Sometimes you come across a story that seems too good to be true.
And most of the times that story won’t be true.
Since I wrote about the fairy tale known as Tesla (TSLA), the company lost about 20 percent of its market cap.
And that’s just the start of the drop, I’m afraid.
I didn’t recommend shorting Tesla at the time because I felt like Elon Musk still controlled the narrative somewhat.
And I still think he does.
That’s why I still don’t want to be involved in the company as either a long or a short (or as a buyer of their ‘cars’ 😄).
But Tesla is just one piece of the story.
Blowing Bubbles
The insanity won’t end with Tesla gone.
They just happen to be the poster boy of this era.
When I think of unlimited asset inflation and cheap money, Tesla always comes to my mind.
But the madness runs much deeper than them.
I started buying silver in 2014 because everywhere I looked, I saw asset bubbles being inflated by central bank policies.
And I saw physical commodities as an easy way to stay liquid and independent.
And five years later, I still hold the same views essentially. Though I’m amazed at how long this story is allowed to continue.
Instead of slowing down, the hype machine went in overdrive a couple of years ago.
That’s why I wanted to check my biases and keep myself honest. After all, it’s possible that I’m totally wrong.
Maybe the central bank fanboys are right in the end, maybe left is right.
And right is wrong.
All Smoke And Mirrors
So I studied the last couple of days.
I revisited my hypotheses and build them all up from scratch. I even watched some interviews with investing legends.
And the independent ones confirmed my views. If anything, I’m even more confident in my beliefs.
Most investing legends know what’s going on and are sure the gig is almost up.
I even saw an interview from three months ago where one investor talked about the mirage that is Tesla. Even then, a lot of people already knew.
Of course, I was still clueless.
Independent, contrarian investors have always known about this smoke and mirror show.
And most of them hedged their positions with hard assets: gold, silver and other scarce commodities.
This charade can’t go on any longer.
That’s for sure.
A Rite Of Passage
And not only finance is in trouble.
The gig is almost up in other areas of society as well: banking, media, law, medicine, education, ….
All these institutions face the same problems.
They have helped to manufacture reality and sold people a mirage but they’re running out of steam as we speak.
People are figuring out that everything is a lie.
There’s a moment all aspiring investors have to go through.
You could even call it a rite of passage.
It’s the moment you realize that everything a company tells you could be a lie and that you can’t trust anybody in that space.
That moment you become a true investor.
Life starts when you lose your innocence.
When you realize that everything you’ve ever been told is a lie, you’re waking up.
And people are waking up.
Understanding the true nature of reality is powerful.
But it’s also very lonely, especially when everyone else still buys the party line.
Luckily, truly understanding reality makes you wealthy beyond your dreams. That always softens the blow.
What do you do when you find the one no-brainer nobody else seems to spot?
Simple:
Don’t be afraid to load the truck when you have to.
When you find a no-brainer, you go all-in. It’s simple but not easy.
But nothing worth your life will ever be easy.
Disclaimer: this is not investment advice.
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