Read full article at The Capital.

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Stock markets around the world have reached bear market levels. Many of the hot stocks of 2021 are down 70 to 90% or more. Cryptocurrencies are down around 50% or more. So what is the proper solution at a time like this?


Some people don’t seem to understand what is happening.

The Federal Reserve has publicly stated that it will be very aggressive in raising rates. That is all you need to know. You don’t need to look at a company’s balance sheets, earnings, or “hope” that cryptocurrencies will suddenly levitate back. When the Federal Reserve raises rates and engages in quantitate tightening, stocks go down. It’s that simple. Further, unlike in past market declines, the Federal Reserve does not seem to want to stop what they are doing. There have been no signs of panic at the Federal Reserve, and there is a reason why.

The Federal Reserve is taking inflation seriously this time. With inflation at “reported” rates of near 8%, the Fed could care less about the stock market (and especially crypto).

You can’t control the Federal Reserve, but you can control your portfolio. Don’t be afraid to sell. Even though cryptocurrencies are down hard already, they can go down a lot more. A lot more. You can always buy back later, possibly at much cheaper prices. That’s what I’m doing.

I know a lot of people say you should “buy and hold,” but there have been many time periods where such a person will be stuck waiting a long time to break even. This may indeed be an occasion where buy and hold fail.

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Why I Sold All my Stocks and Crypto during this Bear Market was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency



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