💸 Bitcoin Surpasses $100K

Together with Public

Good morning,

A quick breakdown — in case you don’t have the time.

1. ⭐ Bitcoin officially surpassed $100K per coin and $2T in market cap.

2. ⭐ We shared our biggest wins of 2024 to the Rich Habits Podcast audience.

3. ⭐ Annual interest payments on US national debt hit $1.2T, a new record.

4. ⭐ The S&P 500 has printed 56 all-time highs thus far in 2024.

5. ⭐ Shoppers spent $15.8M per minute during peak Cyber Monday hours.

6. ⭐ Connect directly with us inside the Rich Habits Network!

Market Overview

Chart of the Week

Bitcoin officially surpasses $100K per coin and $2T in market cap.

First, congrats to everyone who has been dollar cost averaging into this digital asset since we first began encouraging you to do so in mid-2023. As a reminder, we’re big believers in “diversification” when it comes to our portfolios — real estate, cryptocurrency, blue chip art work, passive income-focused ETFs, and everything in between. We always encourage our listeners to allocate 5-15% of their total investment portfolio into Bitcoin.

Now that Bitcoin is trading above $100K per coin, we want to remind you how important it is to either 1) have an exit strategy with clear “sell targets” or 2) have a multi-decade approach to investing in the asset.

For example, Austin plans to sell all of his Bitcoin between $125-150K and redeploy the profits elsewhere, whereas Robert plans to hold his Bitcoin in perpetuity.

No matter your strategy, simply having a strategy is the most important thing to consider here — especially with an asset class as volatile as cryptocurrency. You don’t want to be emotional about your money. You want to have a plan!

Together with Public

Public launches the Bond Account, offering a 6.87%* yield.

You may know Public as the all-in-one investing platform where you can build a multi-asset portfolio of stocks, options, bonds, and more. Now, Public has taken another step in making fixed-income investing more accessible with the launch of its Bond Account.

At a time when bond yields are at their highest levels in years, the Bond Account allows you to lock in a 6.87%* yield. In just a few clicks, you can now invest in a diversified portfolio of ten investment-grade and high-yield bonds that generate 20 interest payments annually.

With the Fed preparing for what many expect to be a series of rate cuts, the Bond Account offers a timely opportunity to lock in today’s historically high bond yields.

In Case You Missed It…

👉 Episode 93: Our Biggest Wins of 2024

In this week’s episode of the Rich Habits podcast (linked here) — Robert and Austin reflected upon their biggest wins of the year, both financially and professionally.

Here’s what they shared:

1. Artificial Intelligence — with stocks like Nvidia up +193% year-to-date, one of Robert’s biggest wins was the “AI trade.” Spotted in early-2023, Robert realized AI was going to reimagine how humans conducted their work, and companies scaled their employees.

2. Cryptocurrency — with Bitcoin and XRP up +130% and +280% year-to-date, respectively, having exposure to these cryptocurrencies was massive for our returns. We made sure to share these ideas with each and every one of you every chance we had on the podcast. We’re thrilled to see how well you all have done inside of your own portfolios.

3. White House & NYSE — Austin shared how grateful he was to have been invited to the White House to learn more about the student loan debate, as well as the New York Stock Exchange to ring the opening bell alongside BlackRock. Neither of these things would have been possible without you all — thank you!

They also shared a handful of “wins” submitted from inside of the Rich Habits Network!

Shoutout to Paige, Connor, and Alirio for accomplishing so much throughout the year.

👉 Q&A: Buying Bitcoin at $100K, When to Close a Business, & HSA vs. Roth IRA

Here’s a link to the Q&A episode that was posted this morning.

You can submit questions for these episodes by asking them inside of the Rich Habits Network, replying to this email, or sending us a DM on Instagram.

The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content!

Robert’s Callout

Annual interest payments on U.S. national debt hit $1.2T, a new record.

Nothing is more discouraging than knowing my hard-earned tax dollars are going toward paying interest on the US national debt. This annual interest payment is larger than all government spending on R&D, infrastructure, and education COMBINED!

This $1.2T figure is now twice as high as it was in 2021, catalyzed by our national debt ballooning to $36T for the first time in history.

On the bright side, I’m optimistic the Department of Government Efficiency (DOGE) will help low this figure — eliminating government inefficiencies, cutting spending where there shouldn’t be, and encouraging the Pentagon to pass their first internal financial audit in seven years.

Yes, you read that correctly — the Pentagon has failed its annual audit seven times in a row now which represents $2.46T in unaccounted for tax-payer dollars.

We’re sick of this.

Austin’s Callout

The S&P 500 has printed 56 all-time highs thus far in 2024.

When it comes to investing, the S&P 500 is the most obvious of them all — who doesn’t want pure American capitalism in their investment portfolio? It’s a self-cleansing, rules-based investment strategy that tends to deliver 8-12% annual returns over a long period of time.

This year, the S&P 500 has had 56 trading days where investors were able to say “Woah! We’re trading at all-time highs!”

For some of you, this might be a scary thing to see. After all, prices have never been this high before! But I want to encourage you all to understand that we’re very much in a bull market as corporate profits continue to increase, the labor market remains sturdy, the Fed is cutting rates, and we’re heading into what some are calling the “Golden Age of American Manufacturing” under a Trump Administration.

If we rewind to this time last year when the S&P 500 was trading at 4,100, the chart above illustrated where Wall Street analysts thought we might be headed by the end of 2024.

Some analysts thought we’d end 2024 up only +2%, where others expected much more. The average analyst on Wall Street expected a +18% gain in 2024 — the S&P 500 has delivered +28% thus far.

The Rich Habits Radar

• 👉 AWS announced an AI supercomputer built from its own chips.

• 👉 Shoppers spent $15.8M per minute during peak Cyber Monday hours.

• 👉 Fed Chair Powell compared Bitcoin to gold in a recent interview.

• 👉 UnitedHealthcare CEO Brian Thompson was shot dead in Manhattan.

• 👉 Trump nominated crypto-friendly Paul Atkins as SEC Chair

• 👉 U.S. Senators ripped airline executives for ‘junk’ fees.

Check ‘Em Out

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• Public — Trade stocks, options, and crypto

• Frec — Use direct indexing to invest & save on taxes

• Grifin — Automatically buy stock where you shop

• Acorns — Get $35 free when you subscribe

• Suriance — Protect your family with term life insurance

• Video Course — Use code “Newsletter” for 15% off

• Seeking Alpha — Optimize your portfolio

• Credit Card Matrix — Find your next favorite card to swipe

• Roi — Use code “Habits” and start tracking your net worth

• Dynasty — Protect your home in a trust

Disclaimer: This is not financial advice or a recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Public Disclosures: All investing involves risk. Brokerage services for US listed securities, options and bonds in a self-directed brokerage account are offered by Public Investing, member FINRA & SIPC. Not investment advice.

*This yield is the average, annualized yield to worst (YTW) across all ten bonds in the Bond Account, before fees, as of 12/5/2024. Because the YTW of each bond is a function of that bond’s market price, which can fluctuate, your yield at time of purchase may be different from the yield shown here and your YTW is not “locked in” until the time of purchase. A bond’s YTW is not guaranteed; you can earn less than that YTW if you do not hold the bonds to maturity or the issuer defaults.

A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The 6.87% yield is the average, annualized yield to worst (YTW) across all ten bonds in the Bond Account, before fees, as of 12/5/2024. A bond’s yield is a function of its market price, which can fluctuate; therefore a bond’s YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. 

Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions.

Fractional Bonds also carry additional risks including that they are only available on Public and cannot be transferred to other brokerages. Read more about the risks associated with fixed income and fractional bonds. See Bond Account Disclosures to learn more

While corporate bond yields should fall in reaction to a Federal Reserve rate cut, we cannot know whether that will be true of the bonds in the Bond Account, how quickly bond yields will respond, or how much they will decline.