Clem Chambers is CEO of Online Blockchain plc, the UK's leading listed blockchain research and development company. He is also founder and former CEO of stocks, shares and cryptocurrency website ADVFN.
"With the euro markets - and particularly with the UK market - there's a very obvious trend down; not a crash but a bear market grind down. It is quite possible that could go on for another two to three years. Meanwhile the American markets are ludicrously high and it’s a few gigantic stocks driving the indices. The prices of various companies are utterly ridiculous; look at Tesla, it’s worth five times Ford and GM put together. Something is fundamentally wrong and to me that’s prognostic of a crash.”
I say put your assets into 33% cash, 33% stocks and 33% gold/crypto, but that might be rather dramatic for many people. So, here is a thought for the cash-loving who idolise their regal cash and would be sad to part with it, even while the spectre of inflation looms...
Spread your cash as follows: 33% USD (probably the most inflation prone), 33% euro (printing but not like the confetti folks at the Fed) and 33% yen (Japan practically invented deflation, and for a good reason (spoiler): they like it.
https://seekingalpha.com/article/4374558-global-money-printing-press-ways-to-protect
The market is meant to be a super-efficient valuation mechanism but it appears to be broken. In a nutshell, a company the scale of Berkshire Hathaway should not be performing this way. The stock market has lost its ability to value companies and is now a warehouse for cash.
The next 4-year cycle is a self-similar extension of the action of 2017-2018 and this appears to be repeating now. My strategy is to buy, hold, sell the bubble and re-enter after the crash - it’s a waiting game. DeFi and NFTs will also implode and re-emerge like so many post-dot.com crash Amazons. Crypto moves in the coming weeks will involve the risk of large percentages of downside. Dangers of the short term and the potential of the long term cannot be overstated.
Bitcoin's trading pattern is "boom, bubble, bust," and right now, we are in a bust, with prices likely to go a lot lower before eventually surging to new record highs, said Clem Chambers of InvestorsHub. The popular cryptocurrency is in the middle of a major correction that could see prices touch as low as $20,000. The drop will be followed by "a crypto winter" — a period when prices remain stagnant, Chambers told David Lin, anchor for Kitco News.
Why is dogecoin doing especially well right now? The answer is simple and will be key for the whole crypto space.