[Finance] The cryptocurrency (Bitcoin etc) thread

[Tom Hark Preston Park]

Not a crypto comment.

Buffett just got another thing correct. In December Berkshire Hathaway had cash reserves of 30%, a 34 year high. It's felt in readiness for a huge plunge in stocks especially stock techs. Which is here!

Probably anticipated Emperor Trump crashing the US economy

 

[Seagull58]

Stock markets have been falling like a stone for 3 weeks, way beyond the 'Magnificent 7' tech giants. Reality has hit home that Trump's tariffs and trade wars will hurt most businesses and people.

The lucky would've sold higher risk equities and all crypto just before then. If not, the age old dilemma is to sit out, or sell, wait for markets to fall by circa double this and then buy in again.

This a lesson that crypto is not the safe haven in an equities bull market or global troubles that some portrayed it as a month ago. It is not the new

@MODS can you please change the title to "RIP cryptocurrency (Bitcoin etc.)"?

@MODS definitely time to change the thread title.

 

[Professor Plum]

Stock markets have been falling like a stone for 3 weeks, way beyond the 'Magnificent 7' tech giants. Reality has hit home that Trump's tariffs and trade wars will hurt most businesses and people.

The lucky would've sold higher risk equities and all crypto just before then. If not, the age old dilemma is to sit out, or sell, wait for markets to fall by circa double this and then buy in again.

This a lesson that crypto is not the safe haven in an equities bull market or global troubles that some portrayed it as a month ago. It is not the new gold (dream).

Have they be falling like a stone? As always it depends on your investment horizon. If you were just about to empty your accounts to buy your dream home, you'll take a hit. If like me, you're just drifting along into oblivion, the downturn is of no consequence. My main investment account is 3.8% down compared to its highest point a few weeks back. But that high was 18% up over the figure when I last put my ISA allowance in, in March 2023. So taking a longer term view, as you should, the recent volatility is just a bit of noise. Mind you, it helps to own a chunk of British Aerospace which has done well from the Trump volatility.

 

[Weststander]

Have they be falling like a stone? As always it depends on your investment horizon. If you were just about to empty your accounts to buy your dream home, you'll take a hit. If like me, you're just drifting along into oblivion, the downturn is of no consequence. My main investment account is 3.8% down compared to its highest point a few weeks back. But that high was 18% up over the figure when I last put my ISA allowance in, in March 2023. So taking a longer term view, as you should, the recent volatility is just a bit of noise. Mind you, it helps to own a chunk of British Aerospace which has done well from the Trump volatility.

US markets, which comprise 50% of the global total market capitalisation, are down 9% in three weeks. With no sign of stopping. We’re in a major correction exacerbated by Trump’s Joseph Chamberlain view on trade.

It’s interesting the different investment strategies here. I’m party to numbers managed by City experts for clients. They sell just before or more likely as these bear markets start, with a close eye on global events. Then plan to capitalise when prices are far lower. Most punters sit it out.

 

[dazzer6666]

US markets, which comprise 50% of the global total market capitalisation, are down 9% in three weeks. With no sign of stopping. We’re in a major correction exacerbated by Trump’s Joseph Chamberlain view on trade.

It’s interesting the different investment strategies here. I’m party to numbers managed by City experts for clients. They sell just before or more likely as these bull markets start, with a close eye on global events. Then plan to capitalise when prices are far lower. Most punters sit it out.

We’re in a bear market, not a bull…….

Most punters will sit it out - as they should. ’Time not timing’ applies for the majority, particularly if not in direct equities. The major US indices are still close to 10% up over a 12 month period and daft amounts over 5 years…….

 

[Weststander]

Most punters will sit it out - as they should. ’Time not timing’ applies for the majority, particularly if not in direct equities. The major US indices are still close to 10% up over a 12 month period and daft amounts over 5 years…….

Newsnight just covered the falling markets. Trump’s administration are now reframing this as the beginning of a necessary recession, to eventually shrink the US government and cut imports.

 

[RandyWanger]

Newsnight just covered the falling markets. Trump’s administration are now reframing this as the beginning of a necessary recession, to eventually shrink the US government and cut imports.

Don't the US have trillions of dollars worth of debt that needs to be re financed this year? So I'm sure some manipulation to reduce rates will be beneficial to the US in the longer term... Maybe I am a conspiracy theorist.

Mindset depends when you entered the market. If you FOMOed into the market in December 2024, you'll be feeling pretty pants right now, if you got in in 2016, sold late in 2021 to fund a house purchase and re entered the market in 2023 after a nice brucy bonus and DCAed up since, you'll be feeling pretty smug right now.