Splinterlands SPS vs Equities
Almost since the beginning SPS airdrop, I decided to transfer half of all my SPS out and invest in the stock market.
I don't know anything about stock markets, but found this great App named Easy Equities. This App really makes investing easy, and you can also buy portions of stocks, similar to the crypto market!!
I was wondering how the two investments would compare??
My stocks are now worth R31763.69.
At R15.67 to a Dollar, my stock market value is now standing at $2027.04
My SPS value is standing at $2089.86, which is very similar to my stock exchange value, beating the stocks with about $62.00 (As I mentioned I did not start transferring SPS right from the onset)
What is also interesting is the both the South African and USA market value is in the negative, but the Australian and South African Tax free stocks are positive, giving me a slight negative overall performance.
I must also say that I did invest in high risk tech stocks in the USA market.
I would love to see the comparison in a year or so!!
I believe it is a good strategy to diversify to counteract bad performance in an investment sector.
What I do love, is that before Steem and now Hive, I never had any knowledge of crypto's and I also never had any investments in stocks, now I have both all through my posting earnings.
(I also invested some of my hive in other crypto's and now have a nice spread of investments)
Please give your views on crypto and the stock market and what you think of my strategy to use some of my SPS to invest in stocks.
This is my first post in Leofinance, I hope you enjoyed it and I hope you have a wonderful day, with lots of growth in your investments!!
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Interesting strategy.
It would be great to see what the end of year brings you between the two. I havent seen one use crypto proceeds to invest in equities.
It will be an interesting experiment. Just hope you arent catching a bear market.
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Yes, I think it would be interesting, I actually did catch a Bear market with the USA stocks I invested in, but I knew it was high risk, hopefully it will turn around. The same actually also happened with SPS, as we know it was worth much more in the beginning!!
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The one thing going for the US equities market is that, over the long term, if things are getting bad, the capital flow seems to move into the US.
As bad as it can get, it is worse elsewhere.
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That is why I invested in both the US and Australia, to get out of the South African markets, for in case things turn upside down here!! The SA market portfolio is however doing ok, with people also investing in Gold when things go bad.
Yes but being commodity driven is very limiting. If gold does turn, there goes the resiliency.
It is a volatile world on the markets so it is tough for a while.
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Interesting to see a side by side comparison of the two.
My take is that from a risk management point of view, you really can't go wrong diversifying.
But you just need to consider what you're trying to achieve from your crypto investment.
If SPS truly goes parabolic as some expect, will you have enough to receive life changing money from your investment?
Will you regret that more than if SPS goes to zero and you didn't diversify a portion into equities?
Up to you...
PS: Cool to see you switch it up and post this one via the LeoFinance front-end.
Hopefully we'll see you around the community a bit more! :)
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That is exactly the thing, we don't know what will happen in either the stocks or SPS??
Specially with some of my stocks being high risk stocks. Something like the war affected one of my South African stocks that was performing quite well, as I never new this particular company had large Russian interests!!
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Nice to see your post on Leofinance rynow, interesting how the comparison of both are almost on same level. I know nothing about stock as well, something I should look at.
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Thanks, yes it is quite interesting!!
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SPS in a way is similar to stocks. Both can go up and down, SPS you get APR for staking. I think it will have more usecase for it. SPS is an important part of splinterlands !
I agree, I might even regret my decision later on!!
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