The markets seem to be nowhere near a bounce as both stocks and crypto freefall; is now the time to buy or sell in the market?
If you’re part of the small percentage that’s in profit, maybe liquidating has come through your mind.
Especially if you’re looking to protect your capital and wait for other opportunities.
But what if your portfolio has suffered significant losses?
Is it best to cut your losses and conserve whatever cash you have left?
This article is going to provide you with perspective on ways to not only protect your cash during this nasty bear market, but also how to identify opportunities to multiply your wealth.
Let’s dive right into it.
Should You Buy or Sell?
Whether you should buy or sell in today’s market conditions will depend on how liquid you are and on your future and current investment plans.
Value investors looking to add stocks to their long-term portfolios could benefit from buying the markets lows, though it’s important to keep in mind that the markets are still susceptible to fall.
Dividend stock investors could also benefit from buying these lows.
Diversified investors who are looking for the next opportunity may want to liquidate positions to have cash ready when the time is right for the next move.
Whether that be waiting for real estate opportunities or other markets to tumble, this will highly depend on an individual’s needs.
With so much uncertainty in the markets at the moment, the best thing investors can do is create a plan to guide their investment goals in the right direction.
Identify what you’re aiming to achieve when investing in the market.
Is it long-term capital gains?
And decide what it is you need to do now in order to meet your investment needs.
Bitcoin Falls Under $16K, Crypto Down
Bitcoin (BTC) fell under $16K on Wednesday.
Peter Schiff warned investors in a Twitter space call to sell Bitcoin today as the cryptocurrency could be headed towards lower levels.
The economists said he does not own any Bitcoin but urges holders to buy back in after a market collapse occurs in the crypto space.
On the other hand, FTX is causing a ruckus as the token falls more than 90% in the past 7 days with nearly 60% happening in the last 24 hours.
FTX investors include:
- Ontario Pension Fund
- Sequoia Paradigm
- Tiger Global
- Alan Howard
In recent crypto news, Binance backed out from saving FTX leaving the crypto on the brink of collapse.
FTX CEO Sam Bankman-Fried said that without more capital, bankruptcy is likely.
Stock Market Rains Blood
Stocks continue to bleed as the Fed struggles to maintain economic structure and institutional investors liquidate the market.
The NASDAQ and SPY have seen improvement in the past month, but economists, CEOs, and media influencers say the market has plenty of room to drop.
Stocks fell sharply on Wednesday, a day before CPI announcements.
Poor consumer reports could cause stocks to fall sharply again.
Traders should trade with caution.
With inflation affecting millions of families and corporations such as Netflix, Facebook (META), Twitter, and Tesla laying off tens of thousands of employees, a recession looms.
Whether you decide to buy or sell in today’s markets will ultimately depend on how liquid you are and whether you’re prepared to face a highly likely recession in the coming months to year.
Creating a plan and identifying what you can and cannot do financially as turmoil hits the economy is your best bet of riding this wave.
Do you plan to buy or sell in the market today?
Leave your thoughts down below.
Related: How to Buy Stocks for Beginners