(17-12-2017, 04:09 PM)corydorus Wrote: [ -> ]What can we do to protect ourselves from our exposure in stock market ?
Depends on your long term investment style. If you are passive dividend investor or those that just buying index then really there is nothing to do as in the longer term all markets will rise eventually.
if bitcoin and friends market cap really go beyond 1 trillion USD over next half year, then potential for crash is there which will hit all markets. Best way to protect is to have cash in hand to pounce on cheap stocks when sentiment is poor and no one is buying.
STI is already 3400, not too far off from last highs of 3500+. IMHO keep >50% of portfolio in cash is the way to go. Once elephant gun loaded, no need to worry about exposure liao hehehe...
(19-12-2017, 05:47 PM)BlueKelah Wrote: [ -> ] (17-12-2017, 04:09 PM)corydorus Wrote: [ -> ]What can we do to protect ourselves from our exposure in stock market ?
Depends on your long term investment style. If you are passive dividend investor or those that just buying index then really there is nothing to do as in the longer term all markets will rise eventually.
if bitcoin and friends market cap really go beyond 1 trillion USD over next half year, then potential for crash is there which will hit all markets. Best way to protect is to have cash in hand to pounce on cheap stocks when sentiment is poor and no one is buying.
STI is already 3400, not too far off from last highs of 3500+. IMHO keep >50% of portfolio in cash is the way to go. Once elephant gun loaded, no need to worry about exposure liao hehehe...
if the global banking system did not have any concentrated lending to people to trade bitcoins/cryptos, bitcoin price crash to zero also wont hit other markets. Maybe 1-2 days...
bitcoins bubble just one of many manifestations of the 'animal spirits' . massive liquidity + 'animal spirits' = bubbles..
dont know about SGX stocks. HK stocks seems bubbly. HK market tends to go way overboard during bubbles.
I
guess we are going to the 'cash is trash' phase in 2018..
If the stock market will crash then there is no need for the crypto asset game. Everyone say stock market will crash soon then who is throwing money in to create the bubble?
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(19-12-2017, 10:29 PM)Life is a game Wrote: [ -> ]If the stock market will crash then there is no need for the crypto asset game. Everyone say stock market will crash soon then who is throwing money in to create the bubble?
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Well at the moment I think almost everyone is saying the stock market will boom. It's mostly positive sentiment all round the world with stock market hitting highs.
My take is that the first boom in the crypto bubble was when it was catering a lot for the need of money laundering.
Now it is probably getting all the excess liquidity coming off the QE done by PBOoC/ECB and BoJ as the bubble builds. Actually it is a little reminiscent of the days of the Nasdaq tech crash almost 2 decades ago. back then it was tech stock like Yahoo crashed from like $800+ to <$20. And $1.7 trillion+ was wiped off tech stocks.
That's why i think it will take crypto market cap to reach over a trillion before there is danger of a big crash from it spilling over to other financial markets. I believe with futures trading that might eventuate. Ability to trade derivatives will likely cause even larger price swings in either direction.
Anyways just watch and see, I've seen enough bubbles in my time, one more is not going to make any difference. Just becareful when the kopitiam auntie and the taxi driver start talking about how much money they make trading bitcoin.
== bitcoin no enough!! == ;P
(19-12-2017, 11:44 PM)BlueKelah Wrote: [ -> ] (19-12-2017, 10:29 PM)Life is a game Wrote: [ -> ]If the stock market will crash then there is no need for the crypto asset game. Everyone say stock market will crash soon then who is throwing money in to create the bubble?
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Well at the moment I think almost everyone is saying the stock market will boom. It's mostly positive sentiment all round the world with stock market hitting highs.
My take is that the first boom in the crypto bubble was when it was catering a lot for the need of money laundering.
Now it is probably getting all the excess liquidity coming off the QE done by PBOoC/ECB and BoJ as the bubble builds. Actually it is a little reminiscent of the days of the Nasdaq tech crash almost 2 decades ago. back then it was tech stock like Yahoo crashed from like $800+ to <$20. And $1.7 trillion+ was wiped off tech stocks.
That's why i think it will take crypto market cap to reach over a trillion before there is danger of a big crash from it spilling over to other financial markets. I believe with futures trading that might eventuate. Ability to trade derivatives will likely cause even larger price swings in either direction.
Anyways just watch and see, I've seen enough bubbles in my time, one more is not going to make any difference. Just becareful when the kopitiam auntie and the taxi driver start talking about how much money they make trading bitcoin.
== bitcoin no enough!! == ;P
Yeah Bro Blue. The thing is we need to keep creating new stuffs for money to be poured in else if all the money are flowing into one investment vehicle that would be hyper inflationary and doom to crash. So I'm betting stock market won't crash yet at least in 2018,I may be wrong but since a new asset has appeared and may be able to suck out 1 trillion in future. I'm sure there will be rebalancing of stock market especially those technology stocks and provide a short term stability.
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You are selling a million dollars worth of goods to a buyer who normally paid by USD but this time he wanted to pay you by either bitcoins or gold.
What would you choose if you really want to do the deal?
(20-12-2017, 09:16 AM)edragon Wrote: [ -> ]You are selling a million dollars worth of goods to a buyer who normally paid by USD but this time he wanted to pay you by either bitcoins or gold.
What would you choose if you really want to do the deal?
There is a futures mkt. go lock in the value and in meantime insist on a big hair cut with your customer. Then sell the bitcoin as soon as you get it and close the futures contract.
This cryptocurrency speculation is starting to enter mania phase.
I attended a get together dinner with my university friends last night and quite a few of them just couldn't stop talking about bitcoins or the various other cryptocurrencies throughout the whole night.
There was this guy in particular who is a teacher and from what I gather knows nothing about Finance who put all his savings in Cordano (after googling I found out it was another one of those bitcoin copycats). His enthusiasm was almost to the point of foaming in the mouth and his constant proselytizing from the pulpit made some of us really uncomfortable.
It really feels like CLOB, dot com and gold rush all over again.
There is something exciting going on, especially in the Blockchain technology field, but you are right, I believe the Crypto space is hugely speculative and overheated.
Sounds familiar?
https://www.cnbc.com/2017/12/21/long-isl...soars.html
Quote:$24 million iced tea company says it's pivoting to the blockchain, and its stock jumps 200%- Farmingdale, New York-based beverage maker Long Island Iced Tea says it's changing its name to "Long Blockchain Corp." as it shifts its focus to investing in the technology behind bitcoin.
- Shares soar 200 in the open percent, although the company says it's only in the "preliminary stages" of evaluating potential business opportunities in blockchain.
- The company said it's still going to make iced tea and other juice beverages. As of Wednesday, it had a market value of just $23.8 million.