it always does after every single dip! Oh btw, inflation is gone so the Fed will soon lower rates fueling the biggest market rally for tech stocks in history!
Look at what happened in August 2000 when this same exact euphoria was taking place:
Not only did investors rush to buy tech stocks in August 2000, but they dumped their "worthless" gold and gold stocks to buy even more tech stocks!
How did that work out?
Over the following 21 months, not only did the NASDAQ crash by 61.59% causing gold to rise by 17.55%, but gold stocks gained by 179.06% or 10.2X more than gold:
The NASDAQ was so overvalued in August 2000 that eleven years later in August 2011 it was still down by 38.68% vs. gold stocks rising by 1,080.58% during this same time period!
Remember that we're talking about gold mining companies, which were unprepared for this boom and had no new gold mines ready to bring into production! These gold stocks would have gained much more if their production didn't decline. As these gold miners were gaining by 1,080.58% they were forced to acquire gold exploration companies at valuations of $300-$500 per oz as their operating mines became depleted and they became desperate to prevent even larger production declines!
One such gold exploration company that got acquired was Ventana Gold, which sold for $1.6 billion, allowing early investors to achieve a 12,960% return!
Ventana Gold founder Richard Warke who personally became a billionaire in 2018 when he also sold his Arizona Mining for $2.1 billion allowing NIA members to achieve a 1,576% return during a bear market for mining stocks, recently acquired his best two assets in history for a new gold company called Augusta Gold (TSX: G) that NIA's President intends to make his largest position in the months ahead!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
