Stop Panic Selling Like a Normie
414: Come out on top when the chaos dies down
Happy Friday all.
Well - in less than 24 hours things managed to get even more deranged in markets, stalling any chances we had at a big pump to close out the week. The China US trade situation (still the biggest variable in WHEN we pump in my opinion) has degraded a bit since earlier in the week.
According to CoinTelegraph $644M in crypto long positions were liquidated in the past 24 hours.
Companies are even starting to sell soap with Sydney Sweeney’s bath water in it.
Full blown degeneracy.
Want to talk today about how to keep a level head and endure during times of extended market uncertainty or volatility like we are seeing now.
Emotions are running rampant and people are being public about their failures or capitulation. Even professionals are acting like the world is ending. It’s amateur hour out there…..
Here’s the thing. On a long enough time frame all of the following are going astronomically higher:
Crypto
AI
Robotics
Tech
Various medical companies
Automation
Defi
Blockchain
Defense
There’s the only alpha you really need.
You can try to play the short term game and get chopped up with a 49% win rate OR you can accumulate high growth tech assets continuously and outperform over the longer time frame.
It’s really not that difficult to do, it just demands you look past mainstream drivel and hype. It also requires you to be sensible (something the masses cannot do) — don’t buy something if you cannot afford to weather volatility or if you need the money for the strip club or rent. That introduces more emotion to your position. I don’t NEED any of the money I have in markets, which makes it 10x easier to just leave it be.
Those who acquire enough exposure to the aforementioned asset classes and sectors are going to be laughably rich in the future, and in fact it will be TABLE STAKES if you want a secure future where everything is digitized and AI/automation has significantly changed the economy/work world as we know it. That is pretty much a guarantee. The major separating factor between those that will pull this off and those that won’t?
Patience.
The writing is on the wall. Forget the short term noise and bullshit. It’s designed to shake weak hands out and remove those who cannot look past the next week or few days of market performance.
Things are even looking up if you remove distractions — inflation seems to be easing, the Fed may have to come around sooner rather than later, and based on institutional activity in crypto, they know something big is coming.
In any case - let’s get into a run down before we conclude the week on the major news that’s dropped in the last 24-48 hours and how it might impact our bags moving forward then we can cover my points on volatility and uncertainty.
Additionally I will synthesize some more disturbing anecdotes on the the capacity of AI to replace corporate roles in the near future — the anecdotes and updates I have seen this week suggest many of us are underestimating just how quickly this is playing out and at what scale.
“Timing the market, which is often involved in panic selling, is challenging as you "have to be right twice”
— Teresa Bailey
Critical End of Week News
In the past 24 hours, major developments have shaken up the U.S.–China trade narrative and led to sell offs across asset classes. We said more fuckery was possible and it seems it has arrived to jack up our bags right before a nice weekend…..