Why I Sold All my Stocks and Crypto during this Bear Market | by Michael Gordon | The Capital | May, 2022


Photo by Maxim Hopman on Unsplash

Stock markets around the world have reached bear market levels. Many of the hot stocks of 2021 are down 70 to 90% or more. Cryptocurrencies are down around 50% or more. So what is the proper solution at a time like this?

DO NO BUY THE DIP!

Track live crypto price of 10000+ coins!


Some people don’t seem to understand what is happening.

The Federal Reserve has publicly stated that it will be very aggressive in raising rates. That is all you need to know. You don’t need to look at a company’s balance sheets, earnings, or “hope” that cryptocurrencies will suddenly levitate back. When the Federal Reserve raises rates and engages in quantitate tightening, stocks go down. It’s that simple. Further, unlike in past market declines, the Federal Reserve does not seem to want to stop what they are doing. There have been no signs of panic at the Federal Reserve, and there is a reason why.

Related:  Ethereum Eyes $2,000 Following Final Merge Testnet

The Federal Reserve is taking inflation seriously this time. With inflation at “reported” rates of near 8%, the Fed could care less about the stock market (and especially crypto).

You can’t control the Federal Reserve, but you can control your portfolio. Don’t be afraid to sell. Even though cryptocurrencies are down hard already, they can go down a lot more. A lot more. You can always buy back later, possibly at much cheaper prices. That’s what I’m doing.

I know a lot of people say you should “buy and hold,” but there have been many time periods where such a person will be stuck waiting a long time to break even. This may indeed be an occasion where buy and hold fail.


Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: