The media want to rah rah rah about a crypto bubble. Maybe the are right, maybe they are wrong.
What I want to do is look at a nameless chart before discussing what asset it is to provide some perspective.
Over Extended Price Action
This chart is a weekly time frame dating back to 2008. Since that time price has been on a 45 degree angle higher almost like clock work.
Just glancing at it most "talking heads" would say it looks like a bubble, especially over the last year.
Can you guess what the chart is?
Survey Says!
- It's the S&P 500 from the good old U.S. Stock Market
If you are not aware - the S&P 500 represents the 500 largest companies listed on the stock exchange.
Do You See What I See?
The S&P 500 has gone higher eight straight years. Yet not much talk of a stock market bubble?
This is a daily chart of the S&P 500 showing the past two years. Basically a 100% return from a market index ETF. That is just sick returns historical for a market index. Usually you need to pick stocks to see that....nope, the entire market is doing it.
Again, no real bubble talk out there - interesting.
Bubble
That is why I'm amused by the term bubble especially when it comes from the media.
Crypto which is still in the early stages of growth is in a "bubble", but the U.S. stock market is seemingly not???
Conclusion
This isn't to say that the entire crypto market cannot come crashing down or that the U.S. stock market cannot keep going up. If there is one thing I have learned in nearly two decades of investing is NOTHING HAS TO HAPPEN. No matter how much you think it should.
However, to extend off my last post about paying mind who you take advice from - also pay mind to the investment themes being imposed by the masses.
Wanna Learn How to Read Crypto Charts and Invest Like The Cat?
These Videos Teach You The Three Simple Things I Use:
https://tradingeducationblogs.com/scg-crypto-investing/
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Best Regards,
