Should You Be Worried About This Selloff?

Over my years of investing in business, people, stocks and crypto is how short sighted a large majority of people are. Right now panic is setting in on both the stock market and crypto worlds because of a new covid strain that could cause for more shutdowns.

Can the world/governments afford another shut down?

In my opinion no and the thing we all need to realize now is that this virus will be with us for a long time. Studies have also shown that the harsh impact of the world we live in right now is a direct result of the shutdowns and very little with the virus itself. Another shut down would render us into a depression for sure. Yeah depression not recession we are only about 4% away from numbers of the great depression back in 1929-1939 which was a GDP of 26.7% and a global unemployment rate of 24.9%. Where we stand now? In 2020 we hig a negative 30% GDP a huge hit but some how spiked the next month after. From there our GDP seems to be around the upper 10% range the global unemployment rate is at nearly 7% personally I feel these numbers are higher and no longer truly tracked as they once were.

The Short Term Thinking

The short term thinking to me is gambling. You're literally better on what tomorrow might bring on pure speculation. This short term thinking will often be based on emotion over anything else. As the market sells your guts going to tell you to get out now before you lose more and in reality you most likely would be better off buying more and changing up your break even to a lower amount.

Long Term Thinking

With longer term thinking you're now focusing in on researching yourself and making your best educated decision based on it. It's with this the long term hold shows it's power. Its far easier to right now buy a crypto you've been researching and watching for a while and buying it up on a dip such as this. That even goes for the stock market. I can't even tell you how many great dividend paying stocks I picked up a year and a half ago when there was a huge sell off from the shutdown. Those stocks have doubled in price and with it many of the dividends as well from those all time lows.

By taking the long term investing mindset you can clearly see that just a year ago bitcoin was at $10,000. It is now well over $50,000 a 500% increase in just one year. Take it out even further then that and even if you bought during the highest point in 2017 you'd still be up nearly 200% in 4 years! That's 50% a year and that's seriously hard to come by in the stock market and you should consider that a huge win!

*This article is not investment advice and is for entertainment purposes only. Do your own research and consider the risks before invest. But most of all own up to your choices and take responsibility for your own actions.

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