OUR BLOG
The Covid-19 investor approach
I’m purely writing this for those of
you thinking, “So what’s smart to invest into now?” Due to the general theme of
our inbox requesting to be “more current material”, well then here you go!
I see the markets in 2021 and it looks like several pieces of cakes which don’t
look too fresh anymore. We have the stock market riding high, though the logic behind
it is missing. We see commodities such as gold and silver stagnating after a
significant year in 2020, virtually going nowhere at current. However, we see cryptocurrency
breaking a few realms to reach new records (Well, Bitcoin at least). One of my
long term plays in Ethereum back in 2018 paid off handsomely and that motivates
me to write this piece as well.
I asked myself again, do I actually believe in this crypto nonsense? Honestly,
I never understood it much nor did I believe in its sustainability. So why did
I invest? It’s basically the portfolio mentality… if it is there, if the risk/reward
looks good, what’s the harm of putting some money into it? For me if a stock
had rocketed the way Bitcoin did to over $19000 and fallen back down to frail
$3500, it would look like a penny stock. Not a blue chip. However, at this time
if cryptocurrency DOES have its use and benefits in our world… the risk reward
of going into it at its lows was incredible. Think about it, how many ‘penny
stocks’ are in the crypto world? A tiny miniscule fraction of the number of ‘penny
stocks’ in the stockmarket, which made me pump a modest $5000 into Ethereum
back at $135. Mind you, I told myself a few times “Most likely this is goodbye”
to my $5000. It didn’t bother me too much since that money makes no difference
to my life.
Fast forward 2 years to January 2021 and I have something to smile about for a
bit. Not because I made a ‘wise investment’. Not because I was smarter than the
rest of you. Definitely not because I “worked hard” for it. It was simply
playing the risks the market was offering at the time. Did I join the herd in
buying into “land” and “property” back then? No, I learned that following the
herd gets you paying the bills and generally running the rat race. The herd
never notices the gold nuggets in the ground. No, those are eyed by the big
playing hawks in the sky… and all we need to do is watch where those hawks tend
to lead the herd.
Finally, what’s attractive today? Well that one is for you to figure out. Use
my Ethereum story and look out for what’s on ‘offer’ today. Certainly not Apple
or Tesla.
