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Welcome back to the end of another week with Renaissance - the newsletter equivalent of winning the lottery and having no one around us going broke ever again🎉……because we will move to a wealthy neighbourhood. 👀

*us when we visit our old districts (districts…what is this the hunger games, oh well I’ve said it so I’m going with it)

Today at a Glance:

Crypto Vs Index Funds

Investment Accounts Vs Retirement Accounts

The Renaissance Over-Under

Crypto Market & NFT News

Exchanges & The German Government Sell BTC - An Opportunity In Perspective

*Watching your portfolio after Germany continues to sell…it may be the worst thing Germany has ever done… 👀

The German Government sells 17,000 BTC worth a total $951 million! Its largest single-day Bitcoin liquidation.

This is actually a good thing…

Let’s get as much BTC and ETH out of the hands of Governments and buy it up long term.

- The BTC and Eth ETFs are approved and the Eth ETF launches soon! This will cause billions in buying pressure and will pull everything up with it making it a mainstream asset-class for the future.

- The BTC halving was in April, but historically the bull run and subsequent uptick doesn’t happen until 4 months after this - which is roughly September if we were to statistically estimate price increases!

- The halving is every 4 years and across BTC’s existence the prices have been:

- On top of this you have the regulation of crypto all being approved and the SEC cases dropped. With Trump likely being elected in November this will also make the sector spike…tremendous…spike like nothing you've ever seen before…some say the best spike they’ve ever seen 😂

- And this is where the EOY $85k target from us comes from! There’s no going backwards anymore for crypto, it’s just how much you’re willing to allocate. You need to use your logical senses, not just what happens on a random day.

- A quick reminder when CNBC held a funeral on TV for Bitcoin at $6k a few years ago…idiots. Never listen to random news that think they know better, they couldn’t predict a period let alone BTC price or the industry legitimacy.

- And then the genius emerges and blows all our nips off with his bets, Michael Saylor who has bought around $11B(?) of Bitcoin now making the case for future prices of $10M per coin.

- The obvious answer is in-between these 2 extremes and it’s more optimistic than pessimistic. Red days are good days, we buy what we want in spades!!! Like a fat guy at the Chinese buffet - we’re getting a little bit of everything.😍

- When BTC or ETH drops they’re obvious buys (especially Eth) - but the biggest assets with wayyyyy better returns drop massively as well since they’re more volatile!

When the market goes red, snap up $SHIB, $PEPE, $BONK, $WIF (is so-so right now).

- The answer to generational wealth is simple. In this game for the next 2 years, before banks have to disclose what their crypto holdings are which by that point will be massive, BUY where the ATTENTION is. If it’s politiFI coins or the hot memecoin early etc - we play the narrative. And we buy the macro favourites on red days like manna from heaven. Fool-proof.

- Do yourself a favour, skip 12 months, 24 months into the future and take a stab at reasonable prices based on a decade of trends - buy the assets and let’s all get wealthy, Renaissance family. 🙌👀

Now let’s compare this in crypto to getting wealthy in the traditional stock market and index funds

- We all know the S&P500 is on an absolute heater right now, propped up by basically 3-4 stocks with big AP trends that are mis-valued(overvalued). The current P/E ratio of the market is 35! The average is 17, this is madness and going unnoticed!

- You’re paying 35x the earnings just to own it. WTF. For let’s say 8% returns long term. This is the 3rd highest point ratio in history… the other 2 times were before the massive recessions…

In the long run fundamentals drive returns. The S&P is overpriced and overblown and propped up by a few names based on a trend. Not to mention the largest debt the US, UK, France have all ever had… the capitalist experiment is ending and it’s not truly working - and the FIRE EXIT is crypto!

- The uneducated will say crypto is risky, well frankly a decade of predictable increasing prices means assets that have increasingly favourable legislation and that are anti-inflation look amazing on paper.

- The uneducated will trust the public market in a broken system with so much debt that it’s overcharging even by the basic measures… these prices are on speculation, not fundamentals at allllll, and this WILL end - you wont get your decades of returns you’re looking for, this isn’t 100 years ago.

- One of Buffett’s best lessons…”our favourite holding period is forever” - you have to decide what you’re holding and buying up for the long term. I’m not saying exit all of your index funds and clean out the Roth IRAs (if you do invite me to the party to spend some) - but holding your crypto macros and buying more on red days will pay better for the next decade.

- Fight me if you disagree hahah, but I’ll see you when the debt bubble bursts and we’re all on ETH yachts 👀

- Here’s the kicker, dollar cost averaging (DCA, buying some of the index every month) was and is a good way to get wealthy over the long term by getting 8% average returns compounded over decades. But there is less volatility…..

- The real benefit of the crypto and BTC price trends is that there are substantial red day discounts, BUT paired with phenomenal long-term price uptrends!! That is wildly unique. You only get that 15 times in history with the public stock market.

- The greatest DCA we can do is to buy heavily on red days and downtrends of the major assets we love, and ride them up long term! Believe me the compounded return will not be as little as 8%. Now grow up and get wealthy, I’ve told you enough 👀

LITTLE BITS 😎

Crushing Debts Await Europe’s New Leaders - WSJ, Planned largess by election winners in Britain and France is on a collision course with soaring debts and deficits

Crypto Stolen by Hackers Doubles to $1.38 Billion In First Half of This Year

Lol, same…….

Banks to publish crypto asset exposure from 2026 - Reuters, global regulators say (this is a big fucking deal, and when we get a peek at what they’re holding and it reveals massive positions it will pump the ecosystem, this will be as instrumental as the halving!)

And thatttttt my friends, is a top signal for me! Also, most big hedge funds have sold off tech stocks at the high levels… now trends always do run longer than everyone expects, but I’ve seen enough madness to take profit for now

Once again guys, the politiFi memes have been killing it with these obvious outcomes! It was clear Biden was pulling a ‘Weekend at Bernie’s’ for months now, Trump tokens are up of course and we’ve all done well here from that - but as people talk about swapping Biden out, the popular candidates tokens surge as a result! Easy attention prediction plays

And obviously Boden dropped 40% during the debate - and rotated capital into new candidate coins…

Goldman Sachs: 89 stocks expected to be winners as they build out AI infrastructure

Inspo….. 🤏

The elite are always trying to dodge the tourists. Here are their top under-the-radar luxury spots

How much money does a 35-year-old need to invest monthly to become a millionaire by the time they retire?

NOSTALGIA OF THE DAY

Wealth Building, Personal Finance Hacks & FAT FIRE

- We all do our crypto investing. But where should we invest are other money for diversification and in what vehicle? An investment account? A retirement account?

- Here at Renaissance we love liquidity. It gives us the ability to use our wealth whenever we want, and the opportunity to jump on incredible opportunities (and you should love this too to take advantage of our weekly alpha).

- Retirement accounts are like the opposite of liquid. You can’t access these at all until a set retirement age. Bit of a buzzkill as we want to retire early and enjoy that cash now.

- But these retirement accounts have such good advantages that it sometimes smart to look past this. Here’s why retirement accounts aren’t just for boomers:

⚡ You can’t access them to a certain age sure, but the tax exemptions still make them all the worthwhile. As you can invest before tax you’re already investing a chunk more than if you were investing post-tax in an investment account. This could be an extra 20-55% return straight out the gate.

- Sure you will usually get taxed to some extent when withdrawing from your pension, but there is also a large lump sum, completely tax-free (our favourite words), with benefits outweighing any tax paid down the line.

⚡ So this means money invested in a retirement account, with tax relief, will deliver a higher return than the same investment in an investment account.

- For example, $10K invested in an investment account, growing at 5% per year, after 20 years would be approximately $27k.

- But, if invested in a retirement account this same investment would be approximately $33K! And this example is only for a lower rate tax at 20%. For a lot of Renaissance readers and FIRE pursuers the difference will be even greater.

- A clear $6K gain solely due to the investment vehicle used. You have to use this to your advantage. There’s no such thing as a free lunch but this is pretty close to free school meal coupons. 🎟

- So now you can see the benefit of investing in pensions, but we still have the major drawback. You can’t access them to pensions age. 😥

⚡ The key: Invest in both pensions to take advantage of the tax relief, while still investing in an investment account which you can withdraw from during the gap between retirement age and pension age.

- For example say you can’t access the pension to 57, but you want to retire at 45. You can use the money available in your investment account to sustain your lifestyle until the pension kicks in. Using this method greatly increases the money you have at your disposal.

⚡ This is what most high wealth individuals do. Utilising liquid investment accounts alongside retirement accounts with tax relief. 

- Strangely having a slightly longer bridging period can work in your favour. Keeping your investment account invested in equities over the bridging period can reap serious rewards, but for short periods can lead to issues. Perfectly illustrated below. 👇

⚡ Over a longer time period equities clearly delivers the best returns, but over a short period who knows. The range can be volatile and the last thing you want is to be a forced seller because you have to pay bills during an asset value slump.

- You need a sufficient amount of capital to be bulletproof. An alterative option is to relax with your investment account and just aim for liability matching. This is a method of investment not designed to achieve high returns, but instead simply to match your investment value in line with your liabilities and pay out cashflow that allows you to meet your expenses.

- This is all well and good, very sensible, but a bit tame. Although don’t worry we can still gear up the returns and achieve these in our pension investments. This is Renaissance after all.

Meme of the Day

That’s a wrap for this week! Meet us on Twitter to talk all about it. Where we’ll send you jokes, tips, and all important news from the world of money, business and crypto and more! (@RenaissanceDly)