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.

Lol.

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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