On Giving to Get

It’s that time of year. Thanksgiving is just around the corner, and that also means that “Black Friday” and “Cyber Monday” are nearly here, too. But did you also know that Tuesday, Nov. 28, is “Giving Tuesday?” That’s right, a day dedicated to remembering that charitable contributions are both a gift to others and a huge psychic present to yourself.

Indeed, Giving Tuesday ushers in what’s come to be known as the giving season, and it is called the giving season for good reason. You see, it’s estimated that about 30% of annual donations occur between Thanksgiving and the start of the new year, with the majority of those gifts being sent in the final three days of the year.

Over the past couple of years, I have donated more to charity than any other years in my life, and part of the reason why I have been able to do so is due to the success of my newsletter advisory services. You see, the more money you make for your subscribers, the more subscriptions you sell and the more renewals you get.

So, by helping you by providing great investing information, I am rewarded by you with more subscription revenue and more personal income. And the more personal income I have, the more I am able to donate to the charities of my choice.

Now, in addition to the increased amount of money I am able to donate to the charities of my choice, more personal income and more investment success also mean more “units of choice.”

I’ve written about the concepts of “units of choice” before in this publication because it’s a great way to look at the role of money in our lives. You see, the more capital we have, the more things we can do with that capital. More importantly, we can do more with the limited time that we all have.

In recent years, I spent a lot of my “units of choice” doing things and donating to the charities that matter to me. For example, I donated one of my horses to a charity that provides assistance to children with disabilities. Witnessing the interaction between a well-trained horse and an excited child who gets to ride that horse for the first time leaves an indelibly loving impression on one’s soul.

I also spent some time at a charity event for my favorite veterans’ organization, Friends of Freedom. This group was started by my friend and fellow Renaissance Man, David Haddad, who has been a guest on my podcast. Under David’s expert stewardship, Friends of Freedom has delivered over 750,000 cigars for troops to enjoy in war zones in Iraq and Afghanistan.

Your editor playing in the annual Friends of Freedom charity poker event.

Friends of Freedom also helps veterans by assisting them with rent, utilities, car repairs, the transition to civilian life and more. If you’ve looking for a charity to support with veterans in mind, then choose Friends of Freedom.

Another charity event that I attended over the past few years was sponsored by the iconic rockers, Metallica. I was there for the band’s epic 40th anniversary takeover of its home city of San Francisco, where the performers played two incredible sold-out shows at the 18,000-seat Chase Center.

Your editor, alongside Eagle Financial Publisher, Roger Michalski, rocking out and doing a charity beach clean-up in San Francisco.

I also had the privilege of doing an early morning beach clean-up alongside hundreds of other Metallica fans, including my Eagle Financial Publications colleague, Roger Michalski, who is arguably one of the band’s biggest fans.

This event was sponsored by Metallica’s charity, All Within My Hands, which helps raise money for a cross-section of national and local charities. Importantly, every penny of the donations received by All Within My Hands goes directly to the organization’s charity partners.

I must say that it felt great to be out in the very chilly San Francisco morning air, doing good and helping clean up the city’s beautiful beach. No, I didn’t get anything out of this other than a sense of accomplishment, and the warm and fuzzy feelings one gets knowing one is doing something good for his fellow humans (oh, there was that cool t-shirt they gave us, too, but I digress).

So, this year, if you’ve found yourself doing well, making good investment decisions and/or feeling otherwise healthy and wealthy, why not take some of your units of choice and aim that at the charity of your choice? And whether you choose to donate a little time, a little money or, like me, a little time and a little money, I guarantee it will make you feel good — because giving means getting that which one can only receive from giving.

Finally, remember that we only get so many trips around the sun before our time here expires. So, within those beautiful trips, why would you want to be anything but kind to your fellow travelers?

Happy Thanksgiving, and may we always live our lives in the name of the very best within us!

ETF Talk: Fiending for Futures with This Bitcoin ETF

Now, in a manner with which my readers have grown accustomed, I will not beat around the bush about Bitcoin.

There is thrum of excitement within the markets, and it is related to the potential approval for a U.S.-based spot Bitcoin exchange-traded fund: ProShares Bitcoin Strategy ETF (BITO). While the Securities and Exchange Commission (SEC) has not yet signed off on approval of this ETF, experts have reported the approval may come early in 2024.

Bryan Armour, director of passive strategies research for North America at Morningstar, commented, “For ETF investors, this would be the best product on the market.”

But, why the excitement? Well, on the back of BlackRock’s first steps toward an ether ETF, the price of bitcoin hit an 18-month high, soaring to $37,970. Further, the price of bitcoin has more than doubled since the start of 2023.

With the price of bitcoin raging higher, a spot Bitcoin ETF does sound appealing, as this fund would allow investors to invest directly into the digital asset. Currently, investors have only the option to buy bitcoin futures ETFs.

However, as Benjamin Franklin wrote, “…in this world nothing can be said to be certain, except death and taxes.” And this relates not only to the approval of the spot Bitcoin ETF, but the success of such direct investing for many investors.

This brings us to today’s ETF — ProShares Bitcoin Strategy ETF (BITO). While this is a futures fund, it is a tried and true one. And with such a flurry of excitement surrounding something so new, I want to bring us back to the now.

BITO is the world’s largest and first U.S.-based Bitcoin-linked ETF. And while the fund does not invest directly in Bitcoin, it invests in cash-settled, front-month bitcoin futures, which are traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC), such as the CME Futures Exchange.

The value of the bitcoin futures is determined by the CME Group and Crypto Facilities Bitcoin Reference Rate (CME CF BRR), which aggregates bitcoin trading activity across major global bitcoin spot trading venues during a one-hour window.

As a matron of the Bitcoin universe, BITO has closely tracked the performance of the spot bitcoin since its inception. Moreover, this fund can be held through a brokerage account with no need for a cryptocurrency exchange account.

BITO has net assets of $1.09 billion and assets under management of $1.07 billion. Moreover, the fund is trading at the high-end of its 52-week range, which is $19.23, and it is currently trading at $18.33 and climbing. As of the market’s Nov. 15 open, the fund has already climbed 3.27%. Looking at the chart below, it is apparent that BITO is finishing the year strongly, as its price is piggybacking off the aforementioned market excitement.

Chart courtesy of www.Stockcharts.com

Overall, the market may love the idea of investing in the digital currency itself, but Bitcoin has had its shares of ups and downs, and that means more volatility. With BITO, investors are exposed to the crypto world, but with a cushion.

As I mentioned, and as Ben Franklin did before me, certainties are rare in this world and certainly not in the stock market. So, let me leave you with one last thought, from a philosopher of science.

A philosopher who greatly believed that observation and inductive reasoning are an integral part of our scientific understanding — Sir Francis Bacon, who wrote, “If a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts, he shall end in certainties.”

I am always happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You may just see your question answered in a future ETF Talk.

In case you missed it…

Go Ahead, Ask Me Anything

“Go ahead, make my day!”

It’s the classic line that we all know, and it comes from the 1983 film, “Sudden Impact,” starring the iconic Clint Eastwood as “Dirty Harry Calahan.” Now, in case you don’t remember the scene, Dirty Harry has his .44 magnum Smith & Wesson revolver pointed at a criminal who is holding a woman hostage. And what would “make Harry’s day” is to be able to shoot the man point blank, just like he shot the other perpetrators who just attempted to rob a diner.

So, what makes my day?

Well, it’s certainly not the prospect of shooting a criminal, although the world often makes one want to metaphorically (and sometimes literally) shoot one’s enemies. What does make my day is interacting with readers of The Deep Woods, and exchanging ideas on a variety of topics that matter to us all.

Today, I will do just that, by answering some recent questions I’ve received. I will also share some of the replies I received in response to the question I posed in last week’s issue requesting you tell me about your purpose. First, let’s dig into a few of your latest questions.

Question: Finn H. writes: “Jim, I’m really troubled about what’s happening in Israel, and I am horrified by the terror acts committed by Hamas. Even more disturbing is the reaction in defense of this horror by liberal students in elite colleges in America. Is there any sane light you can shed on this for me? Semper Fi, Finn.”

Answer: I, too, am horrified by the actions of Hamas; however, I am not surprised. It seems as if everyone has forgotten why we’ve had to take our shoes off in the airports for the past 20 years. The reason why is because of Islamic jihadism. You see, in secular Western societies, people don’t really believe that a person can be motivated to kill themselves and others for their metaphysical beliefs. I mean, the conflict in the Middle East has to be about oppression, poverty, land disputes, etc., right? Wrong!

The conflict is all about ideas.

Indeed, even a casual reading of the Quran, the Hadiths and cursory knowledge of the life of the Prophet Muhammad gives us the answers as to why these atrocities are happening. In those works, the prescription for holy war, conquest and jihad is arguably the central message of Muhammad and the Quran. Acts of beheadings, torture and mayhem in service of jihad isn’t a “hijacking of the religion” like so many apologists on college campuses say. The people who engage in jihad (albeit a tiny minority of Muslims), are carrying out martyrdom, and they are acting out what they think the creator of the universe has told them is the best way to get to paradise.

Hamas is a jihadist organization. If Israel suddenly laid down their arms and declared they want peace, the kind of slaughter that took place on Oct. 7 would commence on a grotesque scale that would obliterate every Jew “from the river to the sea.” Ideas have consequences, and true belief in the doctrine of jihadism is about as corrosive an idea as anyone has ever conceived. Until we face this reality, and until the West, and more importantly, the Muslim world, condemns the doctrine of jihad, we will continue to grapple with this ugly reality.

Question: T.J. writes, “Jim, I saw your performance at the FreedomFest Jam session in Memphis this year. It was a great night. Do you often perform music, and do you have a website or a YouTube channel where I can hear your original songs?”

Answer: Thanks T.J., and yes, I remember you were there at the Blues City Cafe. Super fun night! Since you asked, I do perform occasionally at some acoustic music venues in Southern California. In fact, I am planning several shows in Spring 2024, so I will give you the heads up as the dates are confirmed. I am also in the process of writing and recording a new album, and thanks to a brilliant director friend of mine, we are also planning on doing a video for one of the songs. All of this is scheduled to be completed by mid-2024, so stay tuned! And once again, thank you!

Question: Josie R. writes: “Do you think a rematch between President Biden and former President Trump is inevitable? Also, who do you think will win?”

Answer: Josie, I will keep this answer brief. Yes, I think a rematch is inevitable. As for who will win, well, given the craziness in our body politic today, I don’t think anyone can say at this point. In this matter, I will defer to the great Bob Dylan and say, “The answer, my friend, is blowin’ in the wind.”

Now, turning to the question I posed last week for you to tell me your purpose, here I got a few thoughtful responses. Allow me to share a few of my favorites right now.

Hi Jim,

Thanks for asking this question. I’ve been a subscriber of Successful Investing for several years and my father-in-law followed Dick and Doug Fabian’s investing plan.

My purpose is to help make the world a better place. I do this by living and leading with a set of values, volunteering in various local community building activities and contributing to various organizations, including my Baha’i faith. My success with investing plays an important role and I have a lot to learn.

Regards, Jan F.

Love this, Jan. And thank you for being a loyal and longtime reader of Successful Investing.

Hello Jim. Thanks for asking this really important question. Thanks to the classic Seven Habits book, I wrote out my personal mission statement many years ago. I’m now retired, and my kids are on their own, so I’d simplify my purpose to helping and serving others. In your case it’s educating investors, and in my case it’s a variety of volunteer and mentoring roles. Thanks for your thoughtful question, and best wishes in pursuing your purpose!

Thanks, David A.

Thank you, David A. Helping others by volunteering and mentoring is something I look forward to doing more of in my retirement, too. And thank you for your thoughtful response.

And now for what I think is my favorite response on the purpose question:

Dear Mr. Woods, 

I was about to cancel/delete your letter when I read your opening comments in this month’s email. It stopped me. I have never heard someone in your field ask that question or speak so plainly. Love it.

My purpose in life is to support those around me that require such. Often to their embarrassment or ignorance.

David M.

Supporting those around us is a beautiful purpose. Not only does it help those around us, but it helps us in the process. Yes, it isn’t always pretty or easy, especially when embarrassment or ignorance is involved, but doing good isn’t always pretty or easy. Sometimes, we have to do really hard things in a really tough world.

Oh, and thanks for not cancelling/deleting this publication. It is my goal to speak plainly, and to ask questions that others in my field don’t. That’s what I hope makes The Deep Woods unique, and I am very pleased that sentiment resonated with you.

Finally, it’s not too late to weigh in. What is your purpose? I’d love to hear more, and doing so is as simple as sending me an email.

I look forward to your response.

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Beat, Old Heart  

Beat, old heart, these are the old bars
All stragglers have beat against.
Beat on these bars like the old sea
Beats on the rocks and beaches.
Beat here like the old winter winds
Beat on the prairies and timbers.
Old grizzlies, eagles, buffalo,
Their paws and beaks register this.
Their hides and heads say it with scars.

–Carl Sandburg, “Beat, Old Heart”

Our old hearts beat, we live, and we try to navigate an ultimately losing battle. Still, the struggle continues. I mean, what other choice do we have? Existence is a noble pursuit, and the more our paws, beaks and hides endure, the prouder we can be of our scars.

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.

In the name of the best within us,

Jim Woods