Right now, a lot of people are suffering…
Since the beginning of the year, the S&P 500 is down 17%. Over the same time, bitcoin is down 56%.
Portfolios are bleeding red. And many people are throwing up their hands in despair and selling great companies and world-class emerging assets like bitcoin and Ether.
I know from my experience in the 1990s that selling great assets into market weakness can be among the biggest financial mistakes of your life.
Look, I get it.
Paper losses or not… it hurts to see positions down 60–80%.
But I want you to know I put my money where my mouth is.
My bitcoin and bitcoin-related investments are down tens of millions of dollars. And my stock portfolio has taken a dive, too.
But I haven’t sold into this weakness. Nor will I sell.
Not because I’m a stubborn zealot… Far from it. I’m a pragmatic capitalist. I love making money. And that’s why I am NOT selling.
Friends, I’ve seen this movie before. And I don’t want you to make the same mistake I did.
Bigger Mistake than Bankruptcy
In 1994, I watched the Fed vaporize my tech investments when it raised interest rates five times from a low of 3% to a high of 6%.
I was young and inexperienced. And so I did what young and inexperienced investors do: I panicked and sold amazing emerging tech names like Microsoft and Oracle at the lows.
That decision haunted me for 25 years. Had I just held on, I would have made well over $20 million before I turned 30.
That failure crushed my mind for years. I then made another mistake that cost me over $720 million.
In 2003, I went long on Apple, betting on the widespread adoption of the iPod.
After I bought Apple, Steve Jobs came out and canceled 55 million stock options, sparking fears the company’s founder was dumping shares.
Apple shares tanked. But this time, I held on and rode out the storm. The mistake I made this time was selling far, far too early after they rebounded.
On a split-adjusted basis, Apple was trading at just 25 cents per share in 2003. At its recent peak, I would have made $720 million for every $1 million I had invested in the stock.
This financial mistake has caused me more heartache, regret, and self-flagellation than any other financial decision I have ever made. That includes the bad decisions I made in 1998 that ultimately compelled me to file for personal bankruptcy.
The bankruptcy was less traumatic than leaving $720 million on the table.
This is why it’s critically important you understand why you want to stay in these assets and ride them out to their “terminal” value.
The terminal value is the price point I believe the asset is ultimately heading toward.
For instance, focusing on the terminal value of bitcoin (BTC) and Ethereum (ETH) has been my guiding star since I began recommending them in April 2016.
It’s why I didn’t sell when BTC and ETH dropped 85% and 95%, respectively, during the last Crypto Winter…
Regular Daily readers know that I believe bitcoin will hit $500,000 by 2025. And Ethereum will hit $10,000 over the same period.
So there’s plenty of upside ahead. It all depends on where you choose to focus your attention… but right now, you can make money from investing by buying world-class assets and letting time do the heavy lifting.
You may feel that my $500,000 bitcoin call is outrageous, especially given all the volatility we’ve seen this year. And I realize this isn’t the message you might want to hear.
So I get it if my message makes you uncomfortable… that’s a good thing. You rarely get rich by doing things that are easy or comfortable. All the big money I’ve made has come from turning left when the world was turning right.
I’ve become comfortable with being uncomfortable. Now you may not be there yet, and that is why I am here to tell you what you need to hear… Not what you want to hear.
How to Emotionally Handle Bad Markets
From personal experience, I know that selling great assets into market weakness is a huge mistake.
So I strongly urge you not to sell your high-quality stocks and top-tier crypto investments at today’s prices.
Does that mean never selling anything?
No. It doesn’t.
One thing I do in bear markets is review my positions for “dogs.” Just going down in price doesn’t make an investment a dog.
When sniffing out the dogs in the portfolio, I look for names that have failed to execute their stated plans meaningfully.
For instance, when it comes to crypto, I look for names where adoption of the project is waning, and product development is failing to track with their stated roadmap.
If a project can’t get meaningful traction in a raging bull market, the project will not survive the bear market.
I will rarely dump a blue-chip unless the business fundamentals have been permanently impaired, or it looks like the dividend might be in danger.
Long story short: Selling at today’s depressed prices will have you kicking yourself when the markets turn around… And they will turn around.
Between now and then, we’ll see more volatility…
The key here is to use recent market strength to dump the dogs (see above for what counts as a dog), raise cash, and get ready to deploy it on the next wave of volatility.
The key here is patience. There is no rush. This is a bear market. That means we let prices come to us… We do not chase.
Remember, these cyclical bear markets are like an “in-game reset“ to buy world-class assets.
If you missed the beginning of this bull market, these in-game resets give you a rare chance to start over and capture all the upside as the secular bull market resumes.
You must tune out the negative news and focus on acquiring great names at bargain prices.
Let the Game Come to You!
P.S. Look, I get it… Sitting on your hands while your portfolio bleeds red isn’t easy.
But some of the biggest market opportunities happen when fear and volatility are high… Just like today.
And right now, people are so distracted by volatility that almost no one is paying attention to a crypto market event coming later this month.
It has nothing to do with Ethereum’s Merge or a bitcoin halving…
Since entering crypto in 2016, I’ve only had two opportunities like this show up before.
In the first, I helped my readers turn $1,250 into a four-figure monthly income. In the second, I showed my readers how to turn $1,250 into a five-figure income.
To help all my readers prepare, I’m hosting a live “From Crash to Comeback” online event Wednesday, September 21 at 8 p.m. ET…
There, I’ll tell you exactly what’s happening… what you need to do… and how a handful (five, to be exact) of $250 crypto investments could make you as much as $11,000 per month.
I’ll even give away my top pick for free just for attending. When I give away a free pick, it’s meaningful. My average peak gain on my free picks would have made you 18x your money. That was the average. Several picks did far better than that.
So click here to reserve your spot… and come prepared with any questions you might have.
This will be my first LIVE crypto event of the year, and I look forward to hearing from you.