Today feels like a Black Monday as the market crash sends shivers down my spine, yet it's a good time to buy cheap crypto and stocks, like you'd do on a Black Friday.
Seeing my portfolio value slashed so dramatically in such a short period is unsettling. I can't quite wrap my head around why the crypto market is taking such a beating too. Especially since everyone knows President Trump is supposedly a crypto enthusiast.
The US tariffs are like a knockout punch, delivered just as the global economy was already on the verge of a crisis. This aggressive protectionist strategy has sent shockwaves worldwide threatening established commercial relationships between nations. Lots of countries prepare tariffs on their own to counteract this. I believe this will make even more problems on the markets.
I've always aimed for a cautious investment approach keeping a decent cash reserve for emergencies. Now that reserve is dwindling I'm seriously questioning what's coming next. I love the idea of buying low but I wasn't prepared for a blow this severe.
I did manage to diversify somewhat adding gold to my portfolio but honestly it's not super high-yield. My gut feeling from the start of the year was that the American economy would shrink so I put more of my investments into European stocks. But now everything is affected.
Check out in this article how I protected one crypto investment due to a delisting.
As I said before the crypto market seems more sensitive than I initially thought. Despite the Web3 principles of decentralization anonymous transactions and high-yield tokens uncertainty has clearly spooked investors leading to significant withdrawals. It's clear that politics influence stock markets and crypto more than you would imagine.
On the stock market companies are getting hammered. With profits plummeting I'm sure we'll see more layoffs this year as they scramble to meet stakeholder expectations.
Right now gold and government-issued bonds seem like the safest bets. Gold tends to hold its value during tough times and even governments and banks rely on it as a store of value.
Eventually the markets will recover bu it's a matter of when and how long it will take. Bear markets tend to involve rapid drops over a short time while bull markets can take months to regain lost ground. Patience is absolutely key here. My general approach is long-term investing but I also enjoy the thrill of holding high-return assets for the short to medium term. Consider that my extreme sport!
Like Trump says "Take the pill and swallow it!", some things are simply beyond our control so we have to brace ourselves. By sticking to a prudent strategy and exercising plenty of patience we should eventually reach our financial goals. So hang in there and invest wisely!