Market Tops & A Special Opportunity for Subscribers

I've got a special investment opportunity for those interested and eligible.

A friend of mine is opening up his Flash Loan Fund to the public for the first time.

The strategy is based on a powerful, patented technology that aggregates exchanges and matches lenders and borrowers for flash loans and clips a small coupon.

There are several differentiating factors that make their technology/execution/process superior to anything else out there.

In plain English, the fund is being paid a daily rate by crypto exchanges to provide capital and match borrowers.

Basically, in a flash loan arbitrage situation, a trader buys bitcoin (or some other cryptoasset) on one exchange where it is selling at $68K and sells it on another exchange where it might be trading at $68,200.

The trade is completed in a less than a few seconds. The Fund provides the capital and the matching engine for these loans and takes it's small daily payout.

This algorithm/strategy has produced 126% annual returns for 2 years running.

There is no directional risk and minimal capital risk.  I put my own capital in to test it 6 months ago and it’s been cashflowing as predicted.

Distributions are every 4 months (42% tri-annual return).

To be eligible to invest, you must be:

• An accredited investor

• A Paid subscriber of Alpha36Ø

• The minimum investment is $100K.

If anyone is interested in learning more, please email me directly at [email protected] (or connect on Discord if you're a paid subscriber).

The Fund is only $25M and more than half is already spoken for so if interested, please reach out promptly.

Market Top

Inflation is still running hot.

Core-CPI was up 0.4% month-over-month and up 3.8% year-over-year.

As a reminder, the Fed’s inflation target is 2%.

As I've said for several months, there is zero chance the Fed cuts rates with a CPI number like today or with the stock market at all time highs. Absent some type of Grey or Black Swan (China invades Taiwan?), I don't think we'll see rate cuts at all until 2025.

In fact, if you saw today's number in a vacuum, you'd expect the Fed would be about to embark on a rate-hike campaign. That's how bad the number was.

Meanwhile, the market continues to ignore negative news and keeps chugging along.

Remember, it doesn’t matter until matters.

It is still my strong belief that we are in the process of marking a major market top.

Unlike market bottoms though which tend to be 'V' shaped, market tops tend to be a rounding process.

There are some big macro forces that could keep the party going. We can’t finance our deficits our debt without printing money or letting inflation run hot and a weak dollar would help both those cases.

High inflation would help those with assets but continue crushing the lower and middle class. But that’s a fairly complicated subject for another letter (review my ‘Rock and a Hard Place’ thesis I wrote about last year if you have no idea what I’m talking about).

On the bright side, Bitcoin still running. If you listened to one thing I told you hopefully it was to buy BTC at $25K....or at $38K...or frankly, any number over the past 6 months. 

That one trade is a cold triple at this point.

I probably wouldn't chase it here although there is nothing in the way except the Big Round Number of $100K.

Nevertheless, we are probably facing a near term top based on price exhaustion.

Either way, there is still a profound supply-demand imbalance based on the ETF approvals that only resolves with a higher price to jar coins loose from existing holders.

You also have to remember that BTC is one of the only assets out there that's a hedge against our current insanity.

Biden recently released his new budget and it comes in at a whopping $7.3T. That's likely $3T or more than we'll take in next year in tax revenue.

So we're essentially locking in a permanent $3T+ a year deficit on top of the $35T in existing debt.

If you think the $35T and rising number that can be paid back without massive inflation to devalue the dollar (and thus the debt), I've got a bridge in Brooklyn to sell you...

The bottom line, we are on an unsustainable fiscal path and debt spiral and BTC (and to some extent gold) are the only instruments that exist outside of the traditional structure that should serve as insurance and act as a good store of value.

Bottom line: Keep raising cash and trimming exposure. Buy BTC on dips and consider adding exposure to some of the names in the portfolio.