Wednesday, January 24, 2018

We are definitely in a bubble

A stock bubble, HAHA.

My crypto portfolio already dropped 40% and I'm still all smiles with a shit ton of profits and plenty of buffer between here and my capital.

Howsabout you and your stocks?

I mean, what's the worst that could happen?
40% down? No biggie.
I face that sort of thing every few months.


All the best stock peeps.

Maybe it's about time to sell some of those tulip bubbly assets you got and rotate into a sector that just "burst"?

1 comment:

  1. Humans are creatures of habit & biases such as recency, anchoring, status quo etc. Hence the character & dynamics of stocks & cryptos are different, due to different experiences in both markets over last few years.

    Stocks will usually take a couple of years (or longer) to recover from a -50% hit. Even just a 10+% drop like in 2015 will take a few months to recover. Stock investors will be wary & look for proof of earning growth, rising profitability, justification of valuations etc. So far BTFD psychology works in stocks for smaller dips e.g. up to 5%, as that is the experience over the last 9 years, with expectations of the FED having our backs & PPT etc.

    For cryptos, expectations are for -50% drops to recover in a few weeks (or less). As that has been the experience for the last few years. Hence investors / speculators in this space are willing to BTFD even for large drops. Hence self-fulfilling the recurring theme.

    The day that it takes more than a few weeks (maybe months) to recover from a -50% drop in cryptos will be the day that something fundamental has changed in the psyche of crypto investors / speculators.


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