A portfolio that’s down 90% is a portfolio that was down 80%, and then fell by another 50%

As markets have been going all sorts of crazy, and as cryptos have taken the brunt of all the inflation and rate hike worries as well as the growth slowdown scares, we’ve seen levels of intraday volatility that we haven’t see since the COVID collapse.

My personal view is that everything is going to continue going to shit over the next few months before we start to see a recovery. Fixed Income markets are pricing in a buttload more Fed hikes, equity markets are pricing in a manufacturing and services recession on a year over year basis, and consumers are feeling the pinch on their wallets. Everything is pointing to a slowdown, and when that comes to fruition, markets are going to puke again - more than they have done already.

However, the bright shining spot is that when everything seems to be at its worst, that is when the Fed and other central banks will come in with more easing to boost us out of the mess, and asset markets like crypto will take off.

Until then though, do not be greedy just because you’re able to buy everything on a discount. You can still very easily half your money, or be down another 80%.

DYOR, have a view about markets, and when you think we’re getting close to the bottom, dollar cost average in. Don’t be greedy because remember, a portfolio that’s down 90% is just a portfolio that was down 80% and then fell another 50%.