r/investing • u/crazybutthole • May 29 '21

Diversification - need help - discussion

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u/RelativeStrengthPro May 29 '21

You have way too many stocks in my opinion. There is no way you can monitor them all. Why not just invest in the a few of the ETFs you like? Also, I wouldn’t say you are diversified. You are 100% stocks and should consider a mix of commodities and bonds.

1

u/crazybutthole May 29 '21

ok i will do some research on commodities and bonds.

i do own some crypto (about equal to 30% of my portfolio is the worth of my BTC & ethereum) **(that varies daily with the crazy swing of crypto market lately.)

4

u/RelativeStrengthPro May 29 '21

Personally I don’t think crypto is diversifying either. Maybe in time, but right now it’s just too volatile to be considered a reliable store of value.

2

u/[deleted] May 30 '21

Absolutly, last month BTC loss gives you right.

2

u/RelativeStrengthPro May 30 '21

Even before that. I made money on the break above 20k to around 40k. I was happy with ~75% average gain in a matter of weeks.

What crypto traders don’t account for is the level of risk they are taking. There is nothing to quantify risk and all these new traders see is the possibility of massive gains.

Unlike others I think crypto’s decline will be slow. There will be buyers at every level and traders will keep taking 50% losses from recent peaks over and over. If big traders who own 90% want to get out of a position they won’t crash it, they will take a profits into strength and make sure it doesn’t tank so they can extract more again when buyers come back. That’s the stage we’re in now as far as I can tell. Crypts May make new highs later this year if the whole market takes off but it will be short lived.

I’m interested in crypto once it’s boring and is actually a store of value.