Ripple Effect

A Tale of Two Asset Classes

Loading ...Addison Wiggin

May 21, 202556 second read


A Tale of Two Asset Classes

Five years ago, during the pandemic, the bond market hit record-low yields. At one point, the 10-year U.S. Treasury bond paid a scant 0.318% yield.

Today’s 10-year bond buyers? 4.51%.

For $10,000, that’s a more than ten-fold difference between getting paid $31.80 in annual interest versus $451.

Bonds have been a poor asset, especially longer-dated ones. The iShares 20+ Year Treasury Bond ETF, TLT, is down over 50% since 2020.

Let’s contrast that return with bitcoin.

Over the past five years, whether interest rates have been low or high, whether central banks have been flooding the system or not – bitcoin has soared over 1,100%.

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This week, soon-to-retire JPMorgan Chase CEO Jamie Dimon graciously announced that the bank would allow its customers to buy crypto.

That’s after a 1,100% move. And after bonds, which the bank is more than happy to deal in, have been cut in half.

When it comes to crypto, asking a bank about it is like asking a taxi driver what they think of Uber.

There’s a monetary regime change underway. And bitcoin could allow investors to come out ahead – whatever happens – and whoever ends up on top.

~ Addison


The Small Cap Breakout

September 19, 2025Addison Wiggin

The terrifying bull market broadened its base yesterday, driven by expectations of easy money.

Small caps tend to be more dependent on borrowing to finance operations than the cash-rich mega-cap players.

So it’s no surprise that as the Fed acquiesced to cutting interest rates Wednesday, small caps, as measured by the Russell 2000 Index (IWM) broke out of a four-year range.

The Small Cap Breakout
DASH and LOW Stock Have One Key Thing In Common

September 18, 2025Adam O'Dell

Sometimes, a compelling market trend flashes like a neon sign on the Vegas strip.

We’ve seen that a lot with mega trends like artificial intelligence (AI) over the last few years. Just last week, Oracle was rewarded with a 40% post-earnings pop in its stock price after a strong earnings outlook for its AI cloud business.

Other times, you’ve got to do a little work to find out what’s driving a stock’s price higher. And my “New Bulls” list each week is a great place to start.

DASH and LOW Stock Have One Key Thing In Common
The Carrot and The Stick

September 18, 2025Addison Wiggin

Incentives grow markets. Regulation stunts their fragile bones.

The Fed’s rate cuts are carrots. Markets are feasting on them. Over in the Grey Swan Trading Fraternity, Portfolio Director Andrew Packer added a long trade in the commodity market – in a small-cap player, producing a commodity domestically.

As a cherry on top, it might be the next MP Materials or Intel and get explicit government backing, which could really cause shares to take off.

Trump’s threats to the Fed, or the FCC’s jawboning of broadcasters, are sticks. Investors must decide which matters more.

As one market veteran told The Wall Street Journal: “Cheaper money is a carrot. But the bigger question is whether trust in our institutions can hold. Without that, the carrots won’t matter.”

The Carrot and The Stick
Nasdaq Enters Nosebleed Heights

September 18, 2025Addison Wiggin

If you follow technical indicators, the Nasdaq — a broad measure of tech stocks — is now “extremely overbought”… a level only seen in 0.4% of its history.

That’s less than half a percent, and it is likely the precursor to a correction when traders decide to take profits.

Our advice, “panic now, avoid the rush” and rotate your tech into hard assets such as gold , bitcoin, and commodities in general.

Nasdaq Enters Nosebleed Heights