Here’s How You Could Make at Least 90% by Year’s End

Here’s How You Could Make at Least 90% by Year’s End

Sometimes you can be 100% correct about the fundamentals of an investment idea and still get your face ripped off by negative investor sentiment.

Does it mean the idea was wrong?

Well, it depends on your time horizon. If you’re a day trader, then fundamentals don’t matter. All that matters is perfect timing.

But if you have a one- to three-year time horizon, getting the fundamentals right is the only thing that matters. Because it’s the fundamental analysis – whether an asset has enduring value or not – that will bail you out of market sell-offs.

So the key to making money in the markets isn’t so much avoiding sell-offs… Because they happen all the time.

The key is making sure your analysis is so good that the price of your asset will not only recover when sentiment recovers – but go on to hit new highs.

This is my litmus test for a great asset.

I know volatility is inherent to investing. I’m OK with that as long as I know the assets I buy will recover as the broad market recovers.

Here’s what 36 years in financial markets have taught me…

Over the short term, investor sentiment is the most powerful force in the market. But over the long term, it’s the fundamentals of an investment that will win out.

When investor sentiment diverges sharply from the fundamentals… That’s when enormous economic opportunity is unlocked.

Over the last five years, we’ve seen at least four occasions when huge sentiment divergences hit bitcoin. I believe we’re experiencing a fifth divergence now.

I’ll get to that in a moment. But first, let’s look at some previous divergences and the opportunities they presented.

Four Times the Market Got the Bitcoin Story Really Wrong