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HEALTH, WEALTH, AND HAPPINESS

June 28, 2022

"A big diamond necklace is nouveau riche, really. People who have wealth a long time don't wear such things."

- Elsa Peretti

Last day for early bird pricing at Crypto Seminar NYC! Mark your calendars for Sept. 24 in New York City, where Bitcoin Market Journal publisher John Hargrave will be joined by Shark Tank's Daymond John, Unchained host Laura Shin, and SkyBridge Capital CEO Anthony Scaramucci for a high-value day of investor insights and networking.

Order your ticket by midnight tonight with promo code JohnH to get $299 early bird pricing. Register here!

If you stop doing DCA because the market will go lower, you're not doing DCA(Reddit): Dollar-Cost Averaging, or "DCA" (what we call steady-drip investing) is a popular crypto investing strategy. It's getting more popular by the day, thanks to those of you spreading the word.

Most people have problems getting started, but this Reddit user points out that some have the opposite problem: they stop monthly contributions during tough times, waiting for the market to go back up. 

(Courtesy Coinmonks via Medium)

Investor takeaway: We call it "steady drip investing" because we keep it steady, during good times and bad. This is the way to get the long-term average market price, instead of trying to "time the market" (because no one can predict the future).

Keep investing, and keep the faith.

In the current turbulent market environment (fancy words we all use to say that "my portfolio is down"), it's a good time to remember the important maxim in investing - "It's about time in the market, not timing the market." 

In other words, there's a really small chance that a few altcoins will outperform Bitcoin over the next year given the bear market. There's an even smaller chance that you will pick one of them and time the market perfectly. The odds of success are significantly higher by simply buying Bitcoin when it is down and holding for at least several years, growing your investment portfolio. 

We don't know what the future holds, but that doesn't stop human beings from trying to figure it out.

In ancient times, the Romans would look at how certain birds flew to try to figure out if they would be victorious in battle next week. In financial markets, we use various means of determining the future. Astrology and technical analysis are two of the most popular methods I am familiar with, and I am an expert in neither. 

That doesn't stop me from craving to learn more about investing. In fact, I am reading a book on investing right now.

Time in the Market 

The book is "Simple Wealth, Inevitable Wealth" by Nick Murray. It was written before the advent of bitcoin, so it mainly covers investing in stocks, but overall I like the style and strategy the author puts forward.

The most obvious point is that a winning investor picks a strategy and sticks to it, and that time in the market will bear that strategy out. This point is highlighted by the fact that the book and its revision could not have been timed worse.

The first version was written in 1999. I am reading the Third Edition, which again has a forward written on Thanksgiving 2007. It even has these even more poorly time words:

"But by the Fall of 2007 - even amid a significant global credit crisis - the broad U.S. equity market was making new all-time highs."

We all know how that went. In fact, the book and its revision were timed right in the middle of two of the biggest crashes in the past 100 years.

That being said, over time, the S&P 500 index gains over 10% per year. In fact, over the past decade, that's over 14% annually.

The point is this, if one invested in stocks 1999 or 2007, he or she would be deeply disappointed in the short-term returns. But if one held for the past 10 years, one would also have had some of the greatest returns in history.

I Like Boring

My investment strategy in this bear market is simple. It's probably not a huge shocker to announce to you again that I prefer to DCA monthly and ignore short-term price movement. We all have lives to live, and that doesn't mean staying up all night being terrorized by charts on a screen.

When it comes to stocks, I prefer to DCA into the S&P 500 ETF every month.

When it comes to crypto, most of my investment is simply into bitcoin every month. 

It's a long-term plan, and it works for me.

As Warren Buffet once said:

"Somebody's sitting in the shade today because someone planted a tree a long time ago."

 Planting trees is boring, and I like it that way.

Sincerely,

Alexandre Lores

Market Analyst

Bitcoin Market Journal is a daily newsletter that makes you a better crypto investor. It is created by Evamarie Augustine, Charles Bovaird, Mati Greenspan, John Hargrave, and Alexandre Lores.

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