27 upvotes, 4 direct replies (showing 4)
View submission: Don't invest recklessly
Genuine question... would you consider right now that people are greedy or fearful? I seriously can’t tell. Everyone is shouting the sky is falling and Bitcoin will burst but I also see the price rising. What do you think?
Comment by Zurbinjo at 30/11/2017 at 10:15 UTC
53 upvotes, 0 direct replies
Greedy. At least I am. So be fearful. Than I can be more greedy.
Comment by [deleted] at 30/11/2017 at 16:14 UTC
9 upvotes, 1 direct replies
[deleted]
Comment by sir-draknor at 30/11/2017 at 16:49 UTC
5 upvotes, 1 direct replies
I have no idea :)
Generally speaking, I interpret it to be contrarian - sell when the price is going to the moon, and buy when others are jumping out of windows. Assuming, of course, that you have done your due diligence to determine that you are investing in a solid asset that will recover the value that Mr. Market is irrationally shedding.
Warren Buffet (who said that quote) is considered to be a great investor because of his ability to analyse businesses and determine fair values, and then purchase/invest in those businesses when the broader market has unfairly / irrationally discounted them.
As for Bitcoin - we don't have a valuation model that fits (or at least I haven't seen one), so "fair value" is impossible to determine. I certainly see the parabola as being "greedy" - and if Bitcoin were a significant/substantial part of my investment portfolio I would be selling & re-balancing at this time.
However - for me it's "fun money". If it goes to zero, my retirement is not impacted. If it goes to Mars - then my retirement might come early :) And everything in between, I'm just going to hold until I have a better use for those funds.
For example - I could cash out now and pay off my car. That'd be nice, but it wouldn't change my life. If it hits $100k+ in a year (or two, or three) - where I can then cash out & pay off my house -- that's a much more compelling offer that I would probably take advantage of, because that would have a huge impact on my living situation.
To each his/her own :)
Comment by audigex at 30/11/2017 at 13:27 UTC
1 upvotes, 1 direct replies
Right now I'd count most as fearful: People are a little nervous about a correction or crash after such a meteoric rise in the last month.
But that's a big generalization... perhaps that word "Nervous" is the most accurate