Too Hot Investment Thread

You do you, dude. It's clear from this thread that you have a hard time actually maintaining a long-term approach to investing, and if you sweat short term losses to your portfolio so much (as evidenced by your multiple posts upthread,) then I agree with your decision to avoid cryptocurrencies. It would drive you crazy to hold crypto if you're going to worry about it's price today compared to last month.

What I take issue with is your insistence that your opinion on cryptocurrency is the only valid one.

 

since you apparently took the time to read all my posts here, you will also see I have said several times that I could be proven wrong and that it could go up substantially. And that the overwhelming majority of those in my industry (finance) agree with me on how it’s priced, or at least now it as priced a few months ago. And that for all my day to day kvetching, that’s just idol banter, the losses don’t actually bother me that much. I haven’t changed or sold a single investment during the downturn, I am a long term investor in anything I buy. And I actually have a few small cap growth holdings that have performed nearly as badly as crypto has, and haven’t touched them, because they are sound long term investments.
So assign whatever opinion you like to my views, but I would only ask they are fairly portrayed.
Good luck with your investments.

 

It takes a special kind of person to take an informational thread and turn it into personal attacks and insults.
So the question is how much are you willing to put into crypto? i got a few grand in there but 10s or 100s of thousands? Nope that’s out of my risk tolerance.

 

from the point I had this debate last year here when it was at 58k, it never crossed its price at that time, and has been down at least 10 percent or more for almost all of it, even before the current larger market downturn. So I was shown to be right to date, though that could certainly change.
I am not sure why you seem to take this personally, folks should want additional points of view on their investments, If you disagree, that’s fine, you are putting your money where you’re mouth is anyway. I want people to challenge me on my investing assumptions, makes me better at it long term. If someone has a valid argument for why I should buy it or anything else, I have said a few times I am willing to listen, I just haven’t seen one. I was told I should use it as a hedge against stocks, even though it’s more volatile and goes the same direction usually. I was told I should invest because it will be more widely used, making it more valuable, but that increases liquidity and should drive prices down. Or because it’s outside government fiat and safer from policy, which has some value, but not nearly what has been attached. And recent events have shown government policy and inflation hurt it anyway. Or just because it’s gone up a lot in the last few years, but that isn’t a reason to follow a crowd, in fact it’s often a terrible reason.
So take the info, don’t, your choice. And your money. Good luck.

Will be my last post on crypto for a while:

 

Yeah, I admittedly got testy. But after over a year and 50+ pages with this thread, it's gotten annoying to see one poster always jump into this thread as soon as crypto currencies have a downturn and preach the exact same personal opinions. I don't even have to check tickers to know if BTC is down more than 10% in a quarter; I know it will be posted here.

Regarding how much I put in crypto, I try to target it at 5% of my investment asset allocation, and I rebalance 2x a year. I'm having to reassess that % allocation though, not because I want to pour money into more crypto, but because that part of my investment portfolio has consistently outperformed everything else. I originally had it at 2.5% allocation, and it will probably be closer to 7 or 8% in another couple years even if I buy no more.

 

To bring this back around to something positive,nice market day today. Not sure it will last, but seeing a good day is a nice change of pace. Maybe the market has found a temporary bottom.

 

47 of the best 50 days ever in the S&P have happened in a bear market. Days like this happen in down markets but the issues impacting the market haven’t changed. Inflation and supply chain need to correct before anything sustainable happens

 

Good data, I agree. But that’s why I used “temporary bottom” and not the true bottom. I would just like to see things calm down a bit, though to be fair this sell off has been really orderly to date. It’s just also been really relentless.

 

Luna collapse cost investors $80B. Mostly people heavy into crypto that are going to have to liquidate other crypto to cover their margin calls. Hopefully this doesn’t continue to spiral. Am I the only one that believes the damage potential of crypto collapse along with the energy required to sustain crypto makes crypto something that requires much more regulation?

 

cant believe Luna collapsed and Doge is still going 'strong'

 

There is a crypto mine near my house. It is LOUD, ugly, and required installation of it’s own heavy-duty power lines. Has made life miserable for those within half a mile or more - no more evenings on the deck. Was built here because this county has no land use or zoning ordinances and even now, great political opposition to such.
That’s about all I know of crypto and I don’t invest in companies that I don’t understand or know what they do or make. My DIL specializes in crypto for the HQ of one of the BIG investment banks but I’m still stupid on the subject. For those who invest in it, I wish you well.

 

If electricity is cheap in your area that was likely the primary driver of location selection

 

Yes, it was that in particular and the total lack of county zoning and land use ordinances. The experience here has prompted nearby countries to pass crypto-mine prohibitions. There is a local push for a noise ordinance but much resistance from county commissioners. The primaries are in a few days and I expect the mine and yes or no on land use/noise ordinances to play a significant role.

 

My oldest just graduated from UF and is already started with a company that is into repair of bitcoin mining computers. He’s headed to Utah and California to meet with investor’s seeking to place mining units at oilfield sites and utilize methane burnoff as a power source.

 

Yep, eliminates flaring. Allows drillers to drill more without exceeding flaring allowances. Economically splitting the methane from the rest of the gasses is the challenge

 

A house for sale a couple blocks from me is accepting bitcoin to purchase. At first I was thinking what is BTC? Then it dawned on me!

I bought Doge last year putting $1,000 into it at the prompting of my son. I sold it three months later for $10,000. Took the 9k and bought Tesla. I am hesitant, I wouldn't bet the farm just yet, but I do have BTC Eth and XRP holdings because I like to diversify!

 

It’s a good setup. I get asked all the time how to start investing into crypto. I say first have a 10+ year outlook or the volatility will crush your emotions. I tell them to do exactly what I do with the bulk of my crypto; buy BTC and ETH and I buy it every month. Don’t care about price fluctuations and just do it as a matter of course.

 

Ok smarties. If you had $100k laying around where do you invest it in this market? Market well off highs… index fund? Something else?

 

what’s your risk tolerance? Timeline? Are you in preserve or grow mode?

 

Lets say growth and no immediate need. 10+ years.