Markets at All-Time Highs: Time to Worry About a Crash?
Financial news loves to talk about crashes, but let's be real: nobody can predict them. Market dips are normal. Prices go up, then down a bit, before rising again. If you look at the last five years, stocks and Bitcoin are still on an upward trend.
The Hidden Driver: Money Printing
Asset prices often rise when governments increase the money supply. Since 2020, the U.S. dollar has lost roughly a third of its purchasing power. Because cash is worth less, assets like Bitcoin, stocks, and real estate can act as a shield against rising costs. In short, when the money supply increases, asset values tend to follow.
Education and Wealth Disparity
It's kind of scary that almost half of Americans keep most of their savings as cash. Inflation eats away at those savings over time, while people who invest usually see their wealth grow. The wealth gap isn't just about how much money people have; it's also about knowing how to handle finances. If you don't invest, you risk falling behind.
Stocks vs. Bitcoin: A Bold Comparison
The S&P 500 has doubled since 2020, which sounds great. Yet, compared to Bitcoin, it's down almost 90%. Many are starting to see Bitcoin as the new standard. If your investments aren't keeping up with Bitcoin, you might be falling behind.
Are Stocks in a Bubble?
Some people worry that stock prices are too high. But when you look closely, that might not be the case. The big tech companies known as the Magnificent 7 actually seem less expensive now relative to what they earn than they did earlier this year. Artificial intelligence is helping these companies become more efficient and profitable, which is leading to genuine expansion. So, it's not just talk, there are solid reasons for their success.
Bitcoin’s Role as the Hardest Asset
Bitcoin stands apart as the hardest asset in the system, designed to resist inflation and endless money printing. Whether or not governments adopt it on their balance sheets, adoption keeps growing worldwide. As long as fiat currencies lose value, Bitcoin’s long-term trend remains upward.
The Real Risk: How Investors Act
Over the last 20 years, average investors only made about 3.6% annually. With inflation hovering around 4%, many people actually lost money, even when the market was doing well. What’s the reason? Fear-based decisions. Many people sold their investments too soon, while wealthier investors stayed put and watched their returns increase.
Diamond Hands Win: The Key to Investing
The biggest risk isn't market crashes but letting fear control you. Short-term dips always happen, but long-term trends are driven by money and more people getting involved. The real winners are the investors who stay calm and stick to their plan. Diamond hands always beat panic selling.
