Strategy going forward — Hard work and consistency.
Economy does not look good and reality is hitting hard at the moment for risky assets. Meme stocks, IPO, SPAC, technology stocks have taken a beating in December, cryptos too.
The mania simply cannot last forever and reality and hangover will eventually come. Inflation and interest rate hikes? Uncertainty of covid and economy in general? Not fun to own risky assets for sure.
I simply don’t know what lies ahead but I’m fairly confident some sort of bear market is ahead in 2022. Will there be massive correction? Maybe. Safe to say that similar green candles won’t be seen in 2022, growth will slow down.
In 2021 we had:
- Huge stimulus, central banks brrr etc.
- Massive stock/crypto boom. Everybody locked home and excess money, what to do? Yeah let’s speculate!
- Interest rates zero. Everything had bonkers valuations due to this…
- Companies had huge results during 2021, good margins, ez-money.
- Consumer spending on goods record levels, will it continue? You need more stuff to home office etc?
2022 we will have
- Interest rates expected to go up.
- No such boom to investing.
- Consumers no longer have exes money and prepping for worst? (no stimulus and inflation + higher interest rates?)
- Companies won’t have such results vs 2021, will the growth even stop? How China is doing?
- Tensions… China and Taiwan. Russia and Ukraine…
- Uncertainties just increasing…
Still even if you buy the top on good companies and cryptos now you will be fine in the long run, winners win in the long run. Will it be inflation or deflation? Crash? Slow bear market where everything slowly bleeds? New paradigm and crypto assets skyrockets? Honestly I don’t have any clue.
What I can do is plan ahead my future and investing plan:
- No debt, too risky now. If you find your dream home and you are 100% sure go for it. You invest in your quality of living and living is always a cost. In the long run it doesn’t really matter, just plan accordingly and be sure to service debt in any situation. I will definitely take debt and invest in real-estate if opportunity comes.
- Increase my bitcoin and cash position. Cut speculative assets and losers out.
- Bear market is good. Time to study more, here you find the next big companies and best crypto projects.
- Try to acquire citizenships. For example you get permanent resident permit if you invest in El Salvador Bitcoin bonds. Find similar opportunities. Please let me know if there are any other easy way to get some. Im aware also about tax-heavens… This is just to minimise risks, why not increase your sovereignty? We can probably work from anywhere in the future etc.
- Make sure you have steady income (I have service business), have to study and figure out other streams of revenue.
- Don’t try to be right, usually if shit hits the fan the one wins who was least wrong (cash maybe? Bonds? Gold? Silver?) Diversify!!!
- Keep your dancing shoes on!
- Opportunities will come if you wait and work hard to find them.