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February 10, 2022
Fear can lead to opportunity.
Sir John Templeton taught us, “Buy excessive pessimism.”
Or, as Warren Buffett says that a “climate of fear is your friend when investing; a euphoric world is your enemy.”
Even when all seems lost.
Look at Block Inc. (SQ), for example. After losing more than half its value, fear was out of control. No one wanted to touch the stock. However, with SQ as oversold as it was, it was well worth keeping an eye on. Not only did the SQ stock become fundamentally attractive on the massive pullback, it was technically oversold, as well.
In fact, the last time SQ became this technically oversold, using relative strength, MACD, and Williams’ %R, the stock would bounce from about $39 to $280 months later.
After nearly 23 years of trading, I can personally tell you fear can lead to opportunity.
Dow is up another 70 points to 35,710
S&P 500 is up slightly at 4,578
NASDAQ is down slightly to 15,033.25
Gold prices up another $22.57 to $1,830.57
Oil prices are up about $1 to $90.64
There’s been plenty of calls for $100,000 for Bitcoin.
Now, analysts over at FS Insight say it could reach $200,000 by the second half of the year.
“Bitcoin became increasingly correlated with equities toward the end of the fourth quarter of last year and fell when faced with the prospect of central bank tightening,” FSInsight’s Head of Digital Asset Strategy Sean Farrell said, as reported by Coindesk.
If cryptocurrency trading isn’t for you, take a look at mining stocks, like Riot Blockchain (RIOT) and even Marathon Digital Holdings (MARA).
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