Don’t touch bitcoin or global stocks (Oh, and the new Cody App)
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I’m going to going to be Live Streaming from the new The IAm Cody Willard App and talking a little bit about market stocks, politics, and/or interacting with subscribers. We have a really neat interactive feature that enables you can tune in and interact with me. And be sure to check out the Chat Room, where I posted a picture of my family and I watching NFL football yesterday and a video of the real-life wild horses that I had to navigate through on my drive to work this morning.
Now then, I want to hit on a couple of thoughts here. You guys have heard me talk about bitcoin recently and why I’ve sold a lot of my bitcoins in the last few months, in part because my cost basis on some of them was just a couple hundred bucks or so. I took them as payments on Trading With Cody.
To be blunt, I think bitcoin and the crytpocurrency concept is in a bubble. Being in a bubble is different from being a fad, of course. I don’t think bitcoin or blockchain are a fad. I just don’t think you should be buying bitcoin or investing in other cryptocurrencies or in any Initial Coin Offerings (ICOs — that’s right, you can now invest in questionable startups by buying bitcoins and sending it to them) right now. That doesn’t mean it’s about to crash tomorrow.
But I also wouldn’t bet against bitcoin. It could easily go to $10,000 in the next few months. It could go to $12,000. bitcoin could go $40,000. Wait, could bitcoin go to $40,000? It’s at $4,200 right now. Up from $100 three or four years ago and up from $10 six years ago. No. I don’t think it will go to $40,000 for a very long time, if every. I guess maybe in twenty to fifty years, if there’s another world war or a global banking crisis that governments overreact to, or something like that, but no time soon.
And then there’s the global stock rally that’s on overdrive again right now. Look at a real time chart of the Global Dow or any global stock index. Like bitcoin, they’re also through the roof since their lows of February of last year. The Global Dow, for example, was down near $2,100, with a horrible chart, and it’s now at $2,900 at an all-time high with a beautiful chart. Remember that I don’t think global stock markets are safe like I do the U.S. stock market is over the long term. And again, with the DJIA itself is 100 points away from its all-time high as I’m typing here.
The upshot of this is that I just don’t think that you should be loading up stocks right now. And that I do think that it might be time to start hedging some of our still very long portfolio with some global stock ETFs. We should do some homework to pinpoint which countries have a catalyst and/or we should be on the lookout for some cracks in the Global DOW or the MSCI, which are some broad index of the global stocks.
Remember, none of this bubble talk or shorting global indices discussion should mean that you have to be all in or all out. You don’t have to be all bearish or all bullish. I’m still very net long and am bullish on my stocks at least and mostly bullish on the US stock markets too too. But, I simply don’t think that RIGHT NOW is the time to be jumping into stuff.
I continue to look for new names and I have several I want to buy! I just don’t like chasing and I think we’re going to get an opportunity to buy sometime in the next six to nine months or over the next one year. We will again have some panicky action. The stock markets have been up to or near these highs for several months now. The DJIA itself and the Nasdaq are up huge since 2008 and 2009. And we have so many stocks up hundreds of thousands of percent over that time frame and since I started buying them in 2010 after I left TV.
So, let’s be patient. Let’s wait for the right pitches. We don’t have to be all crazy and chase those stocks; day trading; trying to make some quick money on Bitcoin. Calm down a little bit guys.
It’s good for you all dear Trading With Cody subscribers to hear this when stocks are up and markets are at all-time highs. Sell when you can, not when you have to.
I’m here to tell you right now, you will feel pain again. Stocks will go down again; even if just temporarily. Sell while you’re cofindent, trim some while you feel great. That’s the point. At least trim a little bit and don’t chase stocks right now.
And if you’re already feeling underexposed to the stock market and you’ve got a ton of cash. Don’t freak out and get impatient. We’re here to maximize our gains and minimize our losses for tlhe next two years, five years and especially for the next 10,000 days — 30 years. Put in that context, you can see that there will be great pitches to come, there will be crises, and currency crashes and stock market panics and so on. Be ready for them. Don’t feel like you have to go crazy in September 2017.
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