I Hope You’re Happy From All the Way Up Here, and Happy LF Anniversary!

This time we’re going to start with a six-chamber revolver of facts.


  1.  September 26, 2019, Alex Johnson:

    “I’m going to begin with a bold statement: I believe the Laissez-Faire algorithm will be one of the best performing investment vehicles when compared to any other investment vehicle, commodity, index, bond, or ETF  by the end of the next recession.”https://www.laissezfairefund.com/2019/09/26/laissez-faire-and-bitcoin-during-a-global-recession/

  2. The Federal Reserve has now injected 1.5 trillion into credit markets to keep them afloat, meanwhile, the stock market continues to plummet. (Yes, you’re paying for this – and no, it’s hardly all the Coronavirus’ fault).https://www.wsj.com/articles/fed-to-inject-1-5-trillion-in-bid-to-prevent-unusual-disruptions-in-markets-11584033537
  3. The Federal Reserve has also surprise-lowered interest rates twice in the last two weeks, and they now rest at 0% fed funds rate. Even cheaper debt incoming! But at what cost? Devaluation of the dollar, taxpayer dollars, etc.
  4. The U.S. Government is planning the largest stimulus package in history, and this includes giving every American a brief universal basic income, rumors are that it is $1,000-$4,000. Yes, a $1,000 handout to every American that qualifies. 
    If this passes, Trump will ironically become the most socialist president since FDR.
    “THERE ARE 4 OR 5 WAYS TO GET MONEY OUT AND THAT THE MONEY IN CONSUMER POCKETS IS THE MOST PRESSING ISSUE NOW. WE WILL GO ‘BIG’ ON THIS” -TRUMPUnderstand, you are also paying for this. The government will yet again bail out banks and institutions that have privatized their profits and socialize the losses onto the masses because they KNOW the taxpayers will and can front the bill.https://www.youtube.com/watch?time_continue=222&v=Bu2wNKlVRzE&feature=emb_logo
  5. Hidden into the last stimulus package was a note that banks are no longer required to maintain fractional reserves of 10% on loans, instead, the requirement is now 0%. Money can be lent that does not exist again.
  6. The Fed will buy at least $700 billion of Treasuries and mortgages. They will continue to do massive amounts of repo (short-term liquidity arrangements) and let’s not forget all Treasury and Mortgage coupons will buy additional bonds and there will be no runoff of holdings.

Despite all of the failures of the governmental bodies, now is a great time to be an American because of the dollar. We have an economic chokehold on the entire world and the banking system. The dollar continues to rise into all of this money printing because people are fleeing to cash more quickly than the Fed can print. The demand for dollars is currently higher than ever, with many banks putting limits on cash withdrawals. This seems bearish on the short term for Bitcoin, but ultimately dollar devaluation will be a massive boon for Bitcoin.


Now lets go over #1.

Laissez-Faire began trading in March 2019. How have various assets performed since then?

SP500 Index: -16% Since March 2019, -30% from current high to low

XAUUSD, Gold: Up 12% Since March, Down -14%

Bitcoin: Up 40% Since March 2019, Down 63% from local high

TLT, Bonds: Up 26% since March 2019, Down 15.5% from the highs.

Laissez Faire: Up 129% Since March 2019, Down 10% from the highs. 

Has anyone seen Indiana Jones?

Image result for indiana jones you chose wisely



As for the rest, it’s apparent that we are now in a recession. As mentioned two weeks ago: https://www.laissezfairefund.com/2020/03/03/at-the-border-of-a-recession-why/

Vix is much above 45 now… https://www.laissezfairefund.com/2020/03/06/a-quick-follow-up/

The Federal Reserve is injecting the markets and economy with never-seen-before magnitudes, and it’s simply becoming much harder to predict how this will play out. The reason for doing so is likely because things not are going well – something that will become clearer soon. Credit markets are collapsing, mass flight to the dollar and US treasuries, and there is widespread bottom-up and top-down issues with the economy. What is clear is that we are in a financial crisis.


This most recent crash in Bitcoin was certainly a good stress test for the algorithm, and I believe it handled it well. (50% drop in underlying, 10% drop on LF performance)

Things may get very exciting soon for Bitcoin, and the markets are not far from at least a short term bottom, so hang tight. The Italians have the right idea.



Meanwhile, the algorithm trades on.


Stay safe and take care!


    Max Ivory
    Max Ivory

    Amazing info! Alex from all you’ve taught me at Uni and through these posts, the method to the madness is slowly becoming apparent. The return is also fantastic news, happy 1 yr! Cheers!

    Dolores M. Johnson

    A most impressive analysis and despite the turmoil in the nation, there is an element of hope that sustains the investor, knowing the algorithms you have programmed on bitcoin have been profitable! In my view, your genius is reflected here. GD

    Mark Sorensen
    Mark Sorensen

    Great article Alex! Thank you for explaining things so well. I’ve been watching my 401k dive the last few days. I’m in gratitude for you and your genius. We are doing big things here. Happy 1 year!!!

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