I want an alternative, high interest savings accounts and CD used to be a good safe place for some savings, now your losing value relative to inflation.
A mixed portfolio makes no sense. Nobody has a pension, everyones retirement is in the market, none of this seems good to me long term, all very fragile.
Either your in stocks or Bitcoin at this point or your at negative rates relative to inflation.
It seems almost absurd that the world can end up in a state where it is impossible to invest capital in a way that provides any significant return at all. All is relative, but people still want to eat and get shelter from the rain.
There's certainly some potential for growth and returns still available when companies reach this stage, but the lion's share is taken out already. The index funds are also often at the ass end of this phenomenon, buying in only at very high valuations. The most absurd example happening a week ago, with Tesla entering the S&P500 as the sixth biggest company.
I'd like the possibility of investing in a fund of unlisted companies. The growth sector that's not represented in the major indexes is far too big to ignore. I try to compensate by having a portion of my wealth in "small cap" companies, but there is still a very significant sector that's completely missing.
It's pretty obvious. You don't have to invest that money in the same country where that money was created in the first place. If you exchange USD for yuan and the Chinese exclusively buy US assets with their newly acquired USD then there is no reason for workers to produce anything in the US. The factory can be in China after all.
In theory you could build housing with that money and employ construction workers but that is crazy talk in the US.
There is no incentive to save, but alternatively, it also pushes interest rates on mortgages to near zero which increases the demand side by opening up home ownership to people that before couldn't afford it which pushes up prices.
The same occurs with stocks, with no returns in other asset classes everyone floods in to stocks and pushes the prices higher.
This is definitely the new normal going forward, because you can't increase interest rates without dramatically reducing purchasing power, which in turn leads to slow down across many areas of the market.
Someone at Wall Street must have thought of that and pitched the securitisation already. Think about it - large companies agreeing up front to spend a minimum of X billion a year buying back their stock. And then WS banks parceling both sides of the risk and exposure to investors seeking anything with non-negligible yield.
"And that could explain why investors don’t shy away from stocks even at record valuations. There are simply no alternatives."
To be honest all that excess of money should be invested into renewables. No country can have too much renewables because they are low maintenance. The excess energy can be used to create more profitable employment opportunities.
Do not recommend a novice doing this. Like someone below has mentioned there are numerous exchanges now that will gladly serve as your gateway into bitcoin.
Just remember though, if you not in control of the private keys securing your wallet, it isn’t your money.
Do not blindly believe cryptocurrency exchanges are not running a fractional reserve. Without a transaction I’d on the bitcoin network, it never happened.
FWIW I started in bitcoin trading for anything in a chat room on irc. The landscape has changed significantly since.
Kraken, Gemini, and Coinbase are all quite trustworthy, if any of those are available in your locale.
Buying and holding for 4+ years has produced amazing gains in Bitcoin since its inception. Trading often and fooling around with alt coins has caused many great losses and pain. Don't invest more than you can stomach losing or holding in the red for a few years.
I am a US citizen. I have fully complied with tax law as I understand it. To my knowledge, I’ve never been involved in any darknet marketplaces. I’ve seen an opportunity much sooner than my peers.
I have been waiting for the current price volatility since the last ATH spike in January 2019 since exiting a majority of my bitcoin positions. The block reward halving last summer combined with an ever increasing mining difficulty is a no brainer to me. Good luck
There’s 7000 shitcoin trading on an infinite number of shitcoin exchanges providing infinite liquidity; that’s what I see. What is there to stop bitcoin?