Happy Friday Everyone 👋

SIX things you need to know this week in 60 seconds.

1. Could we see a 2018 repeat?

2. ConstitutionDAO, but for a sports team

3. Retail investors’ response to Omicron everything: BTFD

4. Carbon credits are breaking the market!

5. NFT art is just the beginning

6. Huge win for (the guy who thinks he’s) Satoshi Nakamoto

If you’re reading this but haven’t subscribed, join our community of +50k smart, fun & edgy investors

*This is sponsored advertising content.

*as of 4 pm ET, 12/9/21

1. MACRO

Could we see a 2018 repeat?

@enriqueabeyta

At the end of September 2018, the Fed raised interest rates and dropped “accommodative” language from its policy statements. What ensued was the sell-off you see above, followed by a swift rally to new highs (read: a buy the f***** dip opportunity).

Last week, Jerome Powell put a moratorium on “transitory” talk and signaled a more hawkish stance to come. On December 14/15, the Fed will meet to (likely) announce an acceleration in the tapering of asset purchases and begin discussing when to raise interest rates.

GRIT’S TAKE: The economists at FT expect quantitative easing to be completed by March, with rate hikes following sooner rather than later.

GRIT’S ACTION: Inflation reading of 6.8% YoY this morning = long stocks & crypto for me!

Under the Radar

A 20+ Year History of Drone Innovation: Draganfly continues to revolutionize the drone industry. The award-winning, industry-leading drone solutions and systems developer, has signed a minimum $9 million manufacturing agreement with Digital Dream Labs, Inc. to design and develop an AI companion robot capable of flying*.

*This is sponsored advertising content.

2. DEALS & IPOs

Literally everyone who followed the ConstitutionDAO story:

ConstitutionDAO failed spectacularly, but it put decentralized autonomous organizations on the map in a big way. It even inspired a Vancouver-based group to take DAOs one step further into the mainstream.

The Krause House is a community of basketball fans who have raised $4.2M worth of ether with the purpose of buying the New Orleans Pelicans. Unfortunately, the Pelicans are worth $1.5B which means there’s a long way to go.

To “realistically” (the team isn’t for sale, plus the sale would need to be approved by the NBA Board of Governors) have a shot at becoming a minority owner, the DAO would need to come up with around $300M (20%).

GRIT’S TAKE: At the very least, Krause House will serve as an experiment into what DAOs can accomplish and how best to execute them.

GRIT’S ACTION: GritDAO coming !

3. STOCK MARKET

Retail investors’ response to Omicron everything: BTFD

It didn’t take long for retail investors to take advantage of the sell-off caused by the discovery of the Omicron variant. In fact, they poured over $10B into U.S. stocks over that week for the largest retail flows on record!

And if you thought they were going to let a few hawkish comments from the Fed get in the way of their strategy, think again!

Last week’s dip, triggered by Jerome Powell’s calls for an acceleration in tapering, was quickly erased by the same retail investors, who poured $2.2B into U.S equities.

GRIT’S TAKE: There are 3 certainties in today’s world: death, taxes, and retail investors smashing the buy button on each and every dip.

GRIT’S ACTION: Love the GRIT +300K retail investment community. We are incessantly chasing ROI together for life ; )

4. COMMODITIES

Carbon credits are breaking the market

No, that’s not the chart of a new cryptocurrency or meme stock — that chart shows the price of carbon credits in the E.U.!

Prices have rallied so hard they triggered a cost containment market mechanism that goes into effect “if allowances trade at more than double the average price of the previous 2 years for 3 consecutive months”.

This means that policymakers will need to gather around tea & crumpets to decide whether or not they will intervene to reign in prices. A decision is expected by December 14.

GRIT’S TAKE: What’s behind the surge? Gas shortages reliance on carbon-intensive coal demand for carbon offsets

GRIT’S ACTION: I am up BIG on two carbon deals. Loving #Savetheplanet + #MakeMoney

5. CRYPTO

NFT art is just the beginning

NFT sales volume for the first 10 months of 2021 tottaled $26.9B. That’s a sh*tload of JPEGS!

While it’s true the bulk of these sales have been driven by NFTs that most would categorize as ‘art’ or ‘collectibles’, we are starting to see countless NFT projects that offer actual utility:

• Get paid to play games with in-game NFTs

• NFTs-based slot machines

• Build a virtual world using NFTs

• Fantasy (NFTs) sports

• An NFT that unlocks doors

GRIT’S TAKE: Nearly $30B in sales in less than a year…wait until people start realizing that NFTs have utilities beyond art!

GRIT’S ACTION: Met an $18 billion dollar money manager last night. They have +$1B in crypto and said the best is yet to come!

6. ENTERTAINMENT

Huge win for (the guy who thinks he’s) Satoshi Nakamoto

Although that depends on your definition of “win”.

The story goes like this:

• An Australian mad computer scientist and a Florida man () worked together to create Bitcoin back in the day.

• This makes them (collectively) the true Satoshi Nakamoto and co-owners of ~1.1M Bitcoin.

• Florida man dies so the family sues the Australian scientist for their share of the Satoshi “fortune”.

• A Miami court orders the Australian to pay $100M in damages but determines he does not have to give up 50% of his (non-existent) fortune!

So does this finally put an end to the mystery around who Bitcoin’s creator truly is?

GRIT’S TAKE: The Australian scientist sure seems to think so: “The jury has obviously found that I am because there would have been no award otherwise. And I am.” Case = closed!

GRIT’S ACTION: Bitcoin doesn’t care who created. It only cares about going up ; )

*SOURCES

1. CNBC, FT

2. Protocol, Forbes

3. TheDailyShot, FT

4. FT

5. ChainAnalysis

6. Bloomberg

Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page.  All statements and expressions herein are the sole opinion of the author or paid advertiser.

Grit Capital Corporation is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.  

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME.  THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION.  INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.  

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable.  They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein.  The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities).  To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.