The Pomp Letter

To investors,Yesterday I had the pleasure of speaking at FarmCon, one of the largest agriculture-focused conferences in the country. I was blown away by the ~ 1,500 people in attendance. There were farmers, commodity traders, technologists, financiers, and lots of people in-between. One of the themes we discussed on stage was the state of the US financial market. I did my best to explain bitcoin to the room, including the tailwind of continued monetary debasement and an inept fiscal policy situation that looks more like welfare than capitalism. The beauty of a room full of farmers is they are already deep down the rabbit hole of land, gold, and guns. Bitcoin is a stone’s throw away for their portfolio. But most people are not into bitcoin — they want to talk about the US stock market. It is important to put US stock market performance in context. The last 200 years of equity performance has been a 45 degree line up and to the right. Simply, investing in the US market has delivered exceptional returns throughout our lifetime, our parents lifetime, and their parents’ lifetime. Recent stock performance has been largely driven by the Magnificent 7. The degree of outperformance from these stocks is mind-blowing. You can see that the divergence started during the Global Financial Crisis and never stopped. Before everyone starts yelling that the Mag 7 is overvalued, it is important to realize that the free cash flow margin for these large companies has more than 5x’d since the 1970s.Better companies deserve better valuations. That part isn’t rocket science. But what becomes more complex is how dominant the US stock market is compared to the rest of the world. Tavi Costa recently posted this chart to visualize the domination:Cambria’s Meb Faber responded to this graphic saying “nearly all US investors look at this chart and think, ‘I need more US stocks’.” Speaking of Meb, he was on stage with me yesterday at FarmCon and he had some wise words for investors. His main point was that the dominance of US equities, particularly in tech, meant that history suggested value stocks and non-US equities should be good performers in the coming years. To be clear, Meb wasn’t calling a market top, nor was he saying that the bull run can’t drive tech stocks higher. He was explaining that the timeless investing strategy of buying things out of favor may be worth considering. That seems like a pragmatic suggestion. And the fact that so many people will critique Meb’s suggestion probably means there is more merit to it than you would think. But here is the thing — I am not a value investor. I am not an international equity investor either. There are two types of investors in the world. Those who are betting on the world staying the same and those betting on the world changing. Nothing wrong with the former, but I am the latter type of investor. I want to bet on chaos and uncertainty. I want to predict where the world is going. The inherent difficulty in doing this is where the potential return lies. This is why I am interested in bitcoin, artificial intelligence, nuclear power, space technology, drones, robotics, gene editing, and a plethora of other innovations at the tip of the spear. I want to play a small part in helping to create the future we will live in. And there is nothing more obvious to me than bitcoin. This is why I pitched bitcoin as my best idea onstage at FarmCon. Yes, the digital asset has appreciated hundreds of percent in recent years. Yes, the digital asset is well known by investors around the world. Yes, bitcoin has produced many millionaires and billionaires already. But I believe we are all underestimating how important the technology will be, which means we are all underestimating how big the market cap of the asset will get too. How high will bitcoin’s price go? I am not sure. What timeframe are we looking at? I don’t know. But here is one thing I know — the single most important thing at the moment is whether the Trump administration implements the strategic bitcoin reserve. Nothing else matters more than that. The administration promised the strategic reserve on the campaign trail. There are many people across the administration that personally own bitcoin. It is hard to see a world where we don’t get the strategic reserve, but it isn’t a done deal until the coins are secured on the United States’ books. If the strategic reserve happens, all bets are off on what could happen to bitcoin’s price. We may see the craziest bull market we have seen so far. But for now, we wait and see what Trump does once he is in office. Hope you all have a great end to your week. I’ll talk to you on Monday.- Anthony PomplianoFounder & CEO, Professional Capital Management🚨 READER NOTE: I am hosting Bitcoin Investor Week in NYC from February 24-28th. This will be the largest finance conference of the year focused on bitcoin. Speakers include Mike Novogratz, Cathie Wood, Jan van Eck, Anthony Scaramucci, Jack Mallers, and many

To investors,Bitcoin is going to infiltrate every corner of financial markets. This has become increasingly clear over the last few years.Everyone knows that retail investors had the opportunity to purchase and hold bitcoin before the institutions. This is one of the first times in history we saw the little guy get an advantage, but the big guys are not going to sit around and ignore the digital asset any longer.In 2018, my partners and I raised capital from the first US public pension funds to actively get exposure to bitcoin. Those investors are happy today. Around the same time, our firm and others were able to raise capital from university endowments, hospital systems, and foundations.The professional LPs were in the game.Next came the large hedge fund managers. We saw Paul Tudor Jones and Stanley Druckenmiller announce in 2020 that they were long bitcoin. This removed career risk for every hedge fund and quickly most large funds began to buy bitcoin.In 2020, we also saw the first public corporation put bitcoin on their balance sheet. Microstrategy started buying bitcoin with cash and then eventually used debt and equity issuances to acquire more than 2% of the total bitcoin supply. As other public company CEOs saw this strategy work, they began to copy the playbook. Finally, we saw the large financial institutions capitulate in 2024. They launched bitcoin ETFs once the regulators gave them the green light. Those ETFs have been the most popular product launch in Wall Street history. What a whirlwind of adoption in the last 6 years. But the party is not over yet — bitcoin is going to infiltrate every corner of the financial system. Let me give you a few examples. Here is the Newmark CEO talking about their new product to offer a term loan for real estate investors, but include bitcoin as part of the collateral package to ensure the loan is less risky for investors. He describes it as “bitcoin in” instead of “cash out.”This is not the only area where bitcoin and real estate are meeting. Billionaire Grant Cardone recently announced a Bitcoin Real Estate fund as well. Julie Taylor of Realtor.com says “he’s raising a total of $87.5 million, with each investor required to make a minimum investment of $250,000. Of that, $15 million will be spent on bitcoin, while $72.5 million will be spent on a portfolio of 300 residential units in Florida.”Another area is Microstrategy’s recently announced perpetual preferred equity offerings. This will allow insurance companies and other large organizations to gain bitcoin exposure. Next we have Blackrock putting bitcoin in their fixed income funds. So another mix of a traditional financial product combined with bitcoin.Then we have companies like Meanwhile which have created bitcoin life insurance, which means that the entire policy and payout is denominated in bitcoin. Here is how they describe themselves:“At Meanwhile, we believe digital currencies are here to stay and that new financial products and institutions will be built on top of them. That's why we are offering the first—and only—life insurance policies based on Bitcoin.With Meanwhile, you can get the same level of protection as traditional life insurance, but your premiums and payouts will be denominated in Bitcoin.”Do you see what is happening? Do you get it yet?Bitcoin is going to become a staple in traditional finance. It won’t be a single commodity that people buy and hold. It is a new lego piece that has been introduced to Wall Street. They are going to figure out a ton of different ways to leverage the asset. This will include new products, new variations of old products, and much more. This is an important trend to watch because I predict much of bitcoin’s adoption moving forward is going to be through these indirect means. People will put 1-5% of their portfolio into bitcoin, but they are not going to put 50% of their portfolio. They will put a large percentage of their net worth into fixed income, real estate, and their life insurance policy though. Those are areas where bitcoin can start to eat into the wallet share it has for each individual investor. There will be plenty more areas in the coming months and years. Wall Street is just getting started with playing with bitcoin. I can’t wait to see what they come up with next. Hope you all have a great day. I’ll talk to everyone tomorrow. - Anthony PomplianoFounder & CEO, Professional Capital ManagementDarius Dale Explains The Impact of Global Liquidity on Bitcoin and StocksDarius Dale is the Founder & CEO of 42Macro, which you can check out here.In this conversation we talk about a strong US dollar, impact on stocks, bitcoin, many other assets, why international investors own so much of US assets, and what could possibly happen if they decide to sell.Enjoy!Podcast Sponsors* BitcoinIRA - Buy, sell, and swap 75+ cryptocurrencies in your retirement account. Pay less taxes. Earn up to $500 in rewards.* Ledger - Ledger secures 20% of the world’s digital asse

To investors,The S&P 500 has been the standard measurement of “the market” for decades. Most hedge fund investors benchmark their performance against the index and media outlets reference the index price movements as a signal for market sentiment. This has been happening since 1957 when Standard & Poor’s expanded their index to include the current structure — a market capitalization weighted index of the 500 largest stocks. Over time this index has become the measurement stick, so lets take a look at how hedge funds did in 2024. Bloomberg’s Nishant Kumar assembled a list of select hedge funds and their performance last year:The list is not comprehensive — Robert Citrone’s Discovery posted a 52% increase in 2024 — but this list gives us a good barometer for how the hedge fund industry has stacked up.Simply, it was a good year for hedge funds but many of them failed to best the index. Warren Buffett and Berkshire Hathaway were in a different spot. Berkshire returned 25.5% compared to the S&P’s 23.3% return, which marks an important milestone for the value investor — outperforming the index gives Berkshire shareholders hope their capital is better positioned than in the main index.But beating the S&P 500 index last year may not be as notable as people want you to believe. For example, gold outperformed the S&P 500 index as well. This signals to me that the “real return” of the stock market may not be what investors think it is. Gold, a precious metal with no earnings, should only be increasing in value due to investor interest in protecting their economic value from inflation, debasement, and economic chaos. So if gold is outperforming the S&P 500, it begs the question “how much of the S&P return is attributable to monetary debasement?”We will never get the perfect answer, but it isn’t hard to see that a larger percentage of the return is from debasement than people like to admit. If investors are not outperforming the main index, then they are definitely losing economic value when measured against an asset like gold which can’t be intentionally debased.This brings me to bitcoin.The digital asset is gold on steroids. It has all of the same sound money principles, but it also boasts a finite supply. This helped bitcoin produce a ~ 120% return in 2024. Safe to say that bitcoin destroyed the S&P 500, Berkshire Hathaway, and gold. On top of the outperformance, bitcoin also has a higher sharpe ratio than stocks or gold.So here is my proposal — bitcoin should replace the S&P 500 in every investors mind as the true benchmark for their returns. You don’t need to spend millions of dollars per year employing hedge fund employees to get the bitcoin return. You can simply buy the asset and hold it. It is simple market exposure. And bitcoin has now become one of the most important financial assets. For example, I was recently talking to the CIO of a well known macro fund and he told me that the first thing the team checks in their process is global liquidity and the second thing is bitcoin’s price. Bitcoin is THE macro asset in the world. It is most sensitive to global liquidity. It is accessible by anyone in the world with an internet connection. And bitcoin is the only large asset that trades 24/7/365 with deep liquidity. Bitcoin is the new S&P 500. The older generations may find this idea perplexing. It may even anger them to read it. But the truth is that bitcoin has already replaced the S&P 500 as the benchmark performance indicator for the younger generation. They have grown up with bitcoin. They all recognize it as the apex predator of financial markets. If you can’t beat bitcoin, then you should just buy bitcoin. And my guess is that bitcoin is going to replace the S&P 500 as a benchmark for traditional investors over time as well. It will have to start with LPs because fund managers are not incentivized to adopt a benchmark that is nearly impossible for them to beat. Bitcoin has been growing at a 80% compound annual growth rate for the last decade. Over the last 5 years, the asset has compounded at 67% annually. I don’t think many hedge funds can claim similar performance over time. Regardless of whether you use bitcoin as your benchmark or not, this is where the world is headed in my opinion. You are better off using the new metric in your analysis — it will force you to think more clearly and become a better investor. I have written about this before. I will continue to hammer the point home. You must change your point of reference. Most people think of the “bitcoin standard” as a hyperbitcoinization. Maybe that happens or maybe it doesn’t. But I do know that bitcoin is becoming the standard on which all investments must be measured against. Hope you all have a great end to your week. I’ll talk to you on Monday. -Anthony PomplianoFounder & CEO, Professional Capital ManagementJordi Visser Highlights How Bitcoin & Artificial Intelligence Are Accelerating TogetherJordi Visser is a macro investor with over 30 years

To investors,Bitcoin is starting the new year with a slight lift in price, but the true measure of success for the digital asset can be found in the underlying metrics. I want to highlight a number of data points for you this morning as we kick off 2025. Bitcoin’s hash rate currently sits at an all-time high, which signals the increasing strength of the blockchain. If you combine all of the computing power from Amazon AWS, Google Cloud, and Microsoft Azure, it still would not equal 1% of the bitcoin network. It is impressive that miners and node operators have assembled the decentralized computing network without central planning or a primary capital source. From a holders’ perspective, on-chain wallet addresses with at least $100 in bitcoin is near all-time highs.The same is true for on-chain wallet address with at least $1,000 as well. Institutions don’t want to be left behind by retail, so we have seen the total number of bitcoin held by the US-traded ETFs jump from approximately 650,000 bitcoin in January 2024 to more than 1,250,000 bitcoin a year later. People and institutions want bitcoin. You can see this clearly with the falling amount of bitcoin left on exchanges. We recently crossed below 2,791,000 bitcoin, which is a level we haven’t seen since 2019.When capital flies into the market, the price goes up quickly. Bitcoin’s price saw more than a 100% gain in 2024. This has led to many people asking “is the bull run over?” We can look at MVRV Z-Score to understand the market position. Here is how Glassnode describes this metric:“The MVRV Z-Score evaluates whether BTC is overvalued or undervalued relative to its "fair value". Instead of using a traditional z-score method, the MVRV Z-Score uniquely compares the market value to the realized value. When the market value, measured as network valuation by spot price multiplied by supply, is significantly higher than the realized value, represented by the cumulative capital inflow into the asset, it has typically signaled a market top (red zone). Conversely, a significantly lower market value than the realized value has often indicated market bottoms (green zone).”Although the price of bitcoin has increased nearly 500% in the last 2 years, we see that more than 1 out of every 2 bitcoin in circulation has not moved. This signals long-term holders with deep conviction, regardless of price. We also know that more than 86% of all bitcoin in circulation are currently “in profit,” which means the coins last traded hands at a price lower than the price today. Lastly, the number of transactions on the bitcoin network has been dropping throughout December 2024. We continue to see transaction volume holding lower in the last 24 hours. You can make an argument that people are holding bitcoin, therefore they are not transacting their bitcoin. That would drive the transaction number lower. You could also argue that a lower number of transaction volume could show less interest in the digital asset. I will leave that data point for you all to decide.Overall, bitcoin feels strong to start 2025. The network looks healthy, institutions and retail are holding bitcoin, and the bull market appears to still have more room to run. This does not mean that bitcoin’s price can’t go down in the short-run, but I believe we have another bitcoin all-time high price ahead of us before this bull market is over.Hope you all have a great start to the new year. I will talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital ManagementAnthony Pompliano Reviews Bitcoin’s 2024 and Explains What He Thinks Will Happen in 2025Anthony Pompliano records a solo episode breaking down the historical year of 2024 for bitcoin. Topics include institutional adoption, price hitting $100,000, bitcoin ETFs, nation states, MicroStrategy, other publicly traded companies, bitcoin miners, political environment, and where bitcoin goes from here.Enjoy!Podcast Sponsors* Ledger - Ledger secures 20% of the world’s digital assets. Their latest devices, Ledger Stax and Ledger Flex, feature secure touchscreens for safer, easier crypto management.* Franzy - Your is your gateway to franchise ownership—research, compare, and fund the right opportunity with confidence and transparency.* Bitdeer - A global technology company focused on Bitcoin mining, ASIC development and HPC for AI, backed by advanced R&D and a massive 2.5 GW global power portfolio.* Meanwhile - The world’s first licensed and regulated life insurance company built for the Bitcoin economy. Learn how to tax-optimize your BTC holdings for your life and beyond.* Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.* Xapo - Xapo Bank is the only way to bank with Bitcoin.* Polkadotis a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.You are receiving The Pomp Letter because you either signed up or you attended one of the

To investors,I have assembled a collection of charts and graphics to better understand where we are in the bitcoin cycle, along with how the digital currency is impacting financial markets. First, bitcoin has hit a new all-time high. While that is cause for celebration, we are nowhere near the top of this bull market yet. According to Stockmoney Lizards, “Satoshimeter is loading, but is only 9. We have still a lot of upside.”Bitcoin’s price has been increasing because $3 billion per day is flowing into the bitcoin network, which Willy Woo points out in this chart.In addition to the capital flowing into the asset, Willy highlights that we are watching the third large supply shock in the market. If you have demand increasing and available supply decreasing, price has to go up to accommodate everyone. Another clear way to see this is by overlaying the bitcoin price with bitcoin on exchanges.Famed trader Peter Brandt points out, “it is now official. The Bitcoin/Gold ratio has now posted a new ATH. Next stop will be 89 to 1 -- it will require 89 ounces of Gold to buy a single Bitcoin.”Bitcoin is eating gold. An easy place to see this is by comparing the bitcoin and gold ETFs. There is a clear winner in terms of popularity and pace of growth. Lastly, odds are bitcoin will continue appreciating for the next few months. You can see bitcoin’s price in response to the flow of capital in the past, which suggests we are entering a similar period right now. “Bitcoin's money flow has entered yellow. 3-4 months of verticality have followed.”It is fun to watch bitcoin do what holders have long thought was going to happen. It appears there is plenty of time left in this bull market, so be careful that you don’t get too excited. One of the best strategies with bitcoin is to get very good at doing nothing for long periods of time. Let’s see what happens.Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementAnthony Pompliano Explains The 5 Things Driving Bitcoin’s Price HigherAnthony Pompliano records a solo episode explaining why bitcoin has exploded in 2024, and where it could be headed. Topics include historical bull markets, media coverage, Wall Street, Donald Trump, US bitcoin strategic reserve, MicroStrategy, federal reserve, and more.Enjoy!Podcast Sponsors* Ledger - Ledger secures 20% of the world’s digital assets. Upgrade to Ledger Flex and get $70 in Bitcoin.* Meanwhile - The world’s first licensed and regulated life insurance company built for the Bitcoin economy. Learn how to tax-optimize your BTC holdings for your life and beyond.* BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.* Xapo - Xapo Bank is the only way to bank with Bitcoin.* Polkadotis a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,As the price of bitcoin has risen in recent weeks, I keep getting asked whether it is a good time to purchase bitcoin. This question comes from friends, colleagues, barbers, taxi drivers, doormen, and random people I meet socially. Everyone wants to know if they should be buying bitcoin or if it is too late. Here is what I tell them — the decision to purchase bitcoin today comes down to three inputs: time, size, and education. On the time aspect, the most important factor in deciding to buy bitcoin is how long you plan to hold the asset. If you want to buy bitcoin to sell at a profit next week, then I have no clue if you should buy or not. Timing markets is very hard. I don’t know how to do it. But if you want to buy bitcoin and hold it for 5 years or longer, then the odds are in your favor that bitcoin’s price will be higher in the future. Time in the market is more important than timing the market. On the sizing aspect, the decision to purchase bitcoin should be separate and distinct from the decision on how much capital you use to purchase bitcoin. The former is a binary decision—you either buy it or you don’t. The latter point raises the question of position sizing, which is a much more personal decision. You have to evaluate your net worth, your annual income, your future expected expenses, and your risk appetite. I can’t tell you what the right percentage of bitcoin is for your portfolio, but I can tell you that 0% is probably the wrong answer. Lastly, for the education aspect, the decision to purchase bitcoin is ultimately driven by whether you understand what you are buying or not. If you have put in the time and effort to learn about bitcoin, you are more likely to hold through any market volatility. But if you are merely buying bitcoin because you think you will get rich, and you haven’t spent the time and effort to learn, then you will sell at the first sign of trouble. You get out of bitcoin what you put into it. This brings me back to the original question—is it too late to buy bitcoin? In my humble opinion, there is never a bad time to buy bitcoin if you have spent time learning about the asset, are going to put a small percentage of your portfolio into the asset, and you plan to hold it for at least 5 years. Does that guarantee success? No, but it drastically increases the odds. And good odds are all an investor can ask for. A new monetary asset only comes around every few hundred years. Bitcoin promises to be the next great monetary asset. Now we must wait and see whether the promise becomes reality, but I like our odds. Current Market ConditionsThe second half of December is usually time to celebrate. Everyday Americans are preparing for Christmas and the holidays, while investors are getting ready for one of the most bullish times of the year. Geiger Capital shared a great visual that shows how good the last two weeks of the year has been historically.Enthusiasm is palpable right now. We also have the Federal Reserve cutting interest rates and helping to expand the money supply, so it appears that history is rhyming. I expect the next two weeks to drive asset prices higher as we close out the year. As prices have gone higher, an interesting dynamic has developed — Fidelity’s Jurrien Timmer writes:“We all know about the $100k milestone that Bitcoin reached last week, but gold and Bitcoin (which I view as different players on the same team) have reached a major milestone together. Combined they are now worth around $20 trillion, which is almost as much as the US money supply (M2). The chart below shows real M2 against the inflation-adjusted market cap of Bitcoin and “above-ground” gold. During periods of excessive monetary inflation, gold’s value has tended to “catch up” to the money supply. It happened in the 1930’s, 1970’s, 2000’s, and now in the 2020’s. This is what stores of value do: they keep up with (and sometimes briefly exceed) the quantity and price of money. How much the quantity and price of money are related to each other is the subject for another WAAR. While the $100,000 “round number” price point is understandably getting a lot of attention, that’s just the price. For me, the above chart shows that there are ways to put a value on both gold and Bitcoin, even though they don’t produce cashflows. Price and value are not the same thing: price is what you pay and value is what you get. Bitcoin at $100k can be high or low, depending on your point of view, but a combined market value of $20 trillion is a number rooted in monetary fundamentals. Whether Bitcoin and gold will keep advancing from here will depend on many factors, but surely the growth of the money supply will be one of them.”The story of gold is well told throughout history. The story of bitcoin is just beginning. And bitcoin is going to keep appreciating as long as the US government keeps printing money. Hope everyone has a great start to your week. I’ll talk to you tomorrow.-Anthony PomplianoFounder & CE

To investors,Bitcoin hit $100,000 per coin last night for the first time in history. This historic milestone is psychologically important because humans like big, round numbers and there is no denying the success of bitcoin now. You can see bitcoin dominating headlines at every major news outlet. Word of mouth is starting to spread. Google search volume is accelerating. The bitcoin marketing machine is working and the $100,000 threshold will be fuel on that fire. But here is the funny thing — bitcoin is still drastically undervalued. The market cap of gold is nearly $18 trillion and bitcoin is only worth $2 trillion. That gap is way to wide. I can make a very strong argument that bitcoin is at least 10x better than gold (it is more portable, durable, divisible, censorship resistant, etc), which suggests the digital asset’s market cap should eventually surpass gold’s market cap. Rather than spend our time looking backwards this morning, I want to focus your attention on the work that is still left to do. There are two major milestones that I am looking forward to — the US strategic bitcoin reserve and nation-state adoption. First, incoming President Donald Trump campaigned on the promise of a national strategic bitcoin reserve. There are plenty of critics that don’t believe we will see this come to fruition, but I have confidence we will see the reserve established. Remember, Donald Trump, Donald Trump Jr, Eric Trump, RFK Jr, Tulsi Gabbard, Vivek Ramaswamy, Elon Musk, Howard Lutnick, and many others in the administration all own bitcoin. They understand the asset and see the value in it. Additionally, we have Senator Lummis putting forward legislation to get the reserve established. My current perspective is the strategic bitcoin reserve will start with holding the 200,000 bitcoin under US possession at the moment. A commitment to not sell these coins will create the crack in the dam that leads to the US buying more. And if you think Donald Trump is not thinking about bitcoin, let me show you his tweet from this morning:It is becoming harder to argue that the next President of the United States is not pro-bitcoin. Bitcoin is also up nearly 50% since Trump was elected in early November, so the market seems to think he is good for the asset too. As the United States embraces bitcoin, this will lead to the second milestone — a global race of nation states vying for bitcoin adoption. We have already seen nations like El Salvador and Bhutan buy bitcoin for their country’s balance sheets. But eventually I believe we will see every major nation adopt the asset. Here is Russian President Vladimir Putin explaining that no one can ban bitcoin. Here is Federal Reserve Chairman Jerome Powell saying bitcoin does not compete with the US dollar. Do you get it yet? Do you see what I see? The nation states are knocking on the door and they won’t be stopped from getting inside. So what does this mean for you?Absolutely nothing. Individuals will continue to dollar cost average into bitcoin. They will continue holding the asset regardless of the volatility. And the nation states are going to buy as much bitcoin as they can, which will drive the price higher because the hardcore bitcoiners will refuse to sell their bitcoin. That is the beauty of a free market overlaid on a finite asset. The world will eventually realize the bitcoiners were right. It will just take some time. To all of you that bought bitcoin over the years and held it through the incredible volatility — congratulations. You likely accomplished this in the face of severe critiques from family and friends. You ignored the noise. And now you are being proven correct. But although it feels like we have come a long way, there is still so much work to do. Be gracious in victory. Spend the time to educate others on bitcoin, just as someone did for you. Do not pull the ladder up behind you. There may be hundreds of millions of people who own bitcoin today, but there are still billions of people who don’t.Let’s close that gap. It will only happen if everyone works together. That is what makes bitcoin so beautiful. The people were able to front-run the institutions and nation states. Now we sit back and watch these large pools of capital fight over a few million bitcoin that are freely trading in the market. What an incredible time to be alive.Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital ManagementDarius Dale Explains Why Wall Street Is Bullish On BitcoinDarius Dale is the Founder & CEO of 42Macro. In this conversation, we evaluate the bull market, the 60/30/10 investment portfolio, dollar strength, the impact of potential global refinancing, and can DOGE be successful in cutting government costs?Enjoy!Podcast Sponsors* Ledger - Ledger secures 20% of the world’s digital assets. Upgrade to Ledger Flex this Black Friday and get $70 in Bitcoin or save up to 40% on select wallets.* Meanwhile - The world’s

Today’s Letter is Brought To You By Range!Looking for a tax strategy to offset those BTC gains? Range has you covered -- they have rebuilt wealth management from the ground up, offering investors like you a modern all-in-one comprehensive suite of financial services.With Range, you get everything in one place—investments, taxes, estate, real estate, equity, and cash flow. No more piecemealing your way to generational wealth while hunting for the right connections to manage all aspects of your money.The traditional industry has you convinced that you have to pay ridiculously high fees to get sophisticated wealth management.Let them know you’re done. You’ve found Range. The search is over.To investors,Bitcoin is crashing to levels not seen since….a week ago. No, seriously. That is what has happened over the last 24 hours. Bitcoin has traded down under $92,000 and people are freaking out all over the internet. But bitcoin was hitting a new all-time high of $92,000 just a week ago.It is always funny how bad our memories are. First, we should remember that bitcoin had the highest weekly close in history on Sunday night. So why is the price going down right now? Because there are more sellers than buyers. That sounds simplistic, but that is the truth. Checkmate, one of my favorite bitcoin on-chain analysts, points out “Long-Term Holders have distributed $60B worth of supply in the last 30-days. Out of all the LTH supply moved since the FTX bottom, 21% of it has happened in November. This is the heaviest profit taking we have seen so far this cycle.”You would expect the price to fall further if long-term holders are selling this much, so why haven’t we seen a larger drawdown? The ETFs are buying up a ton of the supply at the same time. Kyle Doops explains “Long-term Bitcoin holders sold 128K BTC, but U.S. spot ETFs absorbed 90% of the selling pressure. Strong institutional demand is fueling BTC’s rally, bringing it closer to the $100K milestone.”This doesn’t mean that we are in the clear though — Joe Consorti highlights a potential scenario worth watching: “Bitcoin has tracked global M2 with a ~70-day lag since September 2023. I don't want to alarm anyone, but if it continues, bitcoin could be in for a 20-25% correction. (Bitcoin in orange and money supply in white).”I don’t think investors can time markets with a high-degree of accuracy, so I wouldn’t try to do it. Plus, if we use Thanksgiving 2020 as a guide, bitcoin has the potential to cool off for a week or two before ripping higher to all-time high records at an accelerated rate. But maybe you don’t believe history rhymes. Ki Young Ju writes “even in a parabolic bull run, Bitcoin can see -30% pullbacks. Such corrections repeatedly occurred during the 2021 price discovery from $17K to $64K. This isn’t a call for a correction—just manage your risk and avoid panic selling at local bottoms. We’re in a bull market.”Ki Young Ju explains the “bitcoin market seems too early to call a bubble. The market cap hasn’t increased significantly relative to cumulative on-chain capital inflows. Based on the current realized cap, it could rise to $141K. The realized cap has been steadily increasing every day.”So what is the big takeaway from all this data? Take a deep breath — everything is going to be alright. Bitcoin doesn’t go up in a straight line. Yes, the price of the asset is falling. It may fall further. But the long-term trend is still intact. I would not be surprised to see bitcoin hit a new all-time high before the end of the year. It is a holiday week. Relax. Enjoy time with your family and friends. The world will keep spinning. Bitcoin will keep producing blocks of transactions. And the government will keep printing money. So bitcoin will go higher over time. Hope you have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementSmall Business Uses Bitcoin To Improve Employee Retention & Product QualityMike Coffey and Julie Denton-Price are the owners of BlueCotton, a small retail-grade screen printing business in Bowling Green, Kentucky. They previously plugged their business into the bitcoin network in a very unique way, and it is changing the lives of 130 employees. In this conversation we discuss, why they did it, how the employees earn bitcoin, and what the impact has been.Enjoy!Podcast Sponsors* Bitkey – The hardware wallet built for bitcoin that replaces complex seed phrases with an easy three-key system. Available for $99.* Franzy - Ready to leave the 9-to-5, start a side hustle, or expand your portfolio? 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To investors,A key theme in public markets throughout 2025 will be opportunities for corporations to give investors access to corners of the crypto industry that are otherwise hard to access. As I have written about previously, DeFi Technologies has successfully done this with first-to-market ETPs and Hut 8 has created an energy infrastructure business serving both bitcoin mining and artificial intelligence data centers. I recently found another business that I think is well-positioned to capitalize on this theme.I was talking with my friend Eric Jackson, the brains behind EMJ Capital, about ways to express my bullish view on Solana via the public market. He mentioned a company called Sol Strategies (CSE: HODL | OTC: CYFRF) in Canada, but I had never heard of them before. So I started doing some research. Sol Strategies is the rebranded name of Cypherpunk Holdings, which was one of the first publicly-traded bitcoin-related companies years ago. Earlier this year Leah Wald, the former CEO of Valkyrie, stepped in as CEO and started buying Solana for the organization’s balance sheet. The company also runs a validator on the Solana network to drive revenue. The company only rebranded as Sol Strategies in September, which means many people in the market probably don’t realize there has been a strategy shift yet. I love opportunities where a company is implementing a proven strategy (ex: give access to a crypto ecosystem that is otherwise hard to access in public markets) and public market investors haven’t yet realized they can allocate capital to gain this exposure. Returns are captured when contrarian ideas later become consensus ideas. Let’s dig into Sol Strategies. The company currently has 130,125 SOL on their balance sheet, which is worth ~ $33 million based on last night’s price of SOL. As the price of Solana increases, the dollar value of the balance sheet will increase. You can think of this similar to Microstrategy’s balance sheet of bitcoin — Sol Strategies is doing it with Solana instead. This is interesting because Solana has been outperforming bitcoin over the last year.Although it may not be popular in the bitcoin community, I believe Solana will continue to outperform bitcoin in this bull market. This is why Solana has been my second largest crypto position after bitcoin since December 2023. Sol Strategies would be interesting if it merely was the Microstrategy of Solana, but the company is going one step further — they also operate validators on the Solana network. Here is how the company describes their validator activities:* Sol Strategies locks up SOL tokens in the Solana network to support its transaction validation and enhance security. * Sol Strategies operates a validator node, responsible for verifying transactions and producing new blacks, which requires significant SOL staking. * By staking SOL and running the validator, Sol Strategies earn rewards in additional SOL tokens based on our validator’s performance and the total amount staked. This would be like Microstrategy also mining bitcoin on top of their bitcoin balance sheet. It is important to understand validators and staking because Sol Strategies earns 8.5% on the Solana staked in the validator from their balance sheet. We can estimate the company will earn approximately $2.8 million annualized (in SOL) from the staking revenue driven by balance sheet SOL. But the company also runs validators for other SOL holders to stake their assets. For these assets, Sol Strategies earns block rewards, as well as a management fee on staking and MeV revenue. In the past 7 days, this revenue was 142.72 SOL (7,421.44 annualized). This suggests the company will receive another $1.9 million in revenue from their external staking management services. (Note: Anyone can quickly view how much the Sol Strategies validator is earning, as it is publicly available. Using this validator dashboard, you can change the date range to the last 7 days to see the total SOL earned per Epoch (each Epoch is 2 days). According to this dashboard, over the past 7 days, the validator earned the 142.72 SOL I mentioned above.)If my math is correct, the company will generate another $4.7 million of SOL every year that gets added to their current balance sheet. This number is likely to increase in the coming months because Sol Strategies has been acquiring validators from other companies, such as the recent acquisition of four validators from Cogent Crypto. The Cogent Crypto SOL validator generated 562 SOL in the past week (29,224 annualized). Sol Strategies purchased 78% of this validator, suggesting an additional $5.8 million of SOL from this acquisition alone.If you take the current market cap of ~ $130 million and subtract the ~ $33 million of SOL on the balance sheet, it appears the company will be trading at less than 10x revenue once the Cogent Crypto acquisition closes — not bad for a company that is growing relatively fast in a sector that is poised to do well in a

To investors,I was interviewed by Fox Business’ Charles Gasparino yesterday at the 10X Wealth Conference in Miami, Florida. One of the topics we spent time on was bitcoin’s volatility. This is a common critique used by traditional market participants, but those critiques led me to think more deeply about the pros/cons of bitcoin’s volatility. I should start by saying young investors today should be known as the Volatility Generation. They seek out volatility more than those who came before them, while also being blessed to live in a time where financial markets were highly volatile. Volatility is not good or bad. People like volatility when it goes in their favor (ex: you are holding a stock and the stock is volatile to the upside) and they hate volatility when it goes against them. Next, volatility can have a profound impact on individuals and their financial life. Take US housing priced in bitcoin — we have seen a 99% reduction in the last 8 years to home prices when they are denominated in the digital currency. A self-described “macro nerd” and “capital market enthusiast” shared this chart on Twitter, which hammers home how insane this price reduction has been (remember this is in log!):This chart is backwards looking, but what if we take the information and apply it to the future? Thankfully, we can take a look at Mark Harvey’s work for this exact answer. Mark writes:“The absolute worst 4-year compound annual growth rate (CAGR) for Bitcoin is 24%. This means that even if you bought BTC at the worst possible time and held it for 4 years, you would still achieve an average annual return of 24% on your money. Running the numbers: BTC price if it was to return 24% annually and held for the next....* 4 years: $215K * 5 years: $267K * 10 years: $782K However, the current 4-year CAGR is 50%. BTC price if it was to return 50% annually and held for the next... * 4 years: $461K * 5 years: $691K * 10 years: $5.2M”These numbers are wild to think about — bitcoin would end up between $782,000 - $5.2 million in the next decade according to the worst CAGR or the current CAGR. I am not predicting either of those prices, but rather explaining what the data says. Now here is the most interesting question — will the compound annual growth rate of bitcoin slow down or accelerate in the coming years? You can see in the chart above that the CAGR has been dropping since 2016. The easy answer is that an asset’s CAGR will drop as the asset gets bigger. But there are two data points that are worth considering for the counter-argument — investor interest and size of capital pools. On the investor interest side, Wall Street Journal’s Gunjan Banerji recently tweeted:“There has been a nearly unprecedented rush into stocks since the U.S. presidential election. U.S. equity funds recorded $56 billion of inflows last week, the second largest sum **on record** going back to 2008”Record investor interest levels in stocks is bound to have an impact on bitcoin. Some of that exuberance will make its way to the more asymmetric asset, which could drive bitcoin’s CAGR higher in the short-term. Additionally, the size of capital pools allocating to bitcoin are changing. We used to see individuals and family offices as the main buyer. Last cycle we started to see corporations. And this cycle is already driven by large financial institutions such as Blackrock, Fidelity, Franklin Templeton, and others. Eventually we will see countries and central banks buying bitcoin as well. These large capital pools mean a strong tailwind for the asset, which could also drive the CAGR higher.So what do I think? The two points I bring up—investor interest and size of capital pools—are unlikely to accelerate bitcoin’s CAGR over the long-run. Instead, I could see those tailwinds helping to prevent the decay of the CAGR for longer than we would otherwise see. Crypto investors are jaded. They forget that a 50% CAGR in traditional markets would be INSANE.If we can keep that rate going for another 5-10 years, there will be material wealth generated for any bitcoin holder, regardless of how many bitcoin they hold. This is the best case scenario in my opinion. But my base case remains unchanged — I would expect bitcoin’s volatility to decrease, along with the compound annual growth rate, as we look out to the next 3-5 years. It is very hard for assets to gain substantial market cap and keep growing at the same growth rate. I don’t think bitcoin will be special in this department. So the good news is that bitcoin is going to do very well in the future. The asset is likely going to be worth hundreds of thousands of dollars in the next few years. The only thing investors need to do is buy some bitcoin and chill. Don’t outsmart yourself. Don’t try to trade. Don’t get cute. Just let the asset do what it was designed to do. Number Go Up technology is a real thing. I wouldn’t want to bet against it. Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anth

To investors,Bitcoin had one of it’s most impressive days in history yesterday. The asset was up more than 13% and nearly hit $90,000 on the day. There was a lack of substantive news, so I believe the price action was merely Wall Street realizing they were under-allocated to bitcoin.For example, bitcoin was trading around $76,000 on Friday afternoon when the stock market closed. The asset had appreciated and was trading around $82,000 when the stock market opened Monday morning. This means Wall Street investors were boxed out of the market all weekend while bitcoin was running.As soon as the market opened on Monday morning, there was a gap up and it was obvious that bitcoin was going to have momentum for the day. I usually don’t care about day-to-day price action, nor do I consider myself a trader or technician, but this market structure is important to understand because one of the largest pools of capital interested in bitcoin can only buy the asset during stock market open hours.The US stock market is closed more hours a week than it is open. Yet bitcoin still has performed well while the stock market is closed, so there is an interesting memetic response from Wall Street when the stock market opens. You can see this dynamic playing out elsewhere in the market too.Bloomberg’s Eric Balchunas writes “The Bitcoin Industrial Complex (ETFs + MSTR, COIN) saw $38 billion in trading volume today, lifetime records being set all over the place, including IBIT, which did $4.5 billion, which points to a robust week of inflows. Just an insane day.”It is very clear that Wall Street wants bitcoin and bitcoin-related companies. Take a look at Hut 8, which provides power for bitcoin mining and artificial intelligence use cases (I am an advisor). The company has seen the stock price increase by more than 50% over the last 5 days. This is interesting because Hut 8 ($HUT) sits at the intersection of energy and bitcoin. We know there is a pro-bitcoin President coming to the White House, but one of the other core Trump policies is to deregulate the energy industry. This feels like 1 + 1 = 5. Anywhere that bitcoin intersects with other Trump policies, we should see value being created for investors.This brings us back to bitcoin. What if the asset is not only going up because of Wall Street FOMO? What else could it be?I think bitcoin is screaming a message to us — we just have to listen. The US national debt has exploded in the last month. Charlie Bilello points out:“US National Debt is absolutely exploding higher, increasing by $850 billion in just the last 3 months. In the past 5 years we've seen a 56% increase. The Federal Government is borrowing from our future to spend money like drunken sailors today.”During the last 3-months, bitcoin has added more than $26,000 to the price. That is a 44% increase at the same time the national debt increased by $850 billion. Maybe bitcoin is acting as the alarm bell? Could it be attempting to draw our attention to the acceleration in uncontrolled spending? I wouldn’t bet against it. Bitcoin has become a great hedge against currency debasement. The higher the national debt goes, the more the government will need to inflate their way out of it. Everyone has their eyes on Wall Street FOMO, but maybe bitcoin is actually pointing us to the politicians. Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementAnthony Pompliano Explains Why The Recent Bitcoin All-Time High Signals An Incoming Bull RunAnthony Pompliano records a solo episode as bitcoin smashes through $80,000. He explains how we got here, and personal thoughts on where we are going.Enjoy!Podcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token designed to outperform BTC returns. Learn more and view live analytics on our performance dashboard.* Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.* BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,Bitcoin hit a new all-time high of more than $82,300 this morning. This means the digital currency is up over 18% in the last 7 days. The market seems to like that a pro-bitcoin President was elected.The latest all-time high is going to be particularly important for the trajectory bitcoin will travel in the next 12 months. I believe crossing $80,000 — which is a nice, big round number — will catch the eye of many investors and capital allocators. Bitcoin is now in a price range that has never been covered before. The charts look incredibly good too. Mark Ungewitter called it the “best chart on planet” yesterday.More importantly, the cross of $80,000 signals the first time in years that bitcoin has hit a new all-time in inflation-adjusted terms. Daniel Sempere Pico highlights the previous all-time high of more than $69,000 is actually equivalent to over $80,000 in today’s dollars. This weekend’s price appreciation put us over the new inflation-adjusted threshold.Institutional investors are going to be very interested in understanding bitcoin, and potentially allocating to it, when the media is talking about it non-stop all week. If you don’t think that is going to happen, then you are new around here. You will eventually learn. Retail is leading the charge on word-of-mouth. You can see Google Search queries starting to rise compared to the last 12 months. We still aren’t to the levels we saw for the new all-time high post-ETF approval in March, but we are getting close. I would expect Google Search trends to eclipse March levels by the end of the year. Speaking of history, we should pay very close attention to what happened four years ago. 2020 was the last halving year. We saw bitcoin’s price go from approximately $15,000 in early November to over $60,000 in March of 2021. That is more than 400% price appreciation in 5 months. Not many assets can do that. I am not predicting a repeat of the 400% gain in such a short time period, but I do think history is going to rhyme in the coming months. I wrote to you all on October 28th this year and said “don’t get lulled to sleep by sideways summer. We should be coming out of hibernation soon and decision-makers become much more interested after prices have increased.”It is safe to say we are out of hibernation now. It would not surprise me to see bitcoin catch a very strong bid through the end of the year. Price is reflexive. Everyone on Wall Street copies each other. Financial advisors are starting to put on 1% positions for all clients unless the opt out. Here is an example message that someone posted online:Additionally, there are rumors from some of the most knowledgable Bitcoiners that we will see very large nation state purchases revealed in the coming months. Bitcoin Magazine CEO David Bailey claims a nation state has become a top 5 holder of bitcoin recently but no one is aware they purchased the bitcoin. That would be a fairly important announcement. I will leave the speculation of who it is to all of you.So what does all this data and information tell us — bitcoin is going much higher between now and the end of 2025. I don’t know what the exact price or timing will be, but it is hard to find a compelling argument to be bearish or reserved right now. The world is realizing the importance of a decentralized, digital currency that continues to produce block-after-block of transactions regardless of what happens in the world. The United States has a pro-bitcoin President going to the White House. And investors are realizing bitcoin may be the solution they need. The results speak for themselves. Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementREADER NOTE: This is a free version of The Pomp Letter. If you want to receive this letter every morning with my personal opinions on financial markets, please subscribe to become a paying member. Adam Kobeissi and Anthony Pompliano Discuss Gold and BitcoinAdam Kobeissi is the founder of ‘The Kobeissi Letter.’, and Anthony Pompliano, CEO of Professional Capital Management, discuss bitcoin and gold.Enjoy!Podcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token designed to outperform BTC returns. Learn more and view live analytics on our performance dashboard.* Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.* BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management fir

🚨 READER NOTE: Next Tuesday, I am hosting a free webinar for anyone who wants to learn more about Bitcoin self-custody. It will be a 3+ hour masterclass where my team and I will walk through step-by-step instructions for implementing self-custody and answer questions.The event is completely free and open to anyone who wants to attend. Register for free here: https://lu.ma/selfcustodyTo investors,Yesterday we witnessed the best performance in history for the S&P 500 on the day after an election. It is clear that capital allocators are positioning themselves for higher prices across the market. An area to keep an eye on is the Russell 2000 — these small cap companies tend to be more sensitive to interest rates. The index was up nearly 6% yesterday. The market believes under President Trump capital will be cheaper and regulation will be decreased, which creates a tailwind for these businesses. Speaking of deregulation, I continue to tell friends that the energy sector is on the starting block of a renaissance. The United States is already a net exporter of crude oil, but the Trump administration continues to boast of an even larger pro-energy approach. Drill, baby, drill. But stocks and energy are not the most interesting developments over the last few months — Trump previously committed to a “bitcoin strategic reserve” if he was elected. There are a lot of campaign promises made on the trail, so it seemed unlikely this would actually come to fruition. Not so fast though. We saw Senator Cynthia Lummis tweet yesterday about the strategic reserve. Her post has received more than 5.6 million views as of this morning.A bitcoin strategic reserve would kick off a level of global FOMO unlike anything we have seen before. Every nation and every central bank would have to quickly create a bitcoin strategy. Whether they bought bitcoin in the open market or chose to mine bitcoin with national energy resources, many countries would begin stockpiling bitcoin for a rainy day.Lastly, my friend Howard Lindzon has an interesting idea around the “degenerate economy.” He writes:“For the last year I have been digging into what I call the ‘degenerate economy’ which is the next phase of investors, ownership, gambling, living life with a wallet on/in your phone. The 'degenerate economy' includes education, experiences and activities. We onboarded and connected hundreds of millions of young people into investing, trading, speculation, crypto and gambling/betting.”Howard created an index for tracking this thesis and the index is up ~ 90% in the last 18 months. It was up 7% yesterday after Trump was confirmed as the election winner. Stocks up. Energy production up. Bitcoin up. Degenerate economy up. This is the future we are headed into.The biggest risk to the US economy is not a recession, but rather a resurgence of inflation. President Trump wants to stimulate the economy. But the US dollar is sitting on the other side of the table from that plan. We already have a Fed that is cutting interest rates and M2 money supply is growing, so Trump adding fuel to the fire would potentially create another 2020-style boom to markets.Those holding assets will get rich. Those holding cash will not. A tale as old as time. Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital Management🚨 READER NOTE: I am co-hosting a conference with Lance Lambert and ResiClub on residential real estate in NYC tomorrow. We have many industry experts speaking about the housing market, impact of interest rates, effects on the US economy, and what investors should know moving forward.The event has been quite popular, so remaining tickets are limited. If you would like to attend, please grab your tickets: Click hereAnthony & Polina Pompliano Discuss Why Trump Won and How It Will Impact Various Financial AssetsPolina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss 2024 election, why Donald Trump won in landslide, what that means for your investment portfolio, stocks, bitcoin, predictions during a Trump Presidency, JD Vance, Elon Musk, and all the impacts of the election.Enjoy!Podcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token designed to outperform BTC returns. Learn more and view live analytics on our performance dashboard.* Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.* BetOnline is your #1 source for all your crypto sports and politichttp://gemini.com/gowheredollarswonts betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred ch

To investors,The citizens of the United States spoke loudly last night. They delivered a crushing victory for Donald Trump, including a Republican victory in the House, Senate, popular vote, and electoral college. Very few people thought Trump would win the popular vote, but here we are. This can only be described with one word: Landslide.The mandate to Trump is clear — get inflation under control, make homes more affordable, secure the border, cut taxes, don’t engage in new wars, stop the woke nonsense, and make America healthy again.Powerful stuff. If you want to understand how the victory could be so large, we can look at places like Starr County in Texas.It is hard to fathom how decisive the election was. Financial markets love the idea of a Trump presidency as well. Stocks went higher over night, including Tesla up 15% and DJT up more than 30% during the period. More importantly, bitcoin hit a new all-time high price of $75,000 last night as Trump’s odds of winning surged.Satoshi Nakamoto couldn’t have written a better script. The decentralized currency hitting a new high as the President of the United States is decided. A big part of the reason is Trump will be the first Bitcoin President. He ran on the idea that a Trump administration would protect bitcoin, create a regulatory environment that would serve as a tailwind, and the United States would create a bitcoin strategic reserve. All of these developments would be good for bitcoin, but they would also kick off a global game theory for other countries.If Trump embraces bitcoin, other countries will be forced to follow. I explained some of this on CNBC’s Squawk Box this morning:One other important point is that Trump will likely be very helpful for bitcoin miners. Deregulation in the energy industry will bring more abundance and lower prices. A pro-bitcoin President will bring a tailwind to the asset. Combine those two things and you could see bitcoin miners becoming an even more attractive opportunity. As I have previously discussed, I want to be an energy dealer in the years to come — provide energy for modern uses cases in society. The thesis just got even stronger with a Trump victory.Overall, Donald Trump walked away with a decisive victory last night. Asset prices look ready to surge higher in the coming days. It remains to be seen which policies Trump will enact, but having a pro-business and pro-capitalism President in office should….be good for businesses and investors.Let’s see what happens. Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital Management🚨 READER NOTE: I am co-hosting a conference with Lance Lambert and ResiClub on residential real estate in NYC this Friday, November 8th. We have many industry experts speaking about the housing market, impact of interest rates, effects on the US economy, and what investors should know moving forward.The event has been quite popular, so remaining tickets are limited. If you would like to attend, please grab your tickets: Click hereDylan LeClair Explains Why Corporations Are Putting Bitcoin On Their Balance SheetsAdam Kobeissi is the founder of ‘The Kobeissi Letter.’ In this conversation, we break down the US economy, inflation, national debt, Warren Buffett stacking cash, why homes have become unaffordable, gold bitcoin, stocks, and where the market is going.Enjoy!Podcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token designed to outperform BTC returns. Learn more and view live analytics on our performance dashboard.* Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.* BetOnline is your #1 source for all your crypto sports and politichttp://gemini.com/gowheredollarswonts betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,The next President of the United States will be decided today. Tens of millions of Americans will cast their vote in hopes of seeing their candidate elected. But investors are laser-focused on how the election will impact their portfolio. My goal with today’s letter is to answer that question.First, Chris Hayes and Alex Harring from CNBC analyzed the S&P performance after every election since 1980. Here is what they found:We have only seen a decline in the S&P 500 by the end of the election year 4 out of 11 times. The average return is 1.5% and the median is 3.7%. Not bad for historical analysis of the last two months in an election year, while also ignoring whether a Republican or Democrat won the election. Next, Quinten Francois points out that “each U.S. election week has set a Bitcoin price floor that’s never been revisited.”Zack Voell shows the percentage return 1-year after each election during bitcoin’s lifetime:History may not repeat itself, but it sure does rhyme. Bitcoin doesn’t care who the President of the United States is. The digital currency continues to go higher over the long run. Another data point that I found fascinating came from Bitwise’s Matt Hougan. He said “here are the total net flows since inception of the largest gold and bitcoin ETFs: * GLD: $20.9b --- launched November 2004 * IBIT: $25.8b --- launched January 2024”That is a mind-blowing comparison. Blackrock’s bitcoin ETF erased a 20 year head start for gold in less than 12 months.Up next, let’s take a look at what investors are doing to position themselves going into the election today — Bloomberg’s Eric Balchunas highlights the fact that investors appear to have no fear:“NO FEAR: ETF investors shunning all hedges (VIX, inverse equities, gold, cash) while pouring cash into stocks heading into Election Day. In my opinion, investors have been conditioned to tune out scary headlines and keep buying.”If you think Trump is going to win, you have been buying US equities. If you think Harris is going to win, you have been buying US equities. If you don’t care who becomes President, you have been buying US equities. This fact is quite the narrative violation. Financial markets love certainty. That is what we are all going to get by the end of the week. America will know who the next President of the United States will be. Investors will continue allocating capital according to the perceived policies. There are plenty of people ready to pitch you the latest doomsday scenario, but I just don’t see that as a plausible future outcome right now. I would never bet agains the US economy or the American people. The bulls are in control. The bears are in disbelief. Today will be a historic day. Sit back and enjoy the show. Hope everyone has a great Tuesday. I’ll talk to you all tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital Management🚨 READER NOTE: I am co-hosting a conference with Lance Lambert and ResiClub on residential real estate in NYC this Friday, November 8th. We have many industry experts speaking about the housing market, impact of interest rates, effects on the US economy, and what investors should know moving forward.The event has been quite popular, so remaining tickets are limited. If you would like to attend, please grab your tickets: Click hereDylan LeClair Explains Why Corporations Are Putting Bitcoin On Their Balance SheetsDylan LeClair is the Director of Bitcoin Strategy at Metaplanet & Market Intelligence at UTXO Management. In this conversation, we discuss bitcoin being put on the balance sheet of publicly traded companies, why it has created the best performing stocks in the entire world, what it means for all the individual businesses, and where he sees these companies going moving forward.Enjoy!Podcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token designed to outperform BTC returns. Learn more and view live analytics on our performance dashboard.* Gemini - The future is being built today. Go Where Dollar’s Won’t. With Gemini.* BetOnline is your #1 source for all your crypto sports and politichttp://gemini.com/gowheredollarswonts betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd

To investors,The President of the United States will be elected tomorrow. It is unclear how long it will take for ballots to be counted, but we will definitively know who is the next President by the end of the week. There is a lot of uncertainty before we get that answer though. We saw multiple polls conflict each other over the weekend. The famous Selzer poll in Iowa has Trump behind by 3 points, but the Emerson poll for Iowa has Trump ahead by more than 10 points. Which should you believe? I have no clue. This is what feeds into the uncertainty. The “experts” on both sides are highly confident they are right, which means almost no one has any clue what is going to happen on Tuesday. This is a big reason why politics dominates the news cycle around election season. People would be much less interested if we knew the answer to “who will be the next President of the United States?” But with that media coverage comes an immense amount of noise for investors. Take prediction markets as an example. Trump was leading by 30 points last week. Trump was behind over the weekend. And Trump was back to winning by 6 points as of last night. That type of volatility can be excruciatingly painful for investors trying to make short-term decisions with their portfolio based on an unknowable event. The prediction markets are not the only place where volatility is showing up. Bitcoin has been trading in a range between $50,000 and $70,000 for the last 6 months and the asset has only appreciated by about 7% during that half-year period. Bitcoin was trading at ~ $60,000 on October 11th. It traded at more than $73,000 on October 30th. It trades at under $69,000 as of last night. Again, uncertainty brings volatility. Volatility brings noise. So what are investors doing to prepare for this uncertainty?Famed investors Paul Tudor Jones and Stanley Druckenmiller are both betting on things they believe to be certain — the increasing national debt and the debasement of the US dollar. Each investor has given an interview in recent weeks to tout their investments in various stocks, gold, or bitcoin. They are concerned about inflation and the necessity of the US government to inflate away the debt. In a world of uncertainty, Paul and Stanley are trying to find the sure bets. And both political parties continue to increase the national debt.Warren Buffett is taking a different approach. He has been selling off large portions of his investments in Apple, Bank of America, and other holdings. Berkshire Hathaway now has more than $325 billion in cash and the company holds more treasuries than the Federal Reserve. Many commentators have taken the surging cash pile to signal Buffett’s belief that a market downturn could be right around the corner. While that may be part of the reason that Buffett is selling investments, there is another argument which may explain it even better — Warren Buffett is worried about taxes?Based on Buffett’s answer from the Berkshire annual meeting about prior Apple sales, it may suggest so. Click this video and it will auto-play at the relevant part of the video.Buffett points to the current fiscal situation as reasoning for his belief that higher taxes “are quite likely.” I don’t see many people equating this worry about future tax hikes to the increasing cash on Berkshire’s balance sheet. Again, there is no single culprit for the selling, so it is important to understand as many reasons as you can. Uncertainty rules the day. Investors are trying to navigate the noise. But here is a nuanced view of the situation we find ourselves in today — stocks will be higher in 10 years, bitcoin will be higher in 10 years, real estate will be higher in 10 years, and bonds will keep losing value. You have to study history to understand this view. I read a great book called The Gatekeepers over the weekend. The author, Chris Whipple, breaks down the Chiefs of Staff for every President since Richard Nixon. As you read the book, it becomes clear that each President faced crisis and daunting odds. Critics constantly predicted the demise of the United States or our economy under the leadership of the incoming President. Thankfully, it never happened. America is incredibly resilient. It thrives due to the geographical, economical, and demographical advantages. Structural advantages and trends rule the day. How can you use this information today? Stop worrying about the President’s impact on your investment portfolio. It is unlikely that any one candidate can be destructive over the long run. Instead, focus on the long-term trends that are going to persist under both candidates.The devaluation of the US dollar is probably the easiest trend to bet on moving forward. There are many ways to do it. How you choose to play it will determine the return you capture or the risk you fall victim to. Buckle up your seatbelts. We are in for a bumpy week. Hope you all have a great start to your Monday. I’ll talk to everyone tomorrow. -Anthony Pompli

To investors,Everyone wants bitcoin. That is becoming increasingly clear on a daily basis. We saw announcement after announcement this week proving the desirability of a scarce digital currency. First, we saw Jimmy Patronis, CFO for the state of Florida, go on CNBC and advocate for bitcoin to be put on the state’s balance sheet. Patronis highlighted the overreach of government surveillance, the debasement of the US dollar, and a path to resisting the woke policies of the current administration.Next, we saw the central bank of Argentina open an “art exhibit” that features ASICs that are actively mining bitcoin. This is the first central bank I am aware of that is mining bitcoin. Many people will point to the “art exhibit” label, but this looks like a clever way for the central bank to start mining bitcoin without sounding any alarms inside other countries or monetary authorities. Next, MicroStrategy announced their intention to raise $42 billion in debt and equity over the next 3 years to purchase more bitcoin. They have already spent a few billion dollars in 2024, but the plan is to ramp up spending aggressively. Lastly, Blackrock’s bitcoin ETF set a new record for single day inflow this week. More importantly, their ETF has seen the third largest inflows year-to-date of any ETF in financial markets. As I said, everyone wants bitcoin, including individuals, financial institutions, corporations, and central banks. Satoshi created a piece of technology that solved one of the hardest problems in the world — protecting the purchasing power of people, companies, and governments. An idea’s time has come. Hope you all have a great end to your week. I’ll talk to everyone on Monday.-Anthony PomplianoFounder & CEO, Professional Capital Management🚨 READER NOTE: I am co-hosting a conference with Lance Lambert and ResiClub on residential real estate in NYC on Friday November 8th. We have many industry experts speaking about the housing market, impact of interest rates, effects on the US economy, and what investors should know moving forward.The event has been quite popular, so remaining tickets are limited. If you would like to attend, please grab your tickets: Click hereBitcoin’s Future Under Donald Trump and Kamala HarrisI sat down with Phil Rosen, co-founder and Editor-in-Chief of Opening Bell Daily, to discuss the Presidential election’s impact on various financial assets. We walk through the various candidates, their economic plans, and how it should impact stocks, bitcoin, and bonds. Enjoy!Podcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token designed to outperform BTC returns. Learn more and view live analytics on our performance dashboard.* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,I have important news to share — I have reached an agreement with Hut 8 ($HUT), a publicly-traded company on Nasdaq, to become an advisor and help them scale the company. In order to understand why I am spending my most valuable resource—my time— on this, we should start with some context. Energy is one of the most valuable commodities in the world. Humans need energy to create a more abundant, prosperous future for our children. In fact, there is no high-income country that consumes a low amount of energy. This trend is not going to reverse. As technology accelerates, so will energy consumption. Because of this relationship, a key investment theme of the future will be selling energy to the businesses willing to pay the highest price. As a capitalist, I want to be an energy dealer. It will be very valuable to own energy infrastructure that can service modern society. These energy infrastructure companies will sell their energy to people using GPUs for artificial intelligence, ASICs for bitcoin mining, and many other use cases. The new energy consumption use cases need a new energy infrastructure partner.If I had unlimited money, I would invest a few billion dollars into building the premier energy infrastructure provider. Unfortunately, I don’t have unlimited dollars, so I have concluded the better thing to do is partner with the best energy infrastructure company I could find with the hopes of helping them scale.This is where Hut 8 comes into the picture. The company is a modern energy infrastructure provider. They are agnostic to the end use case. As long as Hut 8 can provide reliable, low-cost energy to their customers, someone will always be interested in buying available power. Today the company has two types of customers — bitcoin miners and companies using artificial intelligence. There will be many other use cases in the future. When I went looking to become an energy dealer, it became obvious Hut 8 was already pursuing that strategy. But I got more excited as I did more work looking at the company. For example, Hut 8’s business can be broken down into three core components: power, infrastructure, and compute. Power is anything needed for power delivery generation before you get to the data center (land, substation, inter-connectivity, etc). Infrastructure is the data centers, both Tier 1 for bitcoin mining and Tier 3 for AI use cases. And compute is when Hut 8 owns hardware themselves and monetizes their power with ASICs or GPUs to generate additional revenue for their balance sheet. The company has an advantage with these three layers. They can choose when to sell power to customers or monetize the power themselves. Follow the math. There will be times to sell the power to others and there will be times to sell the power to yourself. Next, I love the setup of the company from a structure standpoint. The stock is owned by approximately 50% retail and 50% institutional today. But institutional ownership has been growing from around 10% to about 50% since February when the current CEO took over the company. I like holding stock that institutions are aggressively buying. Hut 8 has just over 9,000 bitcoin on their balance sheet, yet they have less than 100 million shares outstanding. This means the company has low outstanding share count and they appear to have very low dilution year-to-date compared to other bitcoin-related publicly-traded companies. Low share count. Disciplined treatment for equity owners. Lots of bitcoin on the balance sheet. All good signs in my opinion. Next, we have to look at the leadership team. Hut 8 is led by Asher Genoot, who has done a great job of creatively structuring deals to give the corporation immense optionality in the future. Take their recent Bitmain deal as an example.Bitmain signed a contract that will drive approximately $135 million in annual run-rate revenue to the business. That deal brings 15 exahash in bitcoin mining to Hut 8 facilities. But here is the catch — if bitcoin’s price goes down, Hut 8 gets paid as if they are a classic energy provider selling Bitmain energy. If bitcoin’s price goes up, Hut 8 can buy the ASIC machines from Bitmain at a pre-agreed, fixed price. This type of deal gives Hut 8 an option on the future, while protecting the downside with an attractive outcome as well. Public market investors usually underestimate the importance of creative dealmaking when evaluating companies because it requires qualitative analysis that doesn’t fit into a spreadsheet. Lastly, Blackrock is the largest shareholder of Hut 8 and Coatue has invested substantial money into the company. As if that wasn’t enough, Anchorage Digital recently converted millions of dollars of debt into equity in the business at a ~ 50% premium to the stock price at the time. Think about that for a second. One of the debt holders, who did not have convertible debt, decided to convert their debt into equity at a 50% premium to the current public market price. That is

To investors,I published a 2-hour conversation with Cantor Fitzgerald CEO Howard Lutnick yesterday. The reception has been very positive, including a number of people saying it is the best conversation we have ever recorded. Howard and I spent a good amount of time talking about the national debt. I expected him to harp on the nearly $2 trillion annual deficit that the government runs and he did not disappoint. An interesting data point during this part of the conversation was Howard’s story about Elon Musk and the Department of Government Efficiency (DOGE). Howard believes Elon can reduce government spending by approximately $500 billion per year. As you can imagine, Elon is excited about the challenge of finding inefficiency and firing bureaucrats. Think Elon slashing costs at Twitter post-acquisition, but for the government.No one thinks the government is efficient. In fact, almost everyone agrees the government has a spending problem, but either through lack of courage or skill we have not had anyone able to wrangle the out-of-control spending from the politicians. Maybe DOGE could be successful. Maybe not. But even if Howard, Elon, and the newly formed DOGE could reduce spending by $500 billion, that would still leave about $1.5 trillion annual deficit. This is where things get interesting — Howard explains how a new administration could go on offense to drive more revenue for the federal government. By now you have probably heard the idea of using tariffs to increase revenue and decrease our dependence on foreign goods, but Howard shared another idea that I had not heard before.The United States has a ~ $500 trillion balance sheet. We have never had an administration look at the balance sheet as an asset that can generate revenue. Howard’s idea is to use the significant assets to drive a 0.25% return or better annually.This balance sheet is made up of buildings, land, mineral rights, and many other assets. Any revenue generated from the assets would help to close the additional deficit left over from whatever DOGE can reduce. Is it possible? Maybe. It is nearly impossible to tell at the moment. But the idea of trying to pull these new levers is worth exploring. The spending problem is not going away, so we need to figure out other avenues for revenue without increasing taxes on individuals. I rarely tell you all to watch an episode of the podcast, but this one is a “highly recommend” from me. Many viewers are saying it is the best episode we have ever published, regardless of which side of the aisle you sit on. As a bonus, Howard tells his personal story at the end. The story is one of resilience and perseverance. He lost both his parents at a young age and then watched as more than 650 of his employees died in the September 11th attacks. Howard had a choice to rebuild the company and support the families of his colleagues, or he could have shut everything down and walked away. Howard is a fighter. He rebuilt the company. And the story at the end of the conversation will bring you to tears. You can watch the full conversation with Howard Lutnick here:Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital Management🚨 READER NOTE: I am co-hosting a conference with Lance Lambert and ResiClub on residential real estate in NYC on Friday November 8th. We have many industry experts speaking about the housing market, impact of interest rates, effects on the US economy, and what investors should know moving forward.The event has been quite popular, so remaining tickets are limited. If you would like to attend, please grab your tickets: Click herePodcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token designed to outperform BTC returns. Learn more and view live analytics on our performance dashboard.* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,There is a vibe shift underway in America. It is hard to describe, but you know it when you see it. Take this yard sign as an example. My friend Based Beff Jezos tweeted this photo from a home in Los Angeles. This yard sign would be expected in the American South, but it is shocking to see in Southern California. That is part of the vibe shift. But the vibe shift is happening in financial markets as well. The talk of an incoming recession has died down and investors are becoming more optimistic. Carson Research’s Ryan Detrick points out today is historically the most bullish day of the year for stocks. Investors getting more bullish doesn’t mean that stock prices have to go up. Instead, stocks could become overvalued and suffer a significant future decline. The P/E ratio is one statistic I see doomsayers pointing to as proof that stocks are in for a rude awakening. Matt Cerminaro brought up a great point over the weekend:“The rise in P/E is justified. Businesses have gotten twice as efficient at making money now vs in 1995. The net margin has literally doubled. Just look at the chart on the left. Whose to say this trend doesn't continue higher. [It] would support a continuous rise in P/E.”This is important to understand about historical comparisons. Valuations may be changing, but the underlying businesses have been improving as well. If companies make more money, then they should be worth more to an investor. But is the vibe shift only happening in equities? No. You can see it in bitcoin as well. Let’s compare bitcoin, gold, and the S&P 500. You can see that gold and the S&P have very little difference in returns according to the 5-year compound annual growth rate.It is bitcoin that stands out on a 1-year, 5-year, and 10-year timeframe. You could make a strong argument that allocating gold and equities over the last 5 years has been a wash, but buying bitcoin would have transformed your portfolio. Many buyers of gold are not allocating for pure price appreciation though. Win Smart highlights that “central banks now hold 12.1% of global gold reserves, the highest level since the 1990s.”So what do you think happens when these central banks start allocating to bitcoin? Gold is a story of the past, bitcoin is a story of the future. Take a look at bitcoin compared to the M2 money supply. Galaxy’s Head of Research Alex Thorn shows that bitcoin has not caught up to the recent money expansion. This doesn’t mean you shouldn’t own gold. It doesn’t mean you shouldn’t own stocks. It just means that a vibe shift is underway. Investors who have chosen to allocate to a digital store-of-value are continuing to outperform over the long run. If it works for individuals, it is only a matter of time before governments start implementing the strategy. That is when the real fun will begin. Until then, don’t get lulled to sleep by sideways summer. We should be coming out of hibernation soon and decision-makers become much more interested after prices have increased. As Mark Yusko always says, “people are really good at buying the things they should have bought and selling the things they are about to need.”Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital Management🚨 READER NOTE: I am co-hosting a conference with Lance Lambert and ResiClub on residential real estate in NYC on Friday November 8th. We have many industry experts speaking about the housing market, impact of interest rates, effects on the US economy, and what investors should know moving forward.The event has been quite popular, so remaining tickets are limited. If you would like to attend, please grab your tickets: Click hereNavy SEAL Becomes Humanitarian And Save LivesI spoke with Ephraim Mattos about his life journey, which is inspiring to say the least. Ephraim is not only one of America’s greatest warriors, but he also wrote an incredible book about his transition to become a humanitarian. Enjoy!Podcast Sponsors* Blockstream Mining Note 2 (BMN2) is an EU registered and issued Bitcoin mining security token.* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Polkadot is a scalable, secure, and decentralized blockchain technology aimed at creating Web3. Innovation leader, making it a preferred choice for big names.* Xapo - Xapo Bank is the only way to bank with Bitcoin. * ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valua

REMINDER - Crypto Investor Day Is This Week!Reflexivity Research invites you to join us on Friday, October 25th in New York City as we continue to bridge the power of traditional finance with the innovation of crypto.​​We’re inviting hundreds of institutional investors, capital allocators, and entrepreneurs together for the inaugural Crypto Investor Day. The event will be hosted by Reflexivity Research and moderated by Anthony Pompliano.​​Expect top-tier speakers, plenty of networking opportunities and hours of insightful discussions around the future of crypto across the traditional finance and institutional landscapes.​​No gimmicks or distractions, we operate our events on an insights-per-minute KPI.To investors,Prediction markets are quickly becoming the talk of financial markets. These novel products were promised as free market solutions to uncover hidden truths on a variety of topics. Given that it is political season, all eyes are on these prediction markets to glean signal on who will be the next Commander-in-Chief. But there has been one big problem — recent articles have surfaced claiming the prediction markets are being skewed by a small number of whales who are placing outsized wagers on former President Trump. This would obviously be a big problem if true. Whale manipulation of the odds could create a lack of trust in the prediction odds, which would eliminate most of the value these markets are supposedly creating. I don’t think the markets are being manipulated by whales though. Castle Island’s Nic Carter explained “it's pretty obvious it's not just a lone trader that's upwardly manipulating Polymarket since all bookies and prediction markets give Trump roughly the same odds. The real divide is between the markets and the press/pundit driven proprietary models, which are more bullish Harris.”This seems like a straightforward way to identify that a single group couldn’t possibly be manipulating aggregators, bookies, prediction markets, and proprietary models. But there is more evidence.Kalshi, which is the only prediction market where it is legal in the United States to bet on the Presidential election, released some of their internal data to disprove the manipulation theory as well. Kalshi founder Tarek Mansour tweeted the following:“Media claim: a few big whales are driving Trump's odds up Reality: The median bet size on Harris is LARGER than the median bet size on Donald Trump. Trump’s odds are not the result of a few people pushing the odds up. It’s the opposite.”This data seems fairly overwhelming. Prediction markets seem to be creating a new data point in the market about the US election. Here is the thing though — if the prediction markets end up being right, this could mark the beginning of the end for political polls. Why is that important? Because prediction markets are another example of free markets disrupting incumbent traditions dominated by academia and bureaucracy. Bitcoin is the free market solution to money. Prediction markets are the free market solution to politics. There will be many more. Now that the technology is available, and an entire generation has grown up with free market products, we should expect technologists to continue building these systems to take on incumbents. Regardless of whether you use bitcoin or prediction markets, it is important to understand that free market products are good for the general population. More information. Less manipulation. Welcome to the future. You can check out Kalshi’s Presidential election prediction market here: Click hereHope you all have a great start to your week. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital Management🚨 Talk or Hang Out With Anthony Pompliano 🚨I want to meet you.In order to get the meeting scheduled, you have to purchase a certain amount of my new book, How To Live An Extraordinary Life. You can do one of the following:* Buy 25 Books: We will have a 30 minute video call to discuss anything you want.* Buy 100+ Books: I will speak virtually at your event or company meeting.* Buy 500+ Books: I will speak in-person at your event or come to your office.* Buy 1000+ Books: You get to spend an entire day with me in-person, including breakfast, lunch, and dinner. I will also speak at your event or to your team.You can use this link to purchase up to 100 books and then use this link for a discount on bulk buys over 100 books.Here is how it works:* You purchase the necessary amount of books.* You reply to this email with the receipt or screenshot.* I will send you potential days/times for the call, meeting, or visit.I have already done a few calls with people and spoken at different events. It is just as fun for me as for you, so I look forward to meeting many of you as well.My Fox Business Appearance From ThursdayI spoke to Fox Business on how bitcoin has stumped Wall Street and the confusion that is created by a simple financial asset. Timeless investing principles still a

To investors,Elon Musk and Tesla unveiled a number of new products last night. These prototypes give us a glimpse into the future and were incredibly compelling. First, Elon showed off the Tesla humanoid. These machines, called Optimus, walked out into the crowd to mingle with attendees. Elon claims the bots will be able to “walk your dog, mow your lawn, get the groceries, just be your friend."As if that was not cool enough, there are multiple videos trending online where people were having unscripted conversations with the bots. This video in particular really shows just how good the technology has become.Another interesting use case on display for Optimus last night was bartending — you can see the bot exhibiting incredible control with their fingers, playfully joking with the attendees, and easily understanding the social context when it made a mistake. Pretty impressive. Remember, this is the worse the technology is going to be for the rest of history. It only gets better from here. Tesla wasn’t exclusively focused on their humanoids during the event. They also unveiled their prototype for the CyberCab, a robotaxi that will be owned by individuals and participate in a fleet that patrols a city offering ride sharing. The company also announced a larger van that can hold approximately 20 people as well. It is safe to say that Tesla is probably one of the most ambitious companies in the world. So many people thought of them as a car company for years, but now they are showing what is possible when you push the boundaries of artificial intelligence, machine learning, computer vision, robotics, and other innovative technologies. It is easy for people to get depressed about the current world we live in. But it takes courageous entrepreneurs like Elon Musk to build a better future for us and our children. It has been a long time since I have seen a product launch event like Tesla. It was mind-blowing to see how much progress the company is making. It isn’t only on a single product though, they are accelerating progress in various domains. That is what true innovation looks like. There is one area that no one is talking about this morning that I want to call out. How will the Optimus bots transact with each other? How will these new cars exchange economic value?My guess is there will be a large uptick in usage for stablecoins as a result of these technologies coming into production. Bitcoin will be for saving economic value and stablecoins will be for spending. The digital rails that stablecoins exist on allow for cheaper and faster transactions. Think of digital currencies as money for machines.And if Tesla is building the machines of the future, they likely will be early to embracing the money of machines too. This is something to keep your eye on. If stablecoins become a big winner from the rise of robotics, then every crypto enthusiast will become a robot cheerleader.I wouldn’t bet against that future.Hope you all have a great end to your week. I’ll talk to everyone on Monday.-Anthony PomplianoFounder & CEO, Professional Capital Management🚨 Talk or Hang Out With Anthony Pompliano 🚨I want to meet you.In order to get the meeting scheduled, you have to purchase a certain amount of my new book, How To Live An Extraordinary Life. You can do one of the following:* Buy 25 Books: We will have a 30 minute video call to discuss anything you want.* Buy 100+ Books: I will speak virtually at your event or company meeting.* Buy 500+ Books: I will speak in-person at your event or come to your office.* Buy 1000+ Books: You get to spend an entire day with me in-person, including breakfast, lunch, and dinner. I will also speak at your event or to your team.You can use this link to purchase up to 100 books and then use this link for a discount on bulk buys over 100 books.Here is how it works:* You purchase the necessary amount of books.* You reply to this email with the receipt or screenshot.* I will send you potential days/times for the call, meeting, or visit.I have already done a few calls with people and spoken at different events. It is just as fun for me as for you, so I look forward to meeting many of you as well.Phil Rosen, the Co-Founder of Opening Bell Daily, and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss everything about bitcoin, why it’s the best performing asset so far in 2024, volatility, bitcoin as a savings account, the global impact of bitcoin being successful, and the recent documentary about Satoshi. Listen on iTunes: Click hereListen on Spotify: Click hereAnthony Pompliano Explains The Bitcoin Investment Thesis To Opening Bell Daily’s Phil RosenPodcast Sponsors* BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Domain Money makes financial planning straightforward and accessible.They tailor plans to you

Today’s letter is brought to you by Domain Money!If you’re reading this right now you don’t need financial advice, if you did you would use Domain Money, a company of flat fee financial planners that craft you a personalized, in-depth plan with unbiased, straightforward, and real sound advice based on your values and goals, but you are all better than that.You know about money. That’s why you’re here.If you had questions, you’d use Domain Money. See Disclaimer below¹To investors,Bitcoin has been trading sideways for the entire summer. Many people have been lulled to sleep by the lack of upside volatility. Don’t be one of those people. My expectation is we are entering an exciting bull market. There should be price movement between now and mid-November. It is always hard to predict the severity of the move, so I will leave that to someone smarter than me. The 4th quarter of halving years are known for starting the move upwards. I don’t anticipate this one will be any different. Given that context, lets take a look at the health of the bitcoin network. First, we have seen active addresses drop after the first quarter of 2024. We should expect lower address volume when price is sideways or down, so this isn’t very surprising. But it gives us a good sense of how much volume can come back on-chain if price begins to rise. Next we see that the number of bitcoin on-chain addresses with at least 1 full bitcoin has been sideways for most of the summer. The same is true about addresses with non-zero balances, 0.01 bitcoin, and 0.1 bitcoin balances. We can also see that the total bitcoin held on crypto exchanges has been flat since January 2023. That is a long time to go without much change and the fact holders are not moving their bitcoin onto exchanges should signal majority of people are not willing to sell at current prices. Hashrate has also been sideways for the last few months. This follows the parabolic rise in recent years. Bitcoin remains the strongest computer network in the world, but there is heavy debate over which data point is the leading indicator — bitcoin’s price or hash rate. One of the most important data points is that 65% of all bitcoin in circulation have not moved in the last 12 months. This has come down slightly from the 70% in December 2023, but it remains very healthy. The more long-term holders with bitcoin in their wallet, the less liquidity for the circulating supply — this means it takes less net new interest to move the price higher. If you double the time frame to 2 years, more than 50% of all bitcoin in circulation have not moved. This is true despite the price of bitcoin tripling during that period. The funny thing about all this data? Bitcoin is still the best performing asset class in 2024. In conclusion, the sideways summer is almost over. Bitcoiners are holding their assets for the long-term. It will take just a little bit of new interest to move the illiquid circulating supply higher. It should start getting fun again in the next month or two. Lets see what happens. Hope you all have a great day. I’ll talk to you tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital Management🚨 Talk or Hang Out With Anthony Pompliano 🚨I want to meet you.In order to get the meeting scheduled, you have to purchase a certain amount of my new book, How To Live An Extraordinary Life. You can do one of the following:* Buy 25 Books: We will have a 30 minute video call to discuss anything you want.* Buy 100+ Books: I will speak virtually at your event or company meeting.* Buy 500+ Books: I will speak in-person at your event or come to your office.* Buy 1000+ Books: You get to spend an entire day with me in-person, including breakfast, lunch, and dinner. I will also speak at your event or to your team.You can use this link to purchase up to 100 books and then use this link for a discount on bulk buys over 100 books.Here is how it works:* You purchase the necessary amount of books.* You reply to this email with the receipt or screenshot.* I will send you potential days/times for the call, meeting, or visit.I have already done a few calls with people and spoken at different events. It is just as fun for me as for you, so I look forward to meeting many of you as well.Phil Rosen, the Co-Founder of Opening Bell Daily, and and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss interest rates, port strike, reactions to the VP debate, bitcoin, asset performances, and future outlook. Listen on iTunes: Click hereListen on Spotify: Click hereThe US Economy Was Being Held Hostage By Dock WorkersPodcast Sponsors* BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goals, whether it’s buying a ho

Today’s letter is brought to you by Domain Money!If you’re reading this right now you don’t need financial advice, if you did you would use Domain Money, a company of flat fee financial planners that craft you a personalized, in-depth plan with unbiased, straightforward, and real sound advice based on your values and goals, but you are all better than that.You know about money. That’s why you’re here.If you had questions, you’d use Domain Money. See Disclaimer below¹To investors,The public narrative is Republicans are embracing bitcoin and cryptocurrencies, while Democrats are actively attacking it. Every good story has a hint of truth to it. However, be careful believing everything you hear or read. There is definitely support from many Republicans, including former President Donald Trump, but we are starting to see more Democrats come out in support of the assets and industry. Take Representative Ro Khanna as an example. He recently came out publicly as a proponent of the United States building a strategic reserve of bitcoin. Khanna stated “Bitcoin that has been seized by the US government should be used as a strategic reserve asset given its potential for appreciation.”This is noteworthy because we need Democrats like Khanna to ensure bitcoin will be a bipartisan topic moving forward. Technology should not fall victim to tribalism from politics. If the Republicans are going to embrace the industry, we should encourage Democrats to do the same. Why? Because bitcoin is going to continue gaining importance as a potential solution for the incredible national debt crisis.Bravos Research recently said “government debt is bigger than the ENTIRE US economy In 2012, debt surpassed GDP for the first time. Ever. There has been no looking back ever since.”Economist EJ Antoni shows the problem is only getting worse too. He says the “federal debt explodes on first day of the new fiscal year, jumping $204 billion to new record of $35.669 trillion, but it gets worse: Treasury also had to draw down its cash balance by $72 billion - that's over $275 billion in the red FOR JUST ONE DAY.”Insane when you think about how large these numbers are. Bitcoiners seem to be preparing for bitcoin to become a lot more valuable too. Crypto commentator Marty Party pointed out yesterday that crypto exchanges are seeing the largest withdrawals of bitcoin since the big crash in November 2022. So to recap — national debt is growing to the moon, the Fed is cutting interest rates, bitcoiners are withdrawing their coins into self-custody, and Republicans and Democrats are finding common ground with a decentralized, finite supply asset. Seems bullish to me. Let’s see what the rest of the year has in store for us. Hope you all have a great weekend. I’ll talk to everyone on Monday. -Anthony PomplianoFounder & CEO, Professional Capital Management🚨 Talk or Hang Out With Anthony Pompliano 🚨I want to meet you.In order to get the meeting scheduled, you have to purchase a certain amount of my new book, How To Live An Extraordinary Life. You can do one of the following:* Buy 25 Books: We will have a 30 minute video call to discuss anything you want.* Buy 100+ Books: I will speak virtually at your event or company meeting.* Buy 500+ Books: I will speak in-person at your event or come to your office.* Buy 1000+ Books: You get to spend an entire day with me in-person, including breakfast, lunch, and dinner. I will also speak at your event or to your team.You can use this link to purchase up to 100 books and then use this link for a discount on bulk buys over 100 books. Here is how it works:* You purchase the necessary amount of books.* You reply to this email with the receipt or screenshot.* I will send you potential days/times for the call, meeting, or visit.I have already done a few calls with people and spoken at different events. It is just as fun for me as for you, so I look forward to meeting many of you as well.Polina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss why Jerome Powell can’t stop cutting interest rates, all-time high number of US citizens dependent on government aid, using bitcoin to pay your taxes, and what will happen when cheap capital floods the market. Listen on iTunes: Click hereListen on Spotify: Click hereThe Fed Is Easing & Asset Prices Are Starting To IncreasePodcast Sponsors* BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is

Today’s letter is brought to you by REX Shares!Whether you're bullish 🐂 or bearish 🐻 on MicroStrategy, T-REX ETFs are your gateway to dynamic market plays. Get exclusive access to leveraged exposures with the first ETFs designed specifically for MicroStrategy stock.To investors,The International Longshoremen’s Association went on strike yesterday in an attempt to pressure the United States Maritime Alliance into caving to their demands. Sounds like a story as old as time, right?Kind of. There is some nuance that is important to understand. The union is looking for a variety of things, but the two headline requests are a 70%+ increase in pay and a ban on automation technology in the ports. I am not here to pass judgement on how much the men and women at our ports get paid. Frankly, I am not informed enough to understand whether they should get paid 25%, 50%, or 75% more. Someone smarter than me can figure that out.But I do have enough knowledge to comment on the proposed ban of automation technologies — this is insane and dumb. The United States of America was built on technological progress, free markets, and competition. Our country and economy suffers when we stray from that original path. This is nothing new though. Candle makers tried to fight electricity. Horse owners tried to fight cars. Newspapers tried to fight the internet. None of them succeeded. History has proven that fighting technological progress puts you on the wrong side of the record books. The ILA is going to be no different. We have to take this analysis one step further though. I believe the Longshoremen are acting against the best interest of the United States by opposing technology. It is obvious that automation technology will increase efficiency, decrease expenses, and create more resilience in our ports. These are ports that not only have an economic impact on society, but likely have a national security component to them as well. Whenever you hear the Longshoremen saying “we don’t want automation,” you have to translate it to mean “we don’t want efficiency, speed, and lower costs.” That is insane. It is possible to understand why the ILA is taking this position (they don’t want to lose their jobs!), while still arguing the action is wrong. I wrote in my new book we need more people with the mantra “compete, don’t complain.” That lesson applies in this situation. There is an even bigger takeaway though which has been ignored by the Longshoremen too — automation will create more jobs, not less. Use self-driving cars as an example. Google’s AI summarizes it well:“Some truck drivers and unions are concerned that self-driving trucks will eliminate jobs. However, a 2021 Transportation Department study suggests that autonomous trucking could create new jobs for maintenance technicians, dispatchers, and fuelers.”The same thing will happen in the ports. Remember, the invention of ATMs (automated bank tellers!) led to more bank tellers being employed today than ever before. We don’t have time for history lessons though. It is estimated that every day of the strike will cost the US economy approximately $3 billion. If the strike continues for a week, some economists believe we could see a decrease in annualized GDP by as much as 0.3%. Stop the madness. Get the workers back to work. Negotiate whatever pay increase the two-sides can agree to. And stop with the ill-informed demands about banning technology. Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital Management🚨 Set Up A Call With Anthony Pompliano 🚨I want to set up a 1-on-1 Zoom call for 30 minutes to meet you.In order to get the call scheduled, you have to purchase 25 books or more of my new book, How To Live An Extraordinary Life. Here is how this will work:* You purchase 25 books or more.* You reply to this email with the receipt or screenshot.* I will send you potential days/times for the call.* We will get on the call and discuss whatever you want for 30 minutes.I have already done a few calls with people from Twitter and really enjoyed them, so I look forward to meeting many of you as well.Polina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss why Jerome Powell can’t stop cutting interest rates, all-time high number of US citizens dependent on government aid, using bitcoin to pay your taxes, and what will happen when cheap capital floods the market. Listen on iTunes: Click hereListen on Spotify: Click hereThe Fed Is Easing & Asset Prices Are Starting To IncreasePodcast Sponsors* BetOnline is your #1 source for all your crypto sports and politics betting! Use our promo code POMP100 to receive a 100% matching bonus up to $1,000 on your first crypto deposit.* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goa

🚨 READER NOTE: I am hosting the first book signing for my new book, How To Live An Extraordinary Life, in New York City tonight (Monday September 30th) at 7pm. There will be a short discussion about the book and then I will sign copies for anyone who attends. The event is free to attend. You can RSVP to come to the event by clicking here. I look forward to seeing you there.To investors,Cheap capital is coming fast and furious. Crossborder Capital has reproduced their famous chart of global liquidity, which shows the cyclical uptick we are beginning to experience. The rhythmic nature of global liquidity is almost hard to believe. Joe Carlasare points out:“I’ve seen this chart shared dozens of times. However, it’s proprietary and I’ve never been able to recreate it. Call me a skeptic, but it seems that it would be prudent to understand the inputs of this chart before people put a lot of faith in it.” Whether you agree with Crossborder Capital’s chart or not, there are plenty of other data points showing cheap capital is on the way. A simple one is the number of monthly central bank policy rate cuts around the world.September had the largest number of collective cuts globally since April of 2020. As central banks continue to cut rates, investors won’t be able to help themselves — borrowing and investing will accelerate. Economist Daniel Lacalle shared a different chart of global net liquidity, while saying “global net liquidity is exploding. This means unprecedented monetary destruction, economic secular stagnation, and risky assets' expansion.”Monetary policy decisions have consequences though. An easy place to see the destruction of the US dollar is in the income-housing gap. John LeFevre says:“The income required to afford the average house in the United States: * 2020: $53,679 * 2024: $121,398”That is a monstrous increase in a half decade. But that is not the only concerning data point. Porter Stansberry shows “eating out is becoming a luxury for many Americans. The Restaurant Performance Index, which tracks the financial health of U.S. restaurants, is in its 10th straight month in contraction zone.”Do you get it yet? Do you see what is happening? Central banks are stimulating economies, which will devalue the dollar and other fiat currencies. It will flood the market with cheap capital. Your purchasing power will be eroded away and asset prices will be inflated. Savers lose, investors win. The only test that matters in finance for the foreseeable future is “did you invest or did you save?” Hopefully everyone reading this letter has an intelligent answer that balances emergency savings with an investment portfolio. Regardless of what you do though, central banks are running their playbook. Drop interest rates. Print money. Stimulate to avoid catastrophe. Increase the debt. Kick the can down the road. Let someone else pay for today’s sins. Everything is fine until we get to the end of the road. Fingers crossed that is no time soon. Hope you all have a great start to your week and I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital Management🚨 Set Up A Call With Anthony Pompliano 🚨I want to set up a 1-on-1 Zoom call for 30 minutes to meet you.In order to get the call scheduled, you have to purchase 25 books or more of my new book, How To Live An Extraordinary Life. Here is how this will work:* You purchase 25 books or more.* You reply to this email with the receipt or screenshot.* I will send you potential days/times for the call.* We will get on the call and discuss whatever you want for 30 minutes.I have already done a few calls with people from Twitter and really enjoyed them, so I look forward to meeting many of you as well.Anthony Pompliano records a solo episode to answer the questions, are stocks overvalued? Is bitcoin due for a crash? Topics include federal reserve, interest rates, Mag 7 vs. 2000s tech bubble, historical stock performances, and more. Listen on iTunes: Click hereListen on Spotify: Click hereAre Stocks Overvalued? Is Bitcoin Due For A Crash?Podcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You

READER NOTE: I am hosting the first book signing for my new book, How To Live An Extraordinary Life, in New York City on Monday September 30th at 7pm. There will be a short discussion about the book and then I will sign copies for anyone who attends. You can RSVP to come to the event by clicking here. To investors,The debate around a potential recession continues to rage on. Bearish capital allocators are yelling and screaming about sky-high valuations in the largest tech companies. But Michael Antonelli shared a great graphic that argues the opposite — current valuations are nowhere near the peak dot com valuations. The rebuttal to the bears doesn’t stop there. Nick Maggiulli explains that US stock performance during the 21st century is just now catching up to the performance of the 20th century. Who would have thought the 10+ year bull market of 2010s would have left the 21st century performance so far behind the prior century. This is what happens when stocks go sideways for a decade following a big bust like the dot com insanity. So why do stocks continue to go up and to the right? Brent Donnelly shared a simple, yet important, insight:“The simplest explanation for why stocks go up is not the Fed's balance sheet, or passive flows, or fake government economic data... It's corporate earnings. It's logical and it explains many market mysteries like why MAG7 has become such a huge part of the indices. They earn more than their peers. Way more. Earnings don't go straight up, obviously. But this chart shows you why it's so hard to make money short stocks. They have many tailwinds -- and shorts face many headwinds (borrow, negative carry, risking infinity percent to make 100%, worst companies are hardest to borrow, etc.) This is from Sam Ro this weekend.”Occam’s Razor — the simplest explanation is the most likely. But there is something else happening in markets that may surprise you. Wall Street Journal’s Gunjan Banerji highlights the Federal Reserve cut interest rates, yet money-market funds are still seeing strong inflows. This is allowing money-market funds to collectively reach new all-time high records for AUM. Major narrative violation. These narrative violations are going to continue to happen because there is more money in the system. People have to put the capital somewhere. Overall, those who are bearish will continue to be bearish. No amount of data or logic is going to convince them otherwise. But that doesn’t change the truth. It is hard to see a bearish argument over a 5+ year outlook when cheap capital is coming into the market. It is called stimulus for a reason. Hope you all have a great weekend. I’ll talk to everyone Monday. -Anthony PomplianoFounder & CEO, Professional Capital ManagementJames Lavish is the Co-Managing Partner of the Bitcoin Opportunity Fund, and is the author of the ‘The Informationist’ a weekly newsletter that simplifies financial concepts. In this conversation, we break down the macro environment, how inflation has been ravaging America, national debt & the future impact on the economy, bitcoin, potential solutions, risk of CBDCs, and where the world is going. Listen on iTunes: Click hereListen on Spotify: Click hereJames Lavish Explains The Risks For National Debt & Bitcoin As Potential SolutionPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,I have spent the last two years writing a book. It has nothing to do with hardcore finance or bitcoin, but everything to do with self-improvement, constant learning, and living the life you want. The book, which is titled How To Live An Extraordinary Life, is a compilation of 65 letters to my children on various life lessons I have picked up over the years. I never had an intention to write a book, but as I started writing these letters in private it struck me that many other people could benefit from these insights. The beauty of the book is that each letter is the product of a mistake I made, a piece of advice someone gave to me, or an experience I lived through over the years. You will learn lessons about money, investing, work, relationships, health, and happiness.None of the ideas are my own — I had to live my life and rely on people much smarter than me to teach me all of this information. Each letter in the book is structured to share the lesson, explain how I learned it, and then give actionable advice on how to implement it in your own life. My goal is to share the information with my children and some of you. These are timeless lessons that have been passed down to me, so their survival over time signals their accuracy and value. As you all know, I hate asking people for a favor. But the publisher has told me that sales in the first week really matter for the long-term popularity of the book. With that understanding, if I have ever helped you in any way (taught you something, given you an idea, made you think more critically, etc), then please consider buying the book today.* Amazon: Click here* Barnes and Noble: Click hereFor those that want to know how you can help beyond simply buying a book, here are a few other things you can do:* Post on social media about the book - share a photo of the book, tell people why you are excited, or share a link to where someone can buy the book. * Recommend the book to friends - word of mouth is the best marketing. The more people you tell, the more people that we can reach with a positive message. * Leave a review on Amazon - hit the 5 stars and put a few sentences about why you love the book. Reviews are the oxygen for a new book to thrive. Thank you all in advance. Writing this letter to you almost every day for six years has allowed me to learn so much, including things that made it into the book. I am a little nervous publicly publishing something so personal, but if it helps a few people then it is worth the risk. Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital Management This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,SpaceX successfully conducted the first civilian spacewalk in history this morning. There have been plenty of astronauts who have gone outside the International Space Station, walked on the moon, or participated in a variety of spacewalks, but we have never had a civilian experience the magic of space in this way. If you watch this short clip of the first of two civilians to enter space, it looks very similar to an astronaut from NASA doing the spacewalk.If you stop and think for a second, it is almost surreal what we are witnessing. A private company, SpaceX, has been able to create reusable rockets that are now empowering civilians to go into space.It may not feel like a big deal that 2 civilians out of more than 8 billion humans on earth are doing this, but it signals a major milestone on a much larger trend — eventually millions of people will walk and live in space. Does that mean humans will live on Mars? Maybe. Does that mean humans will live on the moon? Maybe. Does that mean humans will live in modern versions of the International Space Station? Maybe. It is difficult to predict the future with any degree of accuracy. But we can see the direction of progress. Innovation is reducing the friction for us to launch people and things into space. Naturally, a private company will follow the economic incentives to grow their revenue and enterprise value. This means SpaceX, and their competitors, will keep expanding opportunities for humans to participate. Today it is 4 civilians on the first non-government spacewalk. Eventually it will be many more.On top of human spacewalks, there is rapid innovation happening in other areas of space — take Varda Space Industries as an example. The company has successfully manufactured a drug in space and returned it back down to earth. Their thesis is drug development has advantages when conducted in space rather than on earth. If you allow your mind to imagine with the excitement of a child, it is not hard to see a future where economic and leisure activities are being conducted on land and in space. That seemed like a pipe dream two decades ago when SpaceX was founded, but we inch closer to it becoming reality with each passing day. It is hard to see the spacewalk this morning and not be inspired to help push progress forward. Go bigger. Take more risk. Solve meaningful problems. Progress only happens when humans have the courage to act. Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital Management🚨🚨 Reader Note: BUILD Summit, our annual conference in NYC for founders, is coming up next month on September 26th.The event will provide top tier speakers, networking opportunities, and insightful business discussions on raising capital, scaling businesses, and building products.Current speakers include angel investor Balaji Srinivasan, Khosla Ventures’ Keith Rabois, Perplexity CEO Aravind Srinivas, Eight Sleep Founders Matteo Franceschetti & Alexandra Zatarain, and Passes CEO Lucy Guo.The event is free to attend and will be full of insights on how to operate a company at world-class level.Polina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, CEO of Professional Capital Management, discuss what is going on with bitcoin, future catalyst, and price outlook into bull market, we break down the OnlyFans business, shocking revenue share breakdown, SpaceX, Starlink, Elon Musk, and predictions for the Presidential debate. Listen on iTunes: Click hereListen on Spotify: Click hereAnthony & Polina Pompliano Discuss Bitcoin, Presidential Debate, OnlyFans Financials, and Elon Musk’s StarlinkPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit

Today’s letter is brought to you by Domain Money!If you’re reading this right now you don’t need financial advice, if you did you would use Domain Money, a company of flat fee financial planners that craft you a personalized, in-depth plan with unbiased, straightforward, and real sound advice based on your values and goals, but you are all better than that.You know about money. That’s why you’re here. If you had questions, you’d use Domain Money. See Disclaimer below¹To investors,The Presidential debate was a circus last night. Rather than a conversation focused on policies and results, the American people were subjected to a poorly scripted theatrical performance by two candidates who seemed to be focused on scoring internet points. Anyone with eyes could see that the moderators were biased, Trump took multiple pieces of bait pushing him into an angry rhetoric, and Harris dodged every question about her track record like Mohammed Ali in his prime. However, my biggest takeaway was not the things said during the debate, but rather the things that were not said. The American economy is in a precarious position. Inflation currently sits nearly 25% higher than the Fed’s target of 2%. Home affordability is the worst it has been in decades. The national debt is skyrocketing to more than $35 trillion. Over half the country reports living paycheck-to-paycheck and tens of millions of Americans don’t have enough savings to cover a $400 emergency payment. There are real problems that must be solved.Neither candidate presented a plan on how to address these issues. There was no promise of getting inflation down, nor a believable plan on how to do it. Both candidates just kept blaming each other for what happened in the past and tried to convince the public “it wasn’t me!”Not one word was uttered on how to address the structural issues in housing so American families can afford a place to live. Saying housing is unaffordable doesn’t count as a plan, nor does promising to give people free money for down payments, especially since that would make the affordability problem worse. And in one of the most shocking developments, there were zero mentions of a desire to balance the annual budget. Imagine the United States running a nearly $2 trillion deficit annually, with the national debt accelerating, and the individuals who want to be the next President don’t even mention the issue.Wait, you don’t have to imagine. That is literally what happened last night. We can’t solve our problems if we don’t talk about them. And candidates won’t present solutions to the problems unless they believe the American people will change their vote in November based on the economic plans.Instead of focusing on nonsense like taxing unrealized gains, we need more people asking for specificity on getting inflation down, balancing the budget, dropping the national debt burden, and increasing the quality of life for hard-working Americans. Many people vote with their wallets. Last night was a missed opportunity for either candidate to present themselves as the economic leader who could get the job done. Hopefully that changes for the next debate. The American people deserve to know what our next leader plans to do for the US economy. And my guess is the candidate who seizes the moment will capture real momentum going into the November vote. Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital ManagementReader Note: BUILD Summit, our annual conference in NYC for founders, is coming up next month on September 26th.The event will provide top tier speakers, networking opportunities, and insightful business discussions on raising capital, scaling businesses, and building products.Current speakers include angel investor Balaji Srinivasan, Khosla Ventures’ Keith Rabois, Perplexity CEO Aravind Srinivas, Eight Sleep Founders Matteo Franceschetti & Alexandra Zatarain, and Passes CEO Lucy Guo.The event is free to attend and will be full of insights on how to operate a company at world-class level.Polina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, CEO of Professional Capital Management, discuss what is going on with bitcoin, future catalyst, and price outlook into bull market, we break down the OnlyFans business, shocking revenue share breakdown, SpaceX, Starlink, Elon Musk, and predictions for the Presidential debate. Listen on iTunes: Click hereListen on Spotify: Click hereAnthony & Polina Pompliano Discuss Bitcoin, Presidential Debate, OnlyFans Financials, and Elon Musk’s StarlinkPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Mone

REMINDER - The BUILD Summit Is Two Weeks Away!BUILD Summit, our annual conference in NYC for founders, is coming up next month on September 26th.The event will provide top tier speakers, networking opportunities, and insightful business discussions on raising capital, scaling businesses, and building products.Current speakers include angel investor Balaji Srinivasan, Khosla Ventures’ Keith Rabois, Perplexity CEO Aravind Srinivas, Eight Sleep Founders Matteo Franceschetti & Alexandra Zatarain, and Passes CEO Lucy Guo.The event is free to attend and will be full of insights on how to operate a company at world-class level.To investors,There is a new article in Business Insider titled “United States of Bitcoin: Crypto miners got kicked out of China. Now they're sucking America dry.”As you would predict, the writer presents a heavily biased view that bitcoin mining is bad. He cites the usual statistics of high energy consumption, points to a few local groups protesting specific bitcoin mining facilities, and then even suggests America is left holding China’s bag (“it's just the latest example of China kicking out burdensome industries only for them to end up on America's doorstep”).What I found most interesting was the complete disregard for the positive argument for bitcoin mining. There was no mention of the former ERCOT President saying bitcoin miners were essential to Texas stabilizing their electricity grid. There was no mention of the thousands of jobs that have been created by the industry. There wasn’t even a passing comment about bitcoin’s success in protecting the purchasing power for hundreds of millions of people globally. It is this last point that I believe should get much more attention.American citizens just lived through the highest inflation period over the last half century. Official government measurements reported CPI to be over 9% at the peak. This destruction of economic value for 300+ million Americans should be unacceptable in a developed nation that serves as the leading financial economy. So what is an appropriate investment to solve this problem? The answer is significantly higher than people are comfortable admitting publicly. Behind the physical safety of its citizens, a country should work tirelessly to protect the purchasing power of its people. Once you lose physical safety, people flee. And if you lose economic stability, people flee. Ultimately, the people pay the government for protection — both physically and economically. There is a balance though. Government have a very hard job. They must provide this protection, so they can keep their citizens happy, but accomplish the task without micro-managing their lives or exerting too much control. That is the challenge for every elected leader. Serve the people without controlling the people. Economics is one of the best places to see how this can play out. The free market does a great job of regulating the economy over the long-run. Humans have no patience though, so we constantly intervene in the market. We can’t help ourselves. But this is where bitcoin mining comes in. The decentralized network of machines has created and secured the strongest computer network in the world. These pieces of hardware prevent humans from intervening. The system is literally designed to save us from ourselves. And along the way, bitcoin miners are protecting the purchasing power of bitcoin holders. The median home in the US cost 664 bitcoin in 2016. Today that same home costs 6 bitcoin. That is a 99% reduction in the cost of a home in less than a decade. Who ensured that happened? Bitcoin miners. That narrative was absent from the Business Insider article. It didn’t fit the preconceived perspective of the author. Thankfully, facts are still facts. We should spend whatever it takes to protect our purchasing power. In my experience, it is worth reading the critiques of bitcoin. It helps every holder stay sharp and think critically about what they hold. Who knows, maybe the author will be like us and eventually become a bitcoiner after spending the time to learn more. Never say never. Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital ManagementDave Collum is the Department Chair and Professor of Chemistry at Cornell University. In this conversion, we talk about the economy, inflation, stock market, investing outlook, politics, Trump, Harris, Vance, Walz, RFK Jr, geopolitical analysis, and how you can start to think more independently. Listen on iTunes: Click hereListen on Spotify: Click hereDisaster Is Coming To Financial Markets? Dave Collum InterviewPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa c

Today’s letter is brought to you by Unbound Golden Visa!What if you could use Bitcoin as a tool to unlock future freedom for you and your family? Well, now you can. mUnbound is the Portuguese Golden Visa Fund that invests in local companies 100% owned by the fund, which in turn invest in Bitcoin via SEC-compliant ETFs.The Portuguese citizenship by investment program is the top European choice. With extensive experience, the team facilitates EU citizenship, unlocking freedom across 27 countries.This incredible offering went viral receiving hundreds of applications in 48 hours. I recently spoke with co-founder Ale Palombo about this initiative here.To unlock your future visit Unbound’s website or simply write to [email protected] investors,The world changed on August 15, 1971 — President Nixon implemented a number of changes to the US economy in response to high inflation. These changes became known as the “Nixon shock.”Changes included:* Wage freezes* Price freezes* Surcharges on imports* Cancellation of international convertibility of US dollars to goldThe Nixon shock kicked off a new era for the United States — the fiat currency regime had begun. Since that day, the US stock market has been open for trading in just over 100,700 hours. That may seem like a useless data point, but Cory Bates points out something interesting happened this year that made the fiat era US stock market hours of operations noteworthy. Bitcoin, which was only launched in 2009, officially eclipsed the US stock market in terms of hours of trading. Bitcoin now stands at more than 123,000 hours of trading, which is nearly 25% higher than the fiat era for public equities. There are two takeaways from this information — first, it is insane that the US stock market is closed more hours per week than it is open. It is quite eye-opening that bitcoin, which started public trading less than 15 years ago, has been more accessible than public equities in the last 50 years. Second, you could argue that bitcoin is older than the fiat era stock market. The digital currency may not be older in terms of total years, but it is definitely more mature in terms of trading hours. Some people will disagree and likely claim that the US stock market dates back to before 1971. While that is true, the regime change in the Nixon shock is all that matters in today’s stock market. Why is the Nixon shock mainly what matters? The US stock market gains are largely driven by fiat debasement. The more the dollar is devalued, the faster the stock market accelerates. How can you tell? The CME Group has two great charts highlighting (1) gold’s relative performance to equities and (2) the US stock market denominated in gold. Let’s bring this back to my main point — the US stock market materially changed in 1971 even though Nixon didn’t explicitly predict it. If you take the market since this new era started, it has traded less hours than bitcoin.Bitcoin’s robust system has been tested more than the US stock market. That statement will put the legacy finance folks’ brains in a blender. But it is true. The only time a system is tested is when it is in use. Bitcoin’s market has been used more than the fiat era stock market. That is a narrative that should be spread far and wide. Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementReader Note: BUILD Summit, our annual conference in NYC for founders, is coming up next month on September 26th.The event will provide top tier speakers, networking opportunities, and insightful business discussions on raising capital, scaling businesses, and building products.Current speakers include angel investor Balaji Srinivasan, Khosla Ventures’ Keith Rabois, Perplexity CEO Aravind Srinivas, Eight Sleep Founders Matteo Franceschetti & Alexandra Zatarain, and Passes CEO Lucy Guo.The event is free to attend and will be full of insights on how to operate a company at world-class level.Phil Rosen, the Co-Founder of Opening Bell Daily, and Anthony Pompliano, CEO of Professional Capital Management, discuss why stocks and bitcoin are down, economic policies for Trump & Kamala, proposed capital gains tax increase, and outlook on asset prices during interest rate cuts. Listen on iTunes: Click hereListen on Spotify: Click hereWhy Bitcoin and Stocks Have Been CrashingPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* iTrustCapital allows you to buy and

To investors,Inflation has been the story of the decade so far. We went from sub-2% in early 2020 to over 9% by the summer of 2022. Today, one of economists favorite metrics sits at just under 3%. This roller coater ride has had a significant impact on asset prices and investor psychology. On one hand, investors who have been allocated to the stock market continue to see their portfolio value increase as indexes push higher. The classic adage “time in the market is more important than timing the market” stands for a reason. The S&P 500 is up 85% over the last 5 years. Russell 2000 has appreciated 42% and the Nasdaq 100 is up 141% during the same time period. Investors simply had to invest in indexes and chill. Monetary and fiscal policy did the rest for them — inflation took off, the dollar was devalued, and asset prices went up. As stocks went higher, investors gained more confidence that higher prices were just around the corner. Add in the fact that existing capital in the market was also gaining value and you can see how we arrive at the new all-time high of stock allocation as a percent of financial assets.Wall Street Journal's Gunjan Banerji writes yesterday:“The surging stock market has minted millionaires and helped send many Americans’ net worth sharply higher. As of the second quarter, the number of 401(k) retirement accounts at Fidelity Investments worth at least $1 million reached around 497,000, according to the firm. That is up 31% from a year ago and a record high.U.S. households’ stock allocations have steadily inched up this year, according to JPMorgan estimates, and recently accounted for around 42% of their total financial assets. That is the most on record in data going back to 1952.”There is a debate raging due to this data — are investors merely riding the trend that will continue for the foreseeable future or are investors over-confident and a market correction is just around the corner?The short answer is no one knows, but I think the framework for evaluating the situation is wrong. Only short-term oriented investors should be concerned about the week-to-week or month-to-month oscillations in the stock market. Majority of investors should simply have a long-term orientation. They can be oblivious to price movements and merely continue dollar cost averaging into their preferred index. Given enough time, the stock market will continue going higher and is essentially guaranteed to be at new all-time highs. The United States debt requires dollar devaluation, which in turn pushes all assets denominated in dollars to be worth more in dollar terms. So the only people in the market who should be worried about short-term price movements are older folks who have less time to benefit from. Anyone under the age of 50 years old has at least a decade, and probably longer, to weather potential market downturns. The beauty of ignoring short-term predictions is that an investor is exposed to the market if prices go up and they are continuing to dollar cost average if the market goes down. If the market is up, your portfolio is worth more. If the market is down, you are buying more assets at cheaper valuations. Regardless of the scenario, being long the US stock market over decades is a cheat code — the US stock market is the greatest millionaire minting machine ever created. You just have to be able to allocate capital, stomach volatility, and stay focused on the long-term. And based on the latest data, it looks like more Americans are deciding to go long stocks. We’ll see what they do if there is turbulence in the coming months.Hope you all have a great day. I’ll talk to everyone tomorrow. -Anthony PomplianoFounder & CEO, Professional Capital ManagementReader Note: BUILD Summit, our annual conference in NYC for founders, is coming up next month on September 26th.The event will provide top tier speakers, networking opportunities, and insightful business discussions on raising capital, scaling businesses, and building products.Current speakers include angel investor Balaji Srinivasan, Khosla Ventures’ Keith Rabois, Perplexity CEO Aravind Srinivas, Eight Sleep Founders Matteo Franceschetti & Alexandra Zatarain, and Passes CEO Lucy Guo.The event is free to attend and will be full of insights on how to operate a company at world-class level.Darius Dale is the founder & CEO of 42Macro. In this conversation, we discuss inflation, productivity, asset prices, political impact, federal reserve interest rate decisions, and outlook for 2024. Listen on iTunes: Click hereListen on Spotify: Click hereDarius Dale Explains Why Inflation May Come Back In Q1Podcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo - Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.*

Today’s letter is brought to you by Domain Money!I love talking about money, but I’m not a financial professional—so I don’t offer one-on-one coaching or advising.But sometimes, you need someone with expertise to work with you—one on one!—and provide personalized advice. I’m partnering with Domain Money to pair our community with flat-fee CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals who can help you level up your money game.Don’t get left behind and book your FREE strategy session to help you get started. See disclaimer below.¹To investors,Rent for a one-bedroom apartment in New York City recently hit a new all-time high of $4,500 per month. This is a 50% increase from the $3,000/month that a one-bedroom commanded pre-pandemic. Aziz Sunderji recently explained that New York City’s rent prices are increasing at the same time that New York City home prices are softening. As real estate agent Rohin Dhar pointed out, this price increase is not exclusively the product of inflation. New York City has banned Airbnb, implemented vacancy controls, and has relied on rent controls for decades. This intervention in the free market historically creates more problems, rather than solutions. One way to see this is that the national median rent for a one-bedroom is only growing at 1.6% annually, which is lower than the current inflation number. This suggests that Airbnb and a lack of hardcore rent controls in the vast majority of the country has actually been a release valve for median rents over the last 12 months. Free market solutions are better than government solutions. This is true internationally as well — Bloomberg’s Cagan Koc and Sarah Jacob recently covered the Dutch rental market, where they noticed that government controls have had a negative impact as well. It is estimated that 96% of all rental properties in the country are now under rent control. Cagan and Sarah write:“The Netherlands has the highest proportion of rent-controlled homes in Europe, according to the Organization for Economic Cooperation and Development. About a quarter of them are owned by private landlords, with the rest belonging to housing associations that are similar to co-ops. Before the new law came into effect, four-fifths of the country’s 3 million rental properties were subject to controls, and the law raised that to 96%, according to the housing ministry. The measure caps rents on about 2.5 million homes at €880 ($980) a month for households earning less than €52,671. The rest of the properties covered by the law have a maximum rent of €1,158 a month; though they have no specific income requirements, they’re aimed at families with modest salaries.”There is a massive housing shortage in the Netherlands and citizens are having a difficult time finding affordable rentals. What else would you expect if the government got to set the price of 96% of all rentals?But the United States should not shake our heads and say “well, that isn’t happening the US.” It is true that rent control is not nearly as prevelant, but the housing shortage is very real. First, on rent control:“As of 2022, seven states (California, New York, New Jersey, Maryland, Maine, Oregon, and Minnesota) and the District of Columbia have localities in which some form of residential rent control is in effect (for normal structures, excluding mobile homes). Thirty-seven states either prohibit or preempt rent control, while seven states allow their cities to enact rent control but have no cities that have implemented it. For localities with rent control, it often covers a large percentage of that city's stock of rental units. For example, in New York City as of 2017, 45% of rental units were "rent stabilized" and 1% were "rent controlled" (these are different legal classifications in NYC). In the District of Columbia as of 2019, about 36% of rental units were rent controlled. In San Francisco as of 2014, about 75% of all rental units were rent controlled, and in Los Angeles in 2014, 80% of multifamily units were rent controlled.”Sounds better than the Netherlands, right? Well, the US continues to under-build housing which spells pain on the horizon. We built about 50% less housing from 2010-2019 compared to 2000-2009. Not exactly what you want to see if you are worried about home prices and/or rent prices. I am not an expert on US housing or rents. For that, I highly suggest you subscribe to Lance Lambert’s ResiClub newsletter. I learn a ton from him daily. But I do know that you can’t let government intervention disrupt the free market or you will create significantly more problems — this is what has happened in New York City and it will likely spread throughout the country as more intervention is encouraged from a political standpoint. We usually like all-time high prices in finance, but all-time high rents are not something to celebrate.Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital Mana

To investors,The public narrative for wealth creation is that you can’t get rich working for someone else. America has a culture of individualism and entrepreneurship, which has served the country well as we continue to innovate in various industries. But new data coming out of Nvidia suggests there is an exception to every rule. In a recent survey of over 3,000 Nvidia employees, approximately 76% reported being a millionaire and 1 out of every 3 employees claim to have a net worth of over $20 million. These are shocking numbers. If the data is accurate when applied to all ~ 33,000 current employees at the company, there would be 25,000 millionaires created by Jensen Huang and his team. This would not include any prior employees who have worked at the business over the last 30 years but are no longer working there. That is a mind-blowing statistic, but the even crazier one is that almost 12,000 employees reportedly have a net worth of over $20 million. This type of wealth creation is typically reserved for the best investors or company founders and executives. There are few companies in history that can boast of turning so many teammates into multi-millionaires. But there is an interesting takeaway from this data — companies that solve problems in society, especially companies that provide a product that has unlimited demand, are able to generate immense enterprise value. As Phil Rosen pointed out in Opening Bell Daily today, Nvidia has seen their market cap increase by more than $3 trillion since Chat-GPT launched. This is in comparison Warren Buffett’s Berkshire Hathaway which just hit a $1 trillion market cap for the first time yesterday. Buffett took decades longer, yet Nvidia has become a 30-year overnight success. I love seeing incentives line up for founders, employees, and shareholders. These three groups are all-in on the artificial intelligence revolution. If the company can continue to provide the critical infrastructure necessary for the industry to grow, we should expect more millionaires to be minted.Capitalism is the greatest system created so far. Maybe someone will create a better one in the future, but until that happens we should celebrate when the system works. Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementReader Note: BUILD Summit, our annual conference in NYC for founders, is coming up next month on September 26th. The event will provide top tier speakers, networking opportunities, and insightful business discussions on raising capital, scaling businesses, and building products.Current speakers include angel investor Balaji Srinivasan, Khosla Ventures’ Keith Rabois, Perplexity CEO Aravind Srinivas, Eight Sleep Founders Matteo Franceschetti & Alexandra Zatarain, and Passes CEO Lucy Guo.The event is free to attend and will be full of insights on how to operate a company at world-class level. Polina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, CEO of Professional Capital Management, discuss the US economy, interest rates decision, taxing of unrealized gains, arrest of Telegram CEO, the impact of the two astronauts stranded in space, and more. Listen on iTunes: Click hereListen on Spotify: Click hereAnthony & Polina Pompliano Discuss Taxing Unrealized Gains and Interest Rate CutsPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible. They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

Today’s letter is brought to you by Unbound Golden Visa!What if you could use Bitcoin as a tool to unlock future freedom for you and your family? Well, now you can.Unbound is the Portuguese Golden Visa Fund that invests in local companies 100% owned by the fund, which in turn invest in Bitcoin via SEC-compliant ETFs.The Portuguese citizenship by investment program is the top European choice. With extensive experience, the team facilitates EU citizenship, unlocking freedom across 27 countries.This incredible offering went viral receiving hundreds of applications in 48 hours. I recently spoke with co-founder Ale Palombo about this initiative here.To unlock your future visit Unbound’s website or simply write to [email protected] investors,There is a debate raging over whether the US economy is headed towards a recession or not. Investors and market commentators are watching unemployment, inflation, consumer spending, and various other metrics to predict any potential economic pain ahead. I don’t think this is the right way to evaluate the market right now. Regardless of whether the economy slows down or not, the Federal Reserve has positioned itself well to accelerate economic activity over the next 12-24 months. Interest rates are currently over 5% and the central bank was able to sell almost $2 trillion of assets off their balance sheet since 2022. This means the Fed was able to restock their ammunition. When they are called back into the fight, we will watch the money printer get turned back on and a few hundred basis points of interest rates will disappear. I explained this situation to Phil Rosen late last week:The noteworthy aspect of financial markets at the moment is we are at or near all-time high prices in stocks, crypto, and gold. This has happened without the Fed stimulating the economy or asset prices. Once the quantitative easing playbook is turned back on, we should expect asset prices to respond favorably. Speaking of quantitative easing — the central bank has perfected this playbook since the Global Financial Crisis. I believe they are quicker today to cut interest rates and print money than they have been historically. You saw this in 2020 when the Fed conducted two emergency rate cuts to bring the market to 0% rates. There was trillions of dollars printed via monetary and fiscal policy within weeks as well. The combination of a central bank having numerous tools at its disposal, along with a faster response time in deploying those tools, means that a recession will have a harder time persisting. And we should expect lower rates to lead to higher asset prices. History is largely undefeated on this point. Cheaper capital is coming to the market. Which also means a portion of the approximately $6.4 trillion sitting in money market funds will likely want to find a new home in equities. Whenever I hear a loud roar of investors talking about a recession, I start thinking the opposite is probably true. I would think the same if everyone was yelling that no recession is possible right now. Real damage occurs when the market is caught offsides in either direction. The more people who think a recession is coming, the lower likelihood we will see that outcome. The various trends and data points suggest asset prices should be higher 12 months from now. I wouldn’t want to be on Team Recession at the moment. What do you think? Are you changing your portfolio at all? Feel free to respond to this email and I’ll do my best to respond to each of you. Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementDaniel Batten is the Co-Founder and Managing Partner of CH4 Capital. Daniel is an ESG investor and believes bitcoin mining is one of the most important technologies when it comes to the environment.In this conversation, we talk about what is holding back sovereign wealth funds from investing 1% of their assets into bitcoin, ESG decision making process, what it will take to educate them, and what the impact of sovereign wealth funds and countries will have. Listen on iTunes: Click hereListen on Spotify: Click hereDaniel Batten Explains What Will Convince Sovereign Wealth Funds To Buy BitcoinPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible. They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IR

To investors,All eyes in financial markets are on the September interest rate decision from the Federal Reserve. Investors have been convinced interest rate cuts were right around the corner at various times throughout the year, but recent economic data has finally driven consensus agreement for September. Kalshi, a leading prediction market for economic data, shows an 88% chance that the Fed will cut rates by 25 basis points in approximately one month. But here is the thing — no one actually knows what is going to happen. It is impossible to predict the future, especially when Fed Chairman Powell is unlikely to know what he is going to do yet too. The current data suggests the Fed should already be cutting interest rates. It would only take one or two economic reports full of bad data to change that outlook though. When Powell gives his speech this week from Jackson Hole, I would not expect him to commit to any specific decision.It is true that the Fed likes to signal their future moves and decrease the surprise to market participants. But there is too much time, and enough opportunity for economic data to change, that Powell is more likely going to suggest that we are getting closer to an interest rate cut without confirming the September timeline. Regardless of what Powell says this week, stock market investors are positioning themselves to benefit when cheaper money starts flooding into the market. Bloomberg’s Jess Menton points out that over $3 trillion has been added to the S&P 500 since the August market low.Menton goes on to point out an interesting data point related to the annual Jackson Hole meeting in relation to stock volatility:“A Fed chair’s speech at Jackson Hole typically isn’t a big catalyst for the stock market unless it comes before a crucial shift in monetary policy — like now. Since 2000, the S&P 500 has climbed 0.4% on average in the week following the gathering, data compiled by Bloomberg Intelligence show.It’s Powell’s appearance at Jackson Hole in August 2022, when he warned that the Fed would need to keep monetary policy restrictive to battle inflation, that’s still fresh in traders’ minds. Stocks plunged 3.4% that day and lost another 3.3% in the week following his remarks.”Jerome Powell is not the only thing to pay attention to this week. Reports are coming out that economic data revisions are inbound, which will put the existing situation in a less ideal position. “On Wednesday, the Bureau of Labor Statistics will downward revise jobs for the April 2023-March 2024 period by up to 1 million. This means that all "beats" recorded in the past year will have been misses and the US job market is in far worse shape than the admin would admit.”We won’t know if these revisions actually happen for a few days. This is just a rumor at the moment, but it would follow the trend of California making major revisions a few weeks ago which wiped out all job growth in the state for 2023. So here is the situation — we have increasing odds that the economy is not as strong as everyone thinks it is. Investors are salivating over an interest rate cut. And we have plenty of room to cut rates without ending up with 0% rates again. Based on what we know now, the rate cut will happen in September. It will be 25 basis points, stocks will start to rise into the end of the year, and both political parties will complain about monetary policy changing so close to the election. Plenty can change between now and September 18th though. For example, the Trump assassination attempt was only five weeks ago. That feels like a lifetime away. Let’s see what happens in the next four weeks.Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementPhil Rosen, the Co-Founder of Opening Bell Daily, and Anthony Pompliano, CEO of Professional Capital Management, discuss the economy, inflation, volatility in the stock market, and future outlook for financial assets.Listen on iTunes: Click hereListen on Spotify: Click hereAnthony Pompliano Explains Why Price Controls Are A Bad IdeaPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible. They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US ho

To investors,Vice President Harris is expected to unveil an economic plan later today in her bid to be elected President of the United States in November. The plan will cover numerous topics, but two things getting attention already are her ideas on how to bring down the cost of food and home ownership. First, it is true that food prices have exploded in America. Grocery bills are up nearly 26% since the last election in November 2020. Both sides of the aisle agree we need to get these prices down, along with ensuring future price growth is at a much more moderate rate. The disagreement between political parties is related to the best plan of action. Vice President Harris is slated to claim grocery stores are price gouging. She is going to propose a national ban on this price gouging, which will magically bring down food prices. Of course, that is not how the world works. Grocery stores operate on razor thin margins. Estimates are between 1-4%, so the idea of price gouging in this industry is absurd. The real reason grocery prices have gone up is because the dollar has been debased and input costs for grocery stores have skyrocketed. When input costs go up, the output prices have to go up too. The government should not fool itself into believing it can run a grocery store better than the executives of these companies. Price caps and other artificial interventions in the market will not solve the problem. In fact, history suggests that these actions will accelerate the problem and make things worse. Just ask the people of Venezuela. If you want to bring down the price of food, there is only one reliable solution — you have to produce significantly more food. Supply and demand determine price. Increase supply for prices to come down. It doesn’t appear the existing administration attended their Economics 101 class in college though. Unfortunately, food is not the only place where economic illiteracy is being applied. Vice President Harris’ second major talking point for her economic plan today will related to housing. She is reportedly going to propose a $25,000 boost for first-time home buyers, along with a call for 3 million or more homes to be built. The idea of giving free money to people to help them buy a home feels like a noble thing, yet it will have the opposite effect. Home prices will increase by $25,000 or more. The market responds to changes in variables. With that said, Harris’ call for millions of additional housing units to be built is a great idea. We should celebrate this plan. We should giver positive reinforcement to her and her campaign. If you want to bring down home prices, then you have to create more supply. Build. Build. Build. That is the solution to the housing crisis. The solution to home affordability lies in the hands of home builders. If the government wants to participate and be helpful, they should reduce regulation and help home builders do what they do best — build more homes! My hope for our next President, regardless of which candidate it is, will be for the application of basic economic concepts. Increase supply of food and homes to bring the costs of those items down. Give relief to citizens not in the form of handouts, nor through market manipulation, but rather via the hard work of producing more goods and services. That is how you create lasting change. Javier Milei is doing it in Argentina right now. There is no reason we can’t do the same in the United States. Let’s just hope Trump or Harris has the courage to do the hard things. Hundreds of millions of Americans are counting on them.Hope you all have a great weekend. I’ll talk to everyone on Monday.-Anthony PomplianoFounder & CEO, Professional Capital ManagementPhil Rosen, the Co-Founder of Opening Bell Daily, and Anthony Pompliano, CEO of Professional Capital Management, discuss the economy, inflation, volatility in the stock market, and future outlook for financial assets.Listen on iTunes: Click hereListen on Spotify: Click hereAnthony Pompliano Explains Why Price Controls Are A Bad IdeaPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible. They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompli

To investors,On June 27th I wrote a letter to this group titled “Prepare For A Volatile Second Half Of The Year.” It included the following chart from Bank of America, which highlighted a 25% increase in volatility from July - November of election years. Almost exactly on cue, volatility exploded within the next 45 days. Michael Batnick from Ritholtz Wealth Management put together this chart to show the volatile move was the third highest VIX spike since 1990. Volatility works in both directions. It can force asset prices higher or lower. This time it pushed the stock market lower, which created fear that spread through markets. But Batnick writes on his blog that “everybody [should] be cool.” Why? Because 94% of all stock market years since 1928 have seen a drawdown of 5% or more. Although the data suggests we are living through the norm, it won’t change investors’ amnesia. People love to freak out every time the market drops. This is not only investors though. CEOs and company operators are watching the market and interest rates with a microscope. The Kobeissi Letter writes:“The number of "Federal Reserve" mentions during the earnings conference calls is on track to hit a new record in Q2 2024. It is estimated the Fed will be mentioned ~380 times during Q2 earnings calls, according to Bloomberg. This would be more than TRIPLE the number of references seen in 2021. CEOs and CFOs are trying to figure out the future path of US interest rates. Weaker consumer demand and the pain of high inflation have put the Fed's next move in the spotlight. Everyone is waiting on the Fed.”Interest rates obviously matter for stock market performance, but the higher rates have pushed our national debt interest payments to absurd levels. Charlie Bilello writes:“The Interest Expense on US Public Debt rose to a record $1.11 trillion over the last 12 months, more than doubling over the past two years. At the current pace it will soon be the largest line item in the Federal budget, surpassing Social Security.”We are only a month and a half into the second half of the year. Volatility is spiking as predicted. There are still more than 100 days until the end of November. It would be naive for us to believe the chaos is behind us. Investors should buckle up, keep their head on a swivel, and realize it may be a bumpy ride for the next 3-4 months. The good news? If you are a long-term investor, the short-term volatility won’t matter. But if you are living your life based on the day-to-day fluctuations of your portfolio, then you may be in for a few surprises.Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementJason Les is the CEO of Riot Platforms, one of the largest miners in North America. They are a publicly traded company that is exclusively focused on mining as much bitcoin as possible. In this conversation, we talk about public policy, politicians becoming interested in bitcoin mining, what is going on with the bitcoin halving, hardware updates, rise of AI, competition for power, and much more.Listen on iTunes: Click hereListen on Spotify: Click hereRiot Platform CEO Jason Les on Mining, Regulation, and Energy CritiquesPodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible. They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

Today’s letter is brought to you by Domain Money!Wondering where to go for financial advice? Domain Money makes financial planning simple. No hidden fees and no sales pitches - you get a personalized roadmap to your goals, from dream vacations to retirement.Flat-fee advisors create a plan tailored to you, with zero pressure to invest. Don’t be like most people who’ve never had a real conversation about their financial plan. Book a free strategy session today here.While I'm not a Domain Money client and they are paying me, I've seen first hand the value of their service through the free plan they did for one of my brothers.Yes, I might have an interest in promoting Domain Money, so just like any major financial decision, it's important you understand what the service is and if it's right for you so make sure to see this important disclaimer.To investors,Bitcoin has been one of the best performing assets in finance for years. This fact has been great for investors looking to optimize their returns compared to other financial investment opportunities. But the vast majority of people on the planet are not investors. They are simply people trying to live their life and pursue happiness. One of the major issues that creates friction for the average citizen is the debasement of their local currency. Given that ~ 50% of Americans have $0 in investment assets, these individuals continue to feel like they can’t get ahead. They are falling further behind. Everything around them is getting more expensive. Eventually they lose hope.Thankfully, bitcoin can be a solution to the problem. Here is a graphic from Bitcoin Magazine showing the cost in US dollars and bitcoin for the median US home in 2016, 2020, and 2024. Seeing the median home price in dollars nearly double is painful, but watching the same home price drop to 1/100th in bitcoin terms is incredible. This is the beauty of digital sound money. With that said, people have become very excited about other crypto projects in the last two or three years. Many of these assets continue to perform well, and we know Wall Street loves volatility, so we shouldn’t be surprised. Sam Wouters from River points out that bitcoin’s market cap continues to stand out despite the increasing interest in other assets:“3 years ago, Bitcoin's market cap was ~$835B. Same for all the crypto stuff without stablecoins. Today, Bitcoin's market cap is up 37% ($1.15T) And the other stuff? -11% (not adjusted for inflation) It’s an insightful statistic to present to people who blindly “diversify”.”Bitcoin doesn’t operate in a silo though. It is part of a larger financial system now. Both investors and savers have various options of where to store their economic value. Here is a short 1-minute from Tom Crown comparing saving $100 per month in US dollars, gold, and bitcoin.Another way to view a similar analysis is to look at the compound annual growth rates of bitcoin, gold, and the S&P 500. The bitcoin community is full of various characters. Some of the ideas coming out of the community are correct and many of them are outright ridiculous. One thing that is objectively true — bitcoiners nailed the asset’s ability to protect purchasing power over long periods of time. It will be hard for sophisticated, institutional investors to ignore these type of dominance in financial markets. More importantly though, the average citizen now has a simple solution to an age-old problem of dollar debasement. Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementAlessandro Palombo is the Co-Founder of Unbound with a mission to design the future of global citizenship. They are using bitcoin indirect exposure to help you get a Golden Visa in Portugal.In this conversation, we talk about how it works, risks, requirements, family implications, and the potential of expanding to other cryptos?Listen on iTunes: Click hereListen on Spotify: Click hereOverview of Golden Visa with Indirect Bitcoin ExposurePodcast Sponsors* Gemini is the safe and secure way to trade crypto. Use code Pomp100 and start trading crypto to earn $100 in BTC. * Xapo Bank is the only way to bank with Bitcoin. * CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible. They tailor plans to your personal priorities and goals, whether it’s buying a house, funding college, or taking that dream vacation.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s as

READER NOTE: Next Tuesday I am hosting a free webinar for anyone who is trying to transition into a new job in the bitcoin and crypto industry. Previously, my team and I have helped more than 3,000 people find a new role, so I will break down the lessons learned and provide specific and actionable advice on how to make the jump efficiently.The event is completely free. I will be joined by people from BTC Inc. and Blockware who will share their experience in finding a new job.To investors,Bitcoin critic Nassim Taleb was on CNBC’s Squawk Box yesterday morning. The segment went exactly how you would expect it to go. Taleb was bearish, but he couldn’t provide a coherent argument on why bitcoin was not valuable in his opinion. He rambled for a few minutes and shouted many hollow phrases that were designed to make him sound smart. If you pay attention to his words though, it becomes apparent that Taleb doesn’t even know what he is saying.At one point, Taleb says bitcoin could go to $1 million, but he will always think the digital currency is a speculative asset regardless of what happens. I took this as an intellectual hedge from the professor, which signals he knows he is wrong but can't bring himself to admit it publicly. You have to watch the full segment to appreciate how ridiculous the bitcoin critics have become:I have been in and around the bitcoin community for almost a decade. The people in our industry have spent hundreds of hours studying the technology, the network, and the various critiques. They are incredibly intelligent. Most of them are open-minded and constantly seek to understand where they may be wrong. This is why the industry’s critics stand almost no chance of being on the right side of history. They haven’t done the work. They rarely have a clear argument that can be backed up by facts. And they almost always hide behind empty buzz words that would make the biggest pessimist jealous. In the same breath, Taleb asks Joe Kernen how much bitcoin he used to purchase his coffee and then extolls the greatness of gold. The critic (or maybe “the troll” is a better label at this point?!) forgets to mention that no one is using gold to buy their coffee either. Bitcoin has very serious risks, including technical challenges related to scalability, enhanced privacy, and a need for increased decentralized infrastructure. But nothing Taleb said in yesterday’s interview is a real critique. My favorite part is when Taleb continues repeating that bitcoin is a speculative tool. He thinks that is a slight, but somehow fails to realize that every financial asset is a speculative tool. Every stock, bond, currency, and commodity. It is all speculation about what is going to happen in the future. You have to take risk to capture a return. Some assets have more risk, while others have less risk. But everything in finance is a risk. Holding US dollars is a risk. You could even argue that holding US dollars has been a bigger risk than holding bitcoin over the last 5 years. Bitcoin has protected your purchasing power and the dollar has not. Finance is one large casino. People make decisions daily based on their future expectations. Hearing Taleb attack bitcoin in this manner is probably a sign that bitcoin has officially become the best table in the casino. It makes sense that people who are sitting at the other, less desirable tables would verbally attack it. It is intellectual projection of an important conclusion — Nassim Taleb realizes he is wrong about bitcoin. A few years ago, Taleb wrote the following as the conclusion to a research paper titled Bitcoin, Currencies, and Fragility:“We have presented the attributes of the blockchain in general and bitcoin in particular. Few assets in financial history have been more fragile than bitcoin. The customary standard argument is that ‘bitcoin has its flaws but we are getting a great technology; we will do wonders with the blockchain’. No, there is no evidence that we are getting a great technology — unless "great technology" doesn’t mean "useful". And at the time of writing —in spite of all the fanfare — we have done still close to nothing with the blockchain. So we close with a Damascus joke. One vendor was selling the exact same variety of cucumbers at two different prices. "Why is this one twice the price?", the merchant was asked. "They came on higher quality mules" was the answer. We only judge a technology by how it solves problems, not by what technological attributes it has.”Arguing that bitcoin is fragile, or has not solved any problem at all, may be the most ridiculous position you could take in critiquing the asset.Larry Fink vs Nassim Taleb. Paul Tudor Jones vs Nassim Taleb. Stanley Druckenmiller vs Nassim Taleb. Hundreds of millions of bitcoin holders vs Nassim Taleb. Choose wisely. For a guy who wrote two of the best finance books in history, it is unlikely history will be kind to him on the bitcoin topic. Hope you all have a great day. I’ll talk to everyo

Today’s letter is brought to you by Domain Money!Wondering where to go for financial advice? Domain Money makes financial planning simple. No hidden fees and no sales pitches - you get a personalized roadmap to your goals, from dream vacations to retirement.Flat-fee advisors create a plan tailored to you, with zero pressure to invest. Don’t be like most people who’ve never had a real conversation about their financial plan. Book a free strategy session today here.While I'm not a Domain Money client and they are paying me, I've seen first hand the value of their service through the free plan they did for one of my brothers.Yes, I might have an interest in promoting Domain Money, so just like any major financial decision, it's important you understand what the service is and if it's right for you so make sure to see this important disclaimer.To investors,Panic started to set in for market participants at the end of last week. It only got worse last night. Japan’s Nikkei suffered the worst decline since 1987 over the last 24 hours. This has caused fear to spread throughout markets, particularly related to the carry trade being executed by investors to leverage the depreciated JPY currency. You can see the issue here:“Since 2023 (at least), speculators borrowed money in Japan at near-zero interest rates. They converted their borrowed yen into dollars, and bought the Nasdaq 100. That drove the yen further down and the Nasdaq 100 further up. This "carry trade" has been unraveling in recent weeks…as the yen continued to soar in response to the Bank of Japan's recent tightening moves.”The panic started last week, which saw numerous technology stocks experiencing double-digit drawdowns from their recent highs:* Apple -6% * Meta -10% * Microsoft -12% * Amazon -17% * Adobe -18% * Nvidia -20% * Broadcom -23% * Tesla -25% * Qualcomm -30% * AMD -37%These types of drawdowns get people antsy. They want to know when the market will turn around. One answer is dependent on the Presidential election — the stock market has been trading hand-in-hand with the prediction odds that Donald Trump will win the Presidential election in November. But Trump’s prediction odds dropping is not the only thing spooking investors. Many people are pointing to the Sahm Rule as evidence that the United States has entered a recession. The Kobeissi Letter wrote:“The Sahm Rule recession indicator surged to 0.53 in July from 0.43, suggesting the US economy is in a recession. The Sahm Rule signals a downturn once the unemployment rate increases 0.5 percentage points above its previous 12-month low. After the unemployment rate jumped to 4.3% in July from 4.1% in June, the Rule has been triggered. Over the last 65 years, there has not been a single occurrence where this indicator provided a false signal. Also, every time the threshold has been breached, the unemployment rate surge accelerated.”If the Sahm Rule has 100% accuracy for recession predictions in the past, we should all be very worried, right? Not so fast. Claudia Sahm, the inventor of the metric, stated she doesn’t think we are already in a recession:“We’re not in a recession…we are in a place where things have slowed…the momentum is not good.”“The Sahm rule is likely overstating the labor market's weakening due to unusual shifts in labor supply caused by the pandemic and immigration.”So two things are important to keep the current market dynamics in context — first, the US economy has been on an epic run over the last decade or so. Hidden Harbor’s John Caple points out that decade-long performance with this chart:Second, Creative Planning’s Charlie Bilello highlights that all but one of the technology stocks that everyone is focused on remain positive on the year:The market is down. Unemployment is up. Fear is overriding rational thinking from investors. So the question is — should you panic?I don’t think so. The Fed has approximately 5.5% of interest rate cuts that it can use to juice the market if we get closer to a recession. Most people are expecting the central bank to start those cuts in September, which would be right on time to avoid some serious market downturn. Wharton’s Jeremy Siegel went on CNBC this morning and said, “I'm calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting - and that's minimum.” That would be a significant change in monetary policy if the Fed was to follow Siegel’s guidance. I think of this situation as a military battle. We were firing every bullet we had in 2020 (interest rate cuts, printing trillions, etc) and it worked. The market responded exactly how we wanted. But since the end of 2021, the Fed was able to restock our ammunition. They raised interest rates so now we have plenty of cuts in front of us if we need them.The bullets are reloaded. If a recession tries to appear, the Fed will fire away with everything they got and I expect the market to respond exactl

Today’s letter is brought to you by Domain Money!Wondering where to go for financial advice? Domain Money makes financial planning simple. No hidden fees and no sales pitches - you get a personalized roadmap to your goals, from dream vacations to retirement.Flat-fee advisors create a plan tailored to you, with zero pressure to invest. Don’t be like most people who’ve never had a real conversation about their financial plan. Book a free strategy session today here.While I'm not a Domain Money client and they are paying me, I've seen first hand the value of their service through the free plan they did for one of my brothers.Yes, I might have an interest in promoting Domain Money, so just like any major financial decision, it's important you understand what the service is and if it's right for you so make sure to see this important disclaimer.To investors,The Bitcoin Conference did not disappoint. There is way too much to cover in one letter, so I am going to focus on the four speeches that I believe are most noteworthy.First, Microstrategy’s Michael Saylor gave a presentation on bitcoin, including his vision on how the asset can improve financial markets and his bull and bear case for the future asset price. You can watch the full presentation here. Saylor used annual rates of return between 21% and 37% for the next 21 years to determine his three potential price outcomes. It may surprise some to see Saylor’s bear case of $3 million per bitcoin, but remember this is over the next two decades. That would put bitcoin’s annual return at approximately 2x the S&P 500 each year. The annualized return for the last 5 years is over 40% and you can see the year-by-year returns below. Given the asset has a fixed supply, and the dollar continues to be debased at a healthy rate, it doesn’t seem crazy for bitcoin to increase in price by 21% a year for the next two decades. Next, Presidential candidate Robert F. Kennedy Jr. gave a rousing speech that called for the United States to purchase 4 million bitcoin as a strategic reserve asset. His plan would be for the country to purchase 550 bitcoin per day until the full 4 million are purchased. This sounds like a great idea on the surface, but I highly doubt it is mathematically possible. You can see that more than 50% of bitcoin’s circulating supply has not moved in over 2 years and the general trend is that bitcoin is becoming more illiquid over time. This means it is hard to see a world where one country will be able to acquire ~ 20% of the bitcoin total supply. Again, the general strategy and idea are compelling, but it is more likely that the United States could acquire 1 million bitcoin, which would still make them one of the largest bitcoin holders in the world. On Saturday, former President Donald Trump gave his highly anticipated speech. He hit almost every major talking point that the audience wanted to hear, including comments saying the cardinal sin of bitcoin was selling your bitcoin and professing that “bitcoin is going to the moon.”Here is a summary from Reflexivity Research’s Will Clemente of the main talking points:Notably, Trump did not call for purchasing more bitcoin at the national level. He chose to advocate for the US government to hold on to the approximately 200,000 bitcoin that is already in the government’s possession. Instead of calling this bitcoin a “strategic reserve,” Trump chose to call it a “strategic stockpile.” Although that may sound like semantics, it suggests that Trump is not planning to back the US dollar with bitcoin or any other type of reserve activity. This idea of a strategic stockpile from the leading Presidential candidate immediately makes me think other Presidents and countries around the world are going to be creating their bitcoin strategy this week. They can’t allow the game theory to leave them on the wrong side of history. Another interesting point during Trump’s speech was the reaction to Trump’s promise to fire SEC Chairman Gary Gensler. You can see the Presidential candidate was shocked by the crowd’s support, so he chose to repeat the line with a degree of showmanship. This was another sign that Trump is quickly ramping up his pro-bitcoin support in an effort to court the growing voter cohort. Speaking of political support for the industry, it is important to remember that everything we are hearing so far is talk. It is ultimately action that matters. Promises sound great. We won’t know till after the election whether any political candidate will actually do what they say they are going to do.Lastly, Senator Cynthia Lummis followed Trump’s speech with a major announcement — proposed legislation that would require the US government to buy 1 million bitcoin (worth ~ $68 billion). Her thought process is that these bitcoin would be held for a minimum of 20 years and could help bring down the US debt. Lummis stated “This is our Louisiana purchase moment,” which refers to the prescient investment of $15 million the US made t

To investors,President Joe Biden announced yesterday that he would not be seeking re-election in November. This is the latest development in an already chaotic Presidential election season, which has included criminal convictions, assassination attempts, and debates around the cognitive abilities of older candidates. To add to the chaos, Biden announced his decision to leave the race via a written statement on Twitter. There was no press conference. There was no pre-recorded video. Just a typed-out statement and a hand-written signature, which is now being wildly questioned as to whether the signature is actually the President’s or not. Regardless of those details, there is a high degree of uncertainty at the moment. This is when you would expect bitcoin to shine. The digital currency is supposed to be a certainty due to its structure, dependability, and resilience. It appears that is exactly what happened. Bitcoin was trading under $67,000 right before Biden’s announcement. The currency then jumped more than 2% post-announcement. Uncertainty increased and so did bitcoin demand. My read on this is that bitcoin is performing as you would expect given the circumstances. This is a positive sign. It is not the lone positive sign in the crypto market though. Bitwise’s Alyssa Choo pointed out recently there was $2.8 trillion of stablecoin transaction volume in Q2, which is an all-time high.This is a clear signal from the market that people want US dollars on digital rails. We should only expect this demand to continue increasing over time given the long-term trend.DACM’s Richard Galvin highlighted that DEX market share has hit a new all-time high as well. This is interesting because it proves that capital is flowing towards decentralized trading venues. People will debate why market participants are doing this, but it is hard to ignore the data showing that it is happening. Another data point that is impossible to ignore at this point is capital flowing into crypto funds. Jonah van Bourg tweeted the cumulative flows are at a multi-year high. Lastly, VanEck’s Matthew Sigel shows that Polymarket open interest is growing parabolically lately. People want prediction markets. These five charts tell me one thing — crypto is working in a way that was previously questionable. It may have taken longer than everyone wanted, but there are trillions of dollars sloshing around this new digital financial system. Bitcoin is storing value during uncertain times. Prediction markets are beating the mainstream news to stories. Investors are putting capital to work in the industry. And stablecoins are becoming an important part of the global financial system. Great things take time to build. It is cool to see the industry starting to hit its stride. Hope you all have a great start to your week. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementPhil Rosen, the Co-Founder of Opening Bell Daily, and Anthony Pompliano, CEO of Professional Capital Management, discuss small cap vs big tech, future outlook for interest rate cuts, what Trump trade means for investors & impact on bitcoin, and Jamie Dimon change of mind on bitcoin?Listen on iTunes: Click hereListen on Spotify: Click hereAnthony Pompliano on Whether The Trump Trade Is SustainablePodcast Sponsors* Domain Money makes financial planning simple. No hidden fees and no sales pitches - you get a personalized roadmap to your goals, from dream vacations to retirement.* CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* BetOnline - Use crypto to bet on sports, casino games, horse racing, poker and more with promo code POMP100.* ResiClub - Your data-driven gateway to the US housing market.* Professional Capital Management - Anthony Pompliano’s asset management firm is now on Linkedin. Please subscribe by clicking here. You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,Changing your mind when new facts are presented should be encouraged. It is a sign of intelligence.One example of this from earlier in the week was JD Vance’s selection as the Republican candidate for Vice President. Vance previously had been a Never Trumper. He had shared harsh criticisms of the former President and condemned Trump’s actions. But Vance claims he eventually changed his mind. When asked this week what happened, here is what he said:“I allowed myself to focus so much on the stylistic element of Trump that I completely ignored the way in which he substantively was offering something very different on foreign policy, on trade, on immigration.”But JD Vance is not the only person changing his mind these days. It was reported yesterday that JP Morgan CEO Jamie Dimon has changed his opinion on bitcoin recently.This information came from Trump, who is considering Dimon for Treasury Secretary, during an interview about the star banker. Now remember, Jamie Dimon is not a random bitcoin hater. He is one of the MVPs of the bitcoin hating team. Dimon previously said he would fire anyone who was trading bitcoin at the bank. He also called bitcoin a fraud and a ponzi scheme. If you took a poll of the bitcoin community, there would be a very low probability that anyone would think Jamie Dimon was going to change his mind. But that is what all great investors and entrepreneurs do. They change their mind when presented with new information.And the information on bitcoin is overwhelming at this point. There are hundreds of millions of people who use the digital currency around the world. Bitcoin is the strongest computer network ever created. The digital currency is one of the only assets to have protected an individual’s purchasing power against the accelerated inflation of the last few years. Governments are also becoming sympathetic from a legal and regulatory standpoint as well. These data points add up to one thing — bitcoin is succeeding and the asset is likely to continue on the current trajectory into the future. Let’s see what Dimon does. If he comes out in public support of bitcoin, things will get very crazy. He is the most well-respected banker of our generation. And if he capitulates, bitcoin can officially claim victory on Wall Street.Hope you all have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoFounder & CEO, Professional Capital ManagementKian Sadeghi is the Founder & CEO of Nucleus Genomics.In this conversation, we talk about DNA sequencing, how he is disrupting the old school companies, why he believes so much in giving power to the people, taking control of your health with your DNA, regulation, ethics, and more.Listen on iTunes: Click hereListen on Spotify: Click hereNucleus CEO on Genetics Behind IntelligencePodcast Sponsors* Domain Money makes financial planning simple. No hidden fees and no sales pitches - you get a personalized roadmap to your goals, from dream vacations to retirement.* CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* BetOnline - Use crypto to bet on sports, casino games, horse racing, poker and more with promo code POMP100.* ResiClub - Your data-driven gateway to the US housing market.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

READER NOTE: There are over 800 Bitcoin-only businesses and 2,500+ Bitcoin-focused companies with thousands of open job roles. Next week I'm hosting a webinar with BitcoinTalentCo who will provide a masterclass for how to get a Bitcoin job. These open roles span everything from engineers to customer service — if you want to work in the bitcoin industry then you should attend to learn. Register for free here:To investors,There is a big difference between getting rich and solving a real problem in society. The promise of capitalism is that these two ideas will overlap in a meaningful way. Entrepreneurs take immense risk to identify a problem, design a novel solution, implement their product or service, and receive a financial reward for improving the lives of other people or companies. However, I am noticing the emergence of something slightly different in the last 12 months when talking to various friends.There are numerous people who seem to be optimizing for getting rich without solving a real problem in society. These individuals have concocted a variety of schemes that end with them capturing monetary value, although it is unclear where the value was created. Let me give you a few examples of what I am talking about.First, bitcoin is a product that protects the purchasing power for anyone who holds it. The debasement of fiat currencies will only continue, so having a piece of technology that can protect you from undisciplined monetary and fiscal policy is objectively valuable. Because of this value that is created, the people who buy the asset early and hold it over the long run will accumulate wealth. Value created, value captured. Second, use meme coins as the counterexample. These assets are being traded freely on various exchanges and thousands of individual investors are winning or losing money. There is no clear value creation that is occurring though. Some will argue there is an entertainment value to the coins, but that is a stretch given how stressed out most of the meme coin investors are constantly.No clear value created, yet value is being captured.We can look outside of crypto for examples as well. Amazon, Google, and Facebook have obviously created tons of value for users. You can press a button on your phone and products you purchased will show up within days. You can ask any question and get an answer. You can communicate with billions of people globally in an instant.Immense value created, immense value captured. But use the “product flipping” culture as the counterexample. There are many young people across social media bragging about making tens of thousands, or hundreds of thousands, of dollars by arbitraging the price of a random product. They purchase the product off Alibaba and resell it on Amazon. The money falling into these young people’s pockets is real, but the value being created is less obvious. So lets bring this idea back to the crypto industry.I have been thinking at length about how much value is being created in the industry. Not how much value is being captured, but how much is being created. It is clear that bitcoin is one product that has good product-market fit. Another product with similar product-market fit is stablecoins. There are trillions of dollars in transaction volume coming from these assets. After those two products, the answer to this question gets a little murky. Some will argue decentralized exchanges, others will argue smart contract platforms. It is hard to dispute the popularity of these products, but going back to the nuanced question — how much value is being created vs how much value is being captured. The hard part about this question is no perfect answer exists. You can’t quantify the value created. It is the typical “you know it when you see it,” which makes analyzing the situation difficult.But I present this question as a thought starter for each of you going into the weekend. The promise of bitcoin seems to be coming to fruition. The promise of crypto more broadly is still in the early innings, but the more we can focus on “value created” instead of “value captured,” the better off we will be as an industry.Hope everyone has a great weekend. I’ll talk to you on Monday.-Anthony PomplianoKian Sadeghi is the Founder & CEO of Nucleus Genomics. In this conversation, we talk about DNA sequencing, how he is disrupting the old school companies, why he believes so much in giving power to the people, taking control of your health with your DNA, regulation, ethics, and more.Listen on iTunes: Click hereListen on Spotify: Click hereNucleus CEO on Genetics Behind Intelligence Podcast Sponsors* CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCap

To investors,For the last two years, I have been quietly building Professional Capital Management — a new investment firm. The new firm takes a very different approach to compounding capital. First, the world is becoming more uncertain and less serious. Society is going to need professionals to step up and solve important problems. A professional is obsessed with being the best. They seek new information and constantly want to improve. A professional takes responsibility for their successes and their failures. A professional does not complain. Professionals know what it takes to succeed and they hold those around them to a higher standard. A professional never gives up. The only option for a professional is to win. The idea of a "professional" is so important to me that I chose to make it the first word in the name of the firm. Second, I recognize that an investment firm built to thrive in the future will have to be flexible enough to invest capital AND build companies from scratch. Over the last two years, Professional Capital Management has cofounded and operated nine profitable companies across various industries. By building and scaling these companies, we are able to solve real problems and compound capital at an attractive rate. I waited two years to talk about our work because I wanted to make sure we produced results before I ever mentioned it publicly. We are actively building new companies that will be announced in the coming weeks, along with deploying capital in the public and private markets. Personally, I will continue to invest out of my family office (Pomp Investments) and be a large LP in Professional Capital Management's funds. The new firm will allow outside investors to invest alongside me as well.If you are interested in cofounding a company with us or learning about our investment business, please send a message at http://professionalcapital.comProfessional Capital Management has been my full-time focus for the last two years and I am excited to continue building the firm with our team. As we make more progress, I will share some of the results from the companies we build and the investments we make. Hope you all have a great day. I’ll talk to you tomorrow.-Anthony PomplianoHere is my segment from CNBC this morning discussing bitcoin & stablecoins:Mike Maples is a Founding Partner at Floodgate, and the author of a brand new book called, “Pattern Breakers: Why Some Start-Ups Change The Future.” In this conversation, we talk about startup capitalism vs corporate capitalism, how startups win, evaluating founders, stress testing ideas, pattern breaking actions, embracing chaos, finding opportunities, startup investments, and his new book.Listen on iTunes: Click hereListen on Spotify: Click hereFloodgate’s Mike Maples Explains How To Find $1 Billion StartupsPodcast Sponsors* CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* BetOnline - Use crypto to bet on sports, casino games, horse racing, poker and more with promo code POMP100.* Espresso Displays - The world's thinnest touchscreen portable monitor. Expand your workspace and work from anywhere.* ResiClub - Your data-driven gateway to the US housing market.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,Housing affordability has hit the lowest point since 2007 according to a recent article in Bloomberg. Prashant Gopal writes:“Owning a house is less affordable for average earners in the US than at anytime in 17 years.The costs of a typical home — including mortgage payments, property insurance and taxes — consumed 35.1% of the average wage in the second quarter, the highest share since 2007 and up from 32.1% a year earlier, according to a new report from Attom.Growth in expenses, along with mortgage rates hovering around 7%, have outpaced income gains as a persistent shortage of listings pushed the median home price to a record-high $360,000, Attom said. In more than a third of US markets, ownership costs ate up 43% of average local wages, far above the 28% considered to be a guideline for affordability.”This coverage is timely because I published an interview with ResiClub’s Lance Lambert yesterday breaking down the four main contributors to the explosion in a lack of affordability. According to Lance, here are the four major drivers:* Home prices exploded after demand skyrocketed and housing supply could not keep up. This imbalance in supply and demand led to the market overheating. We had never seen home prices go up 21% nationally in a single year, yet that is what happened. * Wage growth has not kept pace with the home price growth. Home prices are up about 51% so far in the 2020s, but wages are only up approximately 20% during the same timeline. * Mortgage rates have gone from the 2-3% range to the 6-8% range in about 2 years. This was created by the fastest interest rate hikes in history and has made the carrying costs of home ownership significantly higher. * Home insurance and home repair costs have drastically increased due to the inflation shock experienced across the US economy. From 2018 - 2021, only one time did a state see the average home insurance premium jump 10% or more in a single year. Compare this to last year, which saw 25 states have a 10% or more jump in home insurance premiums. A big driver of these increasing home insurance premiums is the rapid cost increase for home repairs, which Lance estimates is up approximately 50% over the last few years. You can sign up for Lance’s daily analysis for free here: https://www.resiclubanalytics.com/These inputs are important to watch because they will determine if housing affordability will get better or worse in the coming months. Why does housing affordability matter to this audience?Other than it directly impacting home prices for you too, home affordability is likely one of the largest inputs to financial nihilism — the feeling many Americans have where they will never be able to get ahead. This loss of hope drives higher degrees of gambling and risk-taking. It contributes to a lack of interest in seeing your local community thrive. It is hard to be productive when you can’t see a bright future ahead. The American Dream was built on the idea that anyone could build a life of health, wealth, and happiness. You could come from any location, speak any language, pray to any higher power, and you would be able to create a living for yourself and own a home for your family. There are millions of Americans who are wondering what happened to that dream. An easy way for us to avoid the American Dream turning into the American Nightmare is to work across the economy to bring home affordability back to attractive levels.We must build more housing. We must use technology to lower home repair costs. We must leverage a free market interest rate to return the cost of capital to sane levels. And we must educate individuals on the various opportunities and strategies for them to get on the path to home ownership. It is not easy to turn around a situation like this, but it is possible. And if there is one thing we have learned over the last few decades — never bet against America. Hope you all have a great day. I will not be writing for the next two days due to 4th of July in the US. I will talk to everyone on Monday. -Anthony PomplianoLance Lambert is the Co-Founder & Editor-in-Chief at ResiClub. He is also the former Real Estate Editor at Fortune Magazine, and is the foremost expert in residential real estate. In this conversation, we talk about the 4 reasons why houses are so expensive, as it is the most unaffordable housing market we have had in history. This is a major crisis for the US economy, and people need to understand what it will take to get us out of this.Listen on iTunes: Click hereListen on Spotify: Click herePodcast Sponsors* CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocur

To investors,US Treasuries have long been considered the risk-free return. You could buy these assets, hold them to maturity, and you were guaranteed a pre-determined return. There was no risk because the return was paid by the US government and no one seriously worries about a US default that would prevent Treasury holders from being paid. I don’t believe this is the correct way of viewing the world anymore though. US Treasuries are now a return-free risk. Read that again. Return-free risk. What do I mean? Investors who are chasing the illusion of yield are facing a near certainty their capital will be destroyed by the lackluster performance of the bonds. Use $TLT (iShares 20+ Year Treasury Bond ETF) as an example. The ETF is down 8.5% in the last 6 months. The 1-year performance is worse at negative 12%.And the 5 year performance shows a whopping 32% decline. It doesn’t matter how much yield you thought you were getting paid, holding bonds delivered no return and lots of risk. Imagine what happens when interest rates retract to lower levels in the coming months too.This flipping of risk-free return in US Treasuries to return-free risk will be a defining development for the next decade in finance. Trillions of dollars are sitting in a global 60/40 portfolio with US Treasuries as a major component of their asset allocation. At some point, common sense must win out over doctrine. This brings me to another development that seems to be happening simultaneously — bitcoin is becoming the risk-free return for digital natives. In the same way that US Treasuries were the “safe” asset that was backed by the US government, bitcoin is becoming the “safe” asset that is backed by the strongest computer network in the world. That may sound insane to traditional investors, but I hear and see it from digital natives every day. They view bitcoin as their reserve asset which gives them the greatest confidence over the long run. They view bitcoin as a resilient asset that will continue to appreciate into the future. There is no real “risk” of the asset going to zero. There is no worry about a bleak future for the asset built to survive centuries. These digital natives are also using bitcoin as a benchmark for investment decisions. Can I allocate to X or Y and achieve a higher rate of return than bitcoin? This sounds similar to traditional investors asking “why would I invest in X or Y when I can earn 5% on T-bills right now?”Treasuries are becoming the return-free risk and bitcoin is becoming the risk-free return. The transition from the traditional doctrine to the new one will be slow and steady, yet it is inevitable. Things in motion tend to stay in motion. If you haven’t started thinking about this transition, you should start doing it now. The implications are going to be far-reaching. And you are likely to change some of your investment decisions because of it. Have a great day. I’ll talk to everyone tomorrow.-Anthony PomplianoAlex Thorn is the Head of Firmwide Research at Galaxy Digital.In this conversation, we talk about bitcoin, bitcoin mining, ETFs, regulation, politics, global adoption, potential problems, token unlocks, Galaxy Digital, and more.Listen on iTunes: Click hereListen on Spotify: Click hereMy Conversation with Galaxy’s Alex ThornPodcast Sponsors* CrossFi is the Apple Pay for Crypto. For the first time in history, anyone with a web 3 wallet can spend crypto through a physical or virtual Visa card where Visa is accepted.* Domain Money makes financial planning straightforward and accessible.* Meanwhile is the world’s first licensed and regulated life insurance company built for the Bitcoin economy. * iTrustCapital allows you to buy and sell cryptocurrency in a tax-advantaged crypto IRA. Open and fund an account today to receive a $100 USD funding bonus.* BetOnline - Use crypto to bet on sports, casino games, horse racing, poker and more with promo code POMP100.* Espresso Displays - The world's thinnest touchscreen portable monitor. Expand your workspace and work from anywhere.* ResiClub - Your data-driven gateway to the US housing market.You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable. Nothing in this email is intended to serve as financial advice. Do your own research. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit pomp.substack.com/subscribe

To investors,The crypto market has been trading 24/7/365 since the first coins traded hands nearly 15 years ago. Anyone in the world with an internet connection can buy or sell assets, regardless of the time of day. Weekdays? Market is open. Weekends? Market is open. Midnight? Market is open. Holidays? Market is open. This type of always-on market is how assets should trade. It allows market participants maximum flexibility to express their views at all times. The US stock market hasn’t followed suit though. Stocks still trade in the normal 9:30am to 4pm EST timeframe. While these hours of operation have worked for investors over the last few decades, there are new types of investors showing up who want better access to markets. Lu Wang and Katherine Doherty wrote the following in Bloomberg over the weekend:“Wall Street pros are feeling uneasy about retail investors again. Only this time it's not about the trades they're making — it’s about when they're making them.The amateur-investing revolution that has swept US markets since the pandemic is helping fuel a boom in overnight stock trading. It’s playing out at the likes of Robinhood Markets Inc. and Interactive Brokers Group Inc., which have adopted ways to offer the buying and selling of American shares 24 hours a day, five days a week.That has effectively eliminated the traditional eight-hour overnight break, and the move has proved so popular that others are taking note.”According to Lu and Katherine, the benefits of trading outside the normal hours is obvious:“It lets investors react to market-moving events whenever they occur. It also benefits retail traders who often don’t have the same opportunity as other players to transact during business hours (pre- and post-market volumes surged amid the influx of amateurs during the pandemic). Plus it serves international investors clamoring for a slice of US equity exceptionalism from distant time zones.”And these benefits are leading to increased trading volumes for pre- and post-market trading hours. So who are these people that want to trade outside normal hours?The first example is a rise in algorithmic trading. Software doesn’t need time to eat or sleep. It doesn’t get sick. Computer code isn’t required to go to their child’s little league baseball game on Saturday. The code can execute 24/7/365, which means that money can be gained or lost at any time of day. Another example is the young retail investor who has grown up with a phone in their hand. Persistent access to the internet created a desire to have persistent access to financial markets as well. These young people already have 24/7/365 access to the new financial system, so they want the same access for the old system.This is proven when Lu and Katherine explained “after-hours trading accounts for as much as 25% of Robinhood’s total volumes.” Retail is at the gate. Now before you roll your eyes, remember that many of the largest financial institutions are expanding their product offerings to court self-directed retail investors. Wall Street is beginning to realize how much money these individuals have, along with their willingness to invest in various ideas. This brings me to where I think we are headed — the stock market will eventually trade 24/7/365. There are many nuances around things like clearing and settlement that need to be figured out, but persistent access to the market is coming. This means that attractive investment opportunities are coming too. There will be points of illiquidity or mispricing that are introduced when market trading hours are expanded. The kinks will be worked out over time, but in the short-term those opportunities will be present. Additionally, expanded hours of operations will lead to more trading volume, which most likely leads to higher prices across the stock market. This would be a welcomed tailwind by equity investors who are constantly looking for more catalysts to drive assets higher. And lastly, 24/7/365 trading hours will be another building block for the automated future we are headed towards. Many are excited about artificial intelligence at the moment, but there is a larger trend at play. Assets are going to be digitized, they will be traded by algorithms, and settlement will be instantaneous. I don’t know how long this evolution will take. The writing is on the wall though. Superior technology tends to triumph over people’s feelings. I am spending time thinking about where opportunity will exist in the new world so I am prepared. You may want to spend a few hours doing the same. Hope you all have a great start to your week. I’ll talk to everyone tomorrow. -Anthony PomplianoAlex Thorn is the Head of Firmwide Research at Galaxy Digital. In this conversation, we talk about bitcoin, bitcoin mining, ETFs, regulation, politics, global adoption, potential problems, token unlocks, Galaxy Digital, and more.Listen on iTunes: Click hereListen on Spotify: Click hereMy Conversation with Galaxy’s Alex ThornPodcas