Should cryptocurrency believers stay in the stock market?
I've been doing a lot of thinking lately about how much exposure I should be keeping in the stock market, especially with the rate of growth the markets have seen in the past year (and the potential for a decline).
I'm more than just a cryptocurrency investor. I'm someone who believes that cryptocurrencies, including Bitcoin, are going to change the world. Specifically, I believe that it is going to crush financial intermediaries such as banks, stock exchanges and investment firms.
For decades, I've had my retirement savings invested primarily in stocks. And over time, I've seen great growth. How can you argue with a chart like this (showing DJIA since 1980)?
Now, I am conflicted. Do I continue to hedge my bets with stocks, betting on the same long-term growth trends continuing? Or do I begin to pull retirement money into more conservative vehicles, like bonds, and perhaps even start siphoning some off to invest into cryptocurrencies?
A question I'm constantly asking myself: if I pull money out of the markets, am I really betting against the stock exchanges & banks? Or am I just betting against the success of the global economy in general (not something that I really want to do).
I'd love to hear your points of view on this growing "conflict of interest" (including whether you think it's actually a conflict at all). What are your long-term portfolio strategies at this point?
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Very hard to move to stock market after being into crypto.
You might want to check coins which you should invest in before the hardfork on my blog.
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You deposit money in interest savings accounts that compounds the interest on the deposit over time so your money grows. Then you take some profits each year from selling Bitcoin to add to your interest saving account. Next you look at gold and silver commodities. Allocate a percentage of your investment in that. Remember, most items we use everyday comes from refinement of crude oil. Put a small investment in that commodity. Hope my advice helps. Good article.
Only stock exposure is in my UK government pension. I have pretty much written this off as a guaranteed reasonable income when I retire which is projected to be 2043.
Any one with FIAT money tied up in a product could theoretically see massive devaluations if legacy financial institutions are slow to switch to crypto - personally think this is inevitable with my pension fund.
I learnt about the stock market problems from watching Max Keiser:
No price discovery in Stock trading, all is automated trading, low volatility is a worry.
FANG stocks are killing competition in USA and elsewhere, and are the only ones making profits - Facebook, Amazon, Apple, Netflix, Google (Alphabet).
FANG stocks - no level playing field as pay little tax.
Many companies are doing share buy backs to inflate performance.
Intrest rate apartheid - big businesses are too big to fail and just get bailed out with zero percent interest rates lending from the US Federal Reserve.
Who knows when the stock crash / correction will occur? Personally would get ou completely of stocks - if I had any. 10% of portfolio would be my absolute maximum if having a varied and balanced one. Gold, Silver are obvious alternatives as China may be about to come off Dollar pricing for oil and linking to gold - gold and silver may increase significantly, but nothing like what is been seen in crypto.
Stress test your portfolio, this may help to decide percentage exposure to stocks you are prepared to risk.