And how we can model it today
Editor’s Note: Porter Stansberry is known for making bold predictions that cut against the mainstream, “approved” narrative.
He predicted the 1998 emerging market crisis, the 2007 financial crisis, the bankruptcy of General Motors, the loss of America’s AAA credit rating, and the current decline of the dollar.
Porter and his top performing analyst just went live with an urgent new broadcast that they say could be the most asymmetric opportunity of their careers. To get the full story, go here.
Or for more details, read Porter’s essay below.
America, 1781.
The war for independence is grinding on.
Soldiers march barefoot through the snow, paid in scraps of paper called Continentals. Farmers and merchants are handed the same paper for their crops and goods.
But no one wants it.
Inflation has ravaged its value.
A Continental dollar, once trusted, is now worthless.
People joke bitterly that something worthless is “not worth a Continental.”
Desperate soldiers, farmers, and merchants sell them for pennies on the dollar, just glad to get anything in return.
Almost everyone saw the currency, backed by nothing more than a promise from the government, as not even worth the paper it was printed on.
But a few contrarians saw them differently.
They believed America would win the war and that the new federal government would have no choice but to honor its promises so they began quietly buying up these discarded scraps of paper.
When the war ended, Alexander Hamilton – the nation’s first Treasury Secretary — announced a radical plan: the new government would assume every state’s war debts and redeem them in full.
Overnight that “worthless” paper was revalued at full face value.
In some cases, speculators who bought continentals made returns of 100-to-1.
It was one of the most asymmetric trades in financial history… and what we’ve discovered is a modern-day equivalent. And while we won’t see returns of 100-to-1… we could still make a small fortune.
The story we’re calling “the most asymmetric opportunity of our careers” involves a misunderstood, grossly mispriced currency asset… one that is hiding inside a boring blue-chip company.
When we say mispriced, we don’t mean by a few points but by tens of billions. In fact, the asset Wall Street is overlooking is worth more than the entire legacy business itself.
When the truth comes out, the re-valuation could add tens, even hundreds, of billions to its market cap…
And just as Hamilton’s decree turned scraps of paper into fortunes, those who position themselves now could potentially walk away with once-in-a-lifetime returns from this obscure trade.
In our broadcast we share the full story.
