2017 was historical for cryptocurrencies – in fact, I believe many will talk about it being the best year for the sector, but they would be wrong.
The term If You Can’t Swing, Don’t Ring is a Latin expression. Apart from the fact that Playboy founder, Hugh Hefner, inscribed it on the original Chicago mansion front door, the true meaning is about being able to withstand the heat if you want to be in the game.
We banked enormous gains in 2017, but the market did nothing but go up astronomically.
It reached such levels of optimism and glory that I heard some commentators talk about it as if it was pure gold – it’s not.
Cryptocurrencies are technological businesses and since they sprung up from nowhere into world fame, they crept up on governments and regulators and now they’re catching up in terms of regulations and laws to reflect this new ecosystem.
This means that plenty of volatility is headed our way.
If you can’t stomach it, then stay clear of any particular coin and invest in the underlying technology itself – the blockchain.
South Korea, China, and Europe have all, in a concentrated effort, clamored down on exchanges and sparked a panic.
This will be more frequent going forward, but every failed attempt will legitimize the sector even further.
Bitcoin, as well as this entire sector, is going through legalization. As we know, this type of business environment is demanding on investors and their emotional stamina.
The one investment sector that is experiencing unreasonable euphoria is the S&P 500, though. Over the last two weeks, investors have bought the 2nd largest amount of S&P 500 futures in years. At the same time, the net holdings of S&P 500 puts are the lowest since at least 2010.
If the U.S. government encounters a shutdown tomorrow, the markets will rattle and due to the fact that investors are extra bullish, we could see a sharp correction, instantly.
This is another reason why I just placed my own personal prediction on gold’s highest price for 2018 at $1,510.
The technical conditions for a breakout are just beautiful. As you can see from Goldman Sachs’ poor results in commodities, the sector has been left for dead, during quantitative easing and lower interest rates, which we experienced in the past years.
This is all changing now, as commodities across the board are trading higher.
CHECK OUT billionaire, bond god, Jeff Gundlach’s position on hard assets, because the smart money is betting big that the sector’s bottom is in.