2016 was a volatile year for the market overall, but savvy investors had the opportunity to take home quite a haul. It seems the key to success was not listening to mainstream pundits.
They didn’t just get the elections wrong, missing both Brexit and Trump, they were as wrong as wrong could be also getting wrong what would happen if they were wrong. (Did this just become a Dr. Seuss book?)
Value buying on fundamentals combined with getting ahead of major developments were once again the key ingredients to hitting it big in 2016. No better example of that than our number 1 best performing asset of 2016; bitcoin.
1. Bitcoin 2016 YTD Return: 406%
Just in case you thought bitcoin was dead, think again. It was only sleeping. You may recall that in 2013 Bitcoin went from $11 in January to over $1000 by the end of the year. In 2014 and 2015 bitcoin traded between $250 range to $700, but in 2016 it began another of its infamous climbs from $262 to $1056.
Most of the mainstream media declared bitcoin dead, but one bitcoin expert, Max Wright correctly and very publically predicted bitcoin would do just that in 2016. Wright has an uncanny habit of predicting when bitcoin will shoot off and then top out and he has just released this video explaining why he thinks 2017 will be even bigger for bitcoin than 2016.
“It all hinges on the SEC ruling coming out in March 2017” Wright says. “At some point investors will have the opportunity to expose themselves to the price of bitcoin through a traditional market. When that happens… look out.”
Wright has good reason to believe it could happen in 2017. As reported at the Wall Street Journal, the SEC is set to pass down its ruling on whether they will allow a bitcoin ETF this year or reject it for a little while longer.
Wright explains that bitcoin is approaching 2013 all time high price of $1200, but now it has 600% more transactions and more users than it did then.
“Imagine being able to buy facebook shares when it had 6 million users at the same price as when it had 1 million.” he explains. “And unless you were a seed investor with millions of dollars that is could do – imagine – because normal people could not buy facebook shares until all the money was made and there were nearly 2 billion users.”
Bitcoin evangelists have long since heralded bitcoin as one of the truly unique opportunities for average people to get in on the ground floor of technological revolutions.
Learn why Wright and others think 2017 will be another stellar year for bitcoin here.
Capping out the remainder of our top 7 assets of 2016 are:
2016 YTD Return: 230%
As a leader in computer chip manufacturing, Nvidia surged on news that it would become an industry standard for the burgeoning virtual reality and augmented reality industries.
Direxion Daily Semiconductor Bull 3X ETF
2016 YTD Return: 182%
Semiconductors outperformed in 2016, and investors in this Direxion ETF also took advantage of its triple leveraged position.
2016 YTD Return: 112%
Acacia beat Wall Street expectations on returns quite handily due to its favorable positioning in a widely expanding cloud-based communications industry. As a result, investors bought into this IPO, looking for outsized returns that, in the end, came through.
US Global Investors World Precious Minerals Fund (UNWPX)
2016 YTD Return: 60%
Market volatility in 2016 drove investors to gold and precious minerals. Because UNWPX invested so heavily in exploration (80% of net assets), it provided the best returns of any mutual fund in the space.
Class I Catalyst/SMH High Income Fund (HIIIX)
2016 YTD Return: 38.5%
Fixed income mutual funds are considered quite conservative, but uncertainty in 2016 made some mutual funds in this space look more like growth investments. High-yield corporate bonds were a large part of the basket of investments that HIIIX focused on. As a result, it gained investors almost 40% in 2016.
The Brazilian Real
2016 YTD Return: 20% against the US dollar
Brazilian currency suffered under political turmoil in the recent past, but it experienced a resurgence in 2016, perhaps because of its hosting of the Olympics. As a result, politics took a backseat to economics and the camaraderie that came with the worldwide competition.