Panic August 26, 2024 | [Listen Online]( | [Read Online]( [Teeka Tiwari]( & Sam Volkering [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20The%20Digital%20Asset%20Daily&body=Here%E2%80%99s%20Why%20the%20Market%E2%80%99s%20Worst%20Days%20are%20the%20Best%20Days%20to%20Buy%3A%20When%20the%20Fear%20Gauge%20Rises%2C%20So%20Does%20Panic%0A%0Ahttps%3A%2F%2Ftiwariresearchgroup.com%2Fp%2Fheres-markets-worst-days-best-days-buy) Teeka intro: Friends, itâs with great excitement that I introduce you to the newest member of my team, Sam Volkering. Like me, Sam has been following crypto for years. Since 2010, heâs become a global authority on the fast-moving world of crypto. Having spent more than a decade in crypto markets, Samâs been a pioneer in helping individual investors understand and invest in this emerging asset class. Heâs written two books about crypto, Crypto Revolution: Bitcoin, Cryptocurrencies and The Future of Money and The Crypto Handbook. I recommend both for anyone who wants to deepen their understanding and involvement in crypto markets and digital assets. Sam brings a wealth of knowledge about this growing industry and 30 years of experience in the stock market to Digital Asset Daily. Iâm sure youâll find Sam a valuable addition to my team. Now, let me hand it over to him⦠Hereâs Why the Marketâs Worst Days are the Best Days to Buy August 5 was one of the worst days in market history. I believe itâll also go down as one of the best buying opportunities in history, too. I know it seems paradoxical. How can one of the worst days in market history be the best day to buy? Iâll give you the answer in a moment. But first, let me introduce myself. My name is Sam Volkering, and I was Teekaâs senior analyst at his previous flagship newsletter. Iâm glad to rejoin him here at Digital Asset Daily. My main job is helping Teeka identify massive new trends in the crypto and equity markets that can help move the needle on your net worth. Youâll get more familiar with me over the coming weeks and months as I share our best ideas with you in these pages. And as an incentive for those of you who read to the end of this essay, Iâll even give you a preview of three of the big trends Teeka and I are following right now. Now, back to the question at hand⦠When the Fear Gauge Rises, So Does Panic The paradox began on August 5, when the CBOE Volatility Index (VIX) surged to 66. It was the third-highest level in the history of the VIX â trailing only the levels we saw during the COVID-19 crash in 2020 and the 2008 Financial Crisis. I wonât get into all the details about the cause of the crash here. But many market analysts blamed the volatility on the unwinding of the Japanese yen âcarry trade.â (Teeka explained how the unwinding of the yen trade caused the brief bout of market volatility in a video update. Paid-up Inside Crypto subscribers can watch it [right here.]( If youâre not a paid subscriber, you wonât be able to access the video.) The VIX is often referred to as the marketâs fear gauge. When it spikes significantly, that means something serious is afoot in global finance and a mass sell off is imminent. And thatâs what happened on August 5. U.S. stocks suffered their biggest rout since 2022⦠Bitcoin had its worst performance since 2022. Even traditional safe-haven assets like gold were in the red. At one point during the mayhem, you couldâve bought Nvidia stock for under $91 (down from around $120 just days prior) ⦠Meta traded as low as $450 (down from $527). And Tesla traded at $182 (down from $232). The intraday swing for MicroStrategy was over 30%. Those four companies alone bled over $1 trillion in market cap on one day. So I canât blame you if you saw it as a sign of the apocalypse. Hereâs the thing⦠Today, those four companies are almost all back to the levels they traded at before August 5. And the S&P 500 was close to hitting its ninth consecutive session high â the longest winning streak since 2004. Below, Iâll explain why scary moments like these arenât the end of days⦠But rather immense opportunities â if you have the courage to profit when others panic. The Worst Market Days are the Best Days to Buy I know it sounds counterintuitive⦠But the worst marketâs days are the best days to buy. If you can wrap your head around that idea, you stand to make a lot of money. Below is data from JMG Financial. It shows the perils of missing out on the marketâs best days. As you can see, not buying the market when itâs puking out its guts is costly. Letâs say you start with a $10,000 portfolio. Over 30 years, hereâs what happens if you miss the best buying days: â Fully invested over 30 years: You make $208,215 â Missed 10 best days: Your return drops to $95,390 â Missed 20 best days: Your return drops to $56,301 â Missed 30 best days: Your return drops to $35,785 Just missing the 10 best buying days could cost you almost $100,000 in lost profits on a $10,000 starting portfolio. So if youâre the type of person who gets the heebie-jeebies when volatility rears its ugly head and goes all cash or, worse, sells into panic⦠Youâll do serious damage to your long-term wealth. The best strategy for the long-term investor to take is to always remain invested. And, when the market swings wildly, prepare to strike. Three Steps to Mentally Prepare Yourself Selloffs are a natural part of the market cycle. Sometimes thereâs a clear reason behind them (like the yen âcarry tradeâ) ⦠And sometimes they just come out of nowhere. Investors who are prepared for these selloffs benefit over the long term. I know investing in volatile markets is scary. But here are three simple strategies you can follow to help you get through these wild and crazy moments. â Just buy something. When I say, âjust buy something,â I donât mean randomly throw darts at a board of stocks and pick whatever they hit. On volatile days, youâll see nearly every stock trading lower. With so many stocks on fire sale, how do you know which to buy? To break through indecision, I created a watchlist of stocks and cryptos Iâd love to buy at cheaper prices. When volatility strikes, I just go to the top of the list and start there. This comes back to my original point of being prepared. Have a clear understanding of the investment themes youâre building your portfolio around. The assets driving those themes are the ones you want to buy during a selloff. â Turn off the news and stay off social media. The media thrives off click-bait. And thereâs no greater click bait than negative news. When fear, uncertainty and doubt (FUD) reign in the market, the media has a field day. The only thing you need to pay attention to are fundamentals. If the fundamentals are intact, then the price will inevitably reflect that. External noise is a distraction. Turn it off. â Donât try to perfectly time your entry. Trying to time the market is a foolâs errand. If you are in the right trends, just stay invested, and strategically buy more on weak days. There are some strategies like dollar-cost averaging (DCA) which is a perfectly reasonable way to approach buying. DCA is when you invest the same amount of money in an asset at regular intervals over a certain period of time, regardless of price. This strategy helps you lower the average cost per share and reduces the impact of volatility on your portfolio. In short, DCA eliminates the need to time the market to get the best prices. Thereâs also plenty of evidence to suggest that you just buy when youâve got the capital to deploy and donât worry about the time or date. Armed with this info, and now ready to go for the next selloff, let me tell you the three themes weâre monitoring for the remainder of 2024. Three Big Themes for Long-Term Investors Now that Iâve given you three steps to prepare for the next market selloff, the only thing left to do is reveal the big three themes weâre focusing on. Iâve been working on these ideas with Big T for a while. And in our view, you need to get up to speed on them. â AI Landlords: By 2030, artificial intelligence (AI) is projected to contribute over $15.7 trillion to the global economy. And itâs forecast to create 133 million new jobs by 2030. While most investors will focus on the sexy AI software stories, you have to store and process all that data somewhere. Thatâs where AI Landlords come on. These are companies that own the critical infrastructure needed to power AI. The âpropertyâ these landlords own are data centers and hardware factories. The sexy software companies will pay the AI landlords handsomely for access as AI power and storage demands grow exponentially. â Cloud 2.0: The âcloudâ is where companies and individuals store all the data we use on our smartphones, computers and other connected devices. Itâs also where generative AIs such as ChatGPT⦠and self-driving cars⦠crunch all their data. Tech giants like Amazon, Microsoft and Google dominate this space. But thatâs changing with the new cloud, or what we call Cloud 2.0. The new cloud will be powered by AI that can process and understand data in a more natural, human-like way. Theyâll be so good at it, that itâll be nearly unrecognizable from human interaction. It will automate and streamline your life, from organizing your daily routine to planning that next big family vacation. The companies that own Cloud 2 will own the digital world⦠And youâll want to own a good chunk of their stock. â The Healthcare Revolution: According to the World Health Organization, 1 in 8 people live with obesity. If prevention and treatment donât improve, the economic impact could hit $4 trillion by 2035. Weâre seeing that type of prevention and treatment hit the market now. Ozempic is a weight loss drug phenomenon. The maker of the drug, Novo Nordisk, has seen its shares quadruple in five years. And itâs now the most valuable company in Europe. Ozempic is in a class of drugs known as GLP-1. According to market research firm Nova One Advisor, the market size of this sector is forecast to grow from $1.54 trillion in 2023 to $5.68 trillion by 2033, This trend is already minting fortunes for early movers like Novo Nordisk and Eli Lilly. But this is just the beginning. Weâre on the verge of a health revolution bigger and potentially more profitable than Ozempic. The companies poised to profit are must-haves for any portfolio. Over the coming weeks and months, Iâll expand on these multitrillion-dollar trends and how weâll help position you to profit from them. And if you follow my advice above, youâll be locked, loaded and ready to act. Until next time, Sam Share The Digital Asset Daily You currently have 0 referrals. [Click to Share]( Or copy and paste this link to others: [ [fb]( [tw]( [ig]( [yt]( [in]( Update your email preferences or unsubscribe [here]( © 2024 Tiwari Research Group 1607 Ponce De Leon Ave
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