My BIGGEST Position: BAR-NONE!
State Street came out with the world’s first exchange traded fund (ETF) in January of 1993. This was the key for retail investors to move away from the ridiculously high fees of mutual funds, which have always underperformed their benchmark indices and into the low-fee world of ETFs.
The introduction of this financial instrument has revolutionized investments for part-time investors and for professionals as well.
The SPDR S&P 500 ETF, which is State Street’s brain-child, is the most popular one in the world.
It simply tracks the S&P 500 with a negligible expense ratio. It’s a quick and easy way to own the America’s 500 biggest companies in one basket – instant diversification.
Originally, this ETF didn’t attract investors at all. I mean, it was an utter failure for the initial five years of it.
Last year, this beast ETF had over $200B under management, so much has changed. In fact, I have $54,000 invested with it, so I know it’s effective.
State Street, itself, is a publicly-traded company, so coming up with this hit product caused shares to explode by 680% in the 1990s. Many investors don’t look at who actually owns the financial instruments we all use, but I do.
Today, with the ungodly amount of ETFs out there, State Street is just another company. It definitely doesn’t have any competitive advantage for me to get interested in it.
We have been talking about the enormous upcoming demand, coming from Wall-Street, the big boys, as soon as the red tape is removed. We’re going to fully capitalize on all of this buying volume that is guaranteed to hit the crypto sector.
State Street became a cash-generating machine in the 1990s. 20 years later, I see Intercontinental Exchange Inc. (NYSE: ICE) as this decade’s disruptor and the growth for it will be rapid.
Courtesy: Intercontinental Exchange Inc.
This is nothing like State Street’s breakthrough in the 1990s, since International Exchange (NYSE: ICE) isn’t a newcomer, looking to make its presence felt in the financial world. It already owns the New York Stock Exchange!
Introducing new products for this company is similar to McDonalds adding a new product to the existing menu – instantly, tens of millions of people learn about it. There is no need to go to great lengths to market it, since the network of clients is already established.
Intercontinental Exchange is about to be the first to supply a solution to an enormous challenge. Currently, there is no globally recognized, well-trusted, large-scale financial firm, which is focused on providing custodian services (holding assets for large institutions) in the blockchain sector.
There are tiny players, which are offering custodian services, but think of it this way… if I were Disney and needed to get an insurance policy on my fleet of cruise ships, will I go to a tiny insurance firm, which might go under or to the elephant one that works with re-insurers and has an impressive track record?
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Nothing is easier and more profitable than acting as a toll road for financial transactions, which is precisely what ICE will do. They would take a fee from every transaction, much like stock exchanges do.
Just to give you an idea of how solid this business is proving to be, know that share are up 2,200%, since it went public 13 years ago.
Intercontinental Exchange Inc.’s crypto project is the global digital asset trading platform called Bakkt.
Timing couldn’t be better, since the launch date is set for January 24th, 2019. After that, the biggest whales on the planet will be able to buy, sell, store, pay, and trade cryptocurrencies. Even futures contracts will go live.
Get this – well-known companies like Microsoft, Starbucks, and Fortress Investment Group have partnered with Intercontinental Exchange (NYSE: ICE) on the Bakkt project.
Starbucks looks at this as a pivotal development in allowing its customers to use Bitcoin in transactions.
On top of that, Intercontinental Exchange Inc. is planning to launch a platform with physically settled bitcoin futures contracts that will settle in just one day, so institutional traders can receive actual Bitcoin from their futures trading.
This is the greatest position to have exposure to, because it doesn’t have direct ties with any specific coin. We’re, essentially, investing in the company, which will be generating transaction fees from all major crypto activity, no matter what it is.
This is like owning the royalties to the full compilation of the Beatles songs. We don’t care what song is playing in the radio, just that DJs keep on using them.
This is my biggest LONG position!
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This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.Please read our full disclaimer at PureBlockchainWealth.com/