Hard Money Newsletter sent on September 21st.
China real estate is fubar, Sugondese nuts, Politics as a fashion statement, the HMMDP Portfolio gets blowtorched, and the NFT Pod loses their mind – here are the headlines:
I present to you the world’s most misunderstood asset.
Not Bitcoin. Chinese housing.
They do have some super real similarities. For one, they are seen as a store of value. In China, a TON of apartments sit empty because they are worthless if someone is living in them – it would be like having a tenant all up in your bitcoin wallet.
Secondly, they have been fucking home run trades – Beijing house prices are up more than 10x since 2004. Not bad for four walls!
The third is people are levered long to the fucking gills. But when Bitcoin falls, people bitch on Reddit… when property wobbles, Wall Street freaks the fuck out. Should you? NO! Look down and read some words from our founder.
Read the full article HERE
There have been increasing reports coming out of the area where Minaj’s cousin lives in Sugonda, Trinidad. Local Sugondese authorities have reported multiple cases of testicle swelling, and the condition is now being called… Sugondese Nuts!
Read the full article HERE
General Carl von Clausewitz was a Prussian general and military theorist who famously declared that “War is the continuation of politics by other means.”
Representative Alexandra Ocasio-Cortez, in her Representative oath similarly stated, “New York State is my duty; I legislate with my booty.”
Read the full article HERE
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Reader Q&A with Enrique Abeyta
Does The China Shit Matter To My Investments?
NO. Unless you are invested in Chinese stocks despite our best efforts on the Hard Money Million Dollar Podcast to dissuade you from such. And if you haven’t listened to the pod and you’re thinking about investing in anything China… stop what you’re doing and go listen to the pod!
If you are invested elsewhere the answer is 99.99% NO. That means stocks, it means crypto, it means the US, it means… it means anything that’s not actually in China or selling to it.
The reality is that while China is the 2nd largest economy in the world, it is not a big export market for the United States. Mostly, it buys raw materials like iron ore. If anything a collapse in Chinese demand and prices might be GOOD for US consumers and businesses.
The MORE relevant point, though, is that China has a LOT of firepower to prevent a collapse. Their economic system has housing as almost the only relevant asset. What we are seeing right now is a collapse in stock prices (which they are indifferent to) but they will NOT allow for a collapse in property prices and the economy.
HMMDP Portfolio Update–
The HMMDP portfolio marked $52,587 as of Monday’s close, marking the biggest weekly loss to date. Are you not entertained?!
Monday was a bloodbath as China’s Evergrande fiasco shook equity markets down >2% while crypto got smashed across the board.
Matt sold his position in $PCG for 12% and used the proceeds to buy 40 DKNG 21JAN22 $75 calls. $DKNG got hammered in Monday’s selloff before announcing a $20 billion offer for Entain Tuesday morning, sending shares down another 7% shortly after. Matt got himself a tad bit over-levered in crypto and lost ~$20k. But hey, he was able to buy $6k of NFTs without getting scammed.
In this week’s Stonk Pod, Matt shares how he blowtorched the crypto book by not trading the plan and leans on Enrique and Gabe to help get him back on track. Gabe gives a thoughtful discussion on China’s Evergrande and what a “Crisis of confidence” means for broader markets – If you’re spooked on China, give this episode a listen. After being walked off the ledge, Matt shares his recent NFT purchases that round out the gang’s 4-pronged strategy to $1,000,000: Levered crypto, long-term OTM calls (thanks, Emmet!), NFT speculation, and everyday RSI trades.
This week’s NFT Pod is a doozie – Danny and Timdog join to talk, well, basically everything NFTs. Danny buys some high-dollar Topshots, Matt and Tim secure Solana Sneks after getting scammed on the first go, Matt buys Sandbox Lands and Fancy Frenchies. Also covered: Ape Gang, Solana Monkey Business, Bored Apes, and Crypto Punks. Have we lost our minds? The Samurai is already dead.
Both pods are up on Spotify and Apple, and the video versions will be up on the Hard Money Youtube
within a couple of days.
Reminder: If you’d like us to discuss a stock on the podcast, buy us a position worth 1% of the portfolio – reach out to Matt on Twitter @MattSaincome
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