Anyone Invested in crypto?

[CHCRandy]

Yeah; GE makes fabulous jet engines, great diesel/electric locomotives and really good power turbines for all kinds of electrical generation. Unfortunately, like Caterpillar, they are vulnerable in the heavy equipment area to whipsawing of infrastructure spending worldwide. Those industries could certainly do better standing alone, as could their capital services arm. There are likely other bright spots that I'm not aware of also. It just seems somehow that good division level numbers get sucked up into the giant mess the company had become and disappear. I held GE previously much longer ago buying in just sub $30 with the strong belief nothing was keeping it from going to $50. A number of years later, when I ran out of patience, I just barely got out of it without loss - selling for just over $30. I consider it one of my investment mistakes, as I invested based on a belief/feeling that was not underpinned by fundamentals

I like the following article from seeking alpha on the potential for a full blown financial crisis, it brings in data from a variety of sources and the interpretation of those and the conclusion resonate for me. I'm older and invest largely in quality dividend paying stocks. I invest in stocks rather than funds because a quality stock with a good reliable dividend history is one of the first things to begin recovering after a correction (because of flight to quality) and is still paying me income at the same rate, regardless. I have no intention of selling unless I'm forced to, so I largely don't care about the underlying price of the stock as I am not leveraged and am predominantly interested in the revenue stream. If I am DRIPping, then lower asset price just means accumulating more shares faster. You need to own the stock rather than a fund, though, to truly buy and hold. A fund manager may sell
quality assets for a variety of reasons unrelated to their long term potential

https://seekingalpha.com/article/4209026-another-financial-crisis-coming-investors-need-know

It takes some time to build a solid position in this type of investment, but it's never too early to start and the Graham/Buffett method gives you a way to determine a target price to buy in at which I find invaluable. For some assets such as GE, which I never considered lifetime holding, I periodically readjust the price that triggers a sale of the asset upward as the share price rises. You want to stop loss/preserve profits but give it some ways to fall on volatility without triggering an unwanted abandonment of the position. In the example of GE, the steady fall generated by the talk around reducing their dividend in 2017 would have automatically triggered the life boats

I apologize if some of this is below the level of your investing acumen, I just really wanted to fully explain my position. I often set up for a full blown bear market buy setting a buy order at a certain level under my sell order so that if the drop is hard enough and I like the investment enough I essentially recreate the original investment and take some money off the table. That usually doesn't work in a correction as the drop isn't sharp enough. And by letting the algorith do the buying and selling at points i've leisurely determined after much thought, I never have to respond immediately to anything short of 2008 level chaos and i sleep much better at night. YMMV


ETA: Keep an eye on the level of corporate 'junk bond' quality debt as well as who is aggregating it and who is buying it. If anything recreates the sub-prime crisis, I believe it will come from that sector of the market. Another worry just barely on my radar would be more irrational market behavior than usual that is algorithm-based, such as a flash crash. With my use of buy and sell orders they could potentially cost me money for no good reason. As a larger and larger part of trading goes algorithm based i expect if someone knows enough about the minute of particular algorithms, and has the right leverage, the entire market could be vulnerable to significant mischief. The P&G flash crash (2010, I think) is a good example of this. If a bad actor knew what was coming and had the right orders in place on a machine/connection that could execute fast enough, they could sell a huge position in P&G, rebuy the same position for around half as much and pocket the profits.

Man I really appreciate you taking the time for that reply. You sound a lot like me in your thinking. I love nice dividend stocks. You are dead on about flash crashes and such. I day trade quite a bit and follow buying groups in chat, there are a few of them guys who create rapid trades on a daily basis, multiple times. They will call the ticker and by the time you put it on scanner it is already heading up, they will run them up 20-30% or sometimes 100% and within 20 minutes it is back where it started. They use $100,000 to trip scanners then computers take over the buying and they dump it as computers are buying. I guess guys shorting works about the same way, I hear of that happening a lot, but I never short stocks. Thanks for the link and for your time.

 

[BugI02]

You're quite welcome. I am quite skeptical of the blockchain coins because what moves pricing is nearly opaque and they're vulnerable to unpredictable risk of adverse regulation. When I look at the risk v reward matrix I can't see any quadrant I really want to play in

 

[Phase2]

For anyone interested, NewEgg has a really good deal on the Ledger Nano S crypto hardware wallet: $50 + get a $5 gift card. These are normally $100 and I got mine on sale for $90 earlier this year. Sale ends tomorrow (Sunday). Can be used to securely store Bitcoin and many other cryptos. More info here.

 

[Caleb]

https://gizmodo.com/crypto-exchange-says-it-cant-repay-190-million-to-clie-1832309454/amp

Oops...that's going to tarnish crypto currency a bit... $190 million down the drain...

 

[ArcadiaGP]

Whoa... LTC has taken a bit of a jump

 

[jd4320t]

Yeah a bit lol

 

[BugI02]

https://www.investinblockchain.com/crypto-analyst-1800-bitcoin-btc-50-ethereum-eth/
Prominent Crypto Analyst Prepared For $1,800 Bitcoin (BTC) And $50 Ethereum (ETH)

 

[GlockRock]

Man am I glad I didn't drink the Crypto Koolaid when everyone else did....

 

[2A-Hoosier23]

Man am I glad I didn't drink the Crypto Koolaid when everyone else did....

I'm glad I drank it before most people did

 

[NKBJ]

Two thoughts...
1. Iran is introducing a gold backed crypto and historically going into competition with our lead backed currency isn't successful.
2. I'm waiting in expectation to see how Neo works for China.

 

[CHCRandy]

What do you guys think about LTC? It don't seem to be near as volatile as BTC. If you were going to only buy one type of coin, what would it be?

 

[Phase2]

Only one: Bitcoin. There are a number of second-tier/good options (and the list is endlessly arguable) like Litecoin, Ethereum, etc. But Bitcoin is by far the leader in current acceptance, amount of developer support, mind-share, institutional investment, etc. If you are starting on cryptos, I'd start there and only look at others as you invest more and want to diversify and participate in other interesting projects. There are many such interesting projects, but I'd consider them all higher risk of failure in the long-term.

There are over 2000 cryptos tracked right now. Quite a few have already died or are effectively dead. Well over 90% of the current set will likely die over time. Bitcoin is the most conservative crypto option, though even Bitcoin is far more speculative than most standard investments. Invest accordingly.

 

[Jeepfanatic]

I'm only investing in circulated buckwheat pennies!

 

[Jeepfanatic]

Somehow it duped

 

[hoosierdoc]

Just checked my holdings of SAFE. I think it’z Worth about 1 btc at the moment.

my CMM is worth about .18btc

my life is better since I quit obsessing and blowing money on it

 

[ArcadiaGP]

whoa big jump at midnight last night

 

[nra4ever]

When it gets back to $17k let me know so I can get my money back. Lol.

 

[Kutnupe14]

What do you guys think about LTC? It don't seem to be near as volatile as BTC. If you were going to only buy one type of coin, what would it be?

Litecoin is legit. Charlie Lee, the creator, is one of the movers in the space. It's the "silver," to bitcoin's "gold."

 

[BugI02]

What do you guys think about LTC? It don't seem to be near as volatile as BTC. If you were going to only buy one type of coin, what would it be?

Kruggerands

 

[Thor]

Kruggerands

Ammo.