Performance
Chasers
There seems to be a lot of misinformation being peddled on the internet about gold and bitcoin. One major misconception is the notion that bitcoin will replace gold as a monetary instrument. Some analysts, once stanch precious metals advocates now turned crypto aficionados, believe in such theories that there is too much gold in the world to be used as money or that it is now just a barbarous relic. Just a year or so ago, these same supposed analysts were criticizing the Mainstream media financial network talking heads for calling gold as a barbarous relic, but now have jumped on the bandwagon.
Well, in one small way, who can blame them. It has been frustrating holding onto gold and silver patiently waiting for their inevitable rise. So, when Bitcoin and the crypto prices moved up exponentially last year, promising investors vast riches in the future, it was easy for many to drop the precious metals and move into the crypto market. The mindset today is to make lots of money doing nothing. Thus, it’s not surprising to see many fall into this delusion and way of thinking.
DYI: What the author is highlighting are not investors
but speculating performance chasers. Ask why these folks are buying Bitcoin
the main 1# reason is – drum roll please – the price is going up. Simply put they are performance chasers who
jump on the bandwagon expecting to sell before the crash. This of course can happen and will happen to
all asset categories through out history as exemplified today with stocks and long term bonds at nose bleed
levels creating poor returns going forward.
DYI is a value driven historical compounding blog slowly increasing or
decreasing our allocation as valuations change higher or lower than their
respective mean [average].
Updated Monthly
AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 5/1/18
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
DYI
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