Market Madness: Reality vs. Theory
Lately, some of you have asked why I keep buying Bitcoin and the S&P 500 ETF when many experts say the market is too expensive. This Monday, we saw a big market drop, and people started worrying about a recession. This shows us something important: what people say and what actually happens can be very different.
We all know the saying, 'Buy low, sell high.' But figuring out the best times to buy or sell is really hard. Most of us can't predict the market perfectly.
So, what's a smart way to invest? Pick investments you believe in and invest in them regularly. This is called dollar-cost averaging. It helps you avoid the stress of trying to time the market perfectly.
Even top investors follow this advice. For example, Ray Dalio, one of the smartest investors, has a lot of money in the S&P 500 ETF. This shows that even he thinks beating the market is tough. Here’s a snapshot of his portfolio:
Market Ups and Downs Are Normal
Remember, the market goes up and down. It's normal. Corrections and drops happen, and they're part of investing. They can be scary, but they also bring opportunities if you stay calm and stick to your plan.
By investing regularly in things you believe in, you build wealth over time. You won’t have to worry about daily market changes. Just stay focused on your long-term goals, and let time do its work. That's exactly why I continued buying more of my favourite ETF and Bitcoin this Monday when all the news want to make us believe that a global recession was upon us.
Stick with it, and trust the process.
Cheers,
Kai
From Crash to Recovery: Understanding Market Volatility
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