|BITCOIN Vs USD|
Down 51% in 5 Days
In just the last five trading days Bloomberg's BITCOIN INdex has dropped almost 51%.
That's an average of 10% per day!
Could this be the start of a Bear Market?
"A bear market is a condition in which securities prices fall and widespread pessimism causes a downward spiral to be self-sustaining. Investors anticipate losses as pessimism and selling increases."
I warned investors not to get involved recently when I saw the typical greater fool theory come into place where inexperienced, naive fools were walking into an area where primarily, sophisticated investors had ventured before.
A strong indicator of any balloon market in the future will be every time you see a multitude of Facebook posts with most advising to buy or sell an investment that will be the time to sell or buy the investment.
Possible another Up move:
Now that there is a futures market for BITCOINS the big money may jump on this bandwagon and probably try to push it back up to new highs.
But sooner or later there won't be any fools left and it would then have the worst crash of any investments in history.
Can you imagine if you were a person living from month-to-month and you took your life savings, because you finally got tired of hearing your friends bragging about the BITCOIN profits and you invested last week and now you're down 50%. Many sold already in a panic.
Will they likely go back in after they lost all their available cash.
Many friendships will dissolve as a result of poor advice from friends to buy BITCOINS. I may even lose a few friends for even posting this because they believed that it would go on forever.
I was even hesitant to post the last several weeks that I felt that the bubble was going to burst for their sake but I can't be biased because of a few friends owning BITCOINS.
My goal in the future is to be an advisor to many more people based on my 40 years of investment experience.
And don't think the other Cryptocurrencies will be immune.
Precious Metals Surge :
In the meantime one of my favorite investments, Silver which as my readers know I loaded up on heavily at $15.50 to $15.75 the last couple of weeks ago is now sitting in $16.40. With leveraged accounts I am earning huge profits.
Silver is a good long-term investment when you buy it below $20 an ounce. In my professional opinion it is a no-brainer.The beautiful thing is anybody can afford to buy it, unlike BITCOINS One ounce of silver can be purchased for as little as $18 - $20 per ounce.
As I sit up on a Canadian mountain skiing this week and looking at the world literally from outside the forest I am starting to see signs of inflation picking up heavily next year.
Inflation can be your friend or your enemy it all depends where you put your money.
Inflation is like the tide it raises all boats.
It will raise the value of tangible investments, things that you can touch and feel such as real estate, precious metals, diamonds, coins and collectibles.
It will sink the value of intangible investments such as stocks, bonds.
Next year may very well be the beginning of the end of the stock bull market that I predicted in February 2009 which has now had one of the longest bull market runs in history.
The Trump rally will probably end as Trump falls from grace under the burden of official FBI investigations into his possible collusion with Russia in the elections.
Even more dangerous I believe will be that many women may come out of the woodwork and accuse him of sexual crimes.
It may be the beginning of the end for Trump and America which means the American dollar will probably continue to fall. Therefore anything that will benefit from a American dollar fall will rise.
Stay tuned for further predictions for 2018 in the coming weeks as I literally look at the forest from outside the trees.
My family and I wish you a very very Merry Christmas .