Are the “dips” getting you down? Tune in to find out how I am riding out the storm for tips on how you can, too.
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The Markets are Crashing. What Should You Do?
If you’ve been logging in and checking on your crypto or your stocks, it’s been a rough couple of weeks, hasn’t it? This episode is all about the current market crash, how I’m approaching it emotionally with my actions, and then how I think that is the best approach for you to handle it as well. If you’re not in the markets and you’re like, “This isn’t affecting me at all,” then I would read this episode so you know what to do when future events like this happen.
As of this recording, crypto has drawn down about 50% off of its recent highs. As I hit the record button, Bitcoin was trading right around $35,000 and its high was right around $69,000 not too long ago in November 2021. I told you this a thousand times if you’ve been reading any of my episodes or anything on my platform. I said I have a love-hate relationship with crypto. I love it when it’s rolling up, and I hate it when it’s rolling its way back down.
This kind of volatility is why we’re in crypto. This kind of volatility is why we can create outsized gains. If you want safety, if you want security, if you want no risk, if you want super low consistent returns, then there are other asset classes that are far better for you to be in emotionally if you can’t stomach this kind of volatility. You should go out and get yourself a nice whole life cash value insurance policy that’s going to go up 3%, 4% or maybe 5% per year. That is pretty much indestructible.
You should go get yourself some gold or silver. That’s not going to have this kind of volatility, although it does have some, and you should be getting blue chip stocks. Things that very solid companies kick off dividends. You should be getting some real estate, B-class, B-plus and A-minus class real estate that pays you out 5%, 6%, or 7% total net returns and has a lot less volatility.
If you do want to create wealth much quicker and you want to take a stab at some outsized gains in shorter periods of time, then crypto and tech stocks, which are also getting battered and bruised in the market. The whole market is dropping, but tech stocks have certainly get gotten pounded. You’re in the right place. You’re reading the right blog. Do I enjoy it when my crypto drops by the amount that it’s dropped over the past? No. I don’t enjoy it. It sucks, but here’s the thing. It’s not that bad because I know where it’s going. I know the long-term ramifications of this asset class.
I understand it because I did my research. I knew what I was buying when I was buying it. I bought a proportion that was responsible based on my total net worth and total investible dollars. I’ve only put maybe 10% or 15% of my total investible dollars into crypto and into tech stocks. These kinds of drawdowns dropped my net worth, but it wasn’t a life-altering event.
I feel bad, but not that bad. For those that don’t listen to that kind of advice, they put 1005 of their investible dollars into these risky assets, and then when they draw it down, they lost half of their net worth. You don’t lose. Your net worth doesn’t drop until you sell. What I’m absolutely 100% adamantly requesting of all of you is that you never ever sell into a down market. You don’t sell into weakness. You sell into strength.Never ever sell into a down market. You don't sell into weakness. You sell into strength. Click To Tweet
What I mean is when crypto’s cranking and it has so much market momentum, if you want to sell out, that’s the time to sell out. Right now, in my opinion, what I’m doing is I’m looking at moving some money around. I’ve got a property that’s closing. That’s going to generate a pretty nice equity return. So Cash is going to be reloaded. I won some money playing poker. That was a $23,000 hit in one night, which is the biggest win of my career. Previously, it was $16,000, but I’m going to take that money and I’m going to go in and buy more crypto. I’m going to buy more of the stocks that I’ve been talking about on this platform. I’m going to double down.
Here’s the thing. I did a show, I don’t know when it was, but the way that the great investor reacts when a market drops is very different from the way that an average and a poor investor handles this type of market volatility market drops. A great investor, when the market drops, they buy more. They double down because they know what they were buying. They understand the long-term value of those assets. The value, the price is not showing the value. The price drops and it’s on sale.A great investor buys more when the market drops. They double down because they know what they are buying. They understand the long-term value of those assets. Click To Tweet
The way I look at it is this is great. I can now accumulate more crypto, more of the projects that I wanted to buy, but I couldn’t because the prices were way up outside or too outside the buy-up to prices that I adamantly stick to. This gives me an opportunity to accumulate more crypto and more projects that I’m excited about that were previously outside or too far above the pricing that makes sense.
I’m buying more. That’s what I’m doing. I am doubling down on an average investor, what do they do when the market drops? They hold, which is fine and sometimes, I’m an average investor, even though I want to be a great investor because I don’t have the liquidity to buy more when the market drops. That’s okay. No problem. Hold on. There is no reason to sell. The markets will come back. How much they’ll come back? If I knew that, I’d be a multi-billionaire right now.
The poor investor, what do they do right now? They sell into market weakness. They sell because they didn’t understand what they were buying. They sell because they got a recommendation from a friend. They had no idea what they were investing in. They put their money in. They were chasing, gambling and speculating way too much. They put way too much of their money in compared to what their total risk appetite should be. The market drops in half, they’re out. They’re selling out. They probably will buy back in when the market goes right back up.
Don’t be a poor investor. Don’t be an average investor. Be a great sophisticated investor. If you can add to your positions right now, it’s absolutely the time now. Could it continue to trend lower? Absolutely. That’s very possible. Timing the bottom of the dip is absolutely impossible. You cannot do it. Even the most sophisticated technical analyst think that they can buy the bottom, and they’re not able to even do it. A lot of them admit it. I wouldn’t be looking at or waiting for a continual drop or being afraid of it. I’ve bought in dips several times before. Every time, the market has recovered and gone on to new highs, which I fully expect that’s going to happen again.
What happened? What led to this? The other question is, is this crypto market bull run over or does it still have a ways to go? Here’s what happened. Stocks are responding and crypto is responding to the decision the Fed is making about interest rates. The Fed has said, “We’ve got super high inflation. It’s getting out of control. It could damage our economy if we don’t start to check it.” The only way that they can put inflation in check is to raise interest rates.
They said that this year, they’re going to raise interest rates. They did not say exactly how much, but they indicated there would be four raises. When they said that, which means they have to ease up on their money printing, then that caused a lot of fear in the investor markets. It created this huge sell-off that we’re seeing right now. If I had to place a bet, I’m going to bet that the Fed will ease up on its talk about raising interest rates, especially with midterm elections taking place in November 2022.
That will send the stock and crypto markets up in a final run to new highs and that’s more than likely when we’re going to see the end of the bull run in both markets and we’ll see quite a large correction. I don’t think that’s anywhere near in the next several months. I believe that we’re going to see a real trending upward in the market.
Bitcoin’s bull cycles have been getting about one year longer than the previous cycle. If you want to do the technical analysis, which I bet most of you don’t. I don’t either. There are trends that I’ve been studying that show that the Bitcoin cycle, the market cycle of how it goes up and then comes back down is taking longer than the previous cycle, and each cycle is producing diminishing returns. I don’t believe that we will see the actual top of the market until around quarter 3 or quarter 4 of 2022.
Everything that I’ve been studying and everything that I’ve been listening on podcasts that we’re still in a bull market, we still have some upside to go. With all of that being said, I should note that there are absolutely no guarantees. We’re living in absolute unprecedented times right now. We have the pandemic, the shutdowns, inflation, supply chain disruptions and trillions of dollars in debt, which are all having an effect on the stock market.
Crypto seems to be following the stocks. When the stocks crash, crypto crashes more. When the stocks go up, crypto goes up more. All that being said is that I believe and I’m putting my money behind this that I believe this is an incredible buying opportunity that has been placed before us. I’m going to put as much as I possibly can that makes sense and I’m going to start buying more of the great projects and the great stocks that I believe in. I’m playing the long game.
If at the end of this year or 2 years or 3 years from now, all of the research that I follow says that it’s absolutely overvalued. We’re due for a crash. I’m going to sell into strength. I’m not going to be selling into weakness. I suggest that you guys do the same thing too. What can you buy? I reserve all of my picks. Everything that I’m invested in, all of my projects are reserved for those that joined my private mastermind group, which will be launching soon.
There are three picks that I can give you right now. Number one is Bitcoin. The second pick is Ethereum. That was a crazy insane projection. The third is MATIC. I would be adding MATIC to your portfolio. All of the major newsletters and all the guys that I subscribe to that researched this far more than I do have said that it is going to be an incredible project. That’s relieving a lot of the congestion and the high fees that are occurring on the Ethereum network. I’ll create an episode and I’ll talk to you guys about MATIC and about that. You can expect that. I’ll talk all about it and explain how it works.
Those are my top three. Those are what I’m putting money into. I’m putting money into some other smaller amounts into a bunch of other smaller altcoins that I think could make a massive move, but those are the top three that are really solid stable bets that are on sale that certainly have a lot of room to grow and to run up. What’s the moral of the story? Huddle you guys. Hold on for dear life. Things are going to get significantly better. I hope this helped you guys.
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